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Ipl As A Business

The document discusses the Indian Premier League (IPL), a professional cricket league in India. It summarizes that IPL has received extensive free media coverage. IPL employs successful marketing strategies such as structuring teams around Indian states and holding auctions for players. Franchises were established in 8 cities and cost $67-111 million. Revenue comes from broadcasting rights, sponsorship, and other local sources. Money is distributed to the BCCI, franchises, and players. IPL has benefited Indian cricket by attracting talent and investors, while also providing economic opportunities through tourism.

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Abhijit Borthakur
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125 views32 pages

Ipl As A Business

The document discusses the Indian Premier League (IPL), a professional cricket league in India. It summarizes that IPL has received extensive free media coverage. IPL employs successful marketing strategies such as structuring teams around Indian states and holding auctions for players. Franchises were established in 8 cities and cost $67-111 million. Revenue comes from broadcasting rights, sponsorship, and other local sources. Money is distributed to the BCCI, franchises, and players. IPL has benefited Indian cricket by attracting talent and investors, while also providing economic opportunities through tourism.

Uploaded by

Abhijit Borthakur
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd
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IS CHANGE THREAT OR AN OPPORTUNITY ?????

AGENDA

Entrepreneurship. IPL a game or business. Charm of IPL. World level leagues. IPL Season. Extraaaaa ininnnnngs in season 4. Franchise. Cost of teams.

Contd..

Valuation Team composition Sponsorship Centre Revenue Pool Local Revenue Pool Market Strategy Travel & Tourism Opportunities through IPL

IPL A GAME OR BUSINESS???

TV, Internet, Newspapers Every medium is flooding with DLF IPL, a private event; that above all, explains the success of Indian Premier League. For a private event, entire media is fighting to give free of cost coverage! Strange, but Interesting! So what marketing and branding strategy has worked in favour of IPL?

Charm Of IPL:

Mega Event To keep it focused in 20 overs It structured teams around states By following a well tried international model of clubs and player auctions Media hype Board of Cricket Control in India Shah Rukh Khan, Preity Zinta and Shilpa Shetty

Some World Level Leagues:


Manchester united - English premier league, Dallas cowboys- National football league Washington redskin- NFL NewYork yankeens- Major league baseball NewEngland patriots- NFL Real Madrid la liga Arsenal English premier league NewYork giants- NFL NewYork jets NFL Houseton Texans- NFL

Seaso n
Inagural Season Second Season Third Season Fourth Season

Year Winners

Matches Day s
59 46

2008

Rajasthan Royals Deccan Chargers

2009

59

37

2010 2011

Chennai 54 Superkings 60-94

45 54

Franchises:
The winning bidder for the eight franchises were announced on 24 January 2008 Two more are added in year 2011 namely Kochi and Pune.

OWNER UB Group of vijay mallya CAPTAIN Anil Kumble COACH Ray Jennings BRAND AMBASSADOR- Deepika Padonkar, katrina Kaif

OWNER Deccan Chronicles CAPTAIN Adam Gilchrist COACH Darren Lehmann

OWNER - India Cement CAPTAIN - MS Dhoni COACH - Stephen Flemming

OWNER- GMR Group CAPTAIN - Gautam Gambhir COACH Greg Shippered OWNER- Preity Zinta NessWadia Karan Paul & Mohit Burman CAPTAIN- Kumar Sangakkara COACH - Tom Moody OWNER Shahrukh Khan, Juhi Chawla & Jai Mehta CAPTAIN Brendom McCullum COACH - John Buchanan

OWNER Reliance Company Ltd CAPTAIN- Sachin Tendulkar COACH - Lalchand Rajput OWNER Emerging Media Shilpa Shetty & Raj Kundra CAPTAIN Shane Warne COACH Shane Warne

Cost of teams:
Rajasthan Royal $67mn Kolkata Knight Riders $75.09mn Delhi Daredevils $84mn Kings XI Punjab $76mn Royals Challengers Bangalore $111.6mn 6. Hyderabad Deccan Charges $107 7. Chennai Superkings $91mn 8. Mumbai Indians $111.9mn 9. Sahara Pune Warriors $370mn 10. Kochi $333.33mn
1. 2. 3. 4. 5.

Valuation
1.

2.
3. 4. 5. 6.

7.

Rajasthan Royal $45.2mn Kolkata Knight Riders $46mn Delhi Daredevils $40.5mn Kings XI Punjab $36.1mn Royals Challengers Bangalore $41.9mn Hyderabad Deccan Charges $34.4 Chennai Super kings

Team composition rules are:


Minimum squad strength of 16 players plus one physio and a coach. No more than 8 foreign players in the squad and at most 4 in the playing XI. For the 2009 edition franchises are allowed 10 foreign players in the squad. The number allowed in the playing XI remains unchanged at 4. A minimum of 8 local players must be included in each squad. A minimum of 2 players from the BCCI under-22 pool in each squad.

Sponsorship:
India's biggest property developer DLF Group paid US$50 million to be the title sponsor of the tournament for 5 years from 2008 to 2013. Other five-year sponsorship agreements include a deal with motorcycle maker Hero Honda worth $22.5-million, One with PepsiCo worth $12.5-million, A deal with beer and airline conglomerate Kingfisher at $26.5

Sponsors

So where is the money coming from.


Media Right Central revenue Money raised by franchise Franchise Bid Money

$1billion for 10yrs Sony

Title sponsorship of event Licensed merchandise

Selling advertisement for stadia Licensing products Merchandise sale Advertising on ticket Gate money

Cost of teams

And where is it going


Money Sources BCCI Franchise Players
Media Right 20% 72% 8%

Central Revenue 40%

54%

6%

Money Raised By Franchise Franchise Bid Money

20%

80%

0%

Some hefty amount in the first year

The Centre Revenue Pool:


THEATRICAL RIGHTS -Rs 330cr INTERNET RIGHTS -$7million IPL NIGHTS Rs- 12cr COLORS CONTENT DEAL Rs. 100cr SPONSORSHIP OF THE BLIMP Rs. 15cr SPONSORSHIPS Rs.90lacs/match MOBILE RIGHTS ADVERTISEMENTS BETWEEN OVERS ON STADIUM SCREEN Rs. 54cr

The Local Revenue :

INDIVIDUAL TEAM SPONSORS GATE RECEIPTS IN-STADIA ADVERTISING: LICENSING & MERCHANDISING

ADS

Market Strategy:
IPL is a Blue Ocean Strategy It means there is no other competitor. It is based on segmented target group & the product development & marketing. Live cricket in theatres.

Travel & Tourism:

Online Ticket Booking. Currency Conversion. Online Payments. Credit Card Processing. Fraud & Risk Management. E-Commerce.

IPL ready for a 160 crore Marketing Blitz:


Advertisements. Merchandise. Fan clubs. Youngistan. Cheer leaders.

IPL Merchandise:

Conclusion:
Recession V/S IPL. Increasing revenue generation capacity of BCCI. Attracting Investors. New talent for Indian Cricket. Aggressive Marketing can tackle Recession.

Submitted By : Archana Mishra. Medinee Alekar.

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