Most franchises will break even this year - Modi

Lalit Modi, the IPL chairman, has said he expects most IPL franchises to at least break even this year, and has dismissed speculation that moving the tournament to South Africa had been a financial drain on the teams.

When asked when he realistically expected franchises to make money, Modi told the Hindustan Times, "This year, or at least most of them will break even." On being told most franchises don't expect to be profitable this year, he said, "Then they definitely will in a three-four year period (from the time of the creation of the IPL). In any case we have assured them that we will cover them for this in the first few years."

Modi urged the franchises to submit the expenses incurred because of moving the tournament out of India, so that the IPL could work out a compensation package. He insisted it was too soon to say the franchises were making losses. "Unless we give them the numbers (regarding compensation), how can they say that they have incurred losses?"

The IPL is expected to discuss during a meeting of its governing council on Wednesday the issue of compensation for the franchises who are expected to present amounts ranging from Rs 10-20 crore for losses incurred due to the tournament's shift to South Africa.

The franchises are believed to have told the IPL during a meeting in Mumbai last week that they suffered losses on two counts due to the shift: the extra logistical and hospitality expenses incurred and the loss of revenue from tickets and sponsorship activities.

The BCCI had given the IPL US$ 10 million to organise the league in South Africa after the Indian government failed to provide a security guarantee for the tournament, which was scheduled during the general elections. The IPL has subsequently told the franchises that they would be compensated for the shift.