Mumbai: For this season IPL franchise Punjab Kings co-owner Mohit Burman is targeting a 20% increase in revenue and a 10- 12% increase in profitability
“Suffice to say, I am looking at a 20% increase in revenue and a 10% to 12% increase in profitability” he tells Medianews4u.com in an interaction. The franchise had earlier roped in Dream11 as its Title Sponsor.
Central Pool Dominates Revenue Contribution For All The Franchises:
The franchise like everybody else gets the bulk of its revenue from the central pool he explains. “In % terms, 85% is from Central and the rest 15% from local. For all the franchises I think that they are getting 70-80 per cent of revenue from the central pool. We at Punjab run a tight operation in terms of costs. It took us seven years to breakeven and in the eight year we began to make money. I think that while their valuations have gone up the two new franchises Lucknow and Gujarat which are in their third year will take three more years to breakeven.”
He further explains that the overall central revenue pie will increase year on year even if you may have one or two sponsors short in the Central Kitty. On the ticket revenue front he expects growth for Punjab Kings this season given that the franchise got a new stadium in Mullanpur.
He explains that the stadium in Mohali needed renovation and investment towards upkeep. The new stadium accommodates 33,000. He expects as a result ticket revenue to jump by 50 per cent. The
The boxes he noted are amazing in the new stadium and as a result the franchise will be able to go to corporates in Punjab, Ludhiana and get them to buy boxes. “It is a great improvement.”
When asked about the key learnings for him from the IPL as an entrepreneur he explains that the challenge is of running a sports business considering the thin line between business and sports. “The balancing act of managing business without affecting the sporting part of the business is a skill that we have developed over a period.”
In 2022 the BCCI auctioned the rights and made Rs. 48,390.52 crore. This was three times the figure that Star India had paid back in 2017. What was noteworthy was that this time the digital rights had gone for more than the TV rights. Offering his views Burman said that this is an accurate reflection on the massive value that has been created by all the stakeholders.
“And the best part is that they all are secured revenues over a cycle of five years. It is amazing that cricket has gone free on digital. By going free it will get an even bigger audience. Other countries are trying to emulate the IPL by having their own leagues but this I think will change the landscape. It might make viewers move from television to the Internet.”
When asked about how the franchise is perceived today by fans and by commercial partners after the name change according to recent research done he said, “There is no formal research but the proof lies in the huge growth in the fan base and interaction. As for as commercial partners are concerned, we have many long-term partners and the new one comes with a massive increase over the last incumbent.”
In terms of where the whitespace is for growth in terms of revenue and brand perception he explains that one is narrowing the gap as for as making it to the top of the table is concerned and increasing the fanbase substantially thus helping the brand.
In terms of creating online content to bolster fan engagement he said that the franchise is targeting growing its engagement by 50% on short form content. Meanwhile on the ground a lot of activation is being done. “We are connecting with our fans with a variety of activities some of the prominent one what you see at the stadium on match day such as VR games featuring Punjab Kings players, make your own banners, stalls, player cut out selfie point, human camera etc.”
Other Leagues: He added that the investment in the St. Lucia franchise in the Caribbean Premier League (CPL) is coming along very well. He does not feel that cricket leagues in the UAE and in South Africa can make money for five years. He has been in and out of other sports with mixed results. Hockey did not work out for him but he is happy about having been in badminton. It was just that in badminton there was fighting going on between two federations which is why he had to exit. The PKL he noted is doing well because it is a home-grown sport.
There are two issues with other sporting leagues he goes on to explain. One is that there are no stars. “Would you rather watch Manchester City versus Arsenal where there are stars or Kerala versus Goa with no stars?” The second issue is that there have to be stars that children can look upto.
In term of the WPL he feels that it will bring women’s cricket into the mainstream and hopefully one day at par with men.
Formats: When asked about cricket formats he said that he believes that Test Cricket will continue forever. “If you are a cricket fan you will always be a Test cricket lover.” But he added that the ODI format will come under pressure and suffer. He noted that the current IPL league games are more exciting than last year’s ODI World Cup final between India and Australia. “The other day over 500 runs were scored in an IPL match. You are getting a lot more emotion, excitement in a 20 overs a side game. I went for the finals of the World Cup. While it was sad that India lost it wasn’t a thrilling, exciting game in any way. Set aside the fact that India and Australia were playing as a final I did not find it very exciting.”
He also does not think much of new formats like T10 and The Hundred. “The Hundred is confusing. It is like you have learn the rules of cricket again. I don’t understand that. And T10 is hardly a game. Only the T20 format will continue growing,” he signs off.
