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.