Shane Warne’s children are rumoured to be set for the biggest payday of their lives following the sale of IPL franchise Rajasthan Royals.
The cricket icon’s most lucrative business deal has paid off in a massive way with his share in the T20 franchise exploding to be worth an eye-watering fortune.
The Spin King, who died of a suspected heart attacked, aged 52 in 2022, famously acquired a stake in the Royals when he came out of retirement to lead the team during the inaugural IPL tournament in 2008.
Acting as a player, captain and coach, Warne brought star power to the franchise and orchestrated one of cricket’s greatest Cinderella stories when he led the team to be crowned champions of the IPL in the competition’s first year.
It was widely reported at the time, Warne was paid a salary of $657,000 for each of the four years he was with the club before farewelling the team in 2011.
Most significantly to his piggy bank, Warne acquired a 0.75 per cent ownership stake in the franchise for each of his years with the team.
While it didn’t seem like a life-changing amount of money at the time, the IPL’s rise to be one of the richest sporting leagues in the world has transformed Warne’s cumulative three per cent stake into a staggering amount sum that is widely expected to be paid to his children, Brooke, Jackson and Summer.
As of July 2021, the Royals were publicly valued at $340 million, valuing Warne’s stake at $10 million.
However, the team’s value has skyrocketed in recent years and a deal was struck this week for the team to be sold for a staggering $1.63 billion. Converted into Australian dollars, the sum is around $2.3 billion.
That would make a three per cent stake in the team worth around $69AUD million.
However, Warne’s total stake in the team has been clouded after the franchise went through major ownership restructures, share dilution and a two-year suspension from the competition.
More moderate public speculation estimates Warne’s financial windfall would be worth around $25 million.
That sum is expected to be shared evenly between Brooke, Jackson and Summer after the siblings each inherited a 31 per cent stake in the cricket legend’s estate following his death.
It was reported in 2023, the trio would inherit the same portion of Warne’s $20.7 million estate.
Warne left a further two per cent of his estate to his brother, Jason Warne, and 2.5 per cent each to niece Tyla Warne and nephew Sebastian Warne.
They are all set to receive a huge payday when all the paperwork is signed off for the Royals to change hands.
US-based entrepreneur Kal Somani is the central figure in the group that has purchased the team for $1.63 billion.
Somani is the founder of global giants such as IntraEdge, Truyo, Truyo.AI and Academian.
The Somani-led consortium also includes Rob Walton (Walmart family) and the Hamp Family (Ford).
The deal has been six months in the making with a rival bid pushing the franchise’s value up.
Rajasthan has been aggressive in its expansion with the franchise snapping up teams in the West Indies and South Africa. It has also previously been linked with possible interest in buying a BBL team in Australia.
The Rajasthan Royals sale process still needs to be signed off by the Board of Control for Cricket in India.
Acquiring equity in the team is the best business decision Warne ever made, but he never needed the money.
Owning a series of properties across exclusive Melbourne suburbs, Warne easily turned his larger than life character into corporate deals away from the cricket pitch.
His commentary role with Channel 9 early in his commentary career was reportedly worth around $300,000 per year.
During his playing career, Warne signed a $1 million deal with Nike, while he also had deals with Just Jeans, Nicorette, Oakley Sunglasses and food maker SPC Ardmona.
In retirement, Warne was one of the greatest TV commentators and analysts the game has known.
Between his commentary roles with Fox Cricket and Sky in the UK, it was estimated he was earning around $1.5 million per year.
He was also reportedly paid around $2 million to appear on the 2016 season of Network 10’s ‘I’m a Celebrity … Get Me Out of Here’.
It all seems small compared to his family’s potential IPL payday.
