Franchisees of the money-spinning Indian Premier League (IPL) reported losses ranging from Rs 5.6 crore to Rs 87 crore each during 2009-10, but how did they sustain their business despite such high losses?
This question was asked by a parliamentary committee earlier this week to the Board of Control for Cricket in India and the IPL brass, with a poser as to whether they accepted these figures.
The eight franchisees, according to a questionnaire of the Standing Committee on Finance, incurred a collective loss of Rs 315 crore during 2009-10.
Deccan Chargers reported a loss of Rs 87.1 crore, while Vijay Mallya’s Royal Challengers posted one of Rs 5.6 crore.
The other franchisees which have reported substantial losses are Kings XI Punjab (Rs 65.7 crore), Delhi Daredevils (Rs 47.1 crore), Mumbai Indians (Rs 42.9 crore), Rajasthan Royals (Rs 35.5 crore), Chennai Superkings (Rs 19.3 crore) and Kolkata Knight Riders (Rs 11.85 crore).
These teams reported a collective loss of Rs 4.41 crore during 2008-09.
During a meeting earlier this week, committee members wanted to know from BCCI how these franchisees weree sustaining their businesses despite massive losses. It also questioned BCCI bosses on why the losses of Deccan Chargers soared from nil in 2008-09 to a staggering Rs 87.1 crore in the next year.
Based on the lines of the English Premier League and the US’ National Basketball League, the IPL was introduced in India in 2007. Afterwards, its founder, Lalit Modi fell out with his cricketing and political bosses and was forced to quit BCCI.
Sans Modi, BCCI is trying to host the fourth edition of the T20 cricket series.
