Cricket has been established as a sport, a religion, entertainment and just pure fun, but now Indian Premier League has officially established cricket as one of the most booming businesses in the country. Indian Premier League is now a billion dollar franchise, something that was unimaginable just five years back. It is not difficult to mint money in a country that worships the game and finds gods in players like Sachin Tendulkar who have become legends all over the world.
The first season of the Indian Premier League witnessed large numbers being tossed around with Mahendra Singh Dhoni receiving a whooping bid of 1.5 million dollars. But all those bids didn’t go futile. The first season of the Indian Premier League saw heavy returns on investment. The net maximum allowed expenditure on bidding per team was 7 million dollars. Hence the total expenditure would have been close to 70 million dollars. The net gross revenue for the government was close to 91Crores in rupees. This is a mere indication of the total revenue from the first season of the franchise.
However the success was short lived as in the midst of security concerns, the second season of the Indian Premier League was forced to shift to South Africa. This was a major blow as the losses in this season greatly outweighed the expenditure. Some managed to pull themselves back up whereas others faced a great deal of hardship. The Indian Premier League saw a major downfall in terms of revenue and the net loss was marked at 2.41 million dollars.
However the loss was not to stay and in the subsequent season the League was brought back to India and the profits saw a gradual rise. By the end of the third season the profits were marked at 24.90 million dollars, grossly overpowering the loss in the previous season. The government saw revenue of 200Crore rupees which was more than double the revenue in the first season. In terms of TRP ratings the Indian Premier League has been steadily amongst the most watched on Indian Television giving immense competition to famous and established shows such as Kaun Banega Crorepati. In 2011 BCCI recorded a profit of 37 million dollars from the Indian Premier League. Although this is a huge scale up from its lagging monetary problems generated as a result of the second season catastrophe and the controversies, the Indian Premier League continues to be far from its soccer counterparts.
Today the franchise is a 4 billion dollar industry with The Mumbai Indians being right at the top of the list with a brand value of almost 80 million dollars. Shahrukh Khan’s Kolkata Knight Riders, though only attained success recently, has been a consistent performer in terms of revenue and it is not far behind at a whooping brand value of around 60 million dollars.