The IPL franchisees incurred huge losses during the 2009-10 assessment year.
New Delhi: Franchisees of the money-spinner IPL reported losses ranging from 5.58 crore to 87.09 crore during 2009-10 assessment year, but how did they sustain their business despite such high losses?
This question was asked by a Parliamentary committee earlier this week to the BCCI and IPL top brass with a poser as to whether they accepted these figures.
The eight franchisees, according to a questionnaire of the Parliamentary Standing Committee on Finance, incurred a collective loss of over Rs 315 crore during assessment year (AY) 2009-10.
Deccan Chargers reported the highest loss of Rs 87.09 crore, while Vijay Mallya-owned Royal Challengers posted loss of Rs 5.58 crore.
The other franchisees which have reported substantial losses are Kings XI Punjab (Rs 65.68 crore), Delhi Daredevils (Rs 47.11 crore), Mumbai Indians (Rs 42.89 crore), Rajasthan Royals (Rs 35.51 crore), Chennai Superkings (Rs 19.30 crore) and Kolkata Knight Riders (Rs 11.85 crore).
These teams reported a collective total loss of Rs 4.41 crore during assessment year 2008-09.
During its meeting earlier this week, the Committee members wanted to know from the BCCI how these franchisees are sustaining their businesses despite massive losses.
It also questioned BCCI bosses on why the losses of Deccan Chargers soared from nil in 2008-09 to a staggering Rs 87.09 crore in the next year.
Based on the lines of the English Premier League ( EPL ) and the National Basketball League (NBA), the IPL was introduced in India in 2007.
Afterwards, its founder Commissioner Lalit Modi fell out with his cricketing and political bosses and was forced to quit the BCCI.
Sans Modi, BCCI is trying to host the fourth edition of the T20 cricket series.