ViruRulez Posted May 25, 2009 Share Posted May 25, 2009 Rajasthan Royals was the most successful team in IPL 2 in terms of revenue with around 35 crores profit. It was followed by KXIP at 26 crores and KKR at 25 crores. The least revenue was earned by Mumbai Indians with only 7 crores, second least was Bangalore at 12 crores with third least being Deccan at 14 crores. In other words, the top three profitable teams of IPL 2 were the teams owned by Shilpa Shetty, Preity Zinta and Shahrukh Khan respectively. Shahrukh Khan's KKR was the top team last year but it has dropped to no. 3 although the overall profit increased. So, my point is that IPL has resulted in Bollywood loyalty more than team loyalty for the normal public and the Bollywood stars at the top of the revenue charts show this fact. Link to comment Share on other sites More sharing options...
graphic23 Posted May 25, 2009 Share Posted May 25, 2009 Your point is wrong. Its just that the teams owned by those actors/actresses are more popular and they'll buy more because there are bigger fanatics. Link to comment Share on other sites More sharing options...
Sachinism Posted May 25, 2009 Share Posted May 25, 2009 Wow SRK still raking in the $$$ despite his team being pathetic Link to comment Share on other sites More sharing options...
ViruRulez Posted May 25, 2009 Author Share Posted May 25, 2009 Your point is wrong. Its just that the teams owned by those actors/actresses are more popular and they'll buy more because there are bigger fanatics. SRK's KKR remaining at the top of IPL 1 and at no. 3 of IPL 2 shows that there are more Bollywood fanatics in the IPL fans than genuine cricket admirers.. everything was wrong with the team and yet it was the most successful in IPL 1 and one of the most successful in IPL 2.. so IPL is attracting a different sort of fan following altogether Link to comment Share on other sites More sharing options...
h4te Posted May 25, 2009 Share Posted May 25, 2009 how do they measure this team profit? i thought the majority of the profits would come from the sponsors? it's not like the team is selling tickets or merchandise to rake in such huge profits...... Link to comment Share on other sites More sharing options...
suraj Posted May 25, 2009 Share Posted May 25, 2009 All it proves is that Southies are cheap!! they like victors but din't want to spend anything on them Link to comment Share on other sites More sharing options...
ViruRulez Posted May 25, 2009 Author Share Posted May 25, 2009 how do they measure this team profit? i thought the majority of the profits would come from the sponsors? it's not like the team is selling tickets or merchandise to rake in such huge profits...... these are from merchandise sales, stadium fees, sponsors etc. and this is the overall profit.. last year only two teams were in profit but this year all the teams have earned profit Even IPL/BCCI has earned 17% more profit than last year.. viewership on TV has also increased althouth the TRP has decreased on average in India IPL 2 has been a bigger success than IPL 1 in terms of financial success Link to comment Share on other sites More sharing options...
ViruRulez Posted May 25, 2009 Author Share Posted May 25, 2009 All it proves is that Southies are cheap!! they like victors but din't want to spend anything on them :hysterical::hysterical::hysterical::hysterical::hysterical::hysterical::hysterical::hysterical: Link to comment Share on other sites More sharing options...
flamy Posted May 25, 2009 Share Posted May 25, 2009 All it proves is that Southies are cheap!! they like victors but din't want to spend anything on them :haha::haha::haha::haha::haha: Link to comment Share on other sites More sharing options...
fineleg Posted May 25, 2009 Share Posted May 25, 2009 All it proves is that Southies are cheap!! they like victors but din't want to spend anything on them :two_thumbs_up: :P Link to comment Share on other sites More sharing options...
fineleg Posted May 25, 2009 Share Posted May 25, 2009 SRK's KKR remaining at the top of IPL 1 and at no. 3 of IPL 2 shows that there are more Bollywood fanatics in the IPL fans than genuine cricket admirers.. everything was wrong with the team and yet it was the most successful in IPL 1 and one of the most successful in IPL 2.. so IPL is attracting a different sort of fan following altogether What is so surprising in that V.Rulez!? IPL is not even "genuine" cricket (its even taken T20 and made it bollywood-masala-T20) - so, what do you expect Viru Rulez? Obviously for circus you will get all kinds of people and many will be more for the bollywood than 'genuine' cricket We may like a Ram Gopal Varma or Manirathnam movie, but we can take a Govinda or Mithun movie as timepass and watch. Take the IPL as timepass when India is not playing any other cricket. Link to comment Share on other sites More sharing options...
Zap_Brannigan Posted May 25, 2009 Share Posted May 25, 2009 Where did you get the figures? I think a lot has to do with the marketing. Shah ruk sold hins name with the team and that helped him last year with getting a lot of sponsors. No difference now. RR is the cheapest to run and whenever thr was a RR match loads of people wore that mustache. BRC could lose a lot because on of their main sponsors is themselves. So technically they dont get money from themselves. Mumbai is the most expensive franchise and it shows. What is the source ? Link to comment Share on other sites More sharing options...
King Posted May 26, 2009 Share Posted May 26, 2009 The profits aren't any great considering the investment. I think the owners will soon start realising that. Someone like Ambani, Mallya have nothing to lose as they own more for the sake of owning a team rather than rake milions but the rest may not be able to cope with the meagre returns for the kind of investment they have put in. Link to comment Share on other sites More sharing options...
Guest Hiten. Posted May 26, 2009 Share Posted May 26, 2009 The profits aren't any great considering the investment. I think the owners will soon start realising that. Someone like Ambani' date=' Mallya have nothing to lose as they own more for the sake of owning a team rather than rake milions but the rest may not be able to cope with the meagre returns for the kind of investment they have put in.[/quote'] I think the profits (size) are equivalent to the investments that have been made. For instance, SRK spends Rs. 30 crore each year on KKR. As per Viru's post, KKR managed to reap profit of 35 crores. There is no way SRK was going to make 35 crores in a period of 4-5 weeks had he been shooting for commercials + films in that period of time. Link to comment Share on other sites More sharing options...
Zap_Brannigan Posted May 26, 2009 Share Posted May 26, 2009 Going by last year's standards, KKR spent 76 crores on team license, expenses and marketing. Even if the expenses are increased due to the move to SA(say 100 crores), he still made 35 crore profit. That is a 35% profit. I suppose thats good by any business standards. Link to comment Share on other sites More sharing options...
ViruRulez Posted May 26, 2009 Author Share Posted May 26, 2009 Where did you get the figures? I think a lot has to do with the marketing. Shah ruk sold hins name with the team and that helped him last year with getting a lot of sponsors. No difference now. RR is the cheapest to run and whenever thr was a RR match loads of people wore that mustache. BRC could lose a lot because on of their main sponsors is themselves. So technically they dont get money from themselves. Mumbai is the most expensive franchise and it shows. What is the source ? The numbers were given in a IPL business special programme on NDTV Profit. Anyways you are right. BRC and MI mainly promote themselves and so the profits are lesser. The rest the Bollywood superstars are popular and so their marketing got better results. And RR merchadise were also quite attractive especially the turban and the moustache and so they sold more I think than the others. And the blue color of the RR team was also quite attractive and they had the benefit of being the winners of last IPL which made them immediately popular in South Africa especially where people did not know much about IPL. Link to comment Share on other sites More sharing options...
ViruRulez Posted May 26, 2009 Author Share Posted May 26, 2009 The profits aren't any great considering the investment. I think the owners will soon start realising that. Someone like Ambani' date= Mallya have nothing to lose as they own more for the sake of owning a team rather than rake milions but the rest may not be able to cope with the meagre returns for the kind of investment they have put in. The profits are net profits I believe are after deducting all their investments etc. .. I am quite sure about it because in the news they were saying last year most IPL teams managed to break even except KKR and RR which were on profit ... these are profits after deducting all their investments and so these are not bad figures IMO.. it does not make any difference to Ambanis or Mallyas but for other franchisees it will make some difference .. anyways Mallya and Ambanis are trying to promote their own brands.. Mallya is sponsoring several teams including BRC, DC, RR etc. .. so Mallya uses IPL as a platform to make his brands popular and so it does not make much difference to him if there are lesser profits Link to comment Share on other sites More sharing options...
ViruRulez Posted May 26, 2009 Author Share Posted May 26, 2009 I think the profits (size) are equivalent to the investments that have been made. For instance' date= SRK spends Rs. 30 crore each year on KKR. As per Viru's post, KKR managed to reap profit of 35 crores. There is no way SRK was going to make 35 crores in a period of 4-5 weeks had he been shooting for commercials + films in that period of time. the profit for KKR was 25 crores and I think that is counted after deducting the 30 crores investment by SRK each year.. so this is the net profit and so that is not bad Meanwhile the other teams were also in the 20-25 crore mark as far as I remember including DD and CSK Link to comment Share on other sites More sharing options...
ViruRulez Posted May 26, 2009 Author Share Posted May 26, 2009 Going by last year's standards' date=' KKR spent 76 crores on team license, expenses and marketing. Even if the expenses are increased due to the move to SA(say 100 crores), he still made 35 crore profit. That is a 35% profit. I suppose thats good by any business standards.[/quote'] it is certainly good compared to last year.. last year only two teams could make profit.. KKR was the most profitable team with 7 crores net profit as far as I remember but it has gone to 35 crores net this year.. and RR has reached 35 crores which is not bad.. and except MI, BRC and DC, the rest are making profits above 20 crores which is not bad ... IPL 2 was a whole lot profitable than IPL 1 .. maybe it is also partly because South Africans spend more money than Indians and the merchandise sold easily Link to comment Share on other sites More sharing options...
ViruRulez Posted May 26, 2009 Author Share Posted May 26, 2009 I just found an article at TOI about the profits http://ipl.timesofindia.indiatimes.com/News/News/articleshow/4573235.cms If IPL has stood all you thought you knew about cricket on its head, it has done the same with finances too. In a year when franchisees were complaining about shifting how to South Africa would make a mess of their budgets, each one of them will make a profit. If that’s not strange enough, try this: The two finalists, Royal Challengers and Team Hyderabad, will make a fraction of the profit that bottom-of-table Knight Riders will, even if you take prize money into account. The main reason for the healthier bottomlines is a jump in the share of revenues from broadcasting. Last year, each franchisee got Rs 25 crore from IPL as its share of the central pool. This year, that has risen to Rs 67.50 crore each. BCCI’s profit too has apparently jumped to Rs 477 crore from Rs 350 crore last year. Sony Max is also likely to be in the black this year. IPL franchisees who had been complaining about the event being shifted to South Africa are in for a surprise: Every single team stands to make a profit from this year’s tournament. Had the matches been organized in India, it’s likely the teams profits would have been even higher because of higher receipts from ticket and merchandise sale, which have averaged Rs 8 crore and Rs 50 lakh respectively in South Africa. In 2008, teams like Knight Riders, Mumbai Indians and Team Delhi earned around Rs 20 crore from ticket sales alone as the capacity of their home stadiums was large enough to accommodate over 70,000 and the crowds just poured in. According to a report by equity research firm IIFL, Team Jaipur will make the highest profit of Rs 35.1 crore in the group matches of the second edition of the tournament. Jaipur had also made the second-highest profit of Rs 14.50 crore in 2008, including the Rs 4.50 crore ($1 million) prize money. Knight Riders, which finished lowest in the league table during the qualifying round in South Africa, will nevertheless end up with the third-highest profit of Rs 25.8 crore in the second edition of IPL. In fact, the only semifinalist which also stands to make over Rs 20 crore in profits is Delhi. This is despite the fact that prize money in the IPL is a sizeable amount, with Rs 4.8 crore for winner, Rs 2.4 crore for the runners-up and 1.2 crore each for the losing semifinalists. For those who didn’t get past the league stage, the sums are correspondingly smaller - Rs 80 lakh for the team that finished fifth (Kings XI Punjab), Rs 70 lakh for the sixth placed (Jaipur), Rs 50 lakh for the seventh (Mumbai Indians) and Rs 40 lakh for the lowest one. The healthy bottomlines are a happy change from last year when besides Knight Riders and Jaipur, Team Chennai just scraped into the black due to its Rs 2.25 crore prize money for the runners-up position, according to a highly placed source. What has helped the IPL and franchisees is essentially the re-awarding of the broadcasting rights. The renegotiated contract was for $1.64 billion (Rs 8,200 crore) for nine years -- a jump of 90% from the original figure. Link to comment Share on other sites More sharing options...
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