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ICL will make profit next year
ICL will make a profit next year and pay for its growth. By 2010-11, ICL revenues will grow to Rs 1,000-1,200 crore with Rs 300 crore as profit, Chairman Subhash Chandra has said in an interview to Businessworld.
Zee Group’s Chairman and Indian Cricket League (ICL) promoter Subhash Chandra is frustrated and angry at being ostracised by the Board of Control for Cricket in India (BCCI). Despite BCCI banning ICL, Chandra continues to invest in the league. He speaks with BW’s Feroz Ahmed about his plans to make ICL a money-spinner and about his fight with the cricket establishment. Excerpts:
Your meeting with BCCI about legitimising ICL proved futile. Is it back to square one for you?
Not at all. We have written to ICC (International Cricket Council) asking them to recognise ICL as authorised unofficial cricket under its constitution’s 32nd clause. Failing appropriate response, we will go to a UK court against ICC. In any case, we will carry on with our plans of building a bigger and better ICL.
Isn’t it odd that you chose to own all ICL teams yourself instead of franchising them out?
If I wanted to sell ICL teams when we started the league, there would not have been any takers. We were immediately labelled the rebel league by the BCCI and even by the media. I have personally called up media owners and told them, “Friends, what are you doing? You’ve been propagating competition and free market, but what happened when it came to ICL?” There are people opposing the ICL and telling potential sponsors to desist from associating with ICL. I have told the minister (ex-BCCI President Sharad Pawar) that this must stop. I have not used my media power yet, but I will if I am forced to.
How has ICL done so far on the financial front? When can it become self-sustaining?
We recovered only 5 per cent of the cost from our first event in December 2007. From the second event in March this year, we recovered only about 25 per cent. From the current one, we hope to recover 70 per cent. The next event, which will be held in March 2009, will not only break even but actually make a profit. Thereafter, ICL will be on its own. This season our target is to generate revenue of Rs 2 crore per match.
How do you plan to fund the growth of ICL ?
We’ll give part equity of the teams to different people through structured deals and list the teams on stock exchanges when the market is good. Instead of one Shah Rukh Khan owning a team, ordinary people can own a team by buying 100 shares in it.
To what extent can Zee companies support ICL?
ICL is my family venture. We own 88 per cent in Essel Sports and the rest is owned by IL&FS. Essel Sports gets all the ad revenue while Zee Entertainment markets it for a fee and Zee Sports keeps all the subscription revenue. We are recovering 70 per cent of our costs this year. Next year, ICL will make a profit and pay for its growth. By FY 2010-11, ICL revenues will grow to Rs 1,000-1,200 crore with Rs 300 crore as profit.
Sports will be a big business in this country. We’re trying to prop up national football with AIFF (All India Football Federation). We want to do the same in cricket. Unfortunately, BCCI sees us as competition.
