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INDIAN PREMIERLEAGUE IPL)IN AACCOUNTING PERSPECTIVE

SUMAT SINGHAL


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INTRODUCTION Indian Premier League's origin is quite interesting.

IPL has been launched in response to the rebel IndianCricket League ICL)launched by Zee Group.

It all started when Lalit Modi, the Vice President of theBoard of Cricket Control in India (BCCI) envisioned the

Indian Premier League.

It is created along the lines of club football in Europe,specifically the English Premier League.

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Indian Premier League

Countries:India,SouthAfrica

Administrator:BoardofControlforCricketinIndia(BCCI)

Format:Twenty20

Numberofteams:8

Tournamentformat:Doubleround-robin&Knockout

LaunchIdea:EnglishPremierLeague&

National BasketballLeague

Chairman: Lalit Modi

Official Website :iplt20.com


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IPL (2008) First Season

Period:18thApril1stJune,2008

Victory:RajasthanRoyals(1sttitle)

V/s ChennaiSuperKings(runner)

Mostruns:ShaunMarsh(616)

Mostwickets:SohailTanvir(22)


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ranchisees


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RAJASTHAN ROYALS

Owner : Fraser Castellino(Emerging Media Group)

CEO : Fraser Castellino

Franchise fee : $ 67 million

Captain : Shane Warne Stadium : Sawai Mansingh

Stadium

Coach : Shane Warne

Colours : Blue and Gold


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DELHI DAREDEVILS

Owner : G.M. Rao (GMRHoldings)Franchise fee : $ 84 million

Coach : Gerg Shipperd

Captain : Virender Sehwag

Colours : Black and Red

Stadium : Feroz Shah Kotla

CEO : Yogesh Shetty

Brand Ambassador : AkshayKumar


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MUMBAI INDIANS

Owner : Mukesh Ambani(Reliance IndustriesLimited)

Franchise fee : $ 111.9Million

Ground : Wankhede stadiumand DY Patil Stadium

Coach : Lalchand Rajput

Captain : Sachin Tendulkar

Colours : Blue brand ambassador : Hrithik

Roshan

Director : R Balachandran


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ROYAL CHALLENGERS BANGALORE

Owner : Dr Vijay Mally Company :UB group

Franchise fee: $111.6 million

CEO : Brijes Patel

Captain : Rahul Dravid Stadium : M Chinnaswamy

stadium

Coach : Venkatesh PrasadAmbassadors : Deepika

Padukone, Katrina Kaif,Ramya, Upendra

COO : Martin Crowe

Colours : Red,Golden yellow


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CHENNAI SUPER KINGS

Owner : Mr.Srinivasan

India Cements Ltd.

Franchise fee: $ 91 million

Ambassadors:

Kris Srikanth And Vijay Coach: Kepler Wessels

Stadium: MA Chidambaram

Captain: Mahendra SinghDhoni

Colours: Yellow and Blue


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DECCAN CHARGERS

Owner : Venkat RamaReddy (Deccan Chronicleand M Group)

Franchise fee : $107 million

Coach : Robin Singh Captain : Adam Gilchrist

CEO : J Krishnan

Colours : Beige and Black

Stadium : Rajiv Gandhi

International CricketStadium


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KINGS XI PUNJAB

Owners : Preity Zinta, NessWadia (Bombay Dyeing),Karan Paul (ApeejaySurendra Group) and MohitBurman (Dabur)

Captain : Yuvraj Singh

Coach : Tom Moody

Colors : Light grey and Red

Franchisee: $76 million

Stadium : PCA Stadium Ambassador : Daler Mehndi

CEO : Neil Maxwell


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KOLKATA KNIGHT RIDERS

Owner: Shahrukh Khan, JuhiChawla, Jai Mehta

Franchise fee: $75.09 million

CEO: Joy Bhattacharya

Coach: John Buchanan Captain: Sourav Ganguly

Colours: Black and Gold

Stadium: Eden Gardens


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HOW DOES IPL MAKE MONEY? Auction of broadcasting rights.

Title sponsorship and corporate sponsorship.

Sale of tickets (20% of tickets allocated to IPL).

Auction of franchisees rights.

Official Umpires sponsorships.


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WHAT ARE THE SOURCES OF INCOME FOR ANIPL FRANCHISEE ROI)? Share in revenue from broadcast rights (equal share for all

franchisee after IPLsshare).

Share in sponsorship money (60% of the amount

distributed equally).

Share in revenue from sale of tickets.

Revenue from in-stadium advertising.

Sale of players to other franchisees.

Revenue from own sponsorship and corporatesponsorship.


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HOW IS THE IPL INCOME DISTRIBUTED? Share of broadcasting money with franchisees.

Share of sponsorship money with franchisees.

Share of ticket money with franchisees.

Inauguration expenses.

Prize money: $5 million ($3 million for winner; $2 milliondivided among others).


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F hi F


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Franchise Fees:

The franchisees fees is payable to IPL in 10Equal

Installments within 10 years

Ex. RoyalChallengersBangalore (RCB) costaround

111.6 Million Dollars

RCB have to pay IPL = $111.6 Million 10years

= $ 11.16 Million p.a

Pl C t


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Players Cost

Before commencement of IPL, players arepurchased by individual franchisees

Players have 3 years contract with franchisees but

even with end of first year they can be traded

between franchisees which would be subject to Capital

Gains

Ex. ZaheerKhan from Bangalore Royal Challengersto Mumbai Indians


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Match Fees

Fees Payable to players per match other than Lump sum

amount paid for acquisition

Fees payable to coaches & supporting staff


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Thank you for attending


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Please feel free to contact us on at

SUMAT foundation: by SUMAT SINGHAL

POWERED BY : sumat foundation

Thank you for attending


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