IPL (Indian Premier League) by mnmgroup

VIEWS: 155 PAGES: 49

									  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 and then that the vision could become a
  reality in 2008.
   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%
 History

First Session:
• 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:
• 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         Owner         Caption      Coach          Sponsors        Auctioned
                                                                        Amount

Royals        Liquor        Kevin        Ray Jennings Royal           $111.6 million
Challengers   Baron Vijay   Pietersen.   (South Africa) Challenge and .
Banglore      Mallya (UB                                other UB
              Group)                                    brands




Mumbai        Reliance      Sachin       Shaun Pollock Idea Cellular,   $111.9 million
Indians       Industries    Tendulkar    (South Africa) Pepsi
              Ltd.
           Teams
Teams         Owner        Caption         Coach         Sponsors     Auctioned
                                                                      Amount

Kolkata       Shahrukh     Sourav          John          HDIL,        for $75.09 million
Knight Riders Khan, Juhi   Ganguly .       Buchanan      Nokia, Tag
              Chawla and                   (Australia)   Heauer,
              Jai Mehta                                  Belmonte,
                                                         The
                                                         Telegraph,
                                                         Sprite
Kings XI      Preity Zinta, Yuvraj Singh   Tom Moody     Spice        $76 million
Punjab        Ness Wadia                   (Australia)   Telecom, 9X,
              (Bombay                                    Provogue,
              Dyeing),                                   Kotak,
              Apeejay                                    Foster’s,
              Surendera                                  Coca Cola
              Group and
              Dabur
           Teams
Teams        GMR
             Infrastructure
                              Caption     Coach         Sponsors          Auctioned
                                                                          Amount

Delhi        GMR          Virendra        Greg          Hero Honda,       $84 million
Daredevils   Infrastructu Sehwag          Shipperd      Kinfisher
             re                           (Australia)   Airlines, Royal
                                                        Challenge, Coca
                                                        Cola, Adidas,
                                                        104FM,
                                                        Wrigley’s Orbit
Deccan       Deccan           Adam        Darren        Deccan            $107 million
Chargers     Chronicle        Gilchrist   Lehman        Chronicle,
                                          (Australia)   Odyssey, Puma,
                                                        Kingfisher
                                                        Airlines, Mc
                                                        Dowells, Big
                                                        92.7FM, Pepsi,
                                                        Wrigley’s
                                                        Boomer
        Teams
Teams        GMR
             Infrastructure
                              Caption       Coach         Sponsors          Auctioned
                                                                            Amount

Chennai      India            MS Dhoni      Stephen       India Cements,    $91 million
Superkings   Cements                        Fleming       Coromandel,
             Ltd.                           (New          Aircel, Reebok,
                                            Zealand)      Peter England,
                                                          Nivea, 7UP, Big
                                                          Bazaar, 9 Cloud

Rajasthan    Emerging         Shane Warne   Shane         Kingfisher,       $67 million
Royals       Media,                         Warne         Boost, Puma,
             Shilpa                         (Australia)   Ultratech
             Shetty, Raj                                  Cement
             Kundra
Marketing Strategy
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
• Conflicts with some media partners and some other cricket boards again
  demanded the attention of people
• Timing: IPL has shown its strategic application of intellect by choosing
  the evening time for the matches, which made people watch game
  comfortably
• 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
• 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.


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


• 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 Maximum,
  for every special moment it was city moment of
  success
SWOT Analysis
Strengths:
● 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.
SWOT Analysis
Weaknesses:
• 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 advertising/sponsorship in order
  to gain some short-term returns (e.g. Royal Challengers), and some
  sponsors and are moving their investment the more reasonably
  priced teams.
SWOT Analysis
Opportunities:
• 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:
• 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 against inflation which is
  traditionally relatively high in India.
SWOT Analysis
Threats:
• 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.
SWOT Analysis
Threats:
• 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.
      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.
• This deal was challenged in the Bombay High Court by IPL, and got
  the ruling on its side.
• 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 Bidder                 Regional Broadcast Rights                        Terms Of Deal
  Sony/World Sport Group      Global Rights, India                             10 years at Rs 8700 crores (revised)

                              Free-to-air HD and SD television in Australia.
         ONE HD                                                                5 years at AUD 10-15 Million.
                              Owned by Network TEN.

Sky Network Television        New Zealand broadcast rights                     Terms not released

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

        SuperSport            South Africa and Nigeria broadcast rights        Terms not released

        GEO Super             Pakistan broadcast rights                        Terms not released

                              Canadian broadcast rights. Aired on ATN's
                              CBN & ATN Cricket Plus channels on a
 Asian Television Network                                                  5 years, terms not released.[19]
                              subscription basis. Aired on XM Radio's ATN-
                              Asian Radio as well.
Sweet n Salty
For Players:
Sweet:
• 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:
Salty:
• 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:
Sweet:
• 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:
Salty:
• 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:
Salty:
Sweet n Salty
For Sponsors:
Sweet:
• Spot rate charged from advertisers of IPL - $16,500 per spot
• Improves customer base.
• Sponsors get branding and recognition.
Sweet n Salty
For Sponsors:
Salty:
• Spot Rate may go down if IPL is not a blockbuster and sponsors will
  earn less.
• Too much reputation at stake tied to the fortunes of the franchise
  teams as a whole
Sweet n Salty
For Board Of Cricket Control For India:
Sweet:
• The BCCI has already made close to US$ 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:
Salty:
• May Forget to put efforts to promote other forms of cricket –
  Domestic and Test Cricket.
Sweet n Salty
For Viewers:
Sweet:
• 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:
Salty:
• Chances of family fights over Channel viewer ship.
• Capital costs in terms of additional investment in television sets.
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

          Future of IPL
Future Ahead
               IT’S


        VERY BRIGHT

								
To top