September 6, 2012

Indian Premier League

Is the IPL overpriced?

Nikita Bastian

The Hindustan Times' Nilankur Das has a look at the financial numbers behind the IPL, and how that translates into trouble for the league.

Was the Indian Premier League (IPL) too overpriced to begin with and by extension, a flawed business model? Consider this: A franchise has to annually pay one-tenth of the amount it bought the team for to the IPL. So if the Chennai Super Kings (CSK) were bought for $91 million, it must shell out $9.1 million each year. The salaries cap of $9 million per year means a franchise will not pay more than that amount to its players. And, according to a study, every year a franchise spends around $2 million on logistics during the tournament. That means CSK spend around $20 million every season.

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Nikita Bastian is a sub-editor at ESPNcricinfo

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