Kings XI Punjab are enjoying one of their best Indian Premier League years in the middle. On the financial scorecard, the season by far has been the best for the Kings XI Punjab franchisee owners – KPH Dream Cricket Private Limited, jointly owned by Preity Zinta, Mohit Burman, Ness Wadia, Karan Paul and the Oberoi Group.
The team is strongly placed among the top four in the run up the IPL 2018 title. On the business front, the team for the first time had closed its sponsorship sales nearly a month before the first ball was bowled for the season. The team had also earned a considerable premium on its sponsorship values
“For the first time in history, we closed all our sponsorships one month before. This year, we changed our strategy to sell out sponsorships by approaching the companies that generally don’t advertise on cricket. In terms of sponsorship revenue, we grew by 20-25% compared to last year. The average title sponsorship for all the teams is between Rs 10 crore and Rs 20 crore. The top teams for selling sponsorships are Mumbai Indians and Kolkata Knight Riders,” Kings XI Punjab co-owner Mohit Burman has told Indiantelevision.com.
Kings XI Punjab have closed their title sponsorship deal for around ₹15 crores.
The Kings XI Punjab, which for the first seven seasons of IPL, had incurred losses of around ₹70 crore, has gone into the IPL 2018 with a consolidated deficit of around ₹30 crore in spite of year on year profits for the past three seasons. The IPL franchisees this year are expecting up to ₹100 crore profit on better returns from the Board of Control for Cricket in India IPL central revenue pool.
Lucrative IPL media rights (₹16,347.5 crore) and league title sponsorship deals (₹2,200 crore) with Star India and Vivo respectively for the next five seasons of the league have assured unprecedented central pool returns.
The mid-season player transfer, introduced in the IPL for the first time, will also have a positive effect on franchisees’ finances. “It is a great move by IPL. It helps the team realign its strategy keeping in mind the kind of position it is in at that particular moment. The players who haven’t received enough opportunity to play for the team will get a chance to play for some other team,” Burman had stated.
Even as one of the KXIP co-owners Preity Zinta has had a bad experience with her investment in Cricket South Africa’s Global T20, which failed to take off in spite of moving past the player auction stage, Burman remains keen on investment in other cricketing leagues globally, instead of buying franchisees in other sports leagues in India.