In 2007, Bollywood superstar Shah Rukh Khan stepped into the world of cricket with the purchase of the Kolkata Knight Riders (KKR), a franchise in the Indian Premier League. But he wasn’t alone in the high-stakes venture. He co-owned the team with his Red Chillies Entertainment partner Juhi Chawla and her husband, industrialist Jay Mehta.At the time, the trio added a layer of Bollywood glamour to the nascent T20 league, capturing media attention even though the team itself wasn’t initially a top performer. Years later, Jay Mehta reflected on what many considered a gamble, investing in a format that hadn’t yet proven its commercial power.Jay Mehta says it was a $75 million risk during tough timesIn a conversation shared on the Institute for Management Development (IMD) YouTube channel, Mehta revealed that his decision to invest came at a time when his own business was facing financial difficulties.“In between all this, when we were also going through difficult times, I got an opportunity to invest in cricket,” he shared. He acknowledged that people around him thought he was making a big mistake. “Everybody said you are crazy, completely crazy. I said, ‘Look, I really believe in this. I want to do it.’”The acquisition of the KKR franchise cost $75 million. Mehta recalled that he and his partner were among the few who understood the financial potential behind the business model. “Other people were actually taking the document and not understanding the business model. When you looked at the business model, it was a cash flow model,” he explained.‘Best investment I have made’Though the initial investment was significant, Mehta believed it was a small price to pay considering the future of T20 cricket. “The investment was very small and I really believed that this is going to turn around. Cricket is going to become big—like American football in the US or football in Europe,” he said.Looking back, he considers the move a masterstroke: “It’s inarguably the best investment I have made.”
Business wisdom from Mehta’s journeyReflecting on his business experiences, Jay Mehta offered some key takeaways. “First of all, don’t take on too much debt because we got into a debt trap and it almost destroyed us,” he admitted. He emphasized the importance of building a strong team, continuous learning, and staying ahead of the curve. “Try and hire the best people… keep yourself informed about what’s going on,” he advised.Over the years, KKR has transformed from a team known more for its celebrity owners than match wins into one of the IPL’s most successful franchises, having clinched the championship title three times. And for Jay Mehta, that $75 million “punt” turned out to be a legacy-building move, one that redefined sports investments in India.
