ECB To Meet With Players' Union Pro12 Considers American Expansion Swansea Explores Liberty Stadium Deal LeSports, PPTV Bid For CSL WTA Renews Deal With Dubai Duty Free Executive Transactions Former MLB Player Acquires Tigres CONCACAF To Discuss Joint WC Bid Birmingham To Include Cricket At CWG Names In The News
SBD Global/February 26, 2014/FinancePrint All
A report published on Tuesday by KPMG and CII "has pegged" the Indian Premier League as the most lucrative sporting event in India, according to Manu Balachandran of the Indian BUSINESS STANDARD. This is "despite mounting criticism" against the IPL and allegations of rampant match-fixing. According to the report, the event's prize money of Rs 240 crore ($39M) is at least Rs 100 crore ($16M) more than the combined prize money of all other leagues currently played in the country. World Hockey Series "comes at a distant second" with prize money of Rs 78 crore ($12.5M) while Indian Badminton league comes in third at Rs 54 crore ($8.7M). KPMG partner Jaideep Ghosh said that Chennai Super Kings, owned by India Cements, and Mumbai Indians, owned by Reliance Industries, "have the highest valuation amongst the IPL teams." American Appraisal Associates had said that Chennai Super Kings and Mumbai Indians have a valuation of Rs 450 crore ($72.6M) each while Sun Risers Hyderabad has a valuation of Rs 155 crore ($25M). The report said, "The total value of various franchise brands in IPL is over $400 million. This does not represent the value of the IPL brand as a whole and only represents the value of individual franchise brands" (BUSINESS STANDARD, 2/25).
Sports marketing agency Euromericas' study of the revenue made in '13 by North and South American clubs revealed that Liga MX Chivas finished No. 1 with $625M, according to SPORT. The revenue figures are "based on sponsorship, brand value, teams’ players’ total value and revenue from TV, tickets and concession sales, among other factors." Of the top 10 clubs, Brazil leads the way with five, followed by three from Liga MX and one apiece from U.S.-based Major League Soccer and the Argentine first division. The list "is marked by the dominance of Brazil due to the success the Brazilian league has had retaining its top players, something supported by a pool of private businesses that support this effort." For "its part, Liga MX's improving finances are notable, thanks to an influx of Asian capital and the influence of Carlos Slim, as well as the league's sponsorship money from Spanish bank BBVA." The study highlights "the rise of football in the U.S." and the "regression of Argentine football, which is represented by one club, Boca Juniors, in fifth." (SPORT, 2/24).
Top 10 North, South American Football Clubs By '13 Revenue
(Millions of USD)
Chivas Mexico 625
Corinthians Brazil 498
América Mexico 456
Flamengo Brazil 312
Internacional Brazil 234
Santos Brazil 176
EPL side Newcastle United cut operational losses to £660,000 in the '12-13 financial year "in an effort to comply with UEFA's financial fair play (FFP) regime," and boosted commercial revenue by almost 25%, according to Robert Woodward of REUTERS. This revenue increase to £17.1M "helped boost profits" after tax to £9.9M, from £1.4M in '11-12, on overall turnover of £95.9M. The club said that it spent £28.7M on new players, including Yoan Gouffran and Mathieu Debuchy, in the year to June 30, a rise of more than 30%, but recouped £11.1M from selling players (REUTERS, 2/25). In London, Liam Prenderville reported figures show the club "is continuing towards breaking even as well as making progress in line with UEFA's Financial Fair Play regulations." The club "went on to confirm their debt remains static" in the form of a £129M interest-free loan from Owner Mike Ashley (DAILY MIRROR, 2/25). Also in London, Craig Hope reported the figures "appear to show that Newcastle are in a stable condition but supporters continue to protest against their perceived lack of investment in the first-team squad." A statement from the club's board said, "Complying with FFP continues to be a key influence on strategy and something we have been working hard at over a number of years" (DAILY MAIL, 2/25).
Ladbrokes’ pre-tax profits fell by more than two-thirds in '13, "underlining the UK bookmaker’s struggle to attract customers online and maintain its overall market share." On revenues of £1.1B, up 5.5%, group operating profit tumbled 38.9% to £144.2M. The digital business pulled in operating profits of £8.2M, a fall of 74.2% (FINANCIAL TIMES, 2/25). ... Italian Serie B club Bari "have announced plans to seek bankruptcy in order to avoid disappearing off the football map." A statement released confirming owners the Matarrese family "cannot cover the existing debts." Voluntary bankruptcy proceedings "open the door for new owners to come in or even to begin a brand new club by buying up the title AS Bari" (FOOTBALL ITALIA, 2/24).