BCCI Set to Earn USD223m from IPL Season 4

May 10, 2011

The Board of Control for Cricket in India (BCCI), the principal owner of Twenty20 brand Indian Premier League (IPL), could earn an estimated US$223.2m from the season 4 of the cash-rich tournament after sharing the central revenue pool with the individual franchises.

According to research by financial services company, India Infoline the IPL revenue pool includes franchise fee, broadcast rights fee, in-stadia sponsorship, and new media rights fee.

The BCCI signed a new sponsor in German automobile major Volkswagen till 2012 to join the existing four co-sponsors of Hero Honda, Citibank, Vodafone and Karbonn Mobiles.

Besides renegotiating the broadcast rights agreement with Sony Max, the BCCI sold media rights including television rights in certain market’s and global internet, mobile and radio rights for $58.25m this year.

Additionally, the BCCI had last year auctioned two new franchises – Pune and Kochi – for $370m and $333.33m respectively, for a period of 10 years.

The India Infoline study stated: “The 3x jump in bid amounts for the new franchises, an increase in BCCI’s share of the central pool of revenues, and lucrative deals for online rights have also contributed to the surge in BCCI’s revenues.”

The research also adds that IPL’s Indian sub-continent broadcast rights holder Sony Max will earn advertisment revenue in excess of $200.95m. The drop in ratings in India of 20 per cent over last year, will have no impact on Max’s revenue since the broadcaster had already sold 90-95 per cent of its inventory even before the IPL had started.

The study added: “Set Max’s overall ad revenue from IPL 2011 is likely to be more than $200.95m, ensuring a profitable edition.”