*Official* Indian Premier League 2011

[Blaze 18]

Two months is way too much though.

 

[Bun]

here is the revenue flow for 2010

From the looks of it 8 teams earned around 3.5bn indian rupees. that's around 80mn USD. so 10mn USD per team. even from that estimate it will take about 35 years for the new franchises to break even. So my intuition was correct. These teams are obscenely over valued. This type of valuation is fine only as long as the IPL can sustain their momentum from 2010 in the subsequent years.

mono, that's net revenue after deducting amortised franchise fees.

as I suspected, the franchises arent paying upfront amt of the bidding amount, but is spread over the franchise period, which makes business sense

 

[mono]

mono, that's net revenue after deducting amortised franchise fees.

as I suspected, the franchises arent paying upfront amt of the bidding amount, but is spread over the franchise period, which makes business sense

thanks. you're correct. I missed that.

 

[Bun]

articles.economictimes.indiatimes.com/2011-04-10/news/29403398_1_brand-finance-chennai-franchise-ipl

includes a fairly lucid summarisation of the model by the superkings honcho himself

To begin with, the cost of acquiring a franchise is
fairly low. For instance, if Reliance Industries won
the Mumbai team bid for $111.9 million, it has to
pay IPL only a tenth of that amount. In RIL's case,
that is $12 million a year. And that is a team's
biggest expenditure. Player wages, fixed at $5
million then, is now capped at $9 million. Logistics
and administrative costs account for another $2-3
million
If you are still unimpressed, consider this: teams
get nearly $10 million a year from IPL's central
broadcasting and sponsorship pool. It is their
biggest source of revenue, contributing almost
70% of income. The teams keep earnings from
ticket sales, sponsorship deals they strike on their
own, and income from merchandise such as
replica shirts and sundry souvenirs.
Together, these returns offset the personnel costs.

 

[ringo1968]

I don't think too much thought went into some of those signings. James Hopes, Dan Christian, Kierron Pollard, Eoin Morgan, Doug the Rug. These blokes are not up to it and are an enormous waste of cash. What is going on?

And Ten Doeschate batting at No.7 in the IPL? When is he going to get a chance to influence his side from there? He has to bat at least at 5, more probably 4.

Danny Morrison on commentary? Don't quite think he is the new Benaud!

 

[Borges]

The accounts of none of the IPL franchises are not in public domain. Despite all the brave claims by the owners, AFAIK, the IPL franchises (except for KKR in the inaugural year) have made operational losses every year. The two new franchises (which have to pay out 30 million dollars as fees, three times as much as the older franchises) will make astronomical losses for the foreseeable future.

The equations I think are a little different. For example, take Sahara which bought Pune. If they didn't have an IPL franchise, the money that they would have spent on advertisements to get an equivalent number of eyeballs would be greater than the loss that they expect to make in running the franchise. Which is why every franchise wants a longer IPL with more games, though the number of games do not affect their share from the broadcasting and sponsorship pool which is a fixed amount per year.

The whole economics revolves around the Indian TV viewership for IPL. If the TRP drops, simultaneously the advertising expenses will drop and the operating losses would rise. The precise number is guesswork, but I think that about 3.0 or so is the bare minimum TRP that they would need to keep the losses within manageable limits.

 

[Daemon]

Stupidest auction decisions have to be from Delhi. Pathan for 1.9million while they let players like Kohli, Gambhir and ABDV go.

 

[Blaze 18]

What is the TRP like at this point in time?

 

[Borges]

What is the TRP like at this point in time?

4.2 for the week ending 23rd April.

 

[Blaze 18]

4.2 for the week ending 23rd April.

Thanks. So far so good.

 

[Borges]

Thanks. So far so good.

Yeah, as of now none of the franchises are worried. In every year, the TRP dips as IPL grinds on and on, and then picks up again towards the end when the battle for places in the knockout heats up.

 

[honestbharani]

Thanks. So far so good.

MUCH lesser than last year though

 

[Bun]

The accounts of none of the IPL franchises are not in public domain. Despite all the brave claims by the owners, AFAIK, the IPL franchises (except for KKR in the inaugural year) have made operational losses every year. The two new franchises (which have to pay out 30 million dollars as fees, three times as much as the older franchises) will make astronomical losses for the foreseeable future.

The equations I think are a little different. For example, take Sahara which bought Pune. If they didn't have an IPL franchise, the money that they would have spent on advertisements to get an equivalent number of eyeballs would be greater than the loss that they expect to make in running the franchise. Which is why every franchise wants a longer IPL with more games, though the number of games do not affect their share from the broadcasting and sponsorship pool which is a fixed amount per year.

The whole economics revolves around the Indian TV viewership for IPL. If the TRP drops, simultaneously the advertising expenses will drop and the operating losses would rise. The precise number is guesswork, but I think that about 3.0 or so is the bare minimum TRP that they would need to keep the losses within manageable limits.

the tv revenues for ipl are basically locked in for the next 7 years. any risk from fall in eyeballs and such will be borne by set max, the broadcaster.

but realistically is that going to happen?

the growth in avg revenues is in double digits. millions are getting added to workforce every year, and markets are absorbing a big amount of those as well.

any idea what has been the trp rates for onedayers and test matches all these years? I mean excluding the world cup ones of course. basically want to take an avg of these and compare those with what ipl is getting.

also to be figured into this is that while ind matches fetch high viewerships pan india, ipl ones will tend to fetch concentrated viewerships. however such fall in avg trp is more than made up by the higher frequency of matches.

eg- the current ipl is generating viewerships equivalent to nearly 40-50 one dayers involving india. a fall in per match viewership is largely going to be cushioned by the sheer volume.

hence proclamations of ipl's imminent implosion just based on a marginal fall in trps are premature.

 

[Blaze 18]

MUCH lesser than last year though

Not really a surprise. We've just won cricket's biggest trophy; IPL doesn't even matter.

 

[Cevno]

Think IPL is missing Lalit Modi ,this time by a margin.

The matches ,conduct etc... are all the same but the competition is lacking the x factor in all the things straight from the opening ceremony ,to the matches ,auction ETC..

It was supposed run as something larger than life that was in news everytime and something was happening all the time ,whether it be parties, controversies etc...

This time around that spark is missing.
It will remain succesful ,but the growth rate will reduce and the BCCI stooges will turn it into another competition to earn money and indulge in power play and corruption .
They won't that much effort into it and neither have the Charisma of Modi.

 

[SamSawnoff]

I don't think too much thought went into some of those signings. James Hopes, Dan Christian, Kierron Pollard, Eoin Morgan, Doug the Rug. These blokes are not up to it and are an enormous waste of cash. What is going on?

And Ten Doeschate batting at No.7 in the IPL? When is he going to get a chance to influence his side from there? He has to bat at least at 5, more probably 4.

Danny Morrison on commentary? Don't quite think he is the new Benaud!

Christian was just plain weird, I still find it ridiculous that it turned into a bidding war for him.

But try telling Chennai that the Rug ain't worth what they've paid for him.

 

[Jono]

Ryder plays so many cameos. Rarely stays at the crease for long enough.

Edit: Obv talking IPL only here.

 

[Cevno]

Finally Pune Warriors have got the batting order right.

 

[Spark]

Bloody hell. How lucky can one get, three plumb LBWs in one over not given.

 

[Cevno]

That was a interesting over.

3 very good shots by Uthappa to Warne and 3 times very lucky to survive LBW shots that looked pretty out.