The two new IPL teams have taken the world by storm. Several Indian cricket fans across the globe are already excited about these new IPL teams. The two new IPL teams who are all set to feature in the upcoming season of the Indian Premier League (IPL) are from Ahmedabad and Lucknow. The drafting process for these two new IPL teams took place yesterday itself.
Who are the owners of New IPL Teams (Complete Details)?
The RPSG Ventures group and international investment firm Irelia Company Pte Ltd (CVC Capital Partners) now have the ownership rights of the two new IPL teams in. The RPSG Group of Sanjiv Goenka went on to pick Lucknow as their home base with a winning bid of a whopping INR 7090 crore Indian rupees while CVC Capital, the former owners of Formula 1, opted for Ahmedabad with a second-highest bid of INR 5625 crores. Thus, managed to grab the headlines yesterday.
However, how are they going to earn their revenues? How are they going to generate profits? Are these two new IPL teams going to benefit the IPL in terms of monetary status? What are the business and financial goals of these two new IPL teams.
Despite the fact that fans might not be allowed to enter the stadium due to the COVID-19 pandemic, the business model doesn’t fully depend on it. They make sure that there are various other sources from which they can generate money and revenue in order to sustain themselves. IPL tournament franchise has developed as a valuable commercial brand.
What is the biggest source of revenue for New IPL Teams?
It offers firms the opportunity to market and extensively advertise their businesses. And with this they can easily earn money and continue the IPL. Although the two new IPL teams will pay the franchise fee for over a decade, these new IPL temas will then only have to pay the licence fees, which will ultimately just a percentage of their revenue.
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What is the BCCI’s share in the revenue of the New IPL Teams?
The BCCI will then share 50% of its total revenue earned from the IPL, which includes media rights and on-ground sponsorships. Under the current deal with Star India which is of a whopping Rs 16,347.5 crore for five years — the franchises were receiving about Rs 200 crore each. Now the media rights will increass too as there are two new IPL teams in the Indian T20 legue. In the way the BCCI have sent on their media and sponsorship rights, RP-SG will earn about Rs 4,000 crore from the central revenue pool alone over the next 10 years.
How is the winning amount distributed in the IPL?
“The amount spent by the winners may sound huge, but one has to understand the premium they will earn on brand building,” said a senior sports consultant, who advised some of the bidders.” Said a source according to the Economic Times. “It’s the net price one franchise owner has to pay after deducting the share in central revenue,” he said. “Considering the BCCI’s projections, any team would have earned Rs 4,000 crore over the next 10 years.
So how much were they willing to pay above that to own a piece of the IPL was the question.” Various other factors such as merchandising and sponsorship will also come to play. The IPL prize money, match tickets and digital rights shall help the cause.
Edited By : Devansh Awasthi