Doubts cast on IPL's financial viability

CRICKET Australia chief executive James Sutherland has cast doubt over the sustainability of the Indian Premier League, saying the much-hyped Twenty20 competition is already facing financial pressure. Large crowds and worldwide television audiences have ushered in the first week of the inaugural IPL, but Sutherland yesterday claimed owners of the eight franchises were already questioning how they would get returns on investments.

"It's all very well to have a whole lot of hype around a competition … (but) in order for it to be sustainable it needs to have its own virtual cycle that keeps all the parties happy," Sutherland told Sydney radio station 2KY. "It's nice to pay the players well and get big money from television rights and sponsorships, but ultimately you've got to provide a return for the owners. “As I understand it, the franchisees are starting to ask questions already. As we know, they're giving away a lot of tickets to these matches. But gee, it's going to be a long six weeks for the franchisees if they struggle to sell tickets. I think in Hyderabad for the first game they only had a third of the ground full."

The eight franchises in the league were sold for between $US67 million ($A70.7 million) and $US112 million ($A118 million) during the team auction. On top of that, each team has shelled out millions for its playing roster, with the likes of Andrew Symonds drawing $US1.35 million ($A1.4 million) at the player auction.

Asked did he believe the IPL was already under financial pressure, Sutherland said: "It would have to be. You look at the (cost) for the franchises, somewhere between $70 million and $100 million, and they pay the players on top of that. Explain it to me how they get their return."Australians have dominated the first week of the IPL competition with Matthew Hayden, who smashed 81 off 46 balls in leading Chennai to a six-run win over Mumbai, becoming the fourth Australian to be named man of the match in eight matches.
Hayden and the rest of Australia's Test squad, however, have only a week left to play in this year's competition before being called home for a week-long camp ahead of the tour of the West Indies.

Australia's rescheduled tour of Pakistan will also clash with the IPL next year, with Sutherland adamant there was no way of finding a window in the crowded international schedule for the tournament. - AAP

IPL franchises to earn huge profits: Modi

Karachi: Acknowledging the global response that the inaugural Twenty20 tournament in India has received, IPL Chairman Lalit Modi has claimed that some of the franchisees could make huge profits in the first edition itself. ''The Indian Premier League (IPL) is a very robust business model. In fact, some of the owners will end up making profits in year one itself,'' Modi told 'Geo News'.

He pointed out that the overseas players will be paid according to the number of matches they are available for the tournament while there would be tax deduction on their income and they would get the full amount bid on them in the players' auction.''It does not matter if they play or not. If they are available and even if they are on the bench they will get paid for the match,'' he stated. ''As the players are earning their money in India, they are subject to the bilateral trade treaty conditions,'' he said.

Modi further cleared out the revenues which the various franchisees would make from the IPL. ''Team owners get 80 per cent of broadcast revenues, 60 per cent of sponsorship revenues, 100 per cent of team sponsorship revenues, 80 per cent of ticket revenues, 87.5 per cent of all merchandising revenues and 100 per cent of all hospitality revenues,'' Modi said.

However, Modi ruled out any possibility that the format which has attracted people from all walks of life could turn in favour of the betting mafia. ''Since the IPL is being organised by an independent body of the BCCI, we have the anti-corruption and security unit of the International Cricket Council taking care of things and keeping an eye on things in the tournament,'' he added. UNI