NEW DELHI | MUMBAI: The star power of owner Shah Rukh Khan and consistent on-field performance in recent years have catapulted Indian Premier League team Kolkata Knight Riders into the profit zone even as most other franchises of the popular twenty20 tournament are yet to hit pay dirt. Kolkata Knight Riders, or KKR, posted the highest revenues among all IPL teams in 2014-15, the last year for which data was available, when it posted 30% growth in revenues and 54% jump in profits despite the fact that half of the tournament in 2014 was played in the UAE due to Lok Sabha elections.No other IPL team has shown such consistent profits, not even Chennai Super Kings and Mumbai Indians — the other two teams to have won the tournament more than once — as most teams have yet to open up new revenue sources such as merchandising and digital activities. Knight Riders Sports Pvt Ltd, which runs KKR, had revenues of Rs 168.71crore in 2014-15, the year it won the tournament for a second time, up from Rs 128.81 crore in the previous year.Its profits stood at Rs 14.15 crore, up from Rs 9.19 crore in the previous year, according to business research platform Tofler that compiled IPL teams’ data from Registrar of Companies (RoC) and other regulatory filings. “Sponsors love that Shah Rukh Khan wears the shirt with their logos on it. That’s a big draw. And if a team is doing well, it can negotiate better,” said Varun Gupta, managing director of advisory services firm American Appraisal.The only other team that was in the green in 2014-15 was Kings XI Punjab, which finished second behind KKR in 2014, with profits of Rs 12.76 crore, up from a loss of Rs 4.36 crore in the previous year. Kings XI also reported a 26% year-onyear increase in its revenues at Rs 130.06 crore in 2014-15, up from Rs 103.22 crore. The Indian Premier League has seen a lot of turmoil in the past couple of years.Spot-fixing and betting allegations that led to some arrests, litigations and suspension of Chennai Super Kings and Rajasthan Royals for two years, among other issues, hit the image of the league. In the first few years of the league, most teams were hopeful of managing a breakeven in three to four years. But data shows that most teams have not managed that turnaround even as the ninth edition of the tournament is underway.While popular teams have managed to increase their sponsorship revenues over the years, most of them have yet to make profits. Mukesh Ambani-owned Mumbai Indians, for instance, has seen impressive revenues on the back of consistent performance since 2011, but it could not turn in a profit. Indiawin Sports Private Ltd, which runs MI, had reported revenues of Rs 220.87 crore in 2013-14, the year it won its first IPL, but it turned in a loss of Rs 5.04 crore. In the following year, its revenues slipped to Rs 167.75 crore, but the firm managed to reduce its loss to Rs 3.87 crore.Mumbai Indians did win the tournament again last year, but its financial numbers are not available yet. Experts say that consistent performance is a key to making money in the league where the biggest revenues sources for teams as of now are the price money and performance bonus apart from the central pool revenues from media rights and central sponsorships.“Champion teams are able to extract more from sponsorship revenue. Also franchises charge performance bonus for qualifying to play-offs and finals that leads to upside on revenues. IPL also offers performance bonus and price money which add to the bottom line,” said Vinit Karnik, business head at ESP Properties, a sports and entertainment consultancy of media management giant GroupM. He said franchises with iconic players have attracted more sponsorship revenues, but these players cost more and impacts the team’s ability to make profits.The star-studded Royal Challengers Bangalore, with players such as Virat Kohli , Chris Gayle and AB de Villiers, has been in the red between 2011and 2014. It showed losses of Rs 30.06 crore in 2014-15, Rs 99.04 crore in 2013-14, and Rs 7.86 crore in 2012-13. Its revenues have stagnated around the Rs 90 crore mark as it failed to perform consistently. Besides the central pool, revenues sources for teams include ticket sales, sponsorship on team jersey, licensing and merchandising.On an average, team sponsorship revenues are between Rs 25-40 crore and ticket sales account for around Rs 20-35 crore. Central pool revenues are in the Rs 70-80 crore range for franchises. “While sponsorship revenues have strengthened, merchandising is still a very nascent avenue for revenues, thanks to high cost of merchandise, replica t-shirts and rampant piracy,” said Indranil Das Blah, partner at sports and celebrity management firm CAA KWAN. Experts, however, say teams will eventually start making profit as the league continues to remain popular. Blah said teams could also try to explore digital revenues.“It’s potentially a huge source of revenue in the coming years and teams could start to monetise their own YouTube channels and run contests on their digital platforms,” he said. Gupta of American Appraisal said that despite the concerns around a dip in stadium attendance and other issues around the IPL, television rights should fetch a premium over previous numbers. “Going forward, profitability will increase for all teams as there will be no annual licence fees and broadcast rights will be renegotiated, which is expected to enhance the share of central pool revenues for teams,” he said.Mohit Burman, co-owner of Kings XI Punjab, said sponsorship revenues for the team increased in 2014 with larger, reputable sponsors coming on board. “The team also played the finals in 2014, which increased the revenue due to prize money that the franchise received,” he said. According to officials, 15-17% of Kings XI Punjab’s revenues come from merchandising and sponsorship with the latter being the majority source. GMR Sports Private Limited, which runs the Delhi Daredevils franchise, saw a dip in its revenues in 2014-15 at Rs 112.87 crore, down from Rs 151.22 crore in the previous year.It had a profit of Rs 7 crore in 2013-14 but slipped into a loss of Rs 20.4 crore the next year. Before it was suspended, Chennai Super Kings was among the top three teams in terms of revenues. Its revenues in 2014-15 stood at Rs 158.51 crore, slightly down from Rs 166.17 crore in the previous year. Rajasthan Royals’ revenues in 2014 (FY starts from Jan 1 -Dec 31), the last year for which data was available for the team, were Rs 93.38 crore. It had reported a loss of Rs 3.84 crore that year. Delhi Daredevils, Kolkata Knight Riders, Mumbai Indians and Royal Challengers Bangalore did not respond to email questionnaires sent by ET as of press time on Sunday.Sun Risers Hyderabad (SRH), which came into IPL in 2013 after replacing Deccan Chargers, reported loss of Rs 58.33 crore in FY2014-15. SL Narayanan, group CFO of Sun Group that owns SRH, said IPL teams, like any other consumer franchise, will take time to establish their brand equity. “We came into the league a full five years later than others like KKR and MI. Moreover, we had to take over a team that was associated with another sponsor who unfortunately ran into financial difficulties. Therefore we had to make fresh investments and rebrand the entire team. Hence this will not be a fair comparison,” he said.Narayanan, however, expressed confidence that SRH will start making significant free cash flows post FY 2018 when its commitment of annual licence fee of Rs 85 crore to the Indian cricket board BCCI ends.