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How much do new IPL teams cost? Find out how franchises are valued in the cash rich league

The Indian Premier League (IPL) is probably the largest cricket tournament in the world in terms of various factors, such as the quality of cricket, global involvement with the fans and the money factor. Star players from around the world take part in the exciting league and get million dollar deals that they cannot comprehend in other T20 competitions.

The franchises, which spend a large amount on players, are also highly regarded and count among the valued sports teams in the world. As the cash-rich league is now ready to add two new teams before the start of the 2022 edition, a large amount of money will be put into the competition.

Currently the franchises like Chennai Super Kings (CSK), Royal Challengers Bangalore (RCB), Mumbai Indians (MI), en Kolkata Knight Riders (KKR) are considered the richest teams and are really highly regarded. But the question that arises is how would a new franchise be valued?

According to a report in Cricbuzz, the Virat Kohli-led Royals are currently valued at INR 1855 million, while the Super Kings have a valuation of INR 2200 to 2300 crore. On the other hand, the Indians of Mumbai are valued from INR 2700 to 2800 crore.

As for the new franchise, INR 18500 crore could be its base price, while the final cost could be between 22000 INR and 29000 INR.

“We always knew the new teams would cost $ 300-400 million. Look, we are talking here about RR, which is not one of the franchises with the highest ranking, and that according to different IPL parameters. “If its value is $ 250 million, that’s only good news for the BCCI.” said N Santosh, the managing partner of D&P Advisory – an MLB-based LLP.

‘In that perspective, the BCCI would look between $ 300 million and $ 400 million. We expected this six months back. With RedBird, the estimate is confirmed again. An average team should now cost $ 300 million, and so the new team should cost about $ 400 million (about Rs 3,000 million). If we also take into account Ahmedabad Point, the largest stadium in the world, there could be a big gap between the price of the two new teams – one could cost $ 400 million and another $ 350 million, ‘ he added.

Several companies have reportedly expressed their interest in buying the two new franchises, but the sources involved in the previous sale of the teams estimate that each team earns up to 150 million from the central revenue, and a top team can still earn Rs 100 crores from other sources, such as the gate collection and sponsorship.

At the end of the year, a team can therefore earn a profit of up to 150 INR. However, this will increase as the body creates a media hype, and prices for the new franchise will skyrocket.

‘He can recover about 150-200 million from it in the first ten years when some losses are inevitable. He will continue to make the mill after 10 years. The key to getting a good price is to tell the world that more parties are interested. If a potential bidder is announced that the largest businesses have bought the tender document, the price will automatically rise. The media plays a big role in creating the hype. It is important how the BCCI will manage the sales and orchestrate the hype, ” explained the source.

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