The costs analysis is ok but the revenue generation analysis is questionable. Are you saying that the franchisees get nothing by way of worldwide television revenue?
They might get some money from the television revenue but whatever that revenue is, it most likely is complete bollocks, by which I mean that amount the broadcasting rights went for abroad was either nothing or very cheap.
Again, what about that insurance cost of 50-60 crore. Even if they made 30 crore. But they spent 50+45= 95 crore. Correct me if i am wrong. This is based on all above sources from various places.
Excellent finds @atuljg !!! Lots of stuff is said in these articles that can really help us understand where we are currently. Although I do believe gaffer is still right. From the articles, the teams only made around 8-10 crore from all the sponsorships and stuff. Everything else depends on ticket sales and to be honest, that probably does not even add much at all compared to the sponsorships.
Somethings though I am still wondering... there is a mention of the broadcasting share to the teams so I think it is safe to guess that there is some money split between the teams from broadcasting but how much? How much does each team get from broadcasting alone?
Also, this, "It is only around 2017 with a projected jump in broadcast revenue that they would be in the black."
I think from that it is safe to say we will not be expanding the Indian Super League till 2017 if things go to plan.
@Domnic Insurance cost of 50-60 crores doesn't mean that you pay that entire amount. For example, I have a family medical insurance covering to a few lakhs but the premium I pay every year is only around 12000/-
80% of TV revenue is split 8 ways after costs taken by Star Sports...what is left isn't much ...
Gate revenue of 1.5- 2 Crores is pure nonsense for Pune...do the maths, with all the costs involved in stadium hire, they are making a loss when you look at gate receipts , minus costs of stadium , lights , police bribes, etc.
Sales of T-Shirts )
FC Goa was flooded with fans wearing T0shirts , available outside Fatorda for 150 rupees...not a p[enny pf that goes to the club !
Don't forget , Chennai , Pune and others gave away loads ...an I mean LOADS of tickets for free to try to fill the stadiums,,,
Whatever I wrote is based on what the two Hindustan Times article says. I didn't calculate it on my own.
The article mentioned that Mumbai City got a 5 Crore contract for T Shirts. So, I deduced that the other clubs may also have made similar contracts for T-Shirts.
The gate revenue is also based on the same report, not my deduction!
So, can you please share the information on the excel sheets you have in a way that laymen like me can understand.
Comments
Gate revenue - Lowest of 1.5-2 Crore for Pune and around 8-10 Crores at least for ATK and kerala blasters.
Apart from this, each franchise signed deals worth Rs. 5-8 crore for this season. Most franchises had between five and 10 sponsors/partners.
Again you'll add In Stadium Advertisement ?? All stadiums had banners in every nook and corner which also are revenue generating.
Sale of T-Shirts? Kochi stadium was soaked in yellow. Mumbai City signed a T Shirt deal of 5 Crores.
Television Revenue?? This has to be the biggest revenue!
Now do the math. The revenue is definitely not as paltry as 8-10 Crore as @gaffertape mentioned.
Sources
Link 1 Link 2
Boss,
Whatever I wrote is based on what the two Hindustan Times article says. I didn't calculate it on my own.
The article mentioned that Mumbai City got a 5 Crore contract for T Shirts. So, I deduced that the other clubs may also have made similar contracts for T-Shirts.
The gate revenue is also based on the same report, not my deduction!
So, can you please share the information on the excel sheets you have in a way that laymen like me can understand.