Despite controversies, IPL-6 makes record surplus

The 2013 event earned 135 per cent more than the previous edition of the T20 tournament.

Sun Group paid Rs 425 crore for the Hyderabad franchise.


New Delhi: The 2013 Indian Premier League (IPL) was financially the most productive tournament in its six-year history. The world’s most popular and virtually recession-proof T20 extravaganza made a record Rs 359.93 crore surplus — a massive 135.40 per cent more than what the 2012 tournament made.

The figure of Rs 359.93 crore is part of the 2013-14 budget chalked out by the BCCI. Since the IPL was held in the ongoing financial year, the actual amount is expected to be either the same or close to the projected income in the 2013-14 balance sheet.

Even assuming the final figure is a few crores less, it will still be the best ever IPL edition by a huge margin since 2008, when the innovative league was launched. The best season so far had been the 2011 tournament, which earned a surplus of Rs 265.14 crore.

Incidentally, the 2011 tournament was held immediately after India won the World Cup at home. Despite poor crowd response, the income went up.

One reason was that the revenues from the two new teams — Pune Warriors and Kochi Tuskers — made significant contribution.

Sahara India won the Pune franchise for Rs 1,702 crore and Rendezvous Sports World made the winning bid of Rs 1,533.32 crore for Kochi.

The 2012 edition was not exactly a poor one financially either, as it made a surplus of Rs 152.90 crore. But in the 2013 edition, the revenues were more than doubled, thanks to a significant increase in the title sponsorship rights, won by Pepsi, and the re-sale of the Hyderabad franchise after the BCCI terminated the contract of the Deccan Chargers for breach of contract.

Pepsi won title rights with a bid of Rs 396.8 crore, while the Sun Group made a winning bid of Rs 425 crore for the Hyderabad franchise. Both were five-year deals, and started with the 2013 IPL. While the 2013 edition earned record revenues, the 2014 edition of the T20 league could be even better financially as one or two more teams are likely to be added to the line-up, besides a fresh auction of players.

As of now, there is a fear that the overall income (and the surplus) of the BCCI in 2013-14 would be less as only one team, Australia, was scheduled to visit India this winter.

The eight-match series against the Aussies would fetch the Board Rs 257.60 at a rate of Rs 32.2 crore per international match that STAR India Pvt.Ltd. pays as broadcast rights holder.

But the late addition of a five-match West Indies series would boost the finances.

It means that the Board would get Rs 225.4 crore more at the same rate. From the two home series, the BCCI would make a total of Rs 483 crore from the media rights, and there would be more income from other sponsorships.

The media rights remain the biggest source of income for IPL, much like the Indian team fetches from home series. From the 2012 tournament, IPL earned Rs 556.06 crore from the media rights, held by Multi Screen Media.

The income from the franchises was Rs 459.64 crore, of which Rs 321.75 crore was distributed among the BCCI’s state associations, leaving BCCI with Rs 137.89 crore.

In addition to that, the BCCI earned Rs 179.98 crore from sponsorship income.

In the 2013-14 financial year, the BCCI is projected to earn an overall income of Rs 783.46 crore and a surplus of Rs 389.25 crore, after deducting an expenditure of Rs 394.21 crore, as per its budget projections.

From the media rights, the Board is projected to make Rs 260.98 crore from the Australia series, and with the late addition of the seven matches against West Indies, the income would go up to a total of Rs 483 crore.


Reproduced from Mail Today. Copyright 2013. MTNPL. All rights reserved.

Matches

MORE TOP STORIES TODAY

Pietersen to miss Delhi's first game

Pietersen to miss Delhi's first game

The former England batsman will have to wait lead the franchise as he is out of the match against Bangalore with a finger injury. More »

Kallis, Narine star in Knight Riders’ crushing win

Kallis, Narine star in Knight Riders’ crushing win

An all-round display saw Knight Riders thump Mumbai Indians by 41 runs in the IPL-7 opener. More »

Gavaskar wants a clean IPL

Gavaskar wants a clean IPL

"Integrity is non-negotiable..." says the BCCI's interim chief ahead of Season 7 of the tainted league. More »

'Yak' Kallis still on top of his game

'Yak' Kallis still on top of his game

The 38-year-old South African veteran turned it on for Kolkata Knight RIders in the opening match of IPL-7. More »

Srinivasan named in fixing report: SC

Srinivasan named in fixing report: SC

The court emphasised that the tainted administrator can no longer work for the BCCI. More »

Yuvraj happy to play for RCB: Kohli

Yuvraj happy to play for RCB: Kohli

New-look RCB will play their first game of IPL-7 on Thursday. More »

IPL: News Line

IPL: News Line

A round-up of all the news from this season of the IPL. More »

Shane Watson issues moral warning

Shane Watson issues moral warning

'Everyone knows what is right and what is wrong and if you do the wrong thing it will be found out' More »

Why I'm not looking forward to the IPL

Why I'm not looking forward to the IPL

Welcome to another season of a league that many watch but few trust. More »

Nepal players call off boycott

Nepal players call off boycott

Thaw in relations after formation of an advisory committee that would work in tandem with the Cricket Association of Nepal. More »

Johnson may quit T20s for Tests

Johnson may quit T20s for Tests

Australia's Mitchell Johnson may quit limited-overs cricket to prolong his test career with an eye on the 2015 Ashes series in England, the fast bowler… More »

There's a lot going on: Fleming

There's a lot going on: Fleming

He experienced anxious moments in the lead-up to the tournament as the courts decided on whether to suspend the franchise, he said, but stressed that the… More »

Latif couldn’t work with tainted players

Latif couldn’t work with tainted players

Former Pakistan cricket captain Rashid Latif said Tuesday he turned down the job of national chief selector because he could not work with ex-players tainted… More »

We are not over-confident: Bailey

We are not over-confident: Bailey

Indian Premier League — George Bailey-led Kings XI Punjab will face Chennai Super Kings on Friday. More »

Big runs expected, with bat and ball

Big runs expected, with bat and ball

Royal Challengers Bangalore: Their main concern, once again, is the fast bowling More »

Taxing issue — BCCI hits roadblock

Taxing issue — BCCI hits roadblock

MoU between BCCI & its units to avoid double taxation delayed after a few decline to share details. More »

Black Caps pick rookie duo for West Indies

Black Caps pick rookie duo for West Indies

New Zealand selectors included two new caps in a 15-man Test squad named Tuesday to tour the West Indies, with injury-hit spinner Dan Vettori's future… More »

The stage is set for IPL-7 to start

The stage is set for IPL-7 to start

The Preview — Defending champions Mumbai Indians take on Kolkata Knight Riders More »

Srinivasan appeals to court to allow BCCI comeback

Srinivasan appeals to court to allow BCCI comeback

He was aggrieved by the allegations against him during the hearing. More »

Klinger on his exit from South Australia

Klinger on his exit from South Australia

Michael Klinger has revealed he felt compelled to leave South Australia after being told he would be only a fringe part of the Redbacks' plans for next season, and disputed the suggestion that he left… More »

India: cricket's Brazil

India: cricket's Brazil

They are tough to beat with a big talent base exposed to good facilities. (CYCSPL) More »

Delhi Daredevils say no to gifts

Delhi Daredevils say no to gifts

Franchises are doing their bit to refurbish the image of the tainted league. More »

India-Pakistan Test series likely in 2015

India-Pakistan Test series likely in 2015

The revival of Indo-Pak Test ties could take place in UAE. More »

Kohli hopes to end RCB trophy drought

Kohli hopes to end RCB trophy drought

'This time around we will hope to go few more steps ahead and actually get that trophy' More »