By – ADESH NAHAR

I – Indirect P – Paisa L – Lutto

I – Indian P – Premier L – League

Points

Franchisee Vs. IPL

Team & Financial Cost

Team Mumbai Indians

Owner Mukesh Ambani

Price in USD $112.9m

Price in Rs. 445 Cr.

Price payable per year $11.29m

Financial Model (For IPL)

Income1. Revenue from Auction of Broadcasting right

xxx

Revenue From Broadcast Rights

MAX Symbol & $1.02Billion

Financial Model (For IPL)

Income

1. Revenue from Auction of Broadcasting right xxx

Distribution of Income

1. Share of Broadcasting money with franchisee's xxx

Financial Model (For IPL)

Income

1. Revenue from Auction of Broadcasting right xxx

2. Revenue from title sponsorship & Co. sponsorship xxx

Distribution of Income

1. Share of Broadcasting money with franchisee's xxx

Financial Model (For IPL)

Income

1. Revenue from Auction of Broadcasting right xxx

2. Revenue from title sponsorship & Co. sponsorship xxx

Distribution of Income

1. Share of Broadcasting money with franchisee's xxx

2. Share of Sponsorship money with franchisee’s xxx

Financial Model (For IPL)

Income

1. Revenue from Auction of Broadcasting right xxx

2. Revenue from title sponsorship & Co. sponsorship xxx

3. Revenue from auction of franchisee rights xxx

Distribution of Income

1. Share of Broadcasting money with franchisee's xxx

2. Share of Sponsorship money with franchisee’s xxx

Franchisee Right

Financial Model (For IPL)

Income

1. Revenue from Auction of Broadcasting right xxx

2. Revenue from title sponsorship & Co. sponsorship xxx

3. Revenue from auction of franchisee rights xxx

4. Revenue from sale of ticket

Distribution of Income

1. Share of Broadcasting money with franchisee's xxx

2. Share of Sponsorship money with franchisee’s xxx

Revenue From Ticket Sales

Financial Model (For IPL)

Income

1. Revenue from Auction of Broadcasting right xxx

2. Revenue from title sponsorship & Co. sponsorship xxx

3. Revenue from auction of franchisee rights xxx

4. Revenue from sale of ticket xxx

Distribution of Income

1. Share of Broadcasting money with franchisee's xxx

2. Share of Sponsorship money with franchisee’s xxx

3. Share of ticket money with franchisee xxx

Financial Model (For IPL)

Income

1. Revenue from Auction of Broadcasting right xxx

2. Revenue from title sponsorship & Co. sponsorship xxx

3. Revenue from auction of franchisee rights xxx

4. Revenue from sale of ticket xxx

5. Revenue from official umpire’s sponsorship xxx

Distribution of Income

1. Share of Broadcasting money with franchisee's xxx

2. Share of Sponsorship money with franchisee’s xxx

3. Share of ticket money with franchisee xxx

Financial Model (For IPL)

Income

1. Revenue from Auction of Broadcasting right xxx

2. Revenue from title sponsorship & Co. sponsorship xxx

3. Revenue from auction of franchisee rights xxx

4. Revenue from sale of ticket xxx

5. Revenue from official umpire’s sponsorship xxx

Total xxx

Distribution of Income

1. Share of Broadcasting money with franchisee's xxx

2. Share of Sponsorship money with franchisee’s xxx

3. Share of ticket money with franchisee xxx

4. Inauguration & other expense xxx

Total xxx

Total Income XXX

Financial Model (For Franchisee)Income

1. Share in revenue from Broadcast rights xxx

2. Share in sponsorship Money xxx

3. Share in revenue from sale of tickets xxx

4. Revenue from inside stadium advertisements xxx

5. Sale of Players xxx

6. Revenue from own sponsorship & Co. sponsorship xxx

Total xxx

(-) Distribution of Income

1. Franchisee fees & Player’s Cost xxx

2. Match Fees to Coaches & supporting staff xxx

3. Rent of Stadium & Market / Promotional Cost xxx

4. Inauguration Expenses xxx

5. Fees of Coaches & others xxx

6. Administrative cost xxx

Total xxx XXX

Expense For Franchisee Team & Financial Cost (Cost of Acquisition) Payments to Player’s & Others (Match Fess) Rent of Stadium Inaugural & Marketing Expenses Promotional expenses Cost of travelling & accommodation Cost of Office & support staff Team management Coach Training & Preparation Insurance Ground Expenses Floodlights

IPL & Taxation Service Tax : for providing service to sponsors to

put advertisement on the clothes of the players

Entertainment Tax: Rather than sport event it entertainment event. Tax payable to local government

Capital Gain: (Transfer Value - Acquisition Value)on transfer of Capital Assets (Players)

TDS: As it comes in nature of Professional Services @ 11.33% as per Section 194E.

Capital Gain On Sale Of Player Wethere Capital Asset/Stock In Trade Right To Play % of Dep

IPL & Taxation Income Tax :

Section 28 : Charging section for domestic player as “income received from profession”

Section 115BBA : Income earned by non-resident sportsmen by participating in India in any game or sports and advertisements would be subject to tax in India.

Therefore, Foreign Players & commentator has to pay tax @ 10% as per Section 115BBA of the Income-Tax Act

Effect of Double Taxation Avoidance Agreement

Taxation of Players – Foreign Player

A. Income1. Cost of acquisition xxx2. Match Fees xxx3. Income from article writing in newspaper xxx4. Advertisement xxx

Total xxxB. Expense Not allowed ----

As Per Section 115BBA - Income taxable @ 10% FlatNo need to file returnAny other income

Taxation of Players – Domestic Player

A. Income1. Cost of acquisition xxx2. Match Fees xxx3. And other xxx

Total xxxB. Expense 1. Incurred for same xxx

Total xxx

As Per Section 28 - Income taxable as per slab rate

@nation