According to a financial report,IPL franchise Kolkata Knight Riders are the only team to make consistent profit in the cash-rich league.
The star power of their owner Shahrukh Khan and consistent performance on the field in the recent years are cited as the prime reasons for the franchise’s huge revenue income.
The Shahrukh Khan effect can be considered from the fact that even the most successful teams of the IPL like Chennai Super Kings and Mumbai Indians,who have shown excellent on-field performance and have won the tournament twice each are running way behind KKR in terms of profits and revenue generation.
The Kolkata-based franchise recorded a huge leap in the revenues as they saw their revenue rising from 128.81 crores in 2013-14 to 168.71 crore in 2014-15 when they won the IPL for the second time. KKR won the tournament for the first time in 2012.
Tofler, a business research platform that collected the data of IPL franchises from Registrar of Companies, said that KKR registered a massive hike in profits, from Rs 9.19 crore in 2013-14 to Rs 14.15 crore in 2014-15.
Confirming the Shahrukh Khan effect, Varun Gupta, managing director of American Appraisal, an advisory services firm for business, said that the Bollywood actor is attracting huge sponsors for the franchise which is playing a big role in their revenue collection.
“Sponsors love that Shah Rukh Khan wears the shirt with their logos on it. That’s a big draw. And if a team is doing well, it can negotiate better,” Varun Gupta told Economic Times.
The other team to record a profit in 2014 apart from KKR is Kings XI Punjab.The team, which suffered a loss of Rs 4.36 crore in 2013, earned a profit of Rs 12.76 crore in 2014. It also recorded a hike of 26 percent in terms of revenue generation, from Rs 103.21 crore in 2013-14 to Rs 130.06 crore in 2014-15.
According to the co-owner of KXIP, Mohit Burman,the co-owner of KXIP said that the teams’ brilliant performance in 2014 when they finished the tournament as its runner-up was a big reason for it.
“The team also played the finals in 2014, which increased the revenue due to the prize money that the franchise received,”he said.
The following picture shows the revenue and profits and losses of every team in 2013 and 2014.