New Delhi, March 22: Pushed into a corner by the Union government, the Indian Premier League had no option but to look for overseas venues to stage the second edition of the event. South Africa and England have emerged as alternate venues for the event, which is good news for cricket fans but increases IPL’s headaches manifold.

When the IPL was launched in 2008, the eight franchises signed on to the tournament looking at the long-term profits associated with the venture. It is a known fact that Kolkata Knight Riders were the only franchise to break even in the first season of the mega-event.

However, it was a profitable venture for the Board of Control for Cricket in India as the inaugural edition of the tournament added a profit of Rs 350 crores to its coffers. With the tournament moving out of India in its second edition, all franchises are looking at the substantial losses.

"We are fully aware of the fact that there will be substantial losses for the franchises. Ticket revenues will dwindle, we are not sure what the revenue-sharing plan will be with the hosting venues. Also there is the cost of relocating to England or South Africa for over a month. But IPL commissioner Lalit Modi has assured us that all these costs will be borne by the organisers," Delhi Daredevils CEO Amrit Mathur told this newspaper on Sunday.

Sources close to the BCCI and IPL indicate that the organisers are looking at a net expenditure in tune of Rs 500 crores in light of Sunday’s developments, which includes revenue sharing with the England Cricket Board or Cricket South Africa, cost of maintaining the hosting venues, expenditure over organising camps and relocating IPL players and various other expenses.

"It’s not about money. We are going to be spending a lot more in holding the IPL out of the country and will probably make no profit but that is not the concern. Cost is not an issue and we will cover it all," IPL commissioner Lalit Modi announced in Mumbai.

"The franchisee owners have the option to take any number of players. They can try to limit the number of players," Modi added.

Mumbai Indians have already sent some of their players for a camp to Durban ahead of IPL II. Nita Ambani, wife of Mumbai Indians co-owner Mukesh Ambani, was also not too perturbed about the IPL moving out of India.

"Shifting the IPL out of India was the last resort for us but we did not want to stop the IPL from taking place this year. IPL has assured us that there won’t be any losses," she said in Mumbai.