IPL BUSINESS- Larger than what U think.

It has been an year since i wrote this post. The post has attracted a lot of traffic especially the last quarter considering the  hype about IPL season 2. Considering the traffic stats from search terms, I thought i  should write a followup post with a better analysis of the revenue figures. The basic Numbers of IPL are as follows. dlf_ipl_logo Television rights Joint bid by India’s Sony TV network and Singapore-based World Sports Group secured the global broadcasting rights for 1.026 billion dollars for a 10-year period. The deal was re-negotiated this year after the IPL cancelled the Sony-WSG deal citing poor production quality. Sony-WSG won back the rights after agreeing to pay 1.63 billion dollars for the next nine years till 2017 in an out-of-court settlement. Dollars paid by individuals and groups at an auction in January 2008 to buy the eight teams – 111.9 million by industrialist Mukesh Ambani for Mumbai Indians. – 111.6 million by liquor and airline tycoon Vijay Mallya for Bangalore Royal Challengers. – 107 million by newspaper group Deccan Chronicle for the Hyderabad-based Deccan Chargers. – 91 million by BCCI secretary and businessman N. Srinivasan for Chennai Super Kings. – 84 million by business group GMR Holdings to buy Delhi Daredevils. – 76 million by Bollywood star Preity Zinta and her friends for Kings XI Punjab. – 75 million by Bollywood star Shahrukh Khan for Kolkata Knight Riders. – 67 million by Emerging Media group, partly owned by Lachlan Murdoch, for Rajasthan Royals. Top IPL earners (per season, in dollars) :
1. 1.55 million – Kevin Pietersen – Bangalore Royal Challengers
2. 1.55 million – Andrew Flintoff – Chennai Super Kings
3. 1.50 million – Mahendra Singh Dhoni – Chennai Super Kings
4. 1.35 million – Andrew Symonds – Deccan Chargers
5. 975,000 – Sanath Jayasuriya – Mumbai Indians
6. 950,000 – Ishant Sharma – Kolkata Knight Riders
7. 950,000 – Jean-Paul Duminy – Mumbai Indians
8. 925,000 – Irfan Pathan – King’s XI Punjab
9. 900,000 – Jacques Kallis – Bangalore Royal Challengers
10. 900,000 – Brett Lee – King’s XI Punjab
11. 850,000 – Harbhajan Singh – Mumbai Indians Note: Players not available for the entire tournament are paid on a pro-rata basis per match.

India’s ‘icon’ players Five Indian stars were given ‘icon’ status and were not put up for auction last year, thereby ensuring they played for their ‘home’ teams. They earned 15 percent more than the highest-paid player in their respective teams
* Sachin Tendulkar (Mumbai Indians) – 1.12 million dollars
* Sourav Ganguly (Kolkata Knight Riders) – 1.09 million dollars
* Yuvraj Singh (Kings XI Punjab) – 1.06 million dollars
* Rahul Dravid (Bangalore Royal Challengers) – 1.03 million dollars
* Virender Sehwag (Delhi Daredevils) – 833,750 dollars

Prize money
* Winner: 960,000 dollars
* Runners-up: 480,000 dollars
* Losing semi-finalists: 240,000 dollars
* Fifth-placed team: 160,000 dollars
* Sixth–placed team: 140,000 dollars
* Seventh-placed team: 100,000 dollars
* Eighth-placed team: 80,000 dollars A little bit of googling lets me understand that the revenues will be shared in the following manner which i confirmed from

here. “World over, any league has three main sources of income namely media receipts, gate receipts and sponsorships. Under IPL, these three streams are categorized under central and local. Central revenues are through IPL. A Central 1. Media rights – To be shared equally amongst franchises after removing IPL’s share. 2. 2. Sponsorship rights (IPL sponsors) – 60% of the amount collected to be distributed equally amongst the franchises. B Local 1. Sponsorships – Team sponsorship revenues are the most variable and are dependent on the marketing skills. For example, teams like India Cements have marketed their teams based on the format of IPL – where sponsorships are sold on categories. ICL’s main sponsor is Aircel. In contrast, the other team of Deccan Chronicle will have team partners. These partners will have ownership of the team. For example, in case of an entertainment partner, anything to do with entertainment from cheerleaders to fours and sixes will be seen by that party. 2. Gate receipts – Are anticipated to be a major source of revenues. 20% of tickets are to be allocated to IPL.” So far the predictions are that IPL Season 2 ‘s Revenue will be around 10,790 cr which according to Modi is 1725 cr more than last season’s revenue. That’s it with the facts and figures which I can share. 10,790 cr is really a huge amount of money to rake in from the common man’s interest in cricket. Now I know what my interest in cricket is worth(atleast approximately). Last year I had made a mention in my post that some part of the IPL’s revenues be spent for a social cause. I am not sure if they heard me, this year they have the HEAT programme which is aimed at spending about Rs 40 miIllion for education of the youth in South Africa. I definitely appreciate their start. Hope their spending increases drastically over the years. Have an idea? Wanna share ur thoughts. Go ahead, leave a comment… I would love to talk to you.

6 replies on “IPL BUSINESS- Larger than what U think.”

  1. good that u thought of writing a follow-up blog. good attempt again,informative. Nice to know about them getting involved for a social cause..

  2. Nice business case you have brought up. It would be interesting to know the ROI of the investors. Also, it would be great to know what impact IPL would have made if it was conducted in India.

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