A new team in a franchise cricket league does not simply appear because an investor wants one. It is created through a tender the governing board writes, publishes and then adjudicates.
The tender document is the constitution of the club
Before any bid is taken, the board issues an invitation setting out what is being sold and for how long. The document runs to conditions rather than a single price.
It specifies the term of the licence, the annual fee structure, the home territory and the obligations the winner accepts on entry. Bidders are pricing all of that together.
Because the terms are fixed in advance, competition happens only on the bid amount. That is deliberate, since a board negotiating terms separately with each bidder invites accusations of favouritism.
Bidders are screened before they are allowed to bid
Anyone wanting to take part must first qualify, usually by demonstrating net worth, providing bank guarantees and disclosing the ownership chain behind the bidding entity.
The screening exists because a franchise that fails financially damages the whole competition. A club unable to pay players mid-season forces the league to intervene at its own cost.
Disqualification at this stage is quiet and common. Most of the work in awarding a team happens before the sealed bids are opened.
Territory is assigned, not chosen
The tender names the cities or regions available, and a winning bidder takes the one attached to its bid. Investors cannot pick a market after the fact.
Boards choose territories to spread the competition across the country and to avoid two teams cannibalising the same audience. Population is only one input.
Stadium availability matters as much. A city without a venue meeting the league's broadcast and capacity standards will not be offered however large its population.
The fee is paid over the life of the licence
The headline figure is normally an annual amount payable for every year of the term, not a single purchase price. Cash flow, rather than a lump sum, is what the league secures.
That structure keeps entry affordable while giving the board a predictable income stream. It also means a struggling owner defaults visibly, year by year.
Guarantees are lodged against those payments so the league can recover a missed instalment without litigation. The security is part of what qualifies the bidder in the first place.
Entry conditions constrain the club afterwards
A new franchise inherits the league's player rules, salary purse, retention limits and central contracts on the same terms as existing teams. Nothing is negotiated separately.
What differs is the mechanism for stocking a squad, which typically involves a special draft or an expanded allowance in the first auction. Existing clubs must agree to that dilution.
The tender therefore does two things at once. It raises money, and it commits a new owner to a rulebook written by the people they are about to compete against.

