IPL 2025: Sanjeev Goenka will win crores even after losing in IPL, this is the business model of BCCI..

When everyone was bidding for four thousand crores, Sanjeev Goenka bought Lucknow for 7000 crores. Now people think that how is this a loss-making deal because winning IPL will fetch only 20 crores. But the business model of IPL is such that even if Lucknow loses all the matches in every season for the next 10 years, their money will still be recovered with profit. Let's know how…

Why is LSG a profitable deal for Sanjeev Goenka?

Sanjeev Goenka has to give 7000 crores to BCCI not just in one year, but in 10 years. So the expenditure of one year is BCCI's installment of 700 crores, 100 crores player's salary, 200 crores hotel, coach and all other expenses. So the overall expenditure of one year is 1000 crores.

How is the income made?

Now if we talk about their income, then their biggest earning is from broadcasting rights. BCCI has sold broadcasting rights from 2023 to 2027 for Rs 49000 crore. For easy calculation, assume it to be Rs 50000 crore. So the broadcasting rights for one year earned Rs 10000 crore, of which 50% i.e. Rs 5000 crore will be taken by BCCI and the remaining Rs 5000 crore will be divided among those 10 teams. So Lucknow will get Rs 500 crore.

Then all the people who wear their jerseys and all the marketing campaigns they do for the brand, earn Rs 200 crore from that. Take the remaining Rs 100 crore from the stadium ticket sales and merchandise sales. So their overall earnings were Rs 800 crore. That means they are losing Rs 200 crore every year. So in 10 years, Sanjeev Goenka will have to pay Rs 2000 crore for the Lucknow team and not Rs 7000 crore.

How much will the valuation of Rs 7000 crore be in 10 years?

But now the more interesting thing is that in these 10 years, Lucknow's valuation will also reach 25 to 30000 crores because the IPL team is like a startup, a company, and their valuation increases with time. For example, the Rajasthan team's valuation in 2008 was around 284 crores which has now increased to over 6000 crores and then if Sanjiv Goenka sells even just 10% of shares of his team, then the entire 2000 crores will come back with a profit of 500 crores.

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