The "star power" of Owner Shah Rukh Khan and consistent on-field performance in recent years have "catapulted Indian Premier League team Kolkata Knight Riders into the profit zone even as most other franchises of the popular Twenty20 tournament are yet to hit pay dirt," according to Mahanta & Laghate of the ECONOMIC TIMES. KKR "posted the highest revenues among all IPL teams" in '14-15, the last year for which data was available, when it posted 30% growth in revenues and 54% jump in profits "despite the fact that half of the tournament in 2014 was played in the UAE due to Lok Sabha elections." No other IPL team "has shown such consistent profits," not even Chennai Super Kings and Mumbai Indians -- as "most teams have yet to open up new revenue sources such as merchandising and digital activities." Knight Riders Sports Pvt. Ltd., which runs KKR, had revenues of Rs 168.7 crore ($25.4M) in '14-15, the year it won the tournament for a second time, up from Rs 128.8 crore in the previous year. Its profits stood at Rs 14.2 crore, up from Rs 9.2 crore in the previous year. American Appraisal Managing Dir Varun Gupta said, "Sponsors love that Shah Rukh Khan wears the shirt with their logos on it. That's a big draw. And if a team is doing well, it can negotiate better." The "only other team that was in the green" in '14-15 was Kings XI Punjab, which finished second behind KKR in '14, with profits of Rs 12.8 crore. While "popular teams have managed to increase their sponsorship revenues over the years, most of them have yet to make profits." Mukesh Ambani-owned Mumbai Indians, for instance, has "seen impressive revenues on the back of consistent performance" since '11, but it could not turn in a profit. ESP Properties Business Head Vinit Karnik said, "Champion teams are able to extract more from sponsorship revenue. Also franchises charge performance bonus for qualifying to play-offs and finals that leads to upside on revenues. IPL also offers performance bonus and price money which add to the bottom line." He said that franchises "with iconic players have attracted more sponsorship revenues, but these players cost more and impacts the team's ability to make profits" (ECONOMIC TIMES, 5/9).
