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It might be a good money-spinner for the players. But, the Indian Premier League (IPL) cricket tournament, that will step into its sixth season this Wednesday, is yet to prove itself a good business option for team owners.
Most operating companies that own teams are still reporting losses. Exceptions: Shah Rukh Khan's wife-promoted Knight Riders Sports Private, which owns Kolkata Knight Riders and, surprisingly, Pune Warriors' owner Sahara Adventure Sports, despite the fact it had forked out one of the highest sums to buy the franchise.
However, most of the IPL team-owning entities have reported better performance during financial year 2012, compared to the previous year. (FACING SPIN)
The one hit the most is Royal Challengers Sports Private that owns the team Royal Challengers Bangalore. Vijay Mallya's cricket team is the only team among those that have given their financial details to the registrar of companies, reporting an increase in losses.
Knight Riders Sports Private, which won the last year's IPL trophy, emerges as the most successful franchise, with profit before tax at Rs 10.4 crore during the financial year ending March 31, 2012, compared to a loss of Rs 11.3 crore during the previous year, according to details filed with the ministry of corporate affairs (MCA).
This year, Knight Riders Sports is expected to post better results as the prize money of Rs 10 crore will be accounted in the financial results of financial year 2013.
Royal Challengers Sports reported a loss before tax of Rs 9.5 crore during FY12, up from Rs 7.8 crore in FY11. Its revenue increased from Rs 53.9 crore in FY11 to Rs 98.2 crore in FY12.
Sahara Adventure Sports, which owns Pune Warriors IPL team, did not file accounting details for the financial year 2012, but reported a profit before tax of Rs 2.6 crore, with revenues at Rs 15.9 crore during FY11.
The company has sold its adventure sports business to Aamby Valley Global Sports for Rs 1.3 crore, which was included into the company's accounts.
Bollywood actress Preity Zinta co-owned K P H Dream Cricket reported a loss of Rs 1.5 crore during FY12, much lower than Rs 35 crore reported during FY11.Jaipur IPL Cricket, the owner of Rajasthan Royals, also did not file accounting details for the financial year 2012 with MCA. However, it reported a profit of Rs 7 crore during the financial year ending March 31, 2011. India Cements, which owns Chennai Super Kings, and SUN TV Network, which owns Sunrisers Hyderabad, also run other businesses.
