Who Is the Owner Of RCB?
Royal Challengers Bangalore is one of the Indian Premier League cricket teams, participating in the. It is one of the cricket franchises founded back in 2008 as a part of IPL. The RCB owner is United Spirits Limited, which belongs to Diageo Group. On February 20, 2008, teams for the League were auctioned in Mumbai. The represented 8 different Indian cities. In Bangalore, the franchise was bought for 111.6 million USD by Vijay Mallya (who has resigned in 2016). It was the team’s second-highest bid after Mumbai Indians offer by Reliance Industries’ $ 111.9 million.
The Indian Premier League is probably the most famous domestic Twenty20 tournament in the world. The establishing body of the League is the Board of Control of Cricket in India, which has found it in 2007. The best cricket sportsmen from all over the world ply their trade in this league. IPL is by tradition competition was held from March to May each year between the teams of eight Indian cities or states.
2021 is the fourteenth season of the IPL tournament. The Mumbai Indians are the current IPL champions as they won the 2020 season. With regards to the Royal Challengers Bangalore, the thirteenth season resulted for them to be quite good as for the first time since 2016 they became qualified for the playoffs. They also have started the season with a victory over Sunrisers Hyderabad by 10 runs. But the good start was marred by five consecutive defeats in the end of the championship. Thus, the RCB lost in Eliminator and occupied the fourth stage in the standings.
As for the players’ personal performance it can be mentioned that Padikkal and AB de Villiers were the batting stars of the season. The captain, Virat Kohli, tallied 466 runs, 3 fifties including; the 13th IPL season was definitely not good for him. The team’s spinner Yuzvendra Chahal contributed greatly to the franchise’s performance in the last season: he has picked 20 wickets in 14 matches and thus entering the current top-five list of the IPL wicket-takers.
What are the sources of earnings for the franchises’ owners?
The IPL is the most favoured cricket league in the global terms and holding the sixth highest average attendance of any sports league. IPL also became in the world in 2010 the first sporting event to be streamed live on YouTube. The value of the IPL’s brand in 2019 was estimated as $6.7 billion. According to BelCCI, the 2015 IPL season made a contribution of Rupees 11.5 billion to Indian GDP. But in which way do the franchises earn money and, thus, benefit their owners?
The cricket industry in India has created multiple ways to obtain a revenue from IPL teams. Some can be categorized as major and other as minor or local categories. The biggest ones in the terms of sums they can bring are:
- TV broadcasting rights;
- selling a team or a player for ad and promotion campaigns;
- IPL sponsorship rights!
Other sources of earnings on a team include:
- ticket sales;
- prize money of the match;
- sell merchandise (caps, T-shirts, etc.);
- stall rentals;
- local sponsorships of a team;
- revenue from champions trophy!
Of course, not all these earnings go to the owners: first of all, a part is given to the BCCI, and part of ticket sales, for instance, is given to sponsors. BCCI gathers all broadcast revenue and shares it with the teams. The media rights are oftentimes the biggest source of revenue and may constitute 60% of the total team revenue. To bring a recent example, Star India purchased IPL media rights for the seasons 2018-2022 at 16,347 crore INR, or in other words per a season it constitutes 3,269 crore INR.
From the start IPL was commercially driven and BCCI record profits of very high level even against a drop in revenues in 2020 due to VIVO, the title sponsor, withdrawal and a ban on spectators presence in the stadiums. Also, some other key sponsors pulled out due to postponement of the event. Yet the last season was far from facing a loss in profits, and viewership increased by 25%. BCCI stated the board gained Rs 4,000 crore for the 2020 IPL season.
How much RCB owners do earn from IPL?
In 2020, as stated by Brand Finance, the international brands valuation agency, RCB’s brand value was evaluated at about $49.7 million. This is the sixth highest brand worth as of IPL teams in 2020:
- Mumbai Indians – 70.3mln.USD;
- Chennai Super Kings – 59.8 mln.USD;
- Kolkata Knight Riders – 58.4 mln.USD;
- Sunrisers Hyderabad – 57.4 mln.USD;
- Delhi Capitals – 52.2 mln.USD;
- Royal Challengers Bangalore – 49.7 mln.USD;
- Kings XI Punjab – 38 mln.USD;
- Rajasthan Royals – 36.4 mln.USD!
The brand of the Royal Challengers Bangalore is valued to be $83 million as of 2019, as maintained by a survey carried out by Duff & Phelps. As it was mentioned, the RCB owner 2020 remains same Diageo India, specifically by its subsidiary United Spirits beverage alcohol company. Its profit from the RCB franchise constitutes around 10% of the total Diageo’s annual operating profit. Mahendra Kumar Sharma is the acting Chairman of USL, meanwhile Anand Kripalu holds the position of its Managing Director and CEO.
RCB has earned INR 143 Crores in the 2018-19 FY, doubling the revenue in comparison to the previous season. The amount has risen to 313 Crores in 2019. As it could be expected, 2020 witnessed a drop in the revenue, at least because of the audience absence at the stadiums.