Is IPL Making Money?

What do you think: Is IPL Making Money?

Since 2008, IPL (Indian Premiere League) has started and it has 8 franchisees (Cricket Teams). Now, the question here is that, do they really make money by playing cricket teams? Well, if we talk about the financials of the IPL team than during the first year, only 2 out of 8 teams showed profits on their financial statement and one was the Rajasthan Royals, The winner of the 2008 IPL. And this profit was also marginal means around 20 Crore Indian Rupees.

And during the year 2009 around 5-6 teams showed the marginal profit. Now, the question is that, do they really make money? Well, I have seen the Income streams of IPL Cricket teams and each IPL team is making hundreds of crores. Now, I have also seen the Expenses of IPL team and they have shown Team Expenses as 20-40 Crores.

Now, I have only one question that, what did they buy for the players for 20-40 crores? Bats and Pads? The expense of 20-40 crores as a team expense in every franchisee is unbelievable.

So What does it mean? If the owners of the IPL Franchisee travel the world from this money during the time of IPL Matches, will it be a team expense? In other words, IPL teams are profitable business. IPL teams are profitable assets.

Otherwise, why would there be a queue of Investors to buy the existing IPL teams for 4-5 times its original prize and still the current owners of the team don’t want to sell their Assets?

All the IPL teams can go public after 2012. This means that from the next year, they will start showing profits on their Balance Sheets. In shirt, IPL teams are making lots of profit.