indian premier league case study

7/23/2019 Indian Premier League Case Study

1/24

CORPORATE TAX ASSIGNMENT

PHASE 2, INDO-GERMAN TRAINING CENTER

(INDO-GERMAN CHAMBER OF COMMERCE)CUNNINGHAM ROAD, BANGALORE

CASE STUDY ON THE STRUCTURE AND

FUNCTIONING OF INDIAN PREMIER LEAGUE

DATE OF SUBMISSION: 11- MAY-2013

SUBMITTED BY:

BINDU THUSHARA.N


2/24

AGENDA

INTRODUCTION TO INDIAN PREMIER LEAGUE

CONCEPT

BOARD OF CONTROL FOR CRICKET IN INDIA (BCCI)

COMPOSITION OF THE BCCI

ANALYSIS OF INCOME GENERATION & DISTRIBUTION

IPL AND MAURITIUS CONNECTION

TAX EXEMPTIONS TO THE BCCI

TAX BENEFITS TO BCCI

FORMATION OF IPL TEAMS- FRANCHISES AND RULES

TAX EXEMPTIONS TO ICC

TAXABILITY OF THE IPL INCOME

TAX ASSESSMENT OF IPL

IMPLICATIONS AS A RESULT OF IPL-2 SHIFTING TO SOUTH AFRICA

2013 INDIAN PREMIER LEAGUE

FUNDING PATTERNS OF TEAMS


3/24

INTRODUCTION TO INDIAN PREMIER LEAGUE:

Cricket has always been like a religion for this country. It is seen as more than just a

game. The players are considered as demigods and literally worshipped. The

Twenty20 format of cricket created history. After the Twenty20 format of cricket was

introduced to the world, cricket has just been overflowing out of everyone's ears.

DLF Indian Premier League (IPL) is a T20 cricket league that was created and

promoted by the BCCI, with the complete backing of the ICC. It all started when Lalit

Modi, the Vice President of the Board of Cricket Control in India (BCCI) envisioned

the Indian Premier League. IPL has been launched in response to the rebel Indian

Cricket League (ICL) launched by Zee Group.

IPL is not a separate legal entity. It forms part of BCCI and is managed and controlled

by a separate Committee, known as IPL Governing Council, having 14 members. This

Committee is appointed by the General Body of the BCCI for a period of 5 years. TheCommittee maintains a separate bank account which is operated by the Treasurer,

BCCI. Every year, the Committee is required to submit a report of its activities and

decisions along with the audited final accounts for the approval of the General Body

of BCCI at its AGM.

Indian Premier League (IPL) made its debut in April 2008. Based on the English

Premier League (football) and the National Basketball League (NBA) of the United

States, IPL is a professional Twenty20 cricket league. It has been backed by the ICC

and has a total of eight teams, with each of them being made up of a minimum of 16players. Currently, the sixth season of IPL is going on- IPL6 or IPL 2013.

CONCEPT OF INDIAN PREMIER LEAGUE:

The Premier League is generally considered to be the world's showcase for Twenty20

cricket, a shorter format of cricket consisting only 20 overs. Top Indian and

international players take part in IPL, contributing to what is the world's "richest

cricket tournament". Each cricket team meets the other team in the IPL league twice,

once at home and once away (Host place and Guest place). For instance, if there are

total 8 teams in IPL, each will play a total of 14 matches. The top four teams will

qualify for the semi-finals stage. The winners from the semi-finals clash in the IPL

finals and thus the whole tournament will have 56 matches in all.
http://en.wikipedia.org/wiki/Twenty20http://en.wikipedia.org/wiki/Twenty20http://en.wikipedia.org/wiki/Over_(cricket)http://www.labnol.org/sports/ipl-cricket-match-schedule/8104/http://www.labnol.org/sports/ipl-cricket-match-schedule/8104/http://en.wikipedia.org/wiki/Over_(cricket)http://en.wikipedia.org/wiki/Twenty20http://en.wikipedia.org/wiki/Twenty20


4/24

BOARD OF CONTROL FOR CRICKET IN INDIA

The Board of Control for Cricket in India (BCCI) headquartered at Mumbai is the

national governing body for cricket in India. The Board was formed in the year 1929with the object of promotion and development of cricket in India and is a society

registered under Tamil Nadu Societies Registration Act, 1975. BCCI is a full-fledged

Member of International Cricket Council (ICC) which is the Governing Body for cricket

in the world.As a member of the ICC, it has the authority to select players, umpires

and officials to participate in international events and exercises control over them.

Without its recognition, no competitive cricket involving BCCI contracted Indian

players can be hosted within or outside the country.

COMPOSITION OF THE BCCI

The composition of the BCCI is given as under:

(a) President

(b) Five Vice-Presidents, one from each zone

(c) An Honorary Secretary

(d) An Honorary Joint Secretary

(e) An Honorary Treasurer

ANALYSIS OF INCOME GENERATION AND DISTRIBUTION:

Every year BCCI gets the franchise fee payments ranging from US$37 million from

Sahara Pune to $6.7m from Rajasthan Royals. There is also its share of central

revenue, mainly from broadcast rights and from commercial sponsorships (this year

from Pepsi, Yes Bank, Star, Vodafone and other partners).

With the BCCI protected from risk, it is essentially the franchise owners who carry

the heavy financial burdens in the IPL. They have committed expenses (franchise

fees, player costs, the costs of running, managing and marketing the team and of

staging home matches). All of this could touch Rs 150 crores (about $27m) every year

for a franchise.


5/24

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


6/24

The franchises' lifeline is their share of the central revenue generated by the IPL from

the collective sale of broadcast and sponsorship rights. Central sponsorship is

distributed to teams through a complex formula a team's league standing has a

bearing on what the franchise receives - and the average annual figure is

approximately Rs 50 crores ($9m) per franchise.

Given that there is a difference in revenue distribution of approximately Rs 1 crore

(about $180,000) between each of the nine ranks in the league standings, the margin

of earnings between the IPL winners and the bottom-placed team works out to

about Rs 9 crore.

A franchise team has to strenuously work the assets available to it. Selling branding

space on team uniforms is a major revenue stream. Logo branding has obvious media

value, given live television coverage; everything starts with the team shirt. Each

franchise sells as many as ten properties on its team uniform. If marketed well, this

could raise close to Rs 60 crores ($10m). The big money comes from the main team

sponsor slot - the 206 square cm space across the front of the shirt, which can fetch

about Rs 20 crores ($3m) per year. The six other logo spaces on a team jersey are

expensive; the ones on the trousers and helmet fetch lower prices. Other licensing

arrangements - which involve the use of the franchise's logo - come at more

affordable prices (around 50 lakh or $92,000 a year).

Ticket revenue from home matches form another chunk of revenue. Some teams,

Mumbai, Chennai and Delhi among them, will target ticket sales in excess of Rs 40crores ($725,000) this season. (This is after 20% of the ticket inventory has already

been given, as part of the franchise contract, to the IPL.).

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 million divided among

others)


7/24


8/24

What are the sources of income for an IPL Franchisee (ROI)?

Share in revenue from broadcast rights (equal share for all franchiseeafter IPLs share)

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 franchisee Revenue from own sponsorship and corporate sponsorship

How is the Franchisee income distributed?

Franchisee fees 10% of total franchisee costs every year to IPL Players cost (Each franchise have paid around $4-6 million per year, $9

million this year) Match fees and Inauguration expenses Rent of stadium (expense of around Rs.2.5mn per match) Marketing and promotional cost (around $3-4mn per team) Fee for coaches, physiotherapists and other members.Administrative cost


9/24


10/24

IPL AND THE MAURITIUS CONNECTION:

Mauritius and tax haven suddenly seem to have become synonymous today with the

IPL. There are some facts though that one needs to look at before associating everyforeign funding coming from Mauritius as funny money and the IPL being the sole

recipient of Mauritian funds.

First of all, 100% FDI is allowed in sporting activity including in cricket. There are no

restrictions on it. In fact it is on the negative list which does not attract any approval

from the Government of India. However, the rules as of now state that if foreign

funding is brought in and if it is not reported to the RBI within 30 days, and within

180 days of that transaction being completed, if shares are not issued then it

becomes a FEMA violation. So the ED is currently only looking into whether these

rules have been adhered to.

Secondly, India has received close to 50% of its total FDI over the past 10 years

(2000-2009) from Mauritius. Depending on the exchange rate used, it varies between

$40 to $50 billion. Now that is a surprising statistic where a tiny African island is way

ahead of countries like the USA, UK and Japan in generating FDI flows (which by the

way is a much preferred funding option than FII money which is generally considered

hot money by most Central Banks.)

The reason for this is very simple and basic. Tax arbitrage! With a double taxationtreaty in place with Mauritius and the corporate tax rates as low as 3% (take a look at

the Mauritian Tax Treatment of offshore operations and GBC1 companies getting

unilateral foreign tax credit), it becomes THE choice of routing investor funds to

India.

What this Tax arbitrage opportunity has led to is allegations of Round-tripping. It is

nothing but routing of domestic investments through Mauritius to take advantage of

the Double Taxation treaty to pay lower taxes on profits. It also has led to opposition

benches alleging routing of political funds stashed in Swiss accounts back into thecountry (effectively money laundering).

The point of the matter is that India as a country has seen a majority of its FDI

inflows coming through Mauritius over decades, arguably most of it being above

board and perfectly legal. So assuming that all IPL foreign investments have come

from shady businessmen bringing money is extrapolating far more than what can be

justifiable.


11/24

TAX EXEMPTIONS TO THE BCCI

In the past, tax exemptions were granted to BCCI on the ground that promoting

cricket was a charitable activity. However BCCI amended its objects in 2006 toenable it to award sponsorship to sportspersons in games other than cricket and for

contribution to other sports institutions such as National Sports Development Fund

(NSDF) etc.

Exemption to BCCI was being provided under Section 11 of the Income Tax Act since

promotion of sports was being treated as a charitable activity under Section 2 (15) of

the Income Tax Act.

BCCI was registered under Section 12A with the Director of Income Tax (Exemption)

Mumbai. Before granting exemption, objects of anybody/trust seeking exemptionare enquired into by the DIT (E) and only on satisfaction that such objects are bona

fide and charitable, the exemption is granted. It was also implied in the approval that

the registration granted was only for the objects which had been submitted to the

Director of Income Tax.

It has been stated in the Background Note furnished to the Committee by the

Ministry of Finance (Department of Revenue) that BCCI was granted exemption of

income tax in respect of the following assessment years :-

A.Y. 2004-05 Rs. 56.00 Crore

A.Y. 2005-06 Rs. 33.64 Crore

A.Y. 2006-07 Rs. 125.64 Crore

This exemption has been granted by virtue of CBDT Circular of 1984, wherein it was

clarified that promotion of sports is covered by the definition of a charitable activity.

However, the registration granted to BCCI for being involved in charitable activity

has been withdrawn from assessment year 2007-08 with consequent dis-entitlement

of exemption originally granted to BCCI.

The breakup of the taxable income of BCCI during the last three years is given as

under:-

A.Y.2007-08

Returned Income: Nil

Assessed Income Rs.274, 86, 30,505/-

A.Y.2008-09

Returned Income: Nil

(After claiming exemption of Rs. 377, 33, 97,273/-, u/s 11 of the Income Tax Act)

A.Y.2009-10


12/24

Returned Income: Rs. (-) 57, 71, 81,762

(After claiming Exemption of Rs.216, 64, 24,924/- , u/s 11 of the Income Tax Act)

On being asked by the Committee as to when the process for withdrawing theexemption was initiated and what the genesis for initiating these proceedings was,

the Ministry of Finance (Department of Revenue) in their written replies submitted

as follows:

The genesis or the trigger for initiating the proceeding of withdrawal of exemption

was a proposal dated 12.11.2009 from Addl. DIT (E), Range -1, Mumbai to the

Director of Income Tax (Exemptions), Mumbai. This proposal, for withdrawal of

registration u/s 12A, was based on the information, received during the assessment

proceedings for A.Y. 2007-08, that there were changes in the objects of BCCI. On

28.12.2009 the Department came to the conclusion that the registration granted to

BCCI u/s 12A of the Income tax Act, 1961 did not survive from the date on which the

objects were changed i.e. 01.06.2006.

The Committee further desired to know as to when the BCCI intimated the changes

in its objects to the Ministry and why did Department not initiate the action

immediately thereafter. In this regard, in their written information furnished to the

Committee, the Ministry of Finance (Department of Revenue) replied as under:

BCCI did not intimate the changes in its objects in 2006 or 2007. These changes weredetected during the course of assessment proceedings for the A.Y. 2007-2008 which

were finalised in December 2009. It was only after issue of a show cause notice dated

30.11.2009 for withdrawal of registration granted u/s 12A to the BCCI, that the

Honorary Secretary of BCCI submitted letters dated 2.12.2009 and 14.12.2009 stating

that there were amendments in the objects of BCCI and inadvertently these

amendments were not informed to the office of DIT (E), Mumbai.

Intimating about the chronology of the withdrawal proceedings, the Ministry further

submitted as follows:

Chronology of the withdrawal of proceedings by D irector of Exemptions

(Mumbai)

12.11.2009: A proposal for withdrawal of registration u/s 12A of the I.T Act is

received from Addl. DIT (E), Range -1, and Mumbai

30.11.2009: A show cause for withdrawal of registration u/s 12A of the Act is issued.


13/24

2.12.2009: A letter is received from Sri. N. Srinivasan, Honorary Secretary, intimating

the amendment in Memorandum of Association made on 1/06/2006

3.12.2009: A second show cause for withdrawal of registration u/s 12A of the Income

Tax Act due to amendment in objects is sent to BCCI

15.12.2009 & 16.12.09: Written submissions dated 14/12/2009, signed by Sri. N.

Srinivasan, Hon. Secretary is filed before the DIT (Exemptions).

28/12/2009: The registration granted to the BCCI u/s.12A of the Income Tax Act is

withdrawn w.e.f. 1.6.2006.

Having observed that registration U/s 12 to BCCI has been withdrawn in 2009 with

retrospective effect, the Committee desired to know about the justification for the

same. In response, the Ministry of Finance (Department of Revenue) in their written

information replied as under:

The communication to the BCCI, that the registration granted u/s 12A of the Act didnot survive from the date on which the objects were changed i.e. 01.06.2006, was

based on the basic principle of law that registration u/s. 12A of the Act is granted on

the basis of the objects mentioned in the deed submitted at the time of registration.

In a case where the assesse changes its objects after registration, such changes are

required to be intimated to the Director of Income Tax, (the authority granting

registration) so that the changed object can be examined. However, where the

objects of the trust or institution, which were the basis of grant of registration, are

altered and not intimated to the registering authority, the registration would not

survive since the very foundation of the registration had been removed by a voluntaryact of the assesse. This is based on the decision of Honourable Allahabad High Court

in the case of Allahabad Agricultural Institute and Another v. Union of India and

Others, 291 ITR 116.

During the evidence of the representatives of BCCI/IPL held on 12.01.2011, the

Committee sought to know as to why were the amendments to BCCIs objects not

filed with the Income Tax Department. In response, the BCCI in their writtensubmission stated as follows:


14/24

BCCI amended its objects in 2006 to contribute to other sports. Contribution to other

sports is also charitable as per the CBDT circular of 1984. It was never the intention of

the BCCI to conceal the amendment from the Department. As a matter of fact, every

year during the course of assessment, the latest copies of the constitution of BCCI

containing the amendments have been filed with the Assessing officer. TheDepartment was in possession of amended constitution at all times. The Department

has withdrawn the exemption for the reason that the amendments were not filed.

The BCCI has been legally advised that the exemption cannot be withdrawn for non-

filing of amendment of objects. The BCCI is in appeal against the withdrawal of

exemption before the Income Tax Tribunal.

On being asked as to whether the exemption granted to BCCI during the A.Y. 2007-08

has been withdrawn, the Ministry of Finance (Department of Revenue) in their

written information stated as under:

While finalizing the assessment for A.Y. 2007-08, due cognizance of withdrawal of

registration u/s 12A was taken, which resulted in denial of exemption u/s 11 and

raising of demand of Rs. 118 crore which otherwise would have been exempt u/s 11

of the Income Tax Act. It was also held that BCCI is no longer promoting cricket as a

`charitable activity. It was held that major income a rises not from the game of

cricket but from the business of cricket. In this assessment, the claim of exemption

was denied and demand of Rs.118.00 crore was raised. Out of such demand, Rs.

92.00 crore had already been recovered during the FY 2009-10.

In response to a query as to whether BCCI was really involved in charitable activities

during the year 2008-09 and 2009-10 and whether exemption is being allowed to it

for these years, the Ministry of Finance (Department of Revenue) in their replies

stated that for A.Y. 2007-08 it has already been held by the Department that BCCI is

not eligible for any exemption of Income as it is carrying on a commercial activity.

However, BCCI has claimed exemption from tax for the A.Y.2008-09 and 2009-10.

The case of A.Y. 2008-09 has been selected for scrutiny assessment. The scrutiny

assessment for A.Y. 08-09 is in progress, and the activities of BCCI during this year

will be examined in these proceedings.

Asked during evidence as to whether the CBDT analysed the tax exemptions to

BCCI/IPL on the basis of some complaint or it was suo-motu, the Chairman, CBDT in

his deposition stated that No, they have filed their Memorandum.

During evidence, the Committee expressed the view that the Ministry of Finance

(Department of Revenue) did not analyze the aims and objects of the BCCI annually.

They only analyze their balance-sheets annually. Replying to this, the representative

of the Ministry of Finance (Department of Revenue) deposed before the Committeethat


15/24

What happened in this case is that during the assessment stage, the change in the

objects was detected and then a notice was issued.

FORMATION OF IPL TEAMS- RULES FOR PLAYER SELECTION & FRANCHISES:

Team formation:

There needs to be a minimum of 16 players in each of the eight teams.

Each team will have one physiotherapist and a coach.

At least two players in each team will be from BCCI under-22 pool.

A minimum of eight local players will be there in each team.

The number of foreign players in a team cannot exceed 10 (8 in the first

season).

Amongst the playing 11 members of a team, no more than four can be foreign

players.

Sachin Tendulkar, Rahul Dravid, Sourav Ganguly, Yuvraj Singh and Virender

Sehwag are the players with icon status.

Player selection into Teams:

Through annual auction

Buying domestic players Signing uncapped players

Buying Replacements (for players not available)

Trading

Telecasting Rights:

The television rights for the IPL Twenty20 Cricket are with Sony Entertainment

Television Network and World Sport Group (Singapore). They secured the highest bid

for broadcast rights at $1.026 million, for 10 years.

Other Rules:

At least seven bowlers will be there for completing the 20 overs of a match.

Of the seven bowlers in the game, six will bowl 3 overs each and seventh one

will bowl the remaining 2 overs.

For a match to be declared complete, full 40 overs should have been bowled

and batted on.

The batting team can call all of their extra players to bat, till the end of 20th

over. However, only the first 11 players have the right to bowl and/or field.


16/24

The batting team can continue to bat till the end of the last over, even if it has

reached the winning target.

FUNCTIONAL TEAMS-2013:

NAME CITY OWNER PRICE CAPTAIN HEADCOACH

Chennai

Super Kings

Chennai N. Srinivasan (India

Cements)

US$91

million

MS Dhoni Stephen

Fleming

Delhi

Daredevils

New Delhi GMR Group US$84

million

Mahela

Jayawardene

Eric

Simons

Kings XI

Punjab

Mohali (Chandigarh) Preity Zinta,

Ness Wadia (Bombay

Dyeing),

MohitBurman (Dabur)

Karan Paul (Apeejay

Surendera

Group),The Oberoi

Group

US$76

million

Adam

Gilchrist

Darren

Lehmann

Kolkata

Knight

Riders

Kolkata Shahrukh Khan (Red

Chillies

Entertainment)

Juhi Chawla, Jay

Mehta(Mehta Group)

US$75.09

million

Gautam

Gambhir

Trevor

Bayliss

Mumbai

Indians

Mumbai Mukesh

Ambani (Reliance

Group)

US$111.9

million

Ricky Ponting John

Wright

Pune

Warriors

India

Pune Subrata Roy (Sahara

India Pariwar)

US$370

million

Angelo

Mathews

Allan

Donald

Rajasthan

Royals

Jaipur Lachlan

Murdoch (Emerging

Media)

Shilpa Shetty, Raj

Kundra(UK Tradecorp

Ltd)

US$67

million

Rahul Dravid Paddy

Upton

Royal

Challengers

Bangalore

Bangalore Vijay Mallya (UB

Group)

US$111.6

million

Virat Kohli Ray

Jennings

Sunrisers

Hyderabad

Hyderabad Sun TV Network US$159

million

Kumar

Sangakkara

Tom

Moody
http://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/N._Srinivasanhttp://en.wikipedia.org/wiki/India_Cementshttp://en.wikipedia.org/wiki/India_Cementshttp://en.wikipedia.org/wiki/MS_Dhonihttp://en.wikipedia.org/wiki/MS_Dhonihttp://en.wikipedia.org/wiki/Stephen_Fleminghttp://en.wikipedia.org/wiki/Stephen_Fleminghttp://en.wikipedia.org/wiki/Stephen_Fleminghttp://en.wikipedia.org/wiki/Delhi_Daredevilshttp://en.wikipedia.org/wiki/Delhi_Daredevilshttp://en.wikipedia.org/wiki/Delhi_Daredevilshttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/GMR_Grouphttp://en.wikipedia.org/wiki/GMR_Grouphttp://en.wikipedia.org/wiki/Mahela_Jayawardenehttp://en.wikipedia.org/wiki/Mahela_Jayawardenehttp://en.wikipedia.org/wiki/Mahela_Jayawardenehttp://en.wikipedia.org/wiki/Eric_Simonshttp://en.wikipedia.org/wiki/Eric_Simonshttp://en.wikipedia.org/wiki/Eric_Simonshttp://en.wikipedia.org/wiki/Kings_XI_Punjabhttp://en.wikipedia.org/wiki/Kings_XI_Punjabhttp://en.wikipedia.org/wiki/Kings_XI_Punjabhttp://en.wikipedia.org/wiki/Mohalihttp://en.wikipedia.org/wiki/Chandigarhhttp://en.wikipedia.org/wiki/Preity_Zintahttp://en.wikipedia.org/wiki/Ness_Wadiahttp://en.wikipedia.org/wiki/Bombay_Dyeinghttp://en.wikipedia.org/wiki/Bombay_Dyeinghttp://en.wikipedia.org/wiki/Daburhttp://en.wikipedia.org/wiki/Adam_Gilchristhttp://en.wikipedia.org/wiki/Adam_Gilchristhttp://en.wikipedia.org/wiki/Adam_Gilchristhttp://en.wikipedia.org/wiki/Darren_Lehmannhttp://en.wikipedia.org/wiki/Darren_Lehmannhttp://en.wikipedia.org/wiki/Darren_Lehmannhttp://en.wikipedia.org/wiki/Kolkata_Knight_Ridershttp://en.wikipedia.org/wiki/Kolkata_Knight_Ridershttp://en.wikipedia.org/wiki/Kolkata_Knight_Ridershttp://en.wikipedia.org/wiki/Kolkata_Knight_Ridershttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Shahrukh_Khanhttp://en.wikipedia.org/wiki/Red_Chillies_Entertainmenthttp://en.wikipedia.org/wiki/Red_Chillies_Entertainmenthttp://en.wikipedia.org/wiki/Red_Chillies_Entertainmenthttp://en.wikipedia.org/wiki/Juhi_Chawlahttp://en.wikipedia.org/wiki/Jay_Mehtahttp://en.wikipedia.org/wiki/Jay_Mehtahttp://en.wikipedia.org/wiki/Mehta_Grouphttp://en.wikipedia.org/wiki/Gautam_Gambhirhttp://en.wikipedia.org/wiki/Gautam_Gambhirhttp://en.wikipedia.org/wiki/Gautam_Gambhirhttp://en.wikipedia.org/wiki/Trevor_Baylisshttp://en.wikipedia.org/wiki/Trevor_Baylisshttp://en.wikipedia.org/wiki/Trevor_Baylisshttp://en.wikipedia.org/wiki/Mumbai_Indianshttp://en.wikipedia.org/wiki/Mumbai_Indianshttp://en.wikipedia.org/wiki/Mumbai_Indianshttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Reliance_Grouphttp://en.wikipedia.org/wiki/Reliance_Grouphttp://en.wikipedia.org/wiki/Ricky_Pontinghttp://en.wikipedia.org/wiki/Ricky_Pontinghttp://en.wikipedia.org/wiki/John_Wright_(cricketer)http://en.wikipedia.org/wiki/John_Wright_(cricketer)http://en.wikipedia.org/wiki/John_Wright_(cricketer)http://en.wikipedia.org/wiki/Pune_Warriors_Indiahttp://en.wikipedia.org/wiki/Pune_Warriors_Indiahttp://en.wikipedia.org/wiki/Pune_Warriors_Indiahttp://en.wikipedia.org/wiki/Pune_Warriors_Indiahttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Subrata_Royhttp://en.wikipedia.org/wiki/Sahara_India_Pariwarhttp://en.wikipedia.org/wiki/Sahara_India_Pariwarhttp://en.wikipedia.org/wiki/Angelo_Mathewshttp://en.wikipedia.org/wiki/Angelo_Mathewshttp://en.wikipedia.org/wiki/Allan_Donaldhttp://en.wikipedia.org/wiki/Allan_Donaldhttp://en.wikipedia.org/wiki/Allan_Donaldhttp://en.wikipedia.org/wiki/Rajasthan_Royalshttp://en.wikipedia.org/wiki/Rajasthan_Royalshttp://en.wikipedia.org/wiki/Rajasthan_Royalshttp://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Lachlan_Murdochhttp://en.wikipedia.org/wiki/Lachlan_Murdochhttp://en.wikipedia.org/wiki/Shilpa_Shettyhttp://en.wikipedia.org/wiki/Raj_Kundrahttp://en.wikipedia.org/wiki/Raj_Kundrahttp://en.wikipedia.org/wiki/Rahul_Dravidhttp://en.wikipedia.org/wiki/Rahul_Dravidhttp://en.wikipedia.org/wiki/Paddy_Uptonhttp://en.wikipedia.org/wiki/Paddy_Uptonhttp://en.wikipedia.org/wiki/Paddy_Uptonhttp://en.wikipedia.org/wiki/Royal_Challengers_Bangalorehttp://en.wikipedia.org/wiki/Royal_Challengers_Bangalorehttp://en.wikipedia.org/wiki/Royal_Challengers_Bangalorehttp://en.wikipedia.org/wiki/Royal_Challengers_Bangalorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Vijay_Mallyahttp://en.wikipedia.org/wiki/UB_Grouphttp://en.wikipedia.org/wiki/UB_Grouphttp://en.wikipedia.org/wiki/Virat_Kohlihttp://en.wikipedia.org/wiki/Virat_Kohlihttp://en.wikipedia.org/wiki/Ray_Jenningshttp://en.wikipedia.org/wiki/Ray_Jenningshttp://en.wikipedia.org/wiki/Ray_Jenningshttp://en.wikipedia.org/wiki/Sunrisers_Hyderabadhttp://en.wikipedia.org/wiki/Sunrisers_Hyderabadhttp://en.wikipedia.org/wiki/Sunrisers_Hyderabadhttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Sun_TV_Networkhttp://en.wikipedia.org/wiki/Sun_TV_Networkhttp://en.wikipedia.org/wiki/Kumar_Sangakkarahttp://en.wikipedia.org/wiki/Kumar_Sangakkarahttp://en.wikipedia.org/wiki/Tom_Moodyhttp://en.wikipedia.org/wiki/Tom_Moodyhttp://en.wikipedia.org/wiki/Tom_Moodyhttp://en.wikipedia.org/wiki/Tom_Moodyhttp://en.wikipedia.org/wiki/Tom_Moodyhttp://en.wikipedia.org/wiki/Kumar_Sangakkarahttp://en.wikipedia.org/wiki/Kumar_Sangakkarahttp://en.wikipedia.org/wiki/Sun_TV_Networkhttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Sunrisers_Hyderabadhttp://en.wikipedia.org/wiki/Sunrisers_Hyderabadhttp://en.wikipedia.org/wiki/Ray_Jenningshttp://en.wikipedia.org/wiki/Ray_Jenningshttp://en.wikipedia.org/wiki/Virat_Kohlihttp://en.wikipedia.org/wiki/UB_Grouphttp://en.wikipedia.org/wiki/UB_Grouphttp://en.wikipedia.org/wiki/Vijay_Mallyahttp://en.wikipedia.org/wiki/Bangalorehttp://en.wikipedia.org/wiki/Royal_Challengers_Bangalorehttp://en.wikipedia.org/wiki/Royal_Challengers_Bangalorehttp://en.wikipedia.org/wiki/Royal_Challengers_Bangalorehttp://en.wikipedia.org/wiki/Paddy_Uptonhttp://en.wikipedia.org/wiki/Paddy_Uptonhttp://en.wikipedia.org/wiki/Rahul_Dravidhttp://en.wikipedia.org/wiki/Raj_Kundrahttp://en.wikipedia.org/wiki/Raj_Kundrahttp://en.wikipedia.org/wiki/Shilpa_Shettyhttp://en.wikipedia.org/wiki/Lachlan_Murdochhttp://en.wikipedia.org/wiki/Lachlan_Murdochhttp://en.wikipedia.org/wiki/Jaipurhttp://en.wikipedia.org/wiki/Rajasthan_Royalshttp://en.wikipedia.org/wiki/Rajasthan_Royalshttp://en.wikipedia.org/wiki/Allan_Donaldhttp://en.wikipedia.org/wiki/Allan_Donaldhttp://en.wikipedia.org/wiki/Angelo_Mathewshttp://en.wikipedia.org/wiki/Angelo_Mathewshttp://en.wikipedia.org/wiki/Sahara_India_Pariwarhttp://en.wikipedia.org/wiki/Sahara_India_Pariwarhttp://en.wikipedia.org/wiki/Subrata_Royhttp://en.wikipedia.org/wiki/Punehttp://en.wikipedia.org/wiki/Pune_Warriors_Indiahttp://en.wikipedia.org/wiki/Pune_Warriors_Indiahttp://en.wikipedia.org/wiki/Pune_Warriors_Indiahttp://en.wikipedia.org/wiki/John_Wright_(cricketer)http://en.wikipedia.org/wiki/John_Wright_(cricketer)http://en.wikipedia.org/wiki/Ricky_Pontinghttp://en.wikipedia.org/wiki/Reliance_Grouphttp://en.wikipedia.org/wiki/Reliance_Grouphttp://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Mukesh_Ambanihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbai_Indianshttp://en.wikipedia.org/wiki/Mumbai_Indianshttp://en.wikipedia.org/wiki/Trevor_Baylisshttp://en.wikipedia.org/wiki/Trevor_Baylisshttp://en.wikipedia.org/wiki/Gautam_Gambhirhttp://en.wikipedia.org/wiki/Gautam_Gambhirhttp://en.wikipedia.org/wiki/Mehta_Grouphttp://en.wikipedia.org/wiki/Jay_Mehtahttp://en.wikipedia.org/wiki/Jay_Mehtahttp://en.wikipedia.org/wiki/Juhi_Chawlahttp://en.wikipedia.org/wiki/Red_Chillies_Entertainmenthttp://en.wikipedia.org/wiki/Red_Chillies_Entertainmenthttp://en.wikipedia.org/wiki/Red_Chillies_Entertainmenthttp://en.wikipedia.org/wiki/Shahrukh_Khanhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Kolkata_Knight_Ridershttp://en.wikipedia.org/wiki/Kolkata_Knight_Ridershttp://en.wikipedia.org/wiki/Kolkata_Knight_Ridershttp://en.wikipedia.org/wiki/Darren_Lehmannhttp://en.wikipedia.org/wiki/Darren_Lehmannhttp://en.wikipedia.org/wiki/Adam_Gilchristhttp://en.wikipedia.org/wiki/Adam_Gilchristhttp://en.wikipedia.org/wiki/Daburhttp://en.wikipedia.org/wiki/Bombay_Dyeinghttp://en.wikipedia.org/wiki/Bombay_Dyeinghttp://en.wikipedia.org/wiki/Ness_Wadiahttp://en.wikipedia.org/wiki/Preity_Zintahttp://en.wikipedia.org/wiki/Chandigarhhttp://en.wikipedia.org/wiki/Mohalihttp://en.wikipedia.org/wiki/Kings_XI_Punjabhttp://en.wikipedia.org/wiki/Kings_XI_Punjabhttp://en.wikipedia.org/wiki/Eric_Simonshttp://en.wikipedia.org/wiki/Eric_Simonshttp://en.wikipedia.org/wiki/Mahela_Jayawardenehttp://en.wikipedia.org/wiki/Mahela_Jayawardenehttp://en.wikipedia.org/wiki/GMR_Grouphttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Delhi_Daredevilshttp://en.wikipedia.org/wiki/Delhi_Daredevilshttp://en.wikipedia.org/wiki/Stephen_Fleminghttp://en.wikipedia.org/wiki/Stephen_Fleminghttp://en.wikipedia.org/wiki/MS_Dhonihttp://en.wikipedia.org/wiki/India_Cementshttp://en.wikipedia.org/wiki/India_Cementshttp://en.wikipedia.org/wiki/N._Srinivasanhttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Chennai_Super_Kings


17/24

DEFUNCT TEAMS:

NAME CITY OWNER PRICE CAPTAIN HEADCOACH

Kochi Tuskers

Kerala Kochi

Kochi Cricket Private

Ltd

US$333

million

Mahela

Jayawardene

Geoff

Lawson

Deccan

ChargersHyderabad

Deccan Chronicle

Holdings Limited

US$107

million

Kumar

Sangakkara

Darren

Lehmann

Indian Premier League

Countries India

Administrator BCCI

Format Twenty20

First tournament 2008

Next tournament 2014

Tournament format Double round-robinandplayoffs

Number of teams 9
http://en.wikipedia.org/wiki/Kochi_Tuskers_Keralahttp://en.wikipedia.org/wiki/Kochi_Tuskers_Keralahttp://en.wikipedia.org/wiki/Kochi_Tuskers_Keralahttp://en.wikipedia.org/wiki/Kochihttp://en.wikipedia.org/wiki/Kochihttp://en.wikipedia.org/wiki/Mahela_Jayawardenehttp://en.wikipedia.org/wiki/Mahela_Jayawardenehttp://en.wikipedia.org/wiki/Mahela_Jayawardenehttp://en.wikipedia.org/wiki/Geoff_Lawson_(cricketer)http://en.wikipedia.org/wiki/Geoff_Lawson_(cricketer)http://en.wikipedia.org/wiki/Deccan_Chargershttp://en.wikipedia.org/wiki/Deccan_Chargershttp://en.wikipedia.org/wiki/Deccan_Chargershttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Deccan_Chroniclehttp://en.wikipedia.org/wiki/Deccan_Chroniclehttp://en.wikipedia.org/wiki/Deccan_Chroniclehttp://en.wikipedia.org/wiki/Kumar_Sangakkarahttp://en.wikipedia.org/wiki/Kumar_Sangakkarahttp://en.wikipedia.org/wiki/Darren_Lehmannhttp://en.wikipedia.org/wiki/Darren_Lehmannhttp://en.wikipedia.org/wiki/Darren_Lehmannhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Board_of_Control_for_Cricket_in_Indiahttp://en.wikipedia.org/wiki/Board_of_Control_for_Cricket_in_Indiahttp://en.wikipedia.org/wiki/Twenty20http://en.wikipedia.org/wiki/Twenty20http://en.wikipedia.org/wiki/2008_Indian_Premier_Leaguehttp://en.wikipedia.org/wiki/2008_Indian_Premier_Leaguehttp://en.wikipedia.org/wiki/2014_Indian_Premier_Leaguehttp://en.wikipedia.org/wiki/2014_Indian_Premier_Leaguehttp://en.wikipedia.org/wiki/Round-robin_tournamenthttp://en.wikipedia.org/wiki/Round-robin_tournamenthttp://en.wikipedia.org/wiki/Page_playoff_systemhttp://en.wikipedia.org/wiki/Page_playoff_systemhttp://en.wikipedia.org/wiki/Page_playoff_systemhttp://en.wikipedia.org/wiki/Indian_Premier_League#Franchiseshttp://en.wikipedia.org/wiki/Indian_Premier_League#Franchiseshttp://en.wikipedia.org/wiki/File:Ipl.svghttp://en.wikipedia.org/wiki/Indian_Premier_League#Franchiseshttp://en.wikipedia.org/wiki/Page_playoff_systemhttp://en.wikipedia.org/wiki/Round-robin_tournamenthttp://en.wikipedia.org/wiki/2014_Indian_Premier_Leaguehttp://en.wikipedia.org/wiki/2008_Indian_Premier_Leaguehttp://en.wikipedia.org/wiki/Twenty20http://en.wikipedia.org/wiki/Board_of_Control_for_Cricket_in_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Darren_Lehmannhttp://en.wikipedia.org/wiki/Darren_Lehmannhttp://en.wikipedia.org/wiki/Kumar_Sangakkarahttp://en.wikipedia.org/wiki/Kumar_Sangakkarahttp://en.wikipedia.org/wiki/Deccan_Chroniclehttp://en.wikipedia.org/wiki/Deccan_Chroniclehttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Deccan_Chargershttp://en.wikipedia.org/wiki/Deccan_Chargershttp://en.wikipedia.org/wiki/Geoff_Lawson_(cricketer)http://en.wikipedia.org/wiki/Geoff_Lawson_(cricketer)http://en.wikipedia.org/wiki/Mahela_Jayawardenehttp://en.wikipedia.org/wiki/Mahela_Jayawardenehttp://en.wikipedia.org/wiki/Kochihttp://en.wikipedia.org/wiki/Kochi_Tuskers_Keralahttp://en.wikipedia.org/wiki/Kochi_Tuskers_Kerala


18/24

Current champion Kolkata Knight Riders(1st Title)

Most successful Chennai Super Kings(3 Titles)

Qualification Champions League Twenty20

Most runs Suresh Raina(2254,Chennai Super Kings)

Most wickets Lasith Malinga

(89,Mumbai Indians)

TAX EXEMPTIONS TO ICC

News Reports suggested that tax exemption of about Rs. 45 crore was granted to the

International Cricket Council (ICC) for the World Cup Cricket Tournament held in

2011.

Specifying the reasons for granting tax exemptions to ICC, the Ministry of Finance(Department of Revenue) in their written replies stated as under:

The Cricket World Cup, 2011, in respect of which ICC has made an application now,

has a participation of 14 countries. The ICC has stated that the event is approved by

the International Cricket Council which is the governing body for cricket around the

world. As the ICC Cricket World Cup fulfils the conditions laid down in section 10(39),

income arising to ICC from this event was prima facie eligible for exemption. However

an examination of the agreements entered into by the IDI (the commercial arm and

subsidiary of ICC) with various companies in respect of the transfer of sponsorshipand telecasting rights, shows that in most of the cases the payments are to be made

to IDI on a net of tax basis. In other words, those companies to which the sponsorship

or telecasting rights are transferred will bear the tax liability on behalf of IDI, if any

such tax liability arises on the payments made to IDI by them. Seen from this

perspective, if Cricket World Cup, 2011 was to be notified under section 10(39), the

benefit of tax exemption will flow not to ICC/IDI but to the companies to which such

sponsorship or telecasting rights have been transferred by IDI.

Since there is no provision in the Section 10(39) to restrict the exemption, the

approval of the Cabinet was sought to grant exemption from income-tax under
http://en.wikipedia.org/wiki/Kolkata_Knight_Ridershttp://en.wikipedia.org/wiki/Kolkata_Knight_Ridershttp://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Champions_League_Twenty20http://en.wikipedia.org/wiki/Champions_League_Twenty20http://en.wikipedia.org/wiki/Suresh_Rainahttp://en.wikipedia.org/wiki/Suresh_Rainahttp://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Lasith_Malingahttp://en.wikipedia.org/wiki/Lasith_Malingahttp://en.wikipedia.org/wiki/Mumbai_Indianshttp://en.wikipedia.org/wiki/Mumbai_Indianshttp://en.wikipedia.org/wiki/Mumbai_Indianshttp://en.wikipedia.org/wiki/Mumbai_Indianshttp://en.wikipedia.org/wiki/Lasith_Malingahttp://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Suresh_Rainahttp://en.wikipedia.org/wiki/Champions_League_Twenty20http://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Kolkata_Knight_Riders


19/24

Section 10(39) of the Income-tax Act, 1961 in respect of the income which was arising

in India from the ICC World Cup, 2011 to the subsidiaries of the ICC only where the

contractual obligation to bear the income-tax liability is on these entities. The Cabinet

has considered the matter in its meeting on 31.3.2011 and approved the exemption

of Income to be granted only on the income on which the tax burden is required to beborne by the subsidiaries of the ICC and not contracted to be paid by a third party.

The total tax effect of the proposed exemption after such restriction would be

approximately Rs. 45 crore as against a tax effect of Rs. 443 crore that would have

been forgone if the exemption was granted on the total projected revenue to these

subsidiaries of Rs. 1476 crore.

TAXABILITY OF THE IPL INCOME

On being asked about the details of action taken by the Income tax Department as

regards source of investments and taxability of income from IPL, the Ministry of

Finance (Department of Revenue) stated that:

Investigation is currently in progress on various issues involved in IPL in respect of

individual teams, BCCI-IPL and other entities associated with IPL. The source of

foreign investments in individual teams is being investigated and references through

Foreign Tax Division, CBDT have been sent to various countries for obtaining

information on these investments. The income and expenditure shown by the BCCI-IPL, the IPL teams and the related entities are being examined by the Investigation

Directorate of Income Tax Department and also by the assessing officers during

scrutiny assessments. Investigation is under progress.

On being asked as to when the Income tax Department came to know of the

irregularities regarding bidding, investments and taxability of income from IPL, the

Ministry of Finance (Department of Revenue) stated as under:

The matter relating to TDS has been under examination since IPL -1 in April 2008.

Enquiries were made by Investigation Directorates in September 2009 from BCCI

about the various agreements in respect of media rights, especially fresh agreement

that was signed by BCCI with WSG, Mauritius. The first survey action in respect of IPL

was conducted on 15.04.2010 and subsequently, survey actions were also conducted

on the various IPL teams in order to investigate the source of investment and

taxability of income.


20/24

TAX ASSESSMENT OF IPL

On being asked as to whether IPL is a part of BCCI and how is IPL being treated for

the purpose of Income tax assessment, the Ministry of Finance (Department of

Revenue) in their written replies stated that since IPL is a part of BCCI and has noseparate existence, there would be no separate assessment for IPL.

On being asked during evidence as to whether IPL is a separate legal entity for the

taxation purpose, the representatives of the Ministry of Finance (Department of

Revenue) stated that:

IPL is not a separate entity. Whatever income IPL is to pay to the BCCI will be shown

by the BCCI as its receipt, and the BCCI shows it in its balance sheet.

On being asked as to why 21 months time was given for tax assessment, the

representative of the Ministry deposed before the Committee that :

21 months is the statutory time given for making an assessment. Once the returns

are filed, the Department may call for details, they may have certain queries and in

the process, the Department cannot go beyond 21 months.

In this regard, Secretary Revenue in his deposition before the Committee further

added that:

When we say that assessment will take 21 months, we do not really mean that we

will take 21 months. What we mean is that we cannot take any action under the law

until that period is allowed to be lapsed. We are not really meaning that we will take

that much time. I would only like to assure you that we will do everything that is

possible to bring the investigation to a conclusion.

IMPLICATIONS AS A RESULT OF SHIFTING TO SOUTH AFRICA

Shifting the IPL-2, 2009 match from India to South Africa resulted in the following:

The resulting arrival of prospective sporting audience to India from various

countries became nil.

The hotels which had geared up for the tourist in flex lost this whole business.

The business that would have accrued to the catering industry from this

massive tourist population was totally lost.


21/24

The massive transport arrangement that would have benefited the transport

sector failed to materialize.

All the entertainment locations that these tourists would have visited all over

India as an extension of their visit to India also came to nought.

Each of the above events, had they materialized would have resulted in massive

realization of entertainment tax, service tax, sales tax etc.

Unfortunately all this tax earning vanished into thin air due to the shifting to South

Africa.

2013 INDIAN PREMIER LEAGUE

The 2013 season of the Indian Premier League, abbreviated as IPL 6 or IPL 2013, is

the sixth season of the Indian Premier League. The tournament features nine teams

and is held from 3 April to 26 May 2013. The opening ceremony was held at the Salt

Lake Stadium in Kolkata on 2 April 2013. This is the first season with PepsiCo as the

title sponsor. The Kolkata Knight Riders are the defending champions, having wonthe 2012 season.
http://en.wikipedia.org/wiki/Indian_Premier_Leaguehttp://en.wikipedia.org/wiki/Salt_Lake_Stadiumhttp://en.wikipedia.org/wiki/Salt_Lake_Stadiumhttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Kolkata_Knight_Ridershttp://en.wikipedia.org/wiki/2012_Indian_Premier_Leaguehttp://en.wikipedia.org/wiki/2012_Indian_Premier_Leaguehttp://en.wikipedia.org/wiki/Kolkata_Knight_Ridershttp://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Salt_Lake_Stadiumhttp://en.wikipedia.org/wiki/Salt_Lake_Stadiumhttp://en.wikipedia.org/wiki/Indian_Premier_League


22/24

Sponsorship

PepsiCo replaced DLF Ltd as the title sponsor starting with the 2013 season. DLF did

not renew their contract after their initial five-year contract, for 250 crore, ended

with the previous season. PepsiCo's contract is 396.8 crore for five years, ending

with the 2017 season. In response to questions about the higher sponsorship costscompared to DLF's, a representative of PepsiCo said, "Our estimate is that we will get

five to six times the value of the money we paid." However, Brand Finance had

assessed the IPL's brand value to have fallen from $4.1 billion in 2010 to $2.9 billion

in 2012, attributed to the decline in television ratings over the two years.

Termination of Deccan Chargers

Deccan Chargers, champions of the 2009 Indian Premier League, became the second

team to be terminated from the IPL after Kochi Tuskers Kerala. The owners failed tosave the team after several attempts were made with the Bombay High

Court and Supreme Court of India. Immediately after the Chargers' termination, the

BCCI invited bidders for a replacement team also based in Hyderabad. It was

announced on 25 October 2012 that Sun TV Network won the bid at 85.05 crore per

year. The new team was named the Sunrisers Hyderabad.

Personnel changes

In October 2012, the teams were allowed to release any number of their players

from their contracts to reduce their player costs. The released players would have

the option of entering the auction. The players' auction was held on 3 February2013, where 37 players were sold.

Overseas participation

Availability of Bangladeshi players was put in doubt when the Bangladesh Cricket

Board considered not issuing the players with the No Objection Certificates they

needed to participate in the tournament. Their deliberation was due to the

tournament's dates clashing with the Bangladesh cricket team in Zimbabwe in

2013. Regardless, both affected players, Shakib Al Hasan and Tamim Iqbal, missed

the start of the tournament due to injury.

Despite the progress on the restoration ofcricketing relations between India

and Pakistan after the Pakistan national cricket team toured India in December 2012

and January 2013, no Pakistani players were included in the auction. Several South

Africans missed the start of the tournament to play in the knockout stage of the Ram

Slam T20 Challenge.

Shortly before the start of the season, the IPL governing council ruled that Sri Lankan

cricketers and match officials will not participate in any matches held in Chennai. This

was a result of the growing political tensions concerning the ethnic conflict between

the Sinhalese and Sri Lankan Tamils. The anti-Sinhalaese sentiments from the peopleofTamil Nadu raised security concerns for Sri Lankan involvement. The decision was
http://en.wikipedia.org/wiki/PepsiCohttp://en.wikipedia.org/wiki/DLF_Ltdhttp://en.wikipedia.org/wiki/Brand_Financehttp://en.wikipedia.org/wiki/Deccan_Chargershttp://en.wikipedia.org/wiki/2009_Indian_Premier_Leaguehttp://en.wikipedia.org/wiki/Kochi_Tuskers_Keralahttp://en.wikipedia.org/wiki/Bombay_High_Courthttp://en.wikipedia.org/wiki/Bombay_High_Courthttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Sun_TV_Networkhttp://en.wikipedia.org/wiki/Sunrisers_Hyderabadhttp://en.wikipedia.org/wiki/Bangladesh_Cricket_Boardhttp://en.wikipedia.org/wiki/Bangladesh_Cricket_Boardhttp://en.wikipedia.org/wiki/No_Objection_Certificatehttp://en.wikipedia.org/wiki/Shakib_Al_Hasanhttp://en.wikipedia.org/wiki/Tamim_Iqbalhttp://en.wikipedia.org/wiki/India%E2%80%93Pakistan_cricket_rivalryhttp://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/Pakistani_cricket_team_in_India_in_2012%E2%80%9313http://en.wikipedia.org/wiki/2012%E2%80%9313_Ram_Slam_T20_Challengehttp://en.wikipedia.org/wiki/2012%E2%80%9313_Ram_Slam_T20_Challengehttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Ethnic_conflict_in_Sri_Lankahttp://en.wikipedia.org/wiki/Sinhalese_peoplehttp://en.wikipedia.org/wiki/Sri_Lankan_Tamil_peoplehttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Tamil_Naduhttp://en.wikipedia.org/wiki/Sri_Lankan_Tamil_peoplehttp://en.wikipedia.org/wiki/Sinhalese_peoplehttp://en.wikipedia.org/wiki/Ethnic_conflict_in_Sri_Lankahttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/2012%E2%80%9313_Ram_Slam_T20_Challengehttp://en.wikipedia.org/wiki/2012%E2%80%9313_Ram_Slam_T20_Challengehttp://en.wikipedia.org/wiki/Pakistani_cricket_team_in_India_in_2012%E2%80%9313http://en.wikipedia.org/wiki/Pakistanhttp://en.wikipedia.org/wiki/India%E2%80%93Pakistan_cricket_rivalryhttp://en.wikipedia.org/wiki/Tamim_Iqbalhttp://en.wikipedia.org/wiki/Shakib_Al_Hasanhttp://en.wikipedia.org/wiki/No_Objection_Certificatehttp://en.wikipedia.org/wiki/Bangladesh_Cricket_Boardhttp://en.wikipedia.org/wiki/Bangladesh_Cricket_Boardhttp://en.wikipedia.org/wiki/Sunrisers_Hyderabadhttp://en.wikipedia.org/wiki/Sun_TV_Networkhttp://en.wikipedia.org/wiki/Hyderabad,_Indiahttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/Bombay_High_Courthttp://en.wikipedia.org/wiki/Bombay_High_Courthttp://en.wikipedia.org/wiki/Kochi_Tuskers_Keralahttp://en.wikipedia.org/wiki/2009_Indian_Premier_Leaguehttp://en.wikipedia.org/wiki/Deccan_Chargershttp://en.wikipedia.org/wiki/Brand_Financehttp://en.wikipedia.org/wiki/DLF_Ltdhttp://en.wikipedia.org/wiki/PepsiCo


23/24

made after Jayalalithaa, the chief minister of Tamil Nadu, wrote to the Prime

Minister of India requesting the ban.

Other than the Chennai Super Kings, the franchises were not in support of the

decision as they believed it offered Chennai an added advantage in their home

matches. Chennai's Sri Lankan players hold secondary positions in their team whilesome Sri Lankans in other teams play key roles and their absence in those matches

would affect their team strategies. Another concern was with how the decision did

not follow the precedence of moving the matches to a different venue. However, the

playoff matches originally scheduled to be held in Chennai were later relocated to

Delhi.

FUNDING PATTERN OF THE IPL AND THE FRANCHISEES:

Entire Expenses of running the IPL tournament are met by BCCI. The Franchisees are

responsible to meet the expenses of the players in the team, 12 travel, marketing

and all costs associated with staging costs for the matches.

The income derived from Media Right and sponsorships are shared with the

Franchisees as envisaged in the franchise agreement. The Franchisees have to pay

the BCCI an annual franchisee fee which BCCI distributes to the Associations as

subvention. Apart from this, the income generated towards sale of tickets and local

advertisement goes to the franchisees to meet the costs. It is the responsibility of the

franchisee to pay for their players whether Indian or foreign as per the agreement

with the players.

Beverages and snacks major PepsiCo India is planning a slew of marketing initiatives,

including making fans meet celebrities, during the IPL 2013.

Fan initiatives during Pepsi IPL 2013 include in-stadium 'Pepsi VIP Box', which will

provide a unique viewing experience to cricket fans who may get to share the space

with their favourite celebrities and more, PepsiCo said in a statement.

PepsiCo, which had won the title sponsorship of the IPL for Rs 396.8 crore for thenext five seasons starting 2013, will also be conducting other consumer engagement

initiatives, including fans playing Pepsi Tweet20 tournament on Twitter. "...For us this

(IPL) is a perfect platform as it provides wider reach and engagement opportunities

with our core target audience in the peak beverage season," PepsiCo India, VP-

beverage marketing, Deepika Warrier said.

She added that from interactive contests and engagement in-stadia, on-air and on-

line to product and branding innovation, everything is designed to provide the

ultimate sporting experience.
http://en.wikipedia.org/wiki/Jayalalithaahttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Chennai_Super_Kingshttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Prime_Minister_of_Indiahttp://en.wikipedia.org/wiki/Jayalalithaa


24/24

"We are confident of making this edition of the Pepsi IPL the most thrilling and

engaging event this year and in the years to come," Warrier added. The company

also plans to come out with a '500 ml Fan Can', priced at Rs 35 during the IPL season.

The IPL season for 2013 ends on May 26.

CONCLUSION:

I sincerely thank our Professor Mr Dinesh Agarwal, for giving me a chance to work on

this case study.

This case study helped me to understand the functional structure, tax implications &

exemptions and the business flow of Indian Premier League. Though Indian Premier

League is to entertain people, it has flow of cash hence can be related to a huge

business. As every business is associated with protocols and tax policies, IPL is also

governed under structured policies.

BIBLIOGRAPHY/ REFERENCES:

1. 38TH REPORT: STANDING COMMITTEE ON FINANCE (2010-11) FIFTEENTH

LOK SABHA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) TAX

ASSESSMENT/EXEMPTIONS AND RELATED MATTERS CONCERNING IPL/BCCI.

2. NDTV: Sports

3. dreamcricket.com: IPL and the Mauritius connection4. IBN LIVE-SECTIONS: Winning is not the only thing for IPL franchises

5. Indian Premier League A Dummies Guide (http://www.labnol.org/tag/ipl/)

6. Wikipedia- Indian Premier League7. Cricket World 4 U
http://www.labnol.org/tag/ipl/http://www.labnol.org/tag/ipl/http://www.labnol.org/tag/ipl/

indian premier league case study

Documents