IPL India’s Virtual Casino to be listed…But who’s licking fingers?.....

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IPL India’s Virtual Casino to be listed…But who’s licking fingers?.....
It is a billion dollar baby, with a Made in India Tag encrypted on it, according to Brand Finance a UK based brand valuation consultancy IPL event is roughly worth a whopping $2bn, the standalone value of IPL brand is roughly about $311 million. The franchises are going gaga over listing on the bourses; you just might see a KKR listed at BSE hitting an upper circuit on Dada’s century.
Let us check out how the business of IPL works, the main sources of revenue for IPL is broadly divided into 4 main categories viz.
1.Central Revenues :-

•Title Sponsorship of event

•Licensed Merchandised
2.Media Rights


•$1.9 Billion for 10 years

3.Money raised by Franchises :-

•Selling advertisement for stadia

•Licensing products

•Merchandise sale

•Advertising on Tickets

•Gate Money

4.Franchise Bid Money


So how much a franchise earns is the next question comes to our mind…..
The table clearly shows the franchise has a lions share of the pie. So it seems a great preposition to get listed.

Sounds very interesting, but I have my reservations to the idea of getting an IPL franchise listed, and I have reasons for the same, yes one can always argue and talk about success scripted by the Football clubs listed in Europe. But how many football clubs remain to be listed is a question that we must ask, even the few that still proudly claim to be part of the W street have moved out to bourses with less stringent norms.
The biggest road block I believe in getting an IPL team listed are:

1.Lack of visibility of winning a tournament despite battery of Superstars in the team.

2.Sale of Merchandise is totally depended on team doing well (In Indian scenario as the clubs
don’t enjoy fanatic support unlike their counterparts in EPL, so fans tend to disown teams that do badly.)
3.Listing means raising capital, there should be clear reason to raise capital

4.Lack of creation of real assets. (As of now none of the Franchise owns a cricket stadium.)

5.Higher disclosure norms of the bourses.

6.Year on year growth expected by investors, which is difficult to provide.

7.More International fixtures stop’s IPL from being more than just one month affair.

There is a difference between the Cup and the Lip… which might seem to prevail in this case….

PS:- Data, fact's & figured are taken from this presentation