Thread by @assetyogi

Who is the biggest beneficiary of the IPL Media Rights sale, the @BCCI or the Teams?

Let's find out in this thread-

Total Revenue- ₹48,390

From the broadcasting rights revenue-
🔸Franchises receive 40%, and
🔸the balance of 60% stays with the Board.

👉Take a look at the calculation-

🔸BCCI will receive ₹29,034 crores (60%*₹48,390).

🔸Balance ₹19,356 crores will be divided among each team in 5 years.

🔸So, The cumulative yearly earnings for the IPL Teams will be ₹3871.2 crores (₹19,356/5 Years).

🔸Hence, each Franchise will earn ₹387.12 crores per annum for the next 5 years starting in 2023, an increase of 138% from ₹163 crores last year.

🔸On top of that, each team qualifying in the Top 4 will get an additional 10% from the media rights revenue.

🔸Share from Media Rights Revenue accounts for 70-75% of revenue for IPL teams.

🔸The Rest 25% includes sponsorship deals & other incomes.

🔸For instance, Highest-valued Franchise @mipaltan which is valued at $1.3 billion, reported revenue of ₹317 crores in FY 20-21.

🔸An additional ₹224.12 crores ( ₹387- ₹163) revenue from media rights will-

👉significantly boost (⬆️) the Top Line to ₹611 crores (₹224+₹387) for @reliancegroup owned company,

🔸also, the bottom line (Profit), and

🔸ultimately pump up the Valuation.

🔸IPL is the only property that can enhance both the subscriber base & brand value.

🔸@viacom18 is eyeing all of the above & if the plan fructifies, the ultimate beneficiary will be #tv18. But how?

🔸To conclude, the material impact on revenues from media rights will boost the valuation of each IPL Franchise to a much higher level than today.

🔸Their listed parent companies could see a few thousand crores jump in valuation.

#stockmarkets #IPLMediaRights #BCCI #Cricket