Kolkata Knight Riders only IPL team making profits
Published - May 10, 2016 8:24 am | Updated - May 10, 2016 8:24 am
As per the recent reports at the end of the financial year 2015, the Kolkata Knight Riders is the only team in the IPL that has made profits this year. The reason could be the star power of the owner Shahrukh Khan or the consistent show by the Kolkata team in the IPL.
Kolkata Knight Riders won the title in 2014 and it was that year when the team saw an upsurge in the profits. Knight Riders Sports Pvt Ltd, which runs KKR, had revenues of Rs 168.71 crore in 2014-15, the year it won the tournament for a second time, up from Rs 128.81 crore in the previous year.
It is evident that the champion side has more revenues since it gets the prize money too. According to the business head of ESP Properties, Vinit Karnik, “Champion teams are able to extract more from sponsorship revenue. Also, franchises charge performance bonus for qualifying to playoffs and finals that lead to an upside on revenues. (The) IPL also offers performance bonus and price money which add to the bottom line.”
Chennai Super Kings and Mumbai Indians are the other two teams who have won the coveted trophy twice in the history of the IPL. However, their fan base hasn’t been able to garner them enough profits in the financial year 2015. Royal Challengers Bangalore boasts of some heavy names of cricket world but they have not made any significant profit since 2011 to 2014.
KKR’s profits stood at Rs 14.15 crore, up from Rs 9.19 crore in the previous year, according to business research platform Tofler that compiled IPL teams’ data from Registrar of Companies (RoC) and other regulatory filings. “Sponsors love that Shah Rukh Khan wears the shirt with their logos on it. That’s a big draw. And if a team is doing well, it can negotiate better,” said Varun Gupta, managing director of Tofler.
Mukesh Ambani-owned Mumbai Indians saw impressive revenues on the back of consistent performance since 2011, but it could not turn in a profit. Indiawin Sports Private Ltd, which runs MI, had reported revenues of Rs 220.87 crore in 2013, the year it won its first IPL, but it turned in a loss of Rs 5.04 crore by next year. In the following year, its revenues slipped to Rs 167.75 crore, but the firm managed to reduce its loss to Rs 3.87 crore.
The only other team that saw profits coming their way is the Kings XI Punjab, who made it to the finals in 2014. The fact that they reached the finals that year bolstered their profits according to Mohit Burman, the owner of the team. He quoted, “The team also played the finals in 2014, which increased the revenue due to prize money that the franchise received.” According to officials, 15-17% of Kings XI Punjab’s revenues come from merchandising and sponsorship with the latter being the majority source.
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