SBD Global/April 10, 2014/Finance

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  • Indian Premier League Owner Says Duration Too Short To Plan Business Model

    An Indian Premier League franchise owner said that the seven-week duration of the IPL seems "tedious to many," but it is "not long enough to develop a business model around it," according to Gautam Bhattacharyya of GULF NEWS. King’s XI Punjab co-Owner Mohit Burman said, "The two-month period of the league is actually rather short to develop a business model." While the IPL bandwagon "is ready to take the UAE fans by storm in a week’s time, the reality is that barring one or two teams, it had been a losing proposition for the rest of them during the past six years." There have been at least three owners who "have stepped aside the wealthy league in the past few years after failing to cope with the heavy financial overheads." Burman said that "there are also a number of factors as to why merchandising" -- a major source of revenue for sports clubs abroad -- "have not gathered pace in the IPL." He said, "As per the current auction rules where a team can contract a player for three years, the profile of stars in each team changes frequently to build a loyalty base. In any case, it takes anything between a period of five to 10 years to create the kind of following for merchandising to really prosper" (GULF NEWS, 4/7).

    Print | Tags: Finance, Middle East, India
  • Bayern Munich Willing To Share TV Income From German Cup Matches With Other Teams

    Bundesliga club Bayern Munich "is willing to share its TV income from free-to-air broadcasts of DFB-Pokal (German Cup) matches with other teams," according to the SID. Bayern Munich CEO Karl-Heinz Rummenigge said that the Bundesliga champion "has agreed in principal to put the money into a big pot in which all teams participate." He added that the proposal "came from the German Football League's (DFL) Cup working group." For the Cup semifinal against FC Kaiserslautern on April 16, Bayern Munich will receive around €600,000 ($829,000) from German public broadcaster ARD (SID, 4/9).

    Print | Tags: Finance, Europe
  • F1 Teams Having 'Conversation' About Buying Series Stake, CEO Ecclestone Says

    A group of F1 teams is “having a conversation” about buying a stake in the auto racing series whose biggest shareholder is CVC Capital Partners, according to Alex Duff of BLOOMBERG. F1 CEO Bernie Ecclestone said, “We’ll see what the group comes up with. Maybe they will get enough together to buy shares.” A Ferrari team spokesperson "declined to comment." Mercedes and Red Bull team officials "didn’t immediately return e-mails seeking comment." A CVC official "didn’t immediately return a phone message." Ecclestone said the talks are “just a conversation” and “may not go anywhere” (BLOOMBERG, 4/9).

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  • Court Orders Spanish Actor Antonio Banderas To Pay Former Moto2 Associate $76,000

    Spanish actor Antonio Banderas' "passion for motorcycling could prove expensive" after a Spanish court's ruling that Banderas owes former Real Madrid basketball player Jose Miguel Antunez €55,000 ($76,000), according to SPORT. Banderas teamed up with Daniel Devahive in '09 to launch Jack&Jones Team, a Moto2 team, which later employed Antunez, who is now demanding €55,000 in payment he never received. The team competed in '10, but a year later, "it fell off the map for economic reasons overnight." Antunez was "seemingly in charge of mediating between Banderas and Devahive." Banderas' lawyer, Francisco Fortes, explained that his client's defense "will be based on the fact he never actively participated in the project and only signed an agreement that never went into effect." Banderas "previously had to sue a Jack&Jones Team sponsor for continuing to use his image after the club dissolved." Banderas won that suit and received €65,000 (SPORT, 4/8).

    Print | Tags: Europe, Finance
  • Spanish Second Division Side Eibar Selling 36,900 Shares, Must Raise $2.5M By August

    Spanish second division side Eibar's board approved the sale of 36,900 shares in the club at a cost of €60.10 ($83.03) per share, according to Aritz Arce of AS. If the club is "able to sell all the shares, it will raise more than" €2M ($2.8M). Those "who will receive first access to the shares are current club shareholders." In May, the remaining "shares will become available to anyone." The "period will end July 24 and if the club has not raised" €1.7M ($2.4M) by that time, it will be "forced to be relegated" for not meeting the minimum budget required by law. Eibar President Álex Aranzabal said, "As unjust as this might be, we have to take it forward" (AS, 4/9).

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