Sport Today

Bangalore - UB Group ($112 million)
Mumbai    - Reliance ($112 million)
Hyderabad - Deccan Chronicle ($107 million)
Chennai   - India Cements ($91 million)
Delhi     - GMR ($84 million)
Kolkata   - Shah Rukh Khan ($76 million)
Mohali    - Preity Zinta, Ness Wadia ($76 million)
Jaipur    - Emerging Media  ($67 million)

Total - $725 million

Interestingly, that is exactly the amount bcci will be paying the
franchise owners from the broadcast revenues over the next 10 years (70%
of billion dollars). So I guess the franchisees' calculation is that
their local revenues (tickets, merchandise) etc. will cover their
expenses (player salaries, stadium, publicity, etc.)

Mohan

Ah. Was wondering when this news would come out - was breaking
down some numbers with a friend over the weekend, and we figured
that the 60 million estimate seemed way too low for at least some
of the franchises (ie Bombay etc), and would go for more. Thought
it might approach a hundred mill, but didnt think it would top it
(and certainly not for both both Bangalore and Hyderabad too)
however.

Not quite this, I think - its a little different, no? First of all,
the TV
rights are really 900 million or so (918 mill I think), with the rest
going towards "publicity" or some such. And the BCCI is paying
the franchise owners 80% the first year, 70% the second year,
but then decreasing to 60% the third year, and then down to 50%
after that (not sure if its for the next couple years, or for all the
rest of the years). Overall Id guess the number is a little lower
than 70%... and we figured it made sense for the BCCI too,
since they would be sitting at home collecting 45 million for
the year for doing nothing by the last year of the deal.

Yes, this is what we figured too.. which is why we figured that
60 million would be ridiculously low. I mean, thats like 6 million
a year approx.. and the BCCI would be paying about that in the
first year just from TV revenues. And the expenses are pretty
small really - the stadium hire wont be expensive in India
(Brabourne could be had for a song in Bombay for a few
days - its used for free for U19, U17, Times Shield, Comrade
Shield etc matches every week), the players arent being paid
that much (top rate 375,000 for Warne, its true, but non-contracted
India players will get like 15,000 - which is nothing in major
terms). The revenues from tickets will be decent enough,
especially from corporate seats etc for evening 20/20 games
in a place like Bombay. And there will be lots of revenue from
in-stadia advertisizing - more than from any other single stream
(bar TV, which goes to BCCI anyway) IMHO. Merchandising
will probably build over time, depending on how the league
does long-term - but it could be a pretty decent-sized cash
cow by the end.

I still think, however, that the big test will come in terms of
loyalty
of the fans towards teams down the road - especially if there isnt
a bit of a regional basis to start with. The rules are iffy on this
right now - 4 players from catchment area is pretty small. And
when the present stars leave, the new stars will need to be
ready to take over - I dont expect the IPL to create them, they
will have to be created in ODIs and tests. (A few other rules
are iffy too.. 4 U-21 players in every squad, and no more than
4 overseas players in any squad. The rules make no sense
actually.. at the moment there are a good 50-60 international
players signed up for 8 teams, which is far more than 8 per
squad. So youre going to have 3-4 overseas players being
paid well and warming the  bench in a rotation system? Silly,
if you ask me, but still).

Pity Sachin's group didnt win the Bombay franchise, though :-)

Sadiq [ who plays for Jaipur? And why Jaipur? ] Yusuf

Yes, on average little lower than 70%. Other thing is tv revenues are
lower in the first five years (60 million per year) when the franchise's
share is high, but for the next five years tv revenues double, but
franchise's share will be down to 50%. On average, each franchise will
receive 6-7 million per year from bcci, whereas they will be paying 8-10
million per year for franchise fee. The gap of 2 million + salary +
other expenses and profit is what they will have to make from tickets,
in-stadia ads etc.

As for salary - well, each India regular is expected to get around 300k.
Four "icon" players - Tendulkar, Ganguly, Dravid, Yuvraj - are not open
for auction and assigned to their home teams and they will get 15% more
than the highest auctioned player. Assuming each team has 2 India
players and one top-draw international player, salaries for those three
itself will add up to a million. Add another million for remaining eight
and a coach etc. salary comes to couple of million.

That means local revenues should be at least 5 million per year. Let'
see - 7 matches. Assuming total attendance of 140k at hmm $10 average
ticket price - 1.4 million. Which means, in-stadia ads should bring
another 500k per match. Should be possible, especially in metros. But
ofcourse, this is just for the first year. Five years down the line,
when IPL has replaced international cricket as *the* cricketing event,
both the attendance and average ticket price should double making a neat
profit for the franchises.

BCCI has said players cannot own teams.

Mohan