Thu, Feb 21 10:45 PM
New Delhi: As the IPL bids for players touch a rocketing high, the franchises have only one question on their mind - will they be able to recover their money?
Here's how it works: There are four ways in which the franchise can recover their money
The first on the list is Broadcast Revenues:
World Sport Group bought the media rights for IPL at a whopping $1.75 billion out of which $918 million will be left after deducting around $100 million for promotion. The $918 million will be split between three entities - the eight sponsors, BCCI and the prize money.
The second in the line is title and ground sponsors:
DLF bagged the title sponsor for $200 million.This money too will be split with between BCCI , the teams and the prize money.
But the most important decider of the returns will be the local revenues.
This will come from ticket sales of the matches and the team merchandise
How much money a team makes thus depends on the response from the audience.
Finally there is the money made by valuing each team - either by listing the team on the stock exchanges or selling it to a new owner.
As a concept, IPL is a new beginning for cricket following the time tested and money spinning history, especially in international football.
But whether or not Shah Rukh Khan's team becomes as profitable as a Manchester United in England depends cricket fans and their love of the game.
The world's current crop of billionaires has plenty of money but not much youth.
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