Guest DeveGowda Posted February 11, 2010 Share Posted February 11, 2010 as per CNN -IBN "CNN-IBN has learnt that five franchisees are willing to let go of their teams. - CNN-IBN has also learnt that only the Deccan Chargers, Mumbai Indians and Royal Challengers Bangalore are firm on carrying on with their teams. - With two more teams added next year will definitely affect the profitability of the current teams. - A lot of confusion over the players auction next year as per current contract these players are sold for three years and would be up for bidding next year. " Full report - http://cricketnext.in.com/news/franchises-keen-to-quit-ipl-report/46875-13.html Link to comment Share on other sites More sharing options...
panesarv Posted February 11, 2010 Share Posted February 11, 2010 oh WOW !! Link to comment Share on other sites More sharing options...
Sachinism Posted February 11, 2010 Share Posted February 11, 2010 lol 3 teams next year? + 2 new Link to comment Share on other sites More sharing options...
Guest DeveGowda Posted February 11, 2010 Share Posted February 11, 2010 I dont believe entire story...But as we seen in past there will be some kind of Similer things will happen as given by news channels if NOT everything... Link to comment Share on other sites More sharing options...
IKnowU Posted February 11, 2010 Share Posted February 11, 2010 Thats what you get for trying enter the sporting market with a pure business in mind. If they balanced it out more and waited patiently. They would be having success. Also Modi is also a factor as to why the franchises cant make money. They should follow a draft system like the NBA where the worst team of the season get the best players for the upcoming season. THis ensures competition stays tight. Link to comment Share on other sites More sharing options...
cowboysfan Posted February 11, 2010 Share Posted February 11, 2010 Thats what you get for trying enter the sporting market with a pure business in mind. If they balanced it out more and waited patiently. They would be having success. Also Modi is also a factor as to why the franchises cant make money. They should follow a draft system like the NBA where the worst team of the season get the best players for the upcoming season. THis ensures competition stays tight. i have advocated this from a long way back,it will help the new teams too if they get to pick 1st in every rd. Link to comment Share on other sites More sharing options...
ViruRulez Posted February 12, 2010 Share Posted February 12, 2010 I think it is masala news for sure but I also agree that if there was such a situation then DC, MI and BRC would be the most keen to carry on because they are anyways one huge profit. They are getting huge publicity and still earning profit from their team. So, big companies are not in loss or any lesser profit. Even if they are in small loss they can take it as free publicity of their brands. Smaller and less flashy brands and actors etc. wont make that profit as the big corporates as they dont have any big brand to promote through IPL. CSK owner is a BCCI guy, KKR owner is an actor in SRK, RR owner is a small unknown group + Shilpa/Raj now, KXIP owner is actress + businessman and DD owner is a big corporate but dont have anything to advertise as they deal in airports. Out of these 5 the only one I can see using IPL to promote his brand is Ness Wadia to promote Bombay Dyeing/ Britannia and their family brands .. but he is not that smart to do so it seems .. Mallya, DC owner and the Ambanis are clever and so they are extensively using IPL for creating brand ownership and brand loyalty too. Link to comment Share on other sites More sharing options...
Zap_Brannigan Posted February 12, 2010 Share Posted February 12, 2010 I think it is masala news for sure but I also agree that if there was such a situation then DC, MI and BRC would be the most keen to carry on because they are anyways one huge profit. They are getting huge publicity and still earning profit from their team. So, big companies are not in loss or any lesser profit. Even if they are in small loss they can take it as free publicity of their brands. Smaller and less flashy brands and actors etc. wont make that profit as the big corporates as they dont have any big brand to promote through IPL. CSK owner is a BCCI guy, KKR owner is an actor in SRK, RR owner is a small unknown group + Shilpa/Raj now, KXIP owner is actress + businessman and DD owner is a big corporate but dont have anything to advertise as they deal in airports. Out of these 5 the only one I can see using IPL to promote his brand is Ness Wadia to promote Bombay Dyeing/ Britannia and their family brands .. but he is not that smart to do so it seems .. Mallya, DC owner and the Ambanis are clever and so they are extensively using IPL for creating brand ownership and brand loyalty too. While MI and Bangalore had a lot of revenue, they did not profit from it in the 1st edition (dunno about 2nd edition). B'lore bcos of getting 0 from main sponsors, kingfisher and Mumbai bcos of higher cost. Rajasthan and KKR were able to turn profits though while CSK had very small loss. All that being said, all the IPL teams could be sold for a very high profit today. So a news like this can never be verified properly as it depends on the owners long term and short term plan. Before, I thought that companies that own these teams (India cements, Reliance, Kingfisher, Deccan herald, Bombay dyeing) would use it as advertising medium for their products, but apart from Kingfisher, everyone else are seeing this is as a short term investment. Link to comment Share on other sites More sharing options...
achilles Posted February 12, 2010 Share Posted February 12, 2010 Its not profitable for every franchise owner to pull out from IPL upto Season 5. The reason being, NO IPL franchise apart from KKR has been making profits since the past 2 editions. The financial input is faaar higher than the output they've received so far. In other words, teams have not recovered their investments, leave alone making profits to cover their expenses. Even if a franchise owner considers to sell his team, it is a risky manuever coz no party will pay them the kind of money they payed to acquire the franchise. The owners will be at the losing end of things if they pull out coz though there might be momentary loss, there are long term profits in the offing. :two_thumbs_up: I wouldn't be in cognizance with the news report coz apart from being a highly unlikely move, Lalit Modi is a marketing genius. He knows how to play his cards :adore: Link to comment Share on other sites More sharing options...
Guest DeveGowda Posted February 13, 2010 Share Posted February 13, 2010 Its not profitable for every franchise owner to pull out from IPL upto Season 5. The reason being' date= NO IPL franchise apart from KKR has been making profits since the past 2 editions. The financial input is faaar higher than the output they've received so far. In other words, teams have not recovered their investments, leave alone making profits to cover their expenses. Even if a franchise owner considers to sell his team, it is a risky manuever coz no party will pay them the kind of money they payed to acquire the franchise. The owners will be at the losing end of things if they pull out coz though there might be momentary loss, there are long term profits in the offing. :two_thumbs_up: I wouldn't be in cognizance with the news report coz apart from being a highly unlikely move, Lalit Modi is a marketing genius. He knows how to play his cards :adore: They will get Good Money....the base price of new IPL teams Start from $220 million...thru auction it may even go to 400/500 mill depending on desperateness and Madness of our Busenessman..So why cant an existing Franchise can be sold for about $250/300 million? Link to comment Share on other sites More sharing options...
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