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Lacklustre viewership of the IPL and controversies over Saurav Ganguly's exclusion notwithstanding, the fourth edition of the tournament has proved to be financially rewarding for the Shah Rukh Khan-owned Kolkata Knight Riders (KKR).
According to Managing Director and Chief Executive Officer, Mr Venky Mysore, revenues during the season so far have moved up by at least 30 per cent.
“It has been an excellent year for us. Our revenues from both sponsorships and ticket sales have gone up by nearly 30 per cent,” Mr Mysore told Business Line .
Incidentally, KKR has for the first time made it to the play-offs (knockout stages) in the tournament this year.
BREAK EVEN BY 2012
Mr Mysore, who was appointed MD & CEO in 2010, added that the franchisee is yet to break even and expects to do so in the next season of the tournament.
“I think none of the franchisees have broken even so far. Several costs, including player costs, have gone up. We are now expecting to break even by 2012 (IPL – V),” he said.
According to the official, while player costs have shot up by over 25 per cent (from $7 million to $9 million), other operating expenses such as air fares and day-to-day expenses have also gone up for them.
INCREASE IN REVENUE
Speaking on the reversal in the team's fortunes, Mr Mysore maintained that revenues from sponsorships went up by nearly 30 per cent.
New sponsorship agreements with Matrix (international calling card providers), Nestle and Spanco have given a boost to the franchisees' revenues. Nokia renewed its contract as the team's principal sponsor.
Similarly, after getting over the initial jolt of smaller crowds at Eden Gardens for its home matches, KKR saw a full house in its last league match against the Mumbai Indians on May 22.
“Despite a reduced capacity at Eden Gardens, our collections from ticket sales have gone up. We are expecting a 30 per cent rise in ticket sales too,” he said.
FAN FOLLOWING AND BRAND-VALUE
Increased visibility through advertisements as well as the team's improved performance have resulted in the franchisee having one of the highest brand-values amongst the franchises.
Successful social media campaigns through Facebook and Twitter have also seen an increase in its fan following by nearly 4,000 people daily, the official added.
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