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IES IPL in A Finance Perspective

The document discusses the Indian Premier League (IPL) from a financial perspective. It outlines the key sources of income for the IPL which include broadcasting rights, title sponsorship, ticket sales, and franchise fees. Franchisees also earn income from their share of broadcasting rights, sponsorship money, ticket revenue, and player sales. The document then details how IPL income is distributed and how franchisees distribute their income among player salaries, match expenses, marketing costs, and fees. It concludes with a brief discussion of taxation related to the IPL.

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81 views

IES IPL in A Finance Perspective

The document discusses the Indian Premier League (IPL) from a financial perspective. It outlines the key sources of income for the IPL which include broadcasting rights, title sponsorship, ticket sales, and franchise fees. Franchisees also earn income from their share of broadcasting rights, sponsorship money, ticket revenue, and player sales. The document then details how IPL income is distributed and how franchisees distribute their income among player salaries, match expenses, marketing costs, and fees. It concludes with a brief discussion of taxation related to the IPL.

Uploaded by

Bala
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Indian Premier

League(IPL)
in a
Finance Perspective

Introduction

Indian Premier League's origin is quite interesting.

IPL has been launched in response to the rebel


Indian Cricket League (ICL) launched by Zee
Group.

It all started when Lalit Modi, the Vice President


of the Board of Cricket Control in India (BCCI)
envisioned the Indian Premier League.

It is created along the lines of club football in


Europe, specifically the English Premier League.

How does IPL make money?

Auction of broadcasting rights.

Title sponsorship and corporate sponsorship.

Sale of tickets (20% of tickets allocated to IPL).

Auction of franchisees rights.

Official Umpires sponsorships.

What are the sources of


income for an IPL
Franchisee (ROI)?

Share in revenue from broadcast rights (equal


share for all franchisee after IPLs share).
Share in sponsorship money (60% of the amount
distributed equally).
Share in revenue from sale of tickets.
Revenue from in-stadium advertising.
Sale of players to other franchisees.
Revenue from own sponsorship and corporate
sponsorship.

How is the IPL income


distributed?

Share of broadcasting money with franchisees.

Share of sponsorship money with franchisees.

Share of ticket money with franchisees.

Inauguration expenses.

Prize money: $5 million ($3 million for winner; $2


million divided among others).

How is the Franchisee


income distributed?

Franchisee fees 10% of total franchisee costs


every year to IPL.
Players cost (Each franchise have paid around $46 million per year).
Match fees and Inauguration expenses.
Rent of stadium (expense of around Rs.2.5mn per
match).
Marketing and promotional cost (around $3-4mn
per team).
Fee for coaches, physiotherapists and other
members.
Administrative cost.

Inflows & Outflows

Taxation

To be Accrued as Tax Deducted at Source (TDS) from the


remuneration paid to players, umpires, coaches, commentators

Advertising, marketing and consultancy services of the sporting


extravaganza will be taxed under the service tax bracket

Rs 91 crore as taxes (TDS) from the IPL 2008, while IPL 2009
hosted in South Africa had fetched a few crores as income tax
accrued from the BCCI (the organiser)

Expected to rake in more than Rs 200 crore as taxes in IPL 2010

Source: Deccan Herald (Print media)

Thank You

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