IPL 2016: Kolkata Knight Riders is the only IPL team to make huge profits

The Shah Rukh Khan-owned IPL franchise, Kolkata Knight Riders have not only fared well on the field in recent years but have also registered huge revenue figures which happen to be head and shoulders above the rest of the Indian Premier League franchises.

According to a financial report, while some of the heavyweight IPL franchises such as Mumbai Indians, Delhi Daredevils, and Royal Challengers Bangalore were yet to achieve break-even, the Eden Gardens-based franchise had already racked a net profit of Rs. 14.15 crores in 2014-15.

The Knight Riders witnessed not only a 30% growth in revenues but also a 54% leap in the profits despite the first half of the coveted T20 tournament being held in the United Arab Emirates.

The organisation which runs KKR, Knight Riders Sports Private Limited oversaw a rise of revenue from Rs. 128.81 crores to Rs. 168.71 crores in 2014 when the Eden Garden-based side had won their second Indian Premier League title over a span of a couple of years. Its profits rose by almost 54% that year as the franchise stacked up a total profit figure of Rs. 14.15 crores compared to that of Rs. 9.19 crores in 2013.

So, what makes the Kolkata Knight Riders a financially more stable IPL franchise than the other so-called big ones like Mumbai Indians or Royal Challengers Bangalore? According to Tofler’s managing director, Varun Gupta, “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.”

In contrast to KKR, the star-studded Royal Challengers Bangalore franchise, which boasts of some big names such as Virat Kohli, AB de Villiers, and Chris Gayle, hasn’t been able to see the face of profit in the period between 2011 and 2014.

According to the business head of ESP Properties, Vinit Karnik, “Champion teams are able to extract more from sponsorship revenue. Also, franchises charge performance bonus for qualifying to playoffs and finals that lead to an upside on revenues. (The) IPL also offers performance bonus and price money which add to the bottom line.”

The one franchise which has racked up a significant amount of profit (Rs. 12.76 crores) other than KKR last year is Kings XI Punjab. According to the co-owner of KXIP, Mohit Burman, “The team also played the finals in 2014, which increased the revenue due to the prize money that the franchise received.”