New Delhi, Jan 16 (PTI) Franchisees of the money-spinnerIPL reported losses ranging from 5.58 crore to 87.09 croreduring 2009-10 assessment year, but how did they sustain theirbusiness despite such high losses?
This question was asked by a Parliamentary committeeearlier this week to the BCCI and IPL top brass with a poseras to whether they accepted these figures.
The eight franchisees, according to a questionnaire ofthe Parliamentary Standing Committee on Finance, incurred acollective loss of over Rs 315 crore during assessment year(AY) 2009-10.
Deccan Chargers reported the highest loss of Rs 87.09crore, while Vijay Mallya-owned Royal Challengers posted lossof Rs 5.58 crore.
The other franchisees which have reported substantiallosses are Kings XI Punjab (Rs 65.68 crore), Delhi Daredevils(Rs 47.11 crore), Mumbai Indians (Rs 42.89 crore), RajasthanRoyals (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 4.41crore during assessment year 2008-09.
During its meeting earlier this week, the Committeemembers wanted to know from the BCCI how these franchisees aresustaining their businesses despite massive losses.
It also questioned BCCI bosses on why the losses ofDeccan Chargers soared from nil in 2008-09 to a staggering Rs87.09 crore in the next year.
Based on the lines of the English Premier League (EPL)and the National Basketball League (NBA), the IPL wasintroduced in India in 2007.
Afterwards, its founder Commissioner Lalit Modi fell outwith his cricketing and political bosses and was forced toquit the BCCI.
Sans Modi, BCCI is trying to host the fourth edition ofthe T20 cricket series.