Indian Premier League(2)

GOOD MORNING

Indian Premier League

What An Idea!!!!!

Birth Of An Idea… • The leafy suburb of Wimbledon in South West London is synonymous the world over with the game of tennis, but it was here that a massive new idea for the sport of cricket was conceived. • In late June last year, while the rain that marked the 2007 English summer was disrupting the famous Championships, two men met in a nearby house to discuss a very different event. • Lalit Modi, Vice-President of the Board Of Cricket Control for India, spoke to Andrew Wildblood of the International Management Group , a company with a vast experience in the whole area of sports management.

Birth Of An Idea… • Lalit Modi, who studied in America and had long since wanted to re-energise the Indian domestic game, was seeking a view on whether it would be possible to put together a Twenty20 cricket league based on the model of the franchise system commonplace in the United States. • “Funnily enough, it was similar to an idea we had already kicked around informally within our office,” recalls Wildblood, Senior Corporate Director of IMG India. “I thought that with a combination of BCCI resolve and IMG’s expertise we could find a way.” • A second meeting took place in a London hotel before Modi moved on and it was decided there

INTRODUCTION

Introduction • Currently 8 teams are playing under IPL: 

Rajasthan Royals, Mumbai Indians, Kolkata Knight Riders, Kings XI Punjab, Delhi Daredevils, Deccan Chargers, Chennai Super Kings, Banglore Royal Challengers.

• The IPL signed up Kingfisher Airlines as the official umpire partner for the series in a Rs. 106 crore (1.06 billion) deal. • India's biggest property developer DLF Group has paid US $50 million to be the title sponsor of the tournament for 5 years. • The Indian Government earned Rs 91 crore as tax revenue from the 1st season of the IPL.

Introduction • The IPL is predicted to bring the BCCI income of approximately US$1.6 billion, over a period of five to ten years. − Revenues Distribution till 2017 • IPL= 40% • Franchisee= 54% • Prize Money= 6%

• After 2017 − Revenues Distribution • IPL= 50% • Franchisee= 45% • Prize Money= 5% 

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HISTORY

History First Session:

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• Started on 18 April 2008 in Banglore. • The matches continued for 46 days with 59 matches. • Out of which 58 took place and 1 was washed out due to rain. • Each team played every other both at home and away in a Round Robin system. • Rajasthan Royals emerged as the inaugural IPL champions.

History Second Session:

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• The 2009 season coincided with the general elections in India. • Due to concerns regarding players' security, the venue was shifted to South Africa. • The format of the tournament remained the same as the inaugural one. • Deccan Chargers came out as eventual winners of the tournament.

TEAMS

Teams Teams

Owner

Coach

Sponsors

Auctioned Amount

Liq u o r Ke vin Royals ro n Vija y Pie t e rs e n . Challengers Ba Ma llya (UB Banglore Gro u p )

Ra y Je n n in g s (So u t h Afric a )

Ro ya l Ch a lle n g e a nd othe r UB b ra n d s

$ 1 1 1 .6 m illio n .

Mumbai Indians

Sh a u n Po llo c k (So u t h Afric a )

Id e a Ce llu la r, Pe p s i

$ 1 1 1 .9 m illio n

Re lia n c e In d u s t rie s Lt d .

Caption

Sa c h in Te n d u lka r

Teams Teams

Owner

Caption

Coach

Sponsors Auctioned Amount

Kolkata Knight Riders

Sh a h ru kh So u ra v Kh a n , Ju h i Ga n g u ly . Ch a w la a n d Ja i Me h t a

Jo h n HDIL, fo r $ 7 5 .0 9 Bu c h a n a n No kia , Ta g m illio n (Au s t ra lia ) He a u e r, Be lm o n t e , Th e Te le g ra p h , Sp rit e

Kings XI Punjab

Pre it y Yu vra j Zin t a , Sin g h Ne s s Wa d ia (Bo m b a y Dye in g ), Ap e e ja y Su re n d e ra Gro u p a n d

To m Mo o d y Sp ic e (Au s t ra lia ) Te le c o m , 9 X, Pro vo g u e , Ko t a k, Fo s t e r’s , Co c a Co la

$ 7 6 m illio n

Teams Teams

GMR Infrastructure

Delhi Daredevils

GMR Vire n d ra In fra s t ru c t Se h w a g u re

Deccan Chargers

De c c a n Ch ro n ic le

Caption

Ad a m Gilc h ris t

Coach

Sponsors

Auctioned Amount

Gre g He ro Ho n d a , $ 8 4 m illio n Sh ip p e rd Kin fis h e r (Au s t ra lia ) Airlin e s , Ro ya l Ch a lle n g e , Co c a Co la , Ad id a s , 1 0 4 FM, Wrig Da rre n De c cle a ny’s $ 1 0 7 m illio n Orb it Le h m a n Ch ro n ic le , (Au s t ra lia ) Od ys s e y, Pu m a , Kin g fis h e r Airlin e s , Mc Do w e lls , Big 9 2 .7 FM, Pe p s i, Wrig le y’s Bo o m e r

Teams Teams

GMR Infrastructure

Chennai In d ia m e nts Superkings Ce Lt d .

Rajasthan Royals

Caption

Coach

MS Dh o n i

St e p h e n Fle m in g (Ne w Ze a la n d )

Em e rg in g Sh a n e Me d ia , Wa rn e Sh ilp a Sh e t t y, Ra j Ku n d ra

Sponsors

Auctioned Amount

In d ia $ 9 1 m illio n Ce m e n t s , Co ro m a n d e l, Airc e l, Re e b o k, Pe t e r En g la n d , Nive a , 7 UP, Big Ba za a r, 9 $67 million Kingfisher, Sh a n e Clo u d Puma, Boost, Wa rn e (Au s t ra lia ) Ultratech Cement

MARKETING STRATEGY

Marketing Strategy 

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The DLF Indian premier league is a concept sell. It is clearly observed that IPL is a perfect example of controversy marketing Strategies:

• Auctioning the franchisees • Auctioning the players participating in the IPL tournament. • Advertisements on various TV and radio channels. • Cheerleaders were one of the most important thing that is talked about, foreign girls attracted huge crowd • Worldwide telecast.

Marketing Strategy •

Locations: the venue chosen for the cricket matches was a strategic choice of places which are named after franchisees, which helped attract people

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Conflicts with some media partners and some other cricket boards again demanded the attention of people

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Timing: IPL has shown its strategic application of intellect by choosing the evening time for the matches, which made people watch game comfortably

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ICL: the rival ICL had been one of the reasons for the publicity and emergence of IPL. People started comparing the IPL & ICL that caused the huge publicity for the IPL

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Opening ceremony gala, Live Concerts

Marketing Strategy •

Franchises taken by film stars like Shahrukh Khan, Pretty Zinta, juhi chawla etc are the center for attraction, which made some Bollywood stars come for the game.

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Use of models and Bollywood stars for anchoring and promotion of teams like Akshay kumar for Delhi daredevils, Shahrukh khan for kolkata knight riders

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The commentators were not less than PROs, use of phrases that pleased sponsors and made them pay more. Example: for every six it was a DLF

SWOT ANALYSIS

SWOT Analysis Strengths:

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● IPL is based upon the Twenty20 cricket game which should be completed in 3 hours. ● The IPL has employed economists to structure its lead so that revenue is maximized. The more unified the sport, the more successful it is. ●

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SWOT Analysis Weaknesses:

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• Twenty20 has been so popular that it could replace other forms of cricket i.e. damage the game that generated it. • Some fans will also have to pay for travel to the ground. There may be large queues for the most popular games. There may be some distance between where the fan lives and the cricket ground. • Stakes are very high! Some teams may not weather short-term failures and may be too quick to get rid of key managers and players if things don't go well quickly. • Some teams have overpriced their

SWOT Analysis Opportunities:

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• Since it has a large potential mass audience, IPL is very attractive as a marketing communications opportunity, especially for advertisers and sponsors. • The league functions under a number of franchises. Each franchisee is responsible for marketing its team to gain as large a fan-base as possible. The long-term success of all of the franchises lies in the generation of a solid fan-base. The fan-base will generate large TV revenues. • Different fans will pay different amounts to watch their sport. There will be corporate hospitality, season tickets, away tickets, TV pay-per-view and other ways to segment the market for the IPL.

SWOT Analysis Opportunities:

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• There is a huge opportunity for merchandising e.g. sales of shirts, credit cards and other fan memorabilia. Grounds can also sell refreshments and other services during the games. • Marketers believe that the teenage segments need to be targeted so that they become the long-term fan-base. Their parents and older cricket fans may prefer the longer, more traditional game. The youth market may also impress on their parents that they want them to buy their club's merchandise on their behalf - as a differentiator or status symbol. • Franchise fees will remain fixed for the up until 2017-18, which means that the investment is safe

SWOT Analysis Threats:

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• The level of competition that the BCCI can generate determines long-term viability of the league. If the level of competition drops, then revenue will fall • If the franchisee's fan-base does not generate income then they may not have the cash to pay the salaries of the best players. However, if you invest in the best players and they do not win the trophies, then you may not see a return on your investment. It won't be a quick return on investment - so owners need to be in it for the long-term. •

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SWOT Analysis Threats:

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• Franchises are very expensive. The most expensive franchise - Mumbai Indians - was bought by Mukesh Ambani for $111.9 million, whereas the lowest priced franchise - Rajasthan Royals was picked up by Manoj Badale for a mere $67 million. • The most highly priced teams may not be those that have the early success. Revenues will come from the most highly supported teams. 

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BROADCASTING RIGHTS

Broadcasting Rights •

On 15 Jan 2008 India's Sony Entertainment Network and Singapore based World Sport Group jointly secured the global broadcasting rights of the Indian Premier League at a cost of US $1.026 billion.

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This deal was challenged in the Bombay High Court by IPL, and got the ruling on its side.

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After losing the battle in court, Sony Entertainment Television signed a new contract with BCCI with Sony Entertainment Television paying a staggering Rs. 8700 crores (87 billion) for 10 years.

Broadcasting Rights Winning Sony/World Sport Group Bidder

Regional Broadcast Global Rights, India Rights

Terms Of Deal

ONE HD

Free-to-air HD and SD television in Australia. Owned by Network TEN. New Zealand broadcast rights

5 years at AUD 10-15 Million.

Sky Network Television Arab Digital Distribution Willow TV SuperSport

10 years at Rs 8700 crores (revised)

Terms not released

Middle East broadcast rights on ADD's ART 10 Years, terms not released. Prime Sport channel. Will broadcast to United Arab Emirates, Bahrain, Iran, Iraq,radio, Jordan, Rights to distribute on television, 5 years, terms not released. Kuwait, Lebanon, Oman, Qatar, Palestine, Saudi broadband and Internet, for the IPL in North Arabia, Syria,and Turkey, Algeria, Morocco, America. South Africa Nigeria broadcast rights Terms not released Tunisia, Egypt, Sudan, Libya and Nigeria.

GEO Super

Pakistan broadcast rights

Terms not released

Asian Television Network

Canadian broadcast rights. Aired on ATN's 5 years, terms not released.[19] CBN & ATN Cricket Plus channels on a subscription basis. Aired on XM Radio's ATNAsian Radio as well.

SWEET N SALTY

Sweet n Salty For Players:

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Sweet:

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• Earn at least Rs 80 lakhs ($200000) or more per season on average. • Bonuses and Prize Money from Team owners. • A great stage to show case skills and compete with the best in the world. • The top 4 highest earning international cricketers are Indians, with the captain, Mahendra Singh Dhoni, leading the way with annual earnings estimated at US$10m, Tendulkar at US$8m, Yuvraj and Dravid earning in excess of US$5m. 

Sweet n Salty For Players:

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Salty:

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• Due to the tight schedule of international cricket, Chances of injury lowers the tenure of career. • Neglecting other forms of cricket • Fast game. Stamina and patience to build an innings and bowl tirelessly to get wickets is lost. 

Sweet n Salty For Franchisee:

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Sweet:

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• Using the cricket property to promote other businesses, • Prize money if the team wins. • They earn from the share in revenue from IPL. 

Sweet n Salty For Franchisee:

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Salty:

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• Financial Loss if the IPL fails to take off. • Franchises Pays the team and financial costs ie,. Cost of acquisition. • Promotional expenses has to be paid by franchises. • They also pay the franchisee fee eg. RCB have to pay $11.16m p.a. for 10 years. 

Sweet n Salty For Franchisee:

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Salty:

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Sweet n Salty For Sponsors:

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Sweet:

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• Spot rate charged from advertisers of IPL - $16,500 per spot • Improves customer base. • Sponsors get branding and recognition. 

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Sweet n Salty For Sponsors:

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Salty:

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• Spot Rate may go down if IPL is not a blockbuster and sponsors will earn less. • Too much reputation at stake tied to the fortunes of the franchise teams as a whole 

Sweet n Salty For Board Of Cricket Control For India:

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Sweet:

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• The BCCI has already made close to US$ 1.75 billion solely from the sale of TV rights ($908 million), promotion ($108 million) and franchises (approximately $700 million). • Got a great source of revenue. 

Sweet n Salty For Board Of Cricket Control For India:

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Salty:

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• May Forget to put efforts to promote other forms of cricket – Domestic and Test Cricket. 

Sweet n Salty For Viewers:

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Sweet:

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• Unlimited Masti and entertainment… • A great arsenal to make the case strong against the Saas – Bahu fans in the family. • A very good reason to increase productivity in office – Return home by 8 pm. 

Sweet n Salty For Viewers:

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Salty:

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• Chances of family fights over Channel viewer ship. • Capital costs in terms of additional investment in television sets. 

FUTURE AHEAD

Future Ahead • Increase in the no. of IPL teams • Possibility of its occurrence twice in a year • Status of Indians in sports business ,in world,is increasing due to this platform. • Inspiring and diverting attention of business houses to invest into games and sports. • Chances of IPL , of getting space into ICC calendar.

Future Ahead • Inspiration to other countries to come into game increasing its standard • Investment of IPL into other games . • Search of newer talent in field of sports and games. • Giving a new and fresh professional look to games and sports in India . •

Future Ahead 

If in two word we define 

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Future of IPL 

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Future Ahead 

IT’S 

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VERY BRIGHT 

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Any Questions

THANK YOU