19/02/2008

How will the IPL franchisees make money?

The astronomical sums bandied about leaves us wondering how these franchisees are ever going to recover leave alone make a profit.

At first glance the players seem the only one who will benefit, but at the same time it is foolhardy to suppose that the Ambani's and the Mallya's have jumped in without a thought of the ROI.

One possibility is that they will develop their franchisee into a global brand and then sell it off to others, something similar to speculation.

The other possibility could be that they may use their 'icons' as an extension of their brand and device their advertising around them.Here again the money involved is huge and logically they can buy 'icons' with wider appeal at lesser price.

As some one who is nowhere in their league it is incomprehensible but one thing is sure they will definitely extract their pound of flesh.

But how?



No comments: