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The Economics of A Cricket Franchise: Rithvik Saxena

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RESEARCH ARTICLE

THE ECONOMICS OF A CRICKET FRANCHISE


RITHVIK SAXENA

Abstract
Understanding the economics and finances of a sport franchise is essential to
developing confidence in it’s work on the field and making appropriate targets
so as to seek a feasible ROI for the franchise owners. Generally, a high focus on
a cricket franchise’s brand value leads the investors/owners to over expect
from the team with it’s performance, which might or might not be the case.
Rising brand value or club worth may or may not directly impact the cricketing
functioning of the team as a whole. The current study, which is a summary of
cases that are few of their kind deals with only the financial stem of any cricket
franchise and it’s essence on the team, determining the potential for
investments. Taking a sample of the cricketing franchises involved in the VIVO
Indian Premier League(IPL), and the KFC Big Bash, the first part of my study
involves the different cost analysis and financial strategies undertaken by the
teams and the economics of the same. The second part of my study involves
the summation of the potential risks and returns that come with owning a
cricket franchise. Finally I calculate and analyse the factors building up to the
club worth, instrumental to the value building of the cricket franchise.

Keywords

Introduction

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