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Neil Manthorp's avatar

Hi Alex, I'm afraid that is a well-intioned but forgone hope. The new world is what it is... :(

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Oz Horse's avatar

There's one financial fact that gives me hope that the IPL franchise owners won't be taking over cricket. The IPL just sold their rights for the next 5 years for about US6bil.

Only about 4% of that was for the rights outside of the Indian subcontinent.

So, even the biggest, brightest league, the only league with all the world's best players, isn't worth that much outside of India; something like US30mil per season. What this says to me, is that the only real value is provided by your local audience. The franchises bought by the IPL franchise owners and other Indian businesses, have no significant local audience. Their broadcast rights in those leagues, currently small, are never going to double like the IPL just has.

So the question is, how are these franchises going to make money?

I just cant see how they could lose millions on each franchise, each year. That's just not sustainable.

The UAE league has broadcast rights locked in at US12mil per season for 10 years. Across 6 teams, that doesn't ever cover the salary cap. What other revenue is there for a league in the UAE? There's no way those franchise owners can make a profit on those numbers.

This is the issue that gives me hope that IPL franchise owners (and other big Indian business enterprises) won't ever have leagues running 9 months of the year, and hence have players locked into annual franchise contracts.

I believe the threat that is real though, is the IPL being blown out to 6-8 month competition. That's the only place where there's guaranteed greater revenue.

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