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Thread: The Business of IPL

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    The Wheel is Forever silentstriker's Avatar
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    The Business of IPL

    Wow, some real numbers for a change. Outlines the business plan and the profitability projections of the various franchises.

    http://businesstoday.digitaltoday.in...06&issueid=28,
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    Hall of Fame Member Goughy's Avatar
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    Interesting.

    Must be scary and exciting being an investor in cricket right now. The landscape is changing virtually day by day.

    I think the first season if IPL can be called a reasonable success (though I didnt watch any of it). The sophomore season will be interesting. Will the initial sucess be built on or will interest and excitement wane as it beomes more familiar?
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    The Wheel is Forever silentstriker's Avatar
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    According to projections by equity research firm Alchemy, however, SET is projected to incur a loss of about Rs 15 crore in the first year, after factoring in promotion expenses of Rs 43.2 crore. However, the same report forecasts a profit of Rs 934 crore over the 10-year contract period.
    Yea. 934 crore is approximately $230 million USD (about 4 crores to $1 million for rough calculations), so it'd be an excellent investment if those projections are true. But as you say, one season has shown that it can work, not necessarily that it will.

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    Hall of Fame Member honestbharani's Avatar
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    Interesting read!!! Obviously Mumbai, Bangalore and Hyderabad (the highest priced franchises) are the worst hit... I am sure Ambani and Mallya can withstand the losses but not sure if Deccan Chronicle can take such hits every year. Will be interesting to see how the events unfold in the upcoming seasons.
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    The Wheel is Forever silentstriker's Avatar
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    Quote Originally Posted by honestbharani View Post
    Interesting read!!! Obviously Mumbai, Bangalore and Hyderabad (the highest priced franchises) are the worst hit... I am sure Ambani and Mallya can withstand the losses but not sure if Deccan Chronicle can take such hits every year. Will be interesting to see how the events unfold in the upcoming seasons.
    Actually, those hits aren't bad considering its first year. If they were going to be profitable from year one at these prices, they would have went for a lot more.

    Hell, the BCCI would have kept all the franchises themselves...

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    Hall of Fame Member honestbharani's Avatar
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    Quote Originally Posted by silentstriker View Post
    Actually, those hits aren't bad considering its first year. If they were going to be profitable from year one at these prices, they would have went for a lot more.

    Hell, the BCCI would have kept all the franchises themselves...
    But if the BCCI did that, it would just become another ICL.

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    International Coach biased indian's Avatar
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    Quote Originally Posted by honestbharani View Post
    Interesting read!!! Obviously Mumbai, Bangalore and Hyderabad (the highest priced franchises) are the worst hit... I am sure Ambani and Mallya can withstand the losses but not sure if Deccan Chronicle can take such hits every year. Will be interesting to see how the events unfold in the upcoming seasons.
    mallya is the worst hit sure..but one thing every one is forgetting is the advert on the team where by in house branding and they don't tell how much they would have got if gone for other brands....so actully wht is shown as his loss also include the maout he had got if he had gone for other brands..so he is also not doing that worse actually..
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