Sun TV’s management is confident of breaking even on its purchase of the Hyderabad Sun Risers, a cricket team that plays in the IPL. While the last team to be sold before this (Pune Warriors) was bought for Rs1,700m/year, Sun TV is committed to pay only Rs850m/year for the first five years.
Management pointed out that Sun TV has committed to paying Rs850m/year for the first five years to own the Hyderabad IPL team. From the sixth year onwards, the company would need to pay a 20% share of revenue (the rights to this team are perpetual). While team costs are pegged at a maximum of US$11m,