IPL Bidding, Contracts and Sponsorships.

What kind of revenues does the IPL have on offer??

IPL being the greatest Cricket event in the sub-continent, has a huge amount of money on offer. It had received bids from 14 prospective franchisees. Here are the franchisees that have won the bids, alongside the city teams and the bid winning amount.

RIL(Reliance Ind)	Mumbai	Rs. 441 Cr.(US D 111.9 mn $)
Red Chillies Entertainment	Kolkata	Rs. 296 Cr.(US D 75.09 mn $)
Preity Zinta	Mohali	Rs. 300Cr.(USD 76 mn $)
Deccan Chronicle	Hyderabad	Rs. 422Cr.(USD 107.01 mn $)
UB group	Bangalore	Rs. 440Cr. (USD 111.6mn $)
Emerging Media	Jaipur	Rs. 264Cr.(USD 67 mn $)
GMR Holdings	Delhi	Rs.264Cr.(USD 84 mn $)
Indian Cements	Chennai	Rs.359Cr. (USD 91 mn $)

DLF Group has won the title sponsorship for the IPL and the event shall be called The DLF Indian Premier League or the DLF-IPL at least for the next five years. The DLF reportedly won the bid for 200 Cr.

SONY has won the Telecast rights for the next 10 years shelling out more than 1 Billion Dollars. TV rights are worth $ 918 mn, with $100 mn set aside for promotion.



Will the franchisees stand to gain?
In the long run yes, but in the first few years they have to work really hard.

The franchisee will have to bear the minimum cost of the players’ salary. Other expenses like travel, accommodation, office and support staff, team management, coach, training and preparation, insurance, ground expenses, marketing and promotional cost will also be a part of the franchisee expenditure.

The bid amount, which will be paid to the IPL, will also be accounted for expenditure. This means that if a franchisee buys a team for $60 million for 10 years, that team will have to shell out an amount of $6 million per year. In all probability, the expenditure will go up to $12 to $13 million.

Winning the bid was not all, was it??

But sources close to the bidders reveal that, the bidders are ready to forego $4 mns in the first year as losses.