Dubai: It may not have been always a smooth ride for the franchise owners of Indian Premier League (IPL) in the first decade, but they are ready to take a fresh guard when the league turns a new leaf in 2018.
The 11th edition of the league will see licenses of the franchises being renewed with new terms and conditions along with a mega re-auction where 400 odd players will go under the hammer.
“It has really been a fascinating journey. We have seen the product grow from an unknown quantity in the first year when we were not sure if there would be eight takers for the teams — to something which has changed the landscape of the game,” said Mohit Burman, the co-owner of Kings XI Punjab, one of the leading profitable teams along with the Shah Rukh Khan-owned Kolkata Knight Riders.
An industrialist who is part of a consortium which owns the Mohali-based franchise, Burman admits they have come a long way from the initial years of uncertainty, and things can only improve from here onwards.
“The Indian board is yet to spell out the plans for next year, but the new agreement should see an appreciable change in our revenue share as prize money, TV revenues should see a spike from 2008,” he said.
While the team has maintained it’s bottomline over the last few years, Kings XI Punjab’s overall showing had been a none-too-impressive one, their best moment being the runners-up spot to KKR in 2014. “It was the season when the first half of the league was played in the UAE, and I must say it was a lucky omen for us,” Burman said in zest.
The on-field performance has a direct bearing on the teams’ earnings as the IPL booty is proportionately shared as per the teams’ positions in the final league table while the rest of it comes from sponsorships, TV revenues, gate sales and merchandising. Two factors, which according to Burman, has often caused them problems towards a long term financial planning is the two-month span of the league which he calls “too short,” along with the two-year time lapse of the auction.
According to reports in a leading financial daily in India on the eve of IPL X, Kings XI had mopped up sponsorships revenues of Dh15.1 million in 2016 and were looking to improve marginally this year.
“The period of two months for any franchise-based league is short to capitalise on any form of sustained marketing, while an auction every third year does not give fans enough time for involvement with the players. We, in turn, cannot pitch for any sponsorship before February each year as we cannot spell out the composition of the teams and the stars who will be on board,” he added.
The IPL has, meanwhile, confirmed that next season will see the return of the two suspended IPL franchises: Chennai Super Kings and Rajasthan Royals. The two new teams: Rising Pune Supergiant (RPS) and Gujarat Lions (GL) will not get an extension for the next season and should they play next year in the event of BCCI opting for a 10-team league, then it should be done through a fresh bidding process.
