How do the IPL Team Owners Make Money?

How do the IPL Team Owners Make Money?

IPL (Indian Premiere League) Cricket is a great success. Right now, there are total 8 IPL Teams in India. And after the great success of IPL-2 in year 2009, several other countries have started their own Cricket Premiere League.

As I have already mentioned in the previous articles that, IPL Cricket Teams are the new Asset Classes. And Billionaires Invest in Sports teams purely as a purpose of Investment. The Great thing about such type of Exotic Investments is that, they appreciate much faster than any other traditional asset classes.

This is how IPL Team Owners Make Money -

01) Earning from Franchisee Profits -

IPL Teams have 3 Income Sources - Broadcasting Rights, Team Sponsoships & Gate Receipts. And it has 3 Expenses - Franchisee Fees, Team Expenses and Advertising & Admin. IPL Team Owners can add their own personal expenses as a Team Expenses. They can also take profits home.

02) By Partially Selling the Team to the Public -

Another way to make money from IPL Teams is that, all of these 8 teams can go public after 2011 and sell partial stake in their companies to the public. This is How the team owners will make money. By selling a partial Business to the public, IPL Team owners will get back their originally invested money as well as they will still have a management control over the company.

03) By Fully Selling the IPL Team to the New Buyer -

The IPL team owners can also make money by totally selling their IPL Teams. The Valuation of all the teams is increasing at the rate of more than 100% compounded annually. So acording to this rate, after 5 years from today, all the teams Valuation will be above US $ 1 Billion (Rs.5,000 Crores).

In short, IPL Teams are just the New Asset Classes like any other Asset Classes such as Stocks, Bonds, Gold, Real Estate, Art....etc...... Investors invest in IPL Teams purely for Investment purpose....!!!!