Mukesh Ambani’s Indian Premier League (IPL) franchise, Mumbai Indians (MI), might make a profit this year because of a strong line up of brands backing the team.
The team expects to make Rs 177.25 crore in revenue from sponsorship, central revenues, merchandising deals and ticket collections from home matches. Its expenses are in the range of Rs 166-167 crore, including franchise and player fees, cost for promotion and team maintenance.
MI is likely to post a profit of Rs 10.3 crore this year. The figure could rise if the team maintains its winning streak and the prize money is added to the revenue pool.
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MI, the reigning IPL champion, has stayed away from controversies. The team has been able to charge a premium in sponsorship this year. Industry estimates peg the value of its sponsorship and merchandise revenue at Rs 80 crore for IPL’s seventh season.
For MI, the average revenue from gate money is Rs 4-5 crore a match. Seven matches will be played at the team’s home ground, Wankhede Stadium, and the franchise stands to make another Rs 28-35 crore. Additionally, the franchise is set to make approximately Rs 62.25 crore from the central revenue pool (broadcast fees and sponsorship for IPL). This means MI could make Rs 177.25 crore in IPL-7.
The franchise pays the Board for Control of Cricket in India Rs 67 crore a year in franchise fee ($11.9 million) and has spent Rs 59.95 crore on player acquisition. It will be spending Rs 40 crore on promotions and miscellaneous expenses, taking the total cost to Rs 167 crore.
Additions
Apart from direct-to-home operator Videocon d2h as a principal sponsor for the team, MI has added Etihad-Jet Airways as the second one. A spokesperson from the franchise said, “This is the first time Etihad has invested in a cricket property.” The Jet and Etihad logos will be seen on MI jerseys this season. Of the 14 league matches the team will play, the jerseys will sport the Jet logo for seven matches and the Etihad logo for the rest.
The other additions to the MI’s sponsor kitty include Pepsi (as the pouring partner), Usha International (cap sponsorship) and Blackberry Messenger (official partner). The franchise has managed to sell all the branding opportunities on the jersey apart from the non-leading sleeve but sources indicate an announcement could be made soon.