Home / Entertainment and LifeStyle / Is IPL under a recession ?

Is IPL under a recession ?

Is the grand carnival of the cricket world losing its shine, as every year passes by? Reports reveal that it might indeed be true. This season of IPL has been reported to have seen less viewership, both in the web and the TV media. The franchisees have been finding it hard to look for higher revenues as they did during the earlier seasons.

Kate Perry performing during the IPL'12 inauguration

Kate Perry performing during the IPL'12 inauguration

The franchisees blame it on the governing body, for its certain decisions, that have led to the fall. Some of the decisions including the one that the players to be returned to the common pool after the season, has been a big hindrance for the franchisees to have the brand built with the team players.

The franchisees have to shell out a whole lot of expenses – the franchise fee, stadium fees, sales and marketing employee costs, players and support staff payments, team promotion, travel and hospitality costs. Franchise owners have been complaining that they to bear all the risks. It is also reported that many of the franchisees feel the franchise agreement has to be given a fresh look, with reworking on issues related to player retentions.

Priyanka Chopra at the IPL'12

Priyanka Chopra at the IPL'12

The revenues from the broadcasting rights will be directed to a central pool – with this breakage – 40 per cent to the IPL itself, 54 per cent to various franchisees and 6 per cent as the prize money. The title sponsorship from DLF has also been not very conducive. It is said that the company had to pay up Rs.200 crores as title sponsor for five years, and it is not very keen on retaining it after the contract gets over this year. Pepsi has been said to have paid $12.5 million to be officially recognized as the beverage partner for the IPL.

Vijay Malya led Royal Challengers Bangalore, has a host of ticket classes – from the McDowells Best View (priced at Rs. 1100) to the Black Dog Pavilion (Rs. 55,000). The Rajasthan Royals has let its tickets at Jaipur stadia to be available from Rs. 200 (for the initial matches) to Rs. 2000, while for the other matches it is priced at Rs. 300 to Rs. 4000. The Kolkata Knight Riders have priced their tickets from Rs. 300 to Rs. 9000 for the matches in the Eden Gardens stadium, Kolkata. Tickets for the matches of the Mumbai Indians being played at the Wankhede Stadium, Mumbai, have been available online to be purchased from Rs. 650 to Rs.12,500 for the Grand stalls.

Amitabh Bacchan at the IPL 2012

Amitabh Bacchan at the IPL 2012

With lesser crowds drawing to the stadia, it has become a challenging task for the franchisees to work out the deals. It becomes interesting now to see if at the end of this season, the IPL extravaganza can really come out of this cricket recession.


 

 

Related Videos