IPL is back with a bang on its own soul and fever is on high time. Last time's neglected teams (Mumbai, Kolkatta) are leading in IPL 3. So this is a game - where there is no strategy, no strong team, no weak team, no big players, no small players, it's all about - "Jiska balla jis din chala uski nikal padi".
But IPL is the ultimate source of full entertainment (Cricket + Bollywood + Glamour). I am really missing it here in Hyderabad. I remember, a group of 6 roommates had a lot of fun in IPL 1 when we enjoyed a live match; these time also we were planning to go. But bunch of thanks to T-guys. "Jai Telangana!!!"
Since last couple of days, I had lot of doubts around profit sharing in IPL matches, how these big buyers get profit. Last night I had some level of research and found few articles and that clicked me to write a blog.
The original concept was from ICL but then BCCI modified it and added some ingredients and made a spicy and delicious food. In 2007, IPL had an auction for 8 teams.
A contract figure for 10 years was something like this.
I was very surprized by looking at this figure how exactly they will earn money out of it. But this is 10 year contract fee to buy franchise. And they don't need to pay this amount at beginning. Every year, they have pay 10% to BCCI.
Here in the profit sharing between BCCI and different teams for Broadcasting revenue, IPL Sponsorship Revenue and Ticket Revenue.
Apart from this, 87.5 % all merchandise revenue, 100% Individual Team Sponsorship revenue, 100% Hospitality Revenue are other source of income.
Here is the balance-sheet of IPL 2. (Figures below in Rs. Crore)
As far as BCCI is concerned, their main source of income is TV rights for 10 years. Before IPL2, it was Rs. 4200 Crore but post IPL2, contract was renegotiated to Rs. 8200 Crore. Sony will pay Rs 670 crore per year for first four years and Rs. 1,100 crore per year for next five years. Before renegotiation of contract, it was Rs. 280 crore/year for first five years and Rs 540 crore for next five years.
As far as Sony is concerned, IPL Advertisement tariff was Rs 4 lakh to 5 lakh / 10 seconds in 2009. (It was Rs 2 lakh to 3 lakh / 10 seconds in 2008).
Waiting for balance-sheet of IPL 3 :-)