Cricket

IPL Franchises make huge profit in first year

The IPL franchise owners have recovered, from central television and sponsorship revenues, close to 80% of the money they paid to the BCCI in the first year of the Twenty20 league, according to figures tabled at the BCCI’s annual general meeting.

In total, the franchise owners handed over Rs 289 crore (approximately US$62,124) to the board as the first annual instalment of the amounts they bid to buy the rights to own an IPL team. But as part of the revenue-sharing formula they have earned back Rs 224 crore from the central earnings of the first edition, which was held from April 18 to June 1.

“It shows that the franchises made much more money that many thought they would,” Lalit Modi, the IPL chairman, told Cricinfo. “It shows that the IPL has become very profitable, and the franchises can now count themselves lucky. According to my calculation, new franchises will now be valued at anywhere between US$250-300m.”

Tags: IPL, Lalit Modi