KKR is consistent in making money

142

Shah Rukh Khan’s IPL Team, Kolkata Knight Riders have not only played well on the field in recent years but have also registered huge revenue figures which is far better and above then rest of the Indian Premier League franchises.

According to a financial report, IPL franchises such as Mumbai Indians, Delhi Daredevils, and Royal Challengers Bangalore were yet to achieve break-even, the KKR had already racked a net profit of Rs. 14.15 crores in 2014-15.

The Knight Riders witnessed not only a 30% growth in revenues but also a 54% leap in the profits despite the first half of the coveted T20 tournament being held in the United Arab Emirates.

Knight Riders Sports Private Limited saw a rise of revenue from Rs. 128.81 crores to Rs. 168.71 crores in 2014 when the KKR had won their second Indian Premier League title over a span of a couple of years. Its profits rose by almost 54% that year as the franchise stacked up a total profit figure of Rs. 14.15 crores compared to that of Rs. 9.19 crores in 2013.

So, what makes the Kolkata Knight Riders a financially more stable IPL franchise than the other so-called big ones like Mumbai Indians or Royal Challengers Bangalore? According to Tofler’s managing director, Varun Gupta, “Sponsors love that Shah Rukh Khan wears the shirt with their logos on it. That’s a big draw. And if a team is doing well, it can negotiate better.”

According to the business head of ESP Properties, Vinit Karnik, “Champion teams are able to extract more from sponsorship revenue. Also, franchises charge performance bonus for qualifying to playoffs and finals that lead to an upside on revenues. (The) IPL also offers performance bonus and price money which add to the bottom line.”

The other team to record a profit in 2014 apart from KKR is Kings XI Punjab. Which suffered a loss of Rs 4.36 crore in 2013, earned a profit of Rs 12.76 crore in 2014. It also recorded a hike of 26 percent in terms of revenue generation, from Rs 103.21 crore in 2013-14 to Rs 130.06 crore in 2014-15.

According to the co-owner of KXIP, Mohit Burman, “The team also played the finals in 2014, which increased the revenue due to the prize money that the franchise received.”

 

NO COMMENTS

LEAVE A REPLY