GST has been refined. Slabs of 5 and 18 percent will be applicable from September 22. Every sector of the country is assuring this reform according to its own. There are also some products which have also come in the range of 40 percent. Which includes luxury, premium and sin products. In which tobacco some category vehicles and IPL tickets have also been kept in the range of 40 percent. Because of which the IPL team Honors are not looking more happy than this reform. Experts believe that this can show the effect of IPL team honors. Let us also tell you what kind of things are coming out of the corridors of IPL franchise from GST reform.
Effect on ticket earnings
According to industry officials, the decision to increase the tax on entry into IPL matches from 28 per cent to 40 per cent is expected to reduce the franchise revenue, especially for the teams located at small centers outside the metros, there may be more difficulties. Depending on the capacity of the stadium, tickets contribute an estimated 8–12 per cent to the team’s earnings, but higher prices can affect the number of audiences in the non-Matropolitin Market. Now the franchise will have to consider pricing strategy once again to maintain the number of spectators in stadiums.
More impact on teams of small centers
Punjab Kings CEO Satish Menon said in the media report that since 40 percent GST is very high, our ticketing revenue will be affected. Its effect on franchisees with stadiums with low capacity out of metros will be especially serious. In small centers, the price flexibility is much less than the metros. Stand tickets bring 85-90 percent of our ticketing revenue, while the rest comes from the corporate box.
Tickets ranging from 500 to 2000 rupees
He further said that IPL franchises are discussing its impact and may appeal to the GST Council to reconsider this increase in the coming days. The prices of initial tickets are quite different, which range from Rs 500 to Rs 2,000. However, market experts say that it will not have any special effect. Santosh N, Managing Partner of D&P Advisory, said in the media report that this increase will definitely affect, but it will not be very serious because tickets already have 28 percent GST. But this increase could not happen in bad times because the ban on real money gaming is sure to affect the sponsorship revenue.