Juventus Posts A Year Of 199.2 Million Euros Loss
Italian football team Juventus posted yet another disappointing year in the books with a loss of 199.2 million euros for the last 12 months that ended in June. That makes the club’s fifth successive annual loss. Still, it says it is on the way to recovery and will break even at the operating level this financial year. Loss Linked To European Ban Revenue for the 2023/24 fiscal year declined by 22% to 395 million euros primarily because of the disqualification from European competitions owing to accounting issues. In comparison to last year’s returns, at 124 million euros, the loss is an increase of 271 million euros. Shareholders cautioned to strengthen the finances. Being quoted on the Milan Stock Exchange and controlled by the Agnelli family for over a century, the club has had no other option but to go to shareholders for capital support. For three consecutive years from 2008 to 2011, Juventus managed to raise about 900 million euros through separate cash calls operations so as to strength balance sheet. To Be Continued: Champions League and Cost Cutting Forward-looking, the club is banking on a return to the Champions League and cost-cutting measures taken recently to strengthen financials. “Operating result and cash flow are expected to break even during the financial year 2024/2025,” said the club, terming these two as the prime reasons behind the improvement. Target Net Profit 2026-27 The Turin-based club, according to the business plan approved last year, is looking to regain net profitability by 2026-27. The club last saw net profit during the 2016-17 season. The Sportz Planet Desk,Atharva Shetye
Business: How well do you know IPL’s Financial Model?
The entertainment quotient of the IPL is unmatched. Cricket fans are glued to the multi-billion dollar entertainment extravaganza for nearly two months every year. This isn’t just a cricket carnival, it is a multi-million-dollar business pot. What fuels this financial powerhouse? What type of business model does it operate on? IPL Revenues & Expenses Let’s delve deep into where the IPL receives the money, and where the expenses lie. This involves three important IPL stages: pre-season, during the season, and post-season analysis. Period Revenues Expenses Pre-Season Franchises: Sponsorship deals, merchandise sales BCCI: Broadcast rights, central sponsorship deals Franchises: Auction, Merchandise production, and team building BCCI: Broadcast rights negotiations, marketing & advertising campaigns, sponsorship deals Season BCCI: Broadcast rights fees shared with franchises Franchises: Ticket sales, gate-sharing agreements, in-stadium food & beverage concessions, merchandise sales, premium seating revenue Franchises: Operational costs, stadium management, match-day expenses (security, etc) BCCI: Broadcast Production cost, tournament infrastructure Post-Season Distribution of prize money and shared revenue to the franchises. Also Read: What’s the ticket price for India vs Pakistan match? Team ownership & expenses – a complete summary Team owners play a vital role, as they are the ones who take care of the players, coaches, and support staff. One complete season of the IPL involves massive budgets, that include travel, accommodation, practice sessions, and miscellaneous costs. Currently, the IPL operates on a franchise model. This means massive corporates come together to buy teams and take full ownership of different cities. There are 10 teams in the IPL at the moment, and their owners are some of the biggest names in the business world. Team Name Owners Home Ground Sponsors Chennai Super Kings Chennai Super Kings Cricket Limited M.A.Chidambaram Stadium, Chennai Kit: SEVEN Front Shirt: TVS Eurogrip Back Shirt: ETIHAD Airways Chest Branding: Gulf Oil Delhi Capitals GMR Group, JSW Group Arun Jaitley Stadium, New Delhi Kit: Puma Front Shirt: Hero FinCorp Back Shirt: DP World Chest Branding: Greenpanel Gujarat Titans CVC Capital Partners Narendra Modi Stadium, Ahmedabad Kit: EM Front Shirt: Dream 11 Back Shirt: BKT Chest Branding: Capri Loans Kolkata Knight Riders Shahrukh Khan, Jay Mehta, Juhi Chawla, Red Chillies Entertainment Eden Gardens, Kolkata Front Shirt: Dream11 Back Shirt: BKT Chest Branding: Lux Cozi, PRAN-RFL Group Chorki Lucknow Super Giants RPSG Group Ekana Sports City, Lucknow Front Shirt: My11Circle Back Shirt: BKT Chest Branding: Greenply Mumbai Indians Reliance Industries Limited Wankhede Stadium, CCI-Brabourne Stadium Kit: Skechers Front Shirt: Slice Back Shirt: DHL, PRAN-RFL Group Chorki Chest Branding: IDFC First Bank Punjab Kings Preity Zinta, Ness Wadia, Karan Paul, Mohit Burman MYS Int’l Cricket Stadium, Mullanpur, Mohali Front Shirt: Dream11 Back Shirt: BKT Chest Branding: Kent RO Rajasthan Royals Manoj Badale, Lachlan Murdoch Sawai Mansingh Stadium, Jaipur Kit: Alcis Front Shirt: Luminous Back Shirt: BKT Chest Branding: Neom Royal Challengers Bengaluru United Spirits M Chinnaswamy Stadium, Bengaluru Kit: Puma Front Shirt: Qatar Airways Back Shirt: KEI Chest Branding: Delhivery Sunrisers Hyderabad Kalanithi Maran, Sun TV Network Rajiv Gandhi International Stadium, Hyderabad Kit: Wrogn Front Shirt: Dream11 Back Shirt: BKT Chest Branding: Kuhl The franchises have different revenue streams, other than jersey sponsorships. In all, there are four legal ways in which a franchise can earn revenue through the IPL. If a franchise earns big, there are equal amounts of expenses lined up, right through the IPL. These expenses include: Broadcast Rights – BCCI’s golden goose The BCCI makes a major chunk of its revenues from broadcasting rights. The Board sells the broadcast / television rights and digital platforms rights to the bidders and makes a colossal amount, which is later shared between the BCCI and the ten franchises. Other than the rights, the BCCI also enters into a partnership agreement with the title sponsors and associate sponsors, for the IPL. These sponsorships provide maximum visibility to the sponsors right through the tournament. IPL 2024 Sponsors Partnership Sponsors Name Price (Rs) Title Sponsor TATA 2,500 Crore Associate Partners My11Circle, Angel One, Rupay, Ceat 1,485 Crore Official Broadcasters Disney Star Network 23,575 Crore Digital Streaming Partner Jio Cinema 22,758 Crore How do the sponsors make money? Once the brands get enrolled as sponsors, with the BCCI, they gain significant brand exposure through on-ground activities, branding during matches, and logo placements on team jerseys. Thanks to the IPL’s massive viewership, this allows the sponsors to reach their target audience without any fuss. Tata is the current title sponsor, having bagged the official rights from the BCCI, for a period of four years (2024-2028). Tata will pay the BCCI a sum of Rs 500 Crore annually. Since 2008, the IPL Title Sponsorship has changed hands five times. Do you remember all five of them? Sponsor expenses: Fees constitute a major part of sponsors’ expenses, as they are supposed to pay a premium amount to secure the rights at the IPL, or the franchise level. Other than this the marketing campaigns and creating engaging activations also require a lot of money to be invested, to maximize the impact of their deal with the BCCI. Merchandising – delivering fans what they want The IPL has a passionate fan base. They can go to any length and breadth of the nation to follow their favourite teams. This love also involved buying team jerseys, caps, bats, and other memorabilia, thus generating massive revenues for the BCCI. Ticket Sales: Inside-the-stadium experience Though cricket attendance took a hit during the Covid-19 impact in 2020, ticket sales have returned to normalcy for the past three seasons. The franchises earn revenues by selling the tickets to the fans during the IPL matches. By offering premium benefits, they can generate a higher revenue on the ticket. When it comes to the investment part, the franchises have to pump in money to cover the costs associated with printing tickets and managing the distribution process. Also, the expenses related to managing the stadium, and giving fans the experience they are looking for. Beyond the Boundary: The Digital Dollars The world has gone digital, and so has the IPL way
IPL Title Sponsorship – Do you remember all five of them?
It was 17 years ago that the most storied league in franchise cricket came to existence. The Indian Premier League (IPL) since then, has grown from a little baby to an envy for all. With former Kolkata Knight Riders opener, Brendon McCullum belting a century against RCB in the very first game of the IPL, the tone was set. It was a statement to the world that IPL would develop itself not only as one of the biggest talent producing academies but also a platform that attracts brands looking to showcase their products and services to millions of viewers worldwide, and so it did. 17 years, 5 title sponsors.Since its first season, IPL has seen a remarkable increase in its title sponsorship value, reflecting the league’s growing popularity and commercial success. Apart from the on field battles, the tournament has also witnessed a couple of off the field battles when it came to securing the sponsorship rights of the league. So far only five brands could make it above the IPL logo as their official title sponsors. DLF, Pepsi, Vivo, Dream11, TATA. Here’s a list down the memory lane on who came in as the official title sponsor for the IPL and when. DLF: The Beginning (2008-2012)The first title sponsor of the IPL was Delhi Land and Finance (DLF). They agreed to sponsor the IPL for the first five years. DLF’s sponsorship deal was really huge in cricket history back then. They paid $100 million for four years from 2008 to 2011. Later, they extended the deal to 2012, making the total worth $150 million. This meant DLF gave around Rs 200 crore to the Board of Control for Cricket in India (BCCI), which is about Rs 40 crore for each season. This deal was a big deal because it set a trend for future sponsorships. Pepsi (2013-2015)As the IPL became more and more popular, many companies wanted to be its main sponsor. In 2013, Pepsi won the bid and agreed to sponsor the IPL for the next five years. They paid a total of Rs 396 crore for it. However, in 2015, there was a match-fixing scandal that caused trouble. Two teams, the Chennai Super Kings and Rajasthan Royals, got suspended because of it. Because of this, Pepsi decided to end its sponsorship early. They had already paid Rs 238.2 crore for the three seasons from 2013 to 2015. Vivo (2016-2019)After Pepsi backed out, Vivo, a Chinese smartphone maker, stepped in to finish the remaining two years of Pepsi’s contract. They agreed to pay Rs 100 crore initially. Seeing the IPL’s great money-making potential, Vivo then signed a huge five-year deal with the BCCI in 2017. It was worth Rs 2,199 crore, making each season worth about Rs 439.8 crore. But because of tensions between India and China, Vivo had to leave the agreement early, ending the partnership in 2019. Dream11’s Short Stint (2020)When Vivo left suddenly, the Indian fantasy sports platform Dream11 stepped in to sponsor the IPL for the 2020 season. They paid Rs 222 crore for just one season, which was half of what Vivo paid. This change showed how IPL sponsorships can change quickly, and how the league can attract different types of partners. Vivo Returns (2021)In 2021, Vivo returned to fulfill its earlier contract with the BCCI, becoming the title sponsor again and paying Rs 439.8 crore for the season. This showed Vivo’s dedication to the IPL and proved that the league’s sponsorship rights are still very appealing. Tata’s Historic Deal (2022-2028)In 2022, the Tata Group, a highly respected company in India, became the title sponsor for the IPL with the highest bid ever. Tata agreed to sponsor the IPL for two years, paying Rs 335 crore each season. After that, Tata and the BCCI made an even bigger deal for the IPL seasons from 2024 to 2028. The total value of this deal was Rs 2,500 crore, which means Rs 500 crore for each season. This deal is the most expensive title sponsorship in IPL history, showing how much the league has grown and how valuable it has become commercially. The Indian Premier League (IPL) 2024 has reached its twilight period. With the Kolkata Knight Riders and the Rajasthan Royals already qualified for the playoffs, it’s going to be a tough race between the Sunrisers Hyderabad, the Chennai Super Kings and the Royal Challengers Bengaluru to grab the remaining two spots for the playoffs. Mathematically, even the Delhi Capitals are running in the race with a slightest hope of making it into the top four. The Sportz Planet Desk,Atharva Shetye.
Know Virat Kohli’s Strategic Business Investments To Grow His Wealth
Virat Kohli isn’t just a fabulous cricketer but is more than a capable businessman as well. He is worth $127 million, as Brand Kohli continues to dominate the Indian markets. Now, in the twilight of his cricket career, Kohli has made some strategic business investments to grow his wealth. The 35-year-old cricketer has strategically and categorically invested in plenty of start-ups, a pivotal reason behind Kohli’s net worth surpassing Rs 1000 crore. Which investments are we talking about here? Here we go then. a) Rage Coffee: Launched in 2018, a Delhi-based FMCG brand, Virat Kohli has invested an undisclosed capital in Rage Coffee. The brand takes on some of the biggest coffee brands like Starbucks and Nescafe, much like how Kohli takes down the best bowlers in the opposition line-up. b) Blue Tribe: An Indian plant-based meat startup, Blue Tribe is backed by both Virat Kohli and his life partner Anushka Sharma. The strategic investment displays, India’s power couple’s commitment towards sustainable and innovative ventures. Also Read: How do the IPL stars get paid? c) Chisel Fitness: Fitness and Virat Kohli go hand-in-hand. In 2015, Kohli invested Rs 90 Crore with Chisel Fitness and CSE, and the rest they say is history. d) Hyperice: A renowned wellness brand, Hyperice, and Virat Kohli’s partnership started in 2021. He is an investor and the brand ambassador for one of the cutting-edge wellness solutions brands worldwide. e) Digital Insurance: ‘Let’s do the digit…digit…’ – sounds familiar? Virat Kohli is the brand ambassador and an investor in the insurance startup, owned by Canadian billionaire Prem Watsa. Reportedly, both Virat and Anushka have invested Rs 2.2 Crore in the startup, and the company’s evaluation has now reached $870 million. f) Galactus Funware Technology Private Limited: Being an athlete, Virat Kohli knows the challenges one faces on the field. In 2019, Kohli entered the gaming industry, with Galactus Funware Technology, a start-up based in Bengaluru. Mobile Premier League (MPL) is also the official kit and merchandise sponsor of the Indian cricket team, an association that started in 2020. Kohli has signed a 10-year association with the MPL, and the investment has yielded good returns for the King. g) Universal Sportsbiz Pvt Limited: Kohli’s fashion sense is amongst one of the best in the business. He ventured into the fashion business when he invested in Universal Sportsbiz Private Limited in 2020. Kohli’s idol Sachin Tendulkar too has invested in this start-up. It is reported that Kohli has invested close to Rs 20 Crore, thus making a strong statement in the world of sports-inspired fashion. Virat Kohli, a name that will resonate with Indian cricket for years to come, has ensured that his name is associated with some of the leading brands off the pitch. The journey of a thousand miles begins with a small step. No one knows this better than the King himself.
