Who Is The Owner Of RCB and what are the revenues from the team?
are the revenues from the team?
Royal Challengers Bangalore is owned by United Spirits Limited. This company is India’s largest alcoholic beverage company being also the second largest in the world by production volume. RCB owner is headquartered in Bangalore, state of Karnataka. USL is a subsidiary of Diageo, which is a British multinational liquor company headquartered in London, Great Britain.
Anand Kripalu was appointed on October 1, 2020 as new RCB Chairman. He is the Managing Director and CEO of Diageo India, the owner of the Challengers, thus, he has taken on this new role as an additional responsibility to his current official status. Priorly, Sanjeev Churiwala used to be the Chairman of the RCB and Chief Financial Director of Diageo India and has been transferred to Singapore as CFO for the Asia-Pacific region.
How much RCB owners do earn from IPL franchises and brands’ values?
United Spirits, earned from the franchise a net profit of IRN 1.43 billion in the 2018 to 2019 FY. In fact, this represented more than 10% of United Spirits’ total operating profit. For the 2019 IPL season, RCB brought in more than twice as much revenue as last season: IRN 3.13 billion. This time, the franchise’s contribution to RCB owner’s profit was only 3%. yet, it would not be a mistake to suggest that RCB’s net revenue showed exponential growth, given particularly the fact that in 2017, the franchise reported IRN 1.62 billion of a profit.
By the end of IPL 2020, though, the team’s revenues have dropped because there were no home matches, therefore there was no income from ticket sale, due to the closed-door IPL format in the UAE. Yet the latest analysis indicates that RCB’s net franchise value will increase to 595 crores.
Economists attribute this revenue growth to RCB’s strategic shift from simply monetizing jersey retailing to the value of cricket player time, as well as a shift from just ticket earnings selling to match-day revenue using initiatives designed to raise gross margin per seat. This season, RCB owners will likely focus on return on investment.
Other IPL teams owners and RCB owner 2020
Not all the IPL cricket franchises launched in 2008 remained in the hands of the same owners of the establishing entities. Among such teams, besides the Challengers, are:
- Delhi Capitals belongs to GMR Group;
- Kolkata Knight Riders is owned by Red Chillies Entertainment and Mehta Group;
- Mumbai Indians is in the possession of Reliance Industries!
Kings XI Punjab has suffered a slight change in the ownership: Saptarshi Dey has resigned its rights, so there remained Mohit Burman, Preity Zinta, Ness Wadia, and Karan Paul. Preity Zinta is a famous Bollywood star, she regularly attends all matches and encourages the team with her participation. Anytime we think of Kings XI Punjab, we can picture Preity waves the team’s flag from the stands. Kolkata Knight Riders also can boast as their co-owners with Bollywood stars: Shah Rukh Khan (Red Chillies Entertainment) and Juhi Chawla (and her husband). The partners bought the KKR for $75.09 million. Since than the value of the Riders’ brand oscillates between 85-110mln. USD.
Other teams have changed their owners with time. Famous is the scandal with the franchise of the Chennai Super Kings, which in 2008, year of the first IPL tournament, was purchased by India Cements, a cement manufacturing company. After the 2013 season there was started an investigation of the CSK owners involvement into fixed-matches affairs and betting. Consequently, the owners were banned for life from any association with cricket, and the team was backed out from the League for two years. For the Chennai return to the championship in the season 2018 a there was formed a new entity, Chennai Super Kings Cricket Limited, which remains the owner of the franchise up to now. The brand value of the Chennai was estimated as of 2019 to be around 98-104 mln. USD. After the failure to enter the playoffs in 2020, CSK’s brand has lost 5-10% of its value.
Rajasthan Royals in the debut 2008 were owned by Emerging Median, which bought it for 67mln.USD, which was, in fact, the lowest value among the League’s teams. The team was co-involved with the Chennai in the aforementioned betting scandal, and, thus, also suspended from the League for 2016 and 2017. Currently the Royals are co-owned by Amisha Hathiramani, Manoj Badale, Shane Warne and Lachlan Murdoch.
The Sunrisers Hyderabad is the “youngest” IPL team, as it debuted in it only in 2013. This team is also one of those occupying the lowest positions in relation to the brand value: RCB owner 2020 saw the drop in the brand’s cost to 44mln.USD. Initially, the franchise was in ownership of Deccan Chronicles daily newspaper. But in the view of its bankruptcy, the SRH team was taken over by Sun TV Network, namely by its CEO Kalanithi Maran, through the tender auction.
Apparently, IPL cricket franchises are profitable investing projects. Even during the pandemic period, the teams do not lose their profitability for the owners. Despite the fact that in 2020 there was no revenue from the tickets sales, real loss of money did not take place. IPL initial idea was entertainment and gain of profit. Auctioning the media rights and the sponsorship rights constitute the largest portion of the BCCI revenue. Further, there are tickets and merchandise sales, prize money and players trading contributing to the revenues of the Board, owners and teams.
