The Kolkata Knight Riders (KKR) may win or they may lose their IPL matches. The financial fortunes of the team however never see any shadow being cast upon them. While no other IPL team has been able to turn a consistent profit; not even Mumbai Indians the title winning team owned by India’s Croesus Mukesh Ambani, KKR manages to do so consistently and quite proficiently. Is it the team owner and lucky talisman Shah Rukh Khan who is to be thanked?
KKR the money spinner
The KKR franchise posted the highest profits of all the IPL teams in 2014-15. A 30% increase in revenues and a whopping 54% increase in profits were seen. Last year, the declared revenues were Rs 168.71 crore (KKR won for the second time in 2014). Even franchises such as the Mumbai Indians and then Chennai Super Kings, who had won the title more than once, have never been able to match up to this phenomenal success. Mumbai Indians have not been able to turn a profit in spite of impressive revenue generation.
What is the reason for KKR’s super success?
According to experts, Shah Rukh Khan the team owner of the KKR is a huge draw. The fact that he is present at the venue during the match with the t-shirt bearing the sponsor’s logo is something that sponsors love, because it creates a direct association between the sponsor and brand SRK. Many of the other teams have not yet branched into merchandising and digital activities which earns KKR some big bucks.
The fact that the team has won the tournament twice before and is also doing pretty well this season, is another plus that improves negotiation power and is able to extract better sponsorship revenue. In spite of a recent loss, KKR is at no. 3 on the points table currently with 12 points from a total of 10 matches played.
However, perhaps the biggest asset of the KKR and the main reason behind the profitability of this IPL franchise is SRK the business man… SRK the star as well; but mainly SRK the businessman. The man has such a savvy business head on his shoulders and such a very clever brain that he manages to turn into gold a great deal of what he touches. This is not to say that he doesn’t take risks; he does; but those are calculated risks taken by a very sound business man. A man who has built a veritable empire from nothing; who in spite of a very great fortune thinks nothing of doing a few extra endorsements, shaking a leg at an event…. Perhaps it keeps him humble. And it definitely makes him some more money.
Author – Reena Daruwalla
