How does ipl franchisee are earning money?

Question

How does ipl franchisee are earning money?

Answer 1

For a term of five to ten years the IPL has brought the BCCI a princely sum of $1 billion, making the body even more lucrative than its previous tag that had already made it the richest board in world cricket. (see details below)

More importantly, all these revenues fall under the Central Pool, 40% of which will go to IPL, 54% distributed to franchisees and 6% to prize money. The money will be distributed in these proportions till 2017, after which the share of IPL will be 50%, franchisees 45% and prize money 5%.

Sponsorship rights

Indian real estate developer DLF Universal secured exclusive rights to the Indian Premier League title sponsorship worth INR 200 crore (over US$50 million) for five years. Hero Honda has been selected as an associate sponsor for five years in a deal worth US$22.5 million.

In addition, soft-drink giant Pepsi secured the title as the tournament's Official Beverage by signing a five year deal worth USD 12.5 Million. The proceeds of the latter are to be shared equally by the league's franchise owners.

Kingfisher Airlines has been named IPL's umpire partner with rights to advertise of umpire's clothes and also sponsoring third umpire decisions for five years. The deal is worth Rs. 106 crores (appx. US$ 26.5 million).

Television rights

On 15 January 2008 it was announced that a consortium consisting of India's Sony Entertainment Television network and Singapore-based World Sport Group secured the global broadcasting rights of the Indian Premier League.The record deal has a duration of ten years at a cost of US$1.026 billion. As part of the deal, the consortium will pay the BCCI US$918 million for the television broadcast rights and US$108 million for the promotion of the tournament.

20% of these proceeds would go to IPL, 8% as prize money and 72% would be distributed to the franchisees. The money would be distributed in these proportions until 2012 after which the share of IPL would go up.

Sony-WSG then re-sold parts of the broadcasting rights geographically to other companies. Below is a summary of the broadcasting rights around the world.

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Answer 2

With the high-profile sale of eight teams of the Indian Premier League (IPL), the business of sport takes a giant leap. So far, there was perhaps only one entity in India engaged in serious money making out of sport, and that was BCCI. Now, almost overnight, eight new corporate entities will emerge in the Indian sport.

From this exercise, the biggest winner remains BCCI. The way the deal is structured, BCCI seems set to make almost riskless income of around $1 billion from IPL.

This income will primarily come from the $723 million or so that the eight team owners have bid to own the teams. BCCI will also get a minority share of TV rights, ranging from 20% in first 2 years, to 40% from the sixth year onwards. BCCI will get 40% of tournament sponsorship money.

BCCI, or more specifically the entity IPL that it has set up, has largely an advisory role. There is no particular fixed cost it incurs. IPL is supposed to do things like award commercial rights, two big legs of which, the TV rights and the team ownership, are done. It also has to set up tournament schedule, provide umpires and match officials (the franchisee bears the cost).

Compare this with say a hedge fund or a private equity partnership and you realise how good the deal is for BCCI. The general partners get a 2% fees and 20-30% of profits. Here BCCI gets 20-40% of net incomes from TV and tournament rights, and it gets a whole lot of money from the teams for the right to play. Clearly, BCCI benefits a lot from its monopolistic hold on the game.

Answer 3

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Answer 4

but who are losing money ?

saaas Bahooo serials

consumer goods costlier

it is zerro sum game , some body is losing

some are wasting time

by selling hype of players