Once the BCCI decided to shift the IPL to South Africa they promised to ease out a fair bit of the extra financial burden the franchises will be forced into. But it now appears that the owners may not get so lucky, and will have to find ways to handle substantially higher costs.

The Rainbow Nation awaits the sudden windfall that comes as a perfect populist offering – five weeks of high-voltage ‘Cricketainment’ that will also generate an estimated $100 million, just the stimulus South Africa’s exchequer would love to have again and again. And obviously, the hosts are thrilled to bits.

“Our country has a wonderful opportunity to experience – there are already 100 of the best players in the world – but a taste of Indian culture and how fanatical the game is in India,” South African skipper Graeme Smith says. “I think it makes for wonderful entertainment, not only with the cricket but the entertainment side of the IPL put into the game is terrific.”

But it is the big-ticket franchises who could have a problem with the rising overheads, or the lack of economic opportunity in good measure.

— Franchises were aiming at a 20 per cent revenue growth just from ticketing sales. But without the city connect, gate receipts would be much less than what they had earned last year.

— Franchise owners get 12-14 hoardings in their home grounds that they give to their own sponsors. But now, in-stadia advertising prospects are bleak in South Africa, something their sponsors aren’t happy about.

— With each team planning to ferry around 20-25 members across South Africa for the tournament, hotel and travel costs could increase quite a bit.

“Most people look at is the BCCI’s IPL side and the franchisees on the other,” says Kolkata Knight Riders CEO Joy Bhattacharya. “We’re partners, and all of us have to get together to make the IPL in South Africa a success. So it is a question of partnership and I’m sure they know we are under financial constraints. We will find a way to make it work.”

This year the BCCI will make an estimated Rs 400 crore from the new broadcast deal that will generate Rs 40 crore for each franchisee. Also, central sponsorship which is roughly 10 per cent of the TV earnings will fetch the teams another Rs 5 crore each. Add to it another Rs 5 crore the teams save since they don’t have to pay entertainment and service tax in South Africa.

But with franchisee fees to the BCCI and player salaries estimated to be Rs 350-400 crore, how do the team owners make money? Clearly, it’s not just the players who will sweat it out at each game.
Source – cricketnext.in.com