Q. To what extent are overseas rights relevant?
Going by the Yashraj and SRK success story, Indian diaspora is a cash rich segment, though numerically not very substantial.
What has not been written about very much is the revenue from sale of broadcasting rights to overseas markets. These include the following:
- Network Ten Free-to-air television in
for 5 years at AUD 10-15 Million. This would be AUD 2 mln per year. Rs 8 crores-12 crores per year. Australia
- Setanta Sports for
and UK (12 crores), Ireland
- ART Prime Sports for the
Middle East(6 crores),
- Willow TV for
West Indies(3 crores), North America(3 crores),
- Super Sports for
(12 crores), South Africa
- Geo Super Sports for
(6 crores), Pakistan
- ATN for
(6 crores). Canada
- Estimates would be that these would also bring in Rs 60 crore per year at the least.
- Foreign rights Rs 60 crores and may go directly to WSG. Sony may keep the domestic revenues. Since the revenue split is not known its better to treat them as one unit.Total revenues of Sony and WSG combined would be Rs 836 crores per year
- Deducting the payout to IPL the gross earnings work out to (836-310=526 crores).
- From this gross earnings the cost of production for 59 matches needs to be deducted. At the highest it could be 60 crores.
- The remainder is 460 crores. Once you deduct the 60 crores , you are left with Rs 400 crores. After taxes it could be Rs 280 crores. News papers have said that MSM Sony Set Max made 300 crores and this could be the workings with share of the overseas revenue which should be tax free?
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