The existing IPL revenue model is under scrutiny in the wake of teams changing their home ground and targeting other cities to increase fan base and ultimately revenues.
Some of the teams in this season’s IPL have played their home games in different venues. Rajasthan Royals have played some games in Ahmedabad. The KXIP team from Punjab played their games in Pune and the Delhi Daredevils shifted their home to Raipur. With these newer venues producing more sales of tickets and earning more from sponsorships and endorsements, the BCCI is now thinking about changing the valuation of the team’s actual worth.
This (The Valuation) is based on the fact that the teams which were once sold for a fixed amount were in accordance with the earning capabilities of teams on their respective home grounds. The Mumbai Indians franchise which is the richest was sold for $111.9 million. However with the teams valued at $67 million, like the Rajasthan Royals have moved their venues to places that earn more revenue. This has resulted in misevaluation of the actual worth of the team and that a meeting will be organized to look into this matter and to make all the considerations before pricing the franchise.
This was further stressed when a source revealed that the KIXP team earned 9.7 crore from ticket sales from games in Pune with a seating for 39,000 spectators. This is in huge contrast to the 1.4 crore that they usually earn from their home games in Punjab with a maximum seating capacity of 27,000.
Another problem that the BCCI wanted to address was the compensation they paid to the teams for their loss of revenue when the games were held overseas in South Africa and the UAE.