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If you are wondering why this much amount of money is poured by franchisees in IPL and from where they are going to get that money back, you are not alone. Even James Sutherland, Chief, Cricket Australia has raised the same doubts that, will IPL be able to get a same response (from franchisees) in future as well, as he sees very slim chances of franchisees earning considerable profit from IPL. His concerns are genuine and can not be ruled out. There are lot of issues. As all countries cricket schedule already full packed for years to come, its very difficult for international players to play in IPL. He has already stated that in the next year there is practically no chance for Australian players to play in IPL as they are very busy during the season IPL is scheduled.
At the same time Ambanis (owner of Mumbai Indians), Wadias (owner of Punjab Kings XI), Mallyas (owner of Bangalore Royal Challengers), Shahrukh Khan (owner of Kolkata Knight Riders) and for that matter any of the rest of four franchisees are not fools. They must have done their own calculations. It is estimated that every franchisee can break even in the second year. Some franchisees can even start making profit in the first year itself.
IPL Chairman Lalit Modi clarified how franchisees can earn profit in IPL. Team owners get 80% of broadcast revenues, 60% of sponsorship revenues, 100% of team sponsorship revenues, 80% of ticket revenues, 87.5% of all merchandising revenues, and 100% of all hospitality revenues.
Apart from that, I would like to see IPL, ICL or any similar league to be a great success as not only it is great entertainment but it has also brought Cricketers from different countries, cultures and continents close. We have never seen this before in Cricket. It has never happened. I wish these leagues last forever, franchisees make profit they want, cricketers get more and more money and Cricket lovers get more and more entertainment.