Kolkata made max profits: Interesting Lalit Modi interview

[abhinav]

Kolkata have made maximum profit: Modi CNN-IBN Posted on Jun 03, 2008 at 12:55 | Updated Jun 03, 2008 at 13:09 Comments Email Print Almost two days since the smashing final, but IPL fever still rules. And the man of the moment is not Yusuf Pathan or Shane Watson, but Lalit Modi. His brainchild - the IPL - broke television rating records and the profits from the league is just mind-boggling. And he reveals that Shah Rukh Khan is laughing all the way to the bank. Second IPL seasons? The season will come but not right away. We will take a few years to plan that out. We need to work with the ICC and all the member countries to find a slot for it. But the second season won't be a full blown season as you see it right now. The first season being a league season, the second season might be a knockout season. But it is all to be discussed and finalised and these are just some of the ideas that we have in our hand. Transfer window: There is a trading window that is going to come up and in the trading window the owners and the players get together and decide if they want to change teams and if they both agree then they can put themselves up for trade and the others can probably buy them. But the initial three-year contracts are mandatory and they are all locked in. Sale of icons: That will have to go to the governing council for the approval because the icon players are locked in for 2 years and if all the franchises agree or if there is a majority in the Board, then we will look at it. But, this is something I can't decide at the moment. Profit making teams: You don't expect everyone in Year I to make a profit and like I said this is a life-long ownership of the team and I always predicted that the teams will make a profit in Year 3 or 4. Some teams actually did make a profit in Year I though. Maximum money, I think is made by the Kolkata Knight Riders because of Shah Rukh Khan and the marketing program that they had made. They made the maximum amount of money. But the others haven't done badly either. The gate collection which is the major part of the revenue, which was estimated to be quite low, have actually swelled up the kitties of all the franchises down the line.

[Sachinism]

Kolkata have made maximum profit: Modi CNN-IBN Posted on Jun 03, 2008 at 12:55 | Updated Jun 03, 2008 at 13:09 Comments Email Print Almost two days since the smashing final, but IPL fever still rules. And the man of the moment is not Yusuf Pathan or Shane Watson, but Lalit Modi. His brainchild - the IPL - broke television rating records and the profits from the league is just mind-boggling. And he reveals that Shah Rukh Khan is laughing all the way to the bank. Second IPL seasons? The season will come but not right away. We will take a few years to plan that out. We need to work with the ICC and all the member countries to find a slot for it. But the second season won't be a full blown season as you see it right now. The first season being a league season, the second season might be a knockout season. But it is all to be discussed and finalised and these are just some of the ideas that we have in our hand. Transfer window: There is a trading window that is going to come up and in the trading window the owners and the players get together and decide if they want to change teams and if they both agree then they can put themselves up for trade and the others can probably buy them. But the initial three-year contracts are mandatory and they are all locked in. Sale of icons: That will have to go to the governing council for the approval because the icon players are locked in for 2 years and if all the franchises agree or if there is a majority in the Board, then we will look at it. But, this is something I can't decide at the moment. Profit making teams: You don't expect everyone in Year I to make a profit and like I said this is a life-long ownership of the team and I always predicted that the teams will make a profit in Year 3 or 4. Some teams actually did make a profit in Year I though. Maximum money, I think is made by the Kolkata Knight Riders because of Shah Rukh Khan and the marketing program that they had made. They made the maximum amount of money. But the others haven't done badly either. The gate collection which is the major part of the revenue, which was estimated to be quite low, have actually swelled up the kitties of all the franchises down the line.

What does he mean it will take a few years to work out? So will there be no IPL next year? Whats meant by there will be a transfer window, but the players are still locked into a 3 year contract?

[graphic23]

Well, it has to be 3 years = 1 season in that case - otherwise, they're contradicting statements - right ?

[arkay]

What Lali Modi is mentioning there is - will IPL have 2 seasons in the same year? Currently all plans are to have one season per year. However, they will evaluate having another season which would be shortened season in the later part of the year.

[Dirty_South]

yea..he's talkin bout havin' 2 in a year...

[abhinav]

he mentions that the second season could a knock out tournament..I'd be damned if that is the case..the league format is so much more fun.

[The Outsider]

What does he mean it will take a few years to work out? So will there be no IPL next year?

He is talking about having more than one tournament in a year. One a year is locked for the first 3 years.

Whats meant by there will be a transfer window, but the players are still locked into a 3 year contract?

That players would be able to move around from one franchise to another, but their 3 year salary is locked in.

[Sachinism]

^^ damn that sucks for people like Marsh and its a jackpot for Kallis and others

[Predator_05]

Kolkata must have had the biggest gate receipts (due to the size of Eden Gardens) so this shouldn't seen as a surprise.

[Sachinism]

^^ But i heard SRK decided to make the ticket prices extremely cheap

[The Outsider]

The gate collection which is the major part of the revenue, which was estimated to be quite low, have actually swelled up the kitties of all the franchises down the line.

Can someone help me understand the math behind this statement? Say the average ticket is Rs. 200 and the audience is around 40,000 for 7 matches. That gives a total revenue of Rs. 56 million which is a paltry $1.4 million. Where am I going wrong? Or is Modi talking BS here?

[coffee_rules]

May be the booths were priced extremely high. Moreover the gate receipts are also shared with the state boards.

[SachDan]

Can someone help me understand the math behind this statement? Say the average ticket is Rs. 200 and the audience is around 40,000 for 7 matches. That gives a total revenue of Rs. 56 million which is a paltry $1.4 million. Where am I going wrong? Or is Modi talking BS here?

Four sponsors-Nokia,Belmonte,HDIL and Telegraph paid 8 crores each which accounts for 32 crores .Then there's merchandising and the CD's which were a huge hit with KKR fans.About the ticket prices-that Rs 200 was available only for 25000 odd.Other seats were much higher.

[SachDan]

Also the fact that what ever King Khan paid to own the franchisee has to be divided by 10 to make the profit.

[The Outsider]

Four sponsors-Nokia' date='Belmonte,HDIL and Telegraph paid 8 crores each which accounts for 32 crores .Then there's merchandising and the CD's which were a huge hit with KKR fans.About the ticket prices-that Rs 200 was available only for 25000 odd.Other seats were much higher.[/quote'] Not talking about sponsors - sure franchises are going to make money out of all that, but about Modi's statement that the majority revenue is through tickets. Even if you take 25,000 @ Rs. 200, 10,000 @ Rs. 500, 4,000 @ Rs. 1000 and 1,000 @ Rs. 5000 (all on the higher side, because tickets were majorly disconuted for the events) you end up with only around $3.3 million. This would the absolute upper limit for money through ticket sales.

[SachDan]

I think on an average around 65000 attended per match.Eden has the capacity around 90000 no?

[The Outsider]

Was talking about franchises in generaly, but even for Eden Garden that barely bumps the figure upto $5 million(a very liberal estimate). Add to that the cut taken by the Bengal Cricket Association and no way can gate earnings be the primary earner.

[SachDan]

You absolutely right.It can never be the major part of the money...May be Modi got excited a bit the day after... We can't blame him.can we?

[doubt]

i read somewhere abt this

Kolkata's total outflow is about Rs 71 crore Kolkata spent Rs 20 crore on players Kolkata: Franchise fees of Rs 31 crore a year Inflow of Kolkata is about Rs 89 crore Kolkata gets Rs 32 crore from sponsors About Rs 24 crore comes from share of TV rights Kolkata gets about Rs 20 crore from gate receipts Rajasthan only other team expected to break even

[CC1981]

Swetabh, i think what Modi means is that gate receipts were the biggest part...just a major part. And i think you'd be surprised how pricy the IPL tickets were. Not to mention, 200 bucks isnt that much money in India right now ( that's like 20 bucks for a ticket...very very cheap side). I'd not be surprised if the ticket prices were a few 100 takas at least with booths being several thousand rupees.