A Project Report
On INDIAN PREMIER LEAGUE (IPL)
Submitted By BAR!I SIDDAR! B"!
#rd
$EAR (%&&'%&&) Ro** No+
IN PAR!IAL "UL"ILLMEN! O" BA,ELOR O" "OREIGN !RADE UNI-ERSI!$ O" PUNE. MI!SOM ,OLLEGE PUNE/ 0
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CERTIFICATE
Mr2 BAR!I BA R!I SIDDA SI DDAR! R! of MAEER’s MITSOM College This is to certify that Mr2 has successfully completed the project wor titled I!"IA! #REMIER $EA%&E i' partial ful(llme't of re)uireme't for the award of *achelor of *usi'ess Admi'istratio' prescri+ed +y the &'i,ersity of #u'e This project project is the record record of authe'tic wor carried out duri'g the academic year -../0-.1.
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CERTIFICATE
Mr2 BAR!I BA R!I SIDDA SI DDAR! R! of MAEER’s MITSOM College This is to certify that Mr2 has successfully completed the project wor titled I!"IA! #REMIER $EA%&E i' partial ful(llme't of re)uireme't for the award of *achelor of *usi'ess Admi'istratio' prescri+ed +y the &'i,ersity of #u'e This project project is the record record of authe'tic wor carried out duri'g the academic year -../0-.1.
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DECLARATION
I, Mr. _BHARTI SIDDHARTH hereby declare that this project is the record of authentic or! or! carr carrie ied d out by "e durin durin# # the the acad acade" e"ic ic year year $%% $%%& & ' $%(% $%(% and and has has not not been been sub"itted to any other )ni*ersity or Institute toards the aard of an y de#ree.
BHARTI SIDDHARTH
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A,3NO4LEDGEMEN!S
I would si'cerely lie to tha' all my teachers a'd faculty mem+ers who directly a'd i'directly helped me to mae this project The successful completio' of this project would 'ot ha,e +ee' possi+le without the %uida'ce of our su+ject teacher Mr2-5ib657 8o96i a'd support of the sta3 mem+ers of *achelor of 4oreig' Trade 5*4T6 departme't of MITSOM College I am also grateful to Bri:2 Dr2 R23 B65ti5 5pri'ciple MITSOM College6 for arra'gi'g all academic schedules I would lo,e to tha' all my frie'ds who ha,e +ee' e7tremely supporti,e a'd e'couragi'g a'd last +ut 'ot the least my pare'ts
T h a ' y o u 8
BAR!I SIDDAR!
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INDEX
SR NO. 1. 2.
CONTENT AIM HISTORICAL
PAGE 6 7-8
3. 4.
BACKGROUND IPL TEAMS IPL BUSINESS
9-13 14
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CONTROERS! IPL # THE CASE FOR
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MANAGEMENT 6. 7.
STUDIES S$OT ANAL!SIS FINANCIAL
2%-22 23-26
8.
PERSPECTIE IPL- 1 &S IPL-2
27-33
9. 1%. 11. 12.
'()*+*, *,*/0)(* FUTURE RISKS TO IPL CONCLUSION BIBLIOGRAPH!
34 3" 36 37
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AIM •
To study the ele"ents in*ol*ed in sports "ar!etin#.
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To analy+e the "anner in hich the shortest for" of cric!et is "ar!eted by BI.
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To study the business behind this particular for"at and ho the corporate co"panies can "a!e "oney throu#h sports.
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HISTORICAL BACKGROUND
The Board of ontrol for ric!et in India -BI, the ape/ #o*ernin# body for cric!et in India launched the Indian 0re"ier 1ea#ue after a bitter ri*alry ith 2ee3s Indian ric!et 1ea#ue -I1. I01 as launched on (4th Septe"ber $%%5. This as the brainchild of Mr. 1alit Modi ho "ade the for"at of I01 on the lines of football3s 6n#lish 0re"ier 1ea#ue -601 and bas!etball3s 7ational Bas!etball 1ea#ue -7BA. I01 is a professional Tenty$% cric!et lea#ue created and pro"oted by the BI and bac!ed by the International ric!et ouncil -I, an international #o*ernin# body of cric!et. The BI as instru"ental in settin# up a #o*ernin# council to run the I01 as a *irtual co"pany. The I01 #o*ernin# council ill ha*e fi*e
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MAN BEHIND IPL
1alit Modi is the scion of )S8(.9bn -"ar!et cap Modi 6nterprises. He is also the 6/ecuti*e Director of :odfrey 0hilips India 1td., a lar#e ci#arette co"pany. Mr. 1alit Modi beca"e the ;ice<0resident of BI in $%%9. The settin# of rebel cric!et lea#ue -I1 by a lar#e #roup in
IPL FRANCHISEES
The I01 tea"s ere auctioned on $4th 7e Delhi, Mu"bai, ?ol!ata, hennai, Ban#alore, Hyderabad, :alior, ?anpur, Mohali,
IPL TEAMS CIT!
TEAM NAME
LOGO
O$NER
0RI6
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B5,*
Ban#alore Royal hallen#ers
)B :roup -;ijay Malaya
111.6
M5)
?in#s C( 0unjab
0reity 2inta, 7ess adia, ?aran 0aul and Mohit Bur"an
76
C*)
hennai Super ?in#s
India e"ents
91
K5:0
?ol!ata ?ni#ht Riders
Red hillies 6ntertain"ent
7".%9
H;<*,=<
Deccan har#ers
Deccan hronicle :roup
1%7
M>=)
Mu"bai Indians
Reliance Industries 1i"ited
111.9
D*5)
Delhi Darede*ils
:MR Holdin#s
84
R?0 R;5
E*,) M*<) G,> < S)5 S*00;'S* 2
67
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1 B5,* R;5 C55**, - The Ban#alore tea" as bou#ht by ;ijay Mallya3s )B :roup for 8(((.E "illion to on the tea" for (% years. FIcon player3 Rahul Dra*id is the captain of Ban#alore Royal hallen#ers. Tea" India3s bolin# coach, ;en!atesh 0rasad is the coach of the tea".
2 K) X1 P>?= - The Mohali tea" as bou#ht by Bollyood di*a 0reity 2inta, her industrialist beau 7ess adia, alon# ith renoned industrialists ?aran 0aul and Mohit Bur"an for 85E "illion for a period of (% years. FIcon player3 Gu*raj Sin#h is the captain of ?in#s CI 0unjab. Australia3s To" Moddy is the coach of the tea".
3 C*) S>*, K) - The hennai tea" as bou#ht by India e"ents for 8&( "illion to on the tea" for (% years. Tea" India DI and T$%s!ipper Mahendra Sin#h Dhoni is the captain of hennai Super ?in#s. or"er South Africa cric!et tea" captain ?epler essels is the coach of the tea".
4 K5:0 K)0 R)<*, - The ?ol!ata tea" is oned by Bollyood actor Shah Ru!h ?han, actress
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" D*// C,*, - The Hyderabad tea" as bou#ht by Deccan hronicle, a "edia house, for 8(%5 "illion for a (%year period. Tea" India3s Test player ;;S 1a/"an is the captain of Deccan har#ers. India3s fieldin# coach, Robin Sin#h is the coach of the tea".
6 M>=) I<) - The Mu"bai tea" is oned by Mu!esh A"bani3s Reliance Industries 1i"ited for 8(((.& "illion for a period of (% years. FIcon player3 Sachin Tendul!ar is the captain of Mu"bai Indians. or"er Tea" India "ana#er, 1alchand Rajput is the coach of the tea" .
7 D*5) D,*<*()5 - The Delhi tea" is oned by :MR Holdin#s for 8=4 "illion for a period of (% years. FIcon player3 ;irender Seha# is the captain of Delhi Darede*ils. Australia3s :re# Shipperd is the coach of the tea".
8 R?0 R;5 - The
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TEAM COMPOSITION
6ach tea" of I01 has a "ini"u" of (E players of ho" = can be international -as raised to (% players in season $, 4 players need to be re#ional and also 4 players need to be under <$(. Also, in the playin# CI "a/i"u" only 4 international players are alloed. After selectin# the captain and the coach, the ranchise participated in the auction to select the players for their tea"s. The first e*er auctionin# of cric!et players as held in Mu"bai on $%th ebruary $%%=. 55 cric!eters ent for biddin# in the player auction of I01 ith cap of 89"n on buyin# of players by each of the ei#ht I01 franchise. IPL # ORGANISATION AND $ORKING
I01 or!s on a franchisee based syste". )nder the "odel, a sponsor antin# to ha*e its tea" pays a stipulated fee to the BI to #et onership. The franchisee also shares re*enues ith the cric!et board. To start ith, I01 has franchised ei#ht tea"s ith to "ore to be added till $%(@. The franchisee can at a later sta#e list the tea" on stoc! e/chan#e, trade players, etc. Indian 0re"ier 1ea#ue also introduced the concept of Icon player. An icon player is a player ho can only play for his ho"e city in the co"petition. These icon players don3t ha*e to #o throu#h biddin#. These icon players ha*e an ad*anta#e that they are #uaranteed to #et paid at least (9J "ore than the ne/t top earner in their tea".
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MORE ON IPL
T)05* S,) R)0 - n ebruary (@ $%%=, Indian real estate de*eloper D1 )ni*ersal secured e/clusi*e ri#hts to the I01 titlesponsorship orth Rs $%% crore -o*er 89% "illion for fi*e years.
T*5*()) R)0 - n
O F*=,>,; 2% 2%%8 , the auction of 55 players too! place in Mu"bai. Tea" India DI and Tenty$% s!ipper Mahendra Sin#h Dhoni and Australian all rounder Andre Sy"onds e"er#ed the costliest Indian and o*erseas players respecti*ely.
E/ 0* ill play the other se*en tea"s ho"e and aay, the top four tea"s at the end of the #roup sta#es ill proceed throu#h to the se"ifinals. The first "atch is slated for April (= beteen Tea" Ban#alore and Tea" ?ol!ata .
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IPL # THE BUSINESS CONTROERS!
The I01 is a "iracle in the orld of cric!et. e ha*e e/perienced the drastic chan#es in cric!et after the e*olution of ne concept, i.e. Tenty$% cric!et. 1alit Modi brou#ht out this drea" concept to reality. Business ontro*ersy is the situation here in ne entrant in the "ar!et co*ers up the entire field and establishes itself as a ne brand in a *ery short span of ti"e affectin# the e/istin# ones directly or indirectly. ontro*ersy could be an a"a+in#ly lo cost "ar!etin# tool that "a!es for the pheno"enal "edia co*era#e and can be *ery effecti*e if "ana#ed ell. It reaches the "inds of the "asses and is of i""ense help in eli"inatin# the odd dose of ad*erse publicity in the short ter". The D1 I01 entered the "ar!et ith hu#e a"ount of "oney and *arious !non celebrities. The attention of the people as #rabbed by these to factors and hence all the contro*ersies surroundin# it in the first lea#ue li!e "edia boycott and *arious other cric!et boards li!e 6B did not #ain any i"portance in the "indset of a *ieer. 1et us see ho I01 is the case for "ar!etin# contro*ersy. Mar!etin# contro*ersy either ay, the end result is unparalleled co*era#eK residual aareness of your product, hich later "ost definitely translates into brand recall, and e*en sales. Business contro*ersy is the situation here in ne entrant in the "ar!et co*ers up the entire field and establishes itself as a ne brand in a *ery short span of ti"e affectin# the e/istin# ones directly or indirectly. ontro*ersy could be an a"a+in#ly lo cost "ar!etin# tool that "a!es for the pheno"enal "edia co*era#e and can be *ery effecti*e if "ana#ed ell it reaches the "inds of the "asses and ill be of i""ense help in eli"inatin# the odd dose of ad*erse publicity in the short ter". I01> the D1 Indian pre"ier lea#ue is a bi# dra"a hich has in*ol*ed hu#e a"ount of "oney and intellectual capital. In the first ee! of April$%%=, , Indians o!e up to headlines screa"in# that the nely launched Indian 0re"ier 1ea#ue could, ell, face a total "edia boycott ' an unthin!able situation in a country here cric!et is not a sport but a reli#ion. The I01 has entered the cric!etin# business throu#h *arious contro*ersies> The contro*ersies ith "edia about the photo#raphs L ith other cric!et boards li!e Australia, 7e 2ealand and 6n#land for si#nin# their players and county cric!et. This helped I01 to #et the "edia co*era#e and people3s thou#ht.
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IPL # THE CASE FOR MANAGEMENT STUDIES
1et us ta!e a loo! at I01 as the "ana#e"ent case. This ould be discussed ith reference to the functional areas of "ana#e"ent *i+. M,:*0) **0 F)/* **0 P,<>/0) **0 H> ,*>,/* **0
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MARKETING MANAGEMENT
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A>/0)) 0* @,/)** > the first step of #i*in# franchisees to so"e bi# #uns in India li!e Mu!esh A"bani, Shahru!h ?han, ;ijay Mallya and the li!es, hich fetched hu#e public attention and helped creatin# curiosity in their "inds. A>/0)) 0* 5;*, ,0)/)0) ) 0* IPL 0>,*0 > BI has not let any "ar!etin# strate#y #o don they announced the a"ounts for players by as!in# a bid by so"e sponsors, players li!e Mahendra Sin#h Dhoni,S.Shrisanth, R.0.Sin#h, Sachin Tendul!ar, Soura* :an#uli, Rahul Dra*id called for a hu#e a"ount, that e*entually #a*e the I01 a publicity stunt. C**,5*<*, > one can3t deny the fact that cheerleaders are one of the "ost i"portant factors influencin# the people to co"e atch the #a"e. $,5<+)<* 0*5*/0 > the broadcastin# ri#hts ere #i*en to *arious T; channels across the orld. The na"es of so"e channels and the a"ount in*ol*ed ould be shon in the table ahead. L/0) > the *enues selected for the #a"es are the cities of hich the franchisee is na"ed after. ICL> the ri*al I1 had been one of the reasons for the publicity and e"er#ence of I01. 0eople started co"parin# the I01 L I1 that caused the hu#e publicity for the I01. T))> As this for"at of cric!et reuired only @ hours as a#ainst = hours reuired for DI and 9 Days reuired for Test Matches, it as positioned in the pri"e ti"e cate#ory. This #a*e a tou#h fi#ht to the daily soaps.
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PRODUCTION MANAGEMENT •
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The I01 is a concept sale product. The production of I01 as a ser*ice product is e/e"plified by the "ere *olu"e of the production of re*enue fro" e*ery aspect of the #a"e. Tea"s, players and e*ery s"all aspect related to I01 has beco"e a I01 product. actors li!e "aterial "ana#e"ent for stadiu"s, players, acilities arran#e"ent for players, spectators, :uests, etc transportation "ana#e"ent and allied acti*ities reuire a proper "ana#e"ent and BI has "ade all possible efforts to pro*ide ith the best facilities to e*eryone fro" spectators to players and third parties in*ol*ed.
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FINANCIAL MANAGEMENT •
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The in*est"ent decision in I01 by The Board of ontrol for ric!et in India -BI is a darin# financial decision hich reuired da"n financial plannin#. The return on in*est"ent calculation ould ha*e #i*en the proper idea of the financial plannin# I01 has collected the hu#e "oney thorou#h sponsorships to tea"s and players, telecastin# ri#hts, ad*ertise"ent banners and hoardin#s, and other allied acti*ities. 6*en s"all aspect related to the I01 has beco"e the product for I01 and fetched the "oney. This reuires the "ana#e"ent of funds co"in# in and #oin# out, analysis of rise and fall in actual re*enue and e/pected re*enue. urther plannin# for funds and bud#etin#. Allocation of the funds to franchisees L players, pay"ent of a#es, etc. are the financial acti*ities. These re*enues #enerated fro" sponsorships and other acti*ities fall under the entral 0ool, 4%J of hich ill #o to I01, 94J distributed to franchisees and EJ to pri+e "oney. The "oney ill be distributed in these proportions till $%(5, after hich the share of I01 ill be 9%J, franchisees 49J and pri+e "oney 9J.
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HUMAN RESOURCE MANAGEMENT •
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ne can i"a#ine ho "uch hu"an capital is reuired to "a!e this e*ent a happenin#. BI has been efficient and effecti*e or#ani+ation for "ana#in# the hu"an resource. 1abors li!e #rounds "en, security #uards, Mana#ers and other hu"an factors e*eryone has been #i*en the special attention and has been "ana#ed effecti*ely by BI. ne can3t deny the relationship "ana#e"ent is the i"portant aspect in today3s business scenario, there is no need to #i*e any e/planation on BI3s relations ith all parties in*ol*ed in the I01.
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S$OT ANAL!SIS
STRENGTHS
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The Indian 0re"ier 1ea#ue -I01 is based upon the Tenty$% cric!et #a"e hich should be co"pleted in $ hours. That "eans that is fastpaced and e/citin#, and "oreo*er it can be played on a ee!day e*enin# or ee!end afternoon. That "a!es it *ery appealin# as a "ass sport, just li!e A"erican ootball, Bas!etball and Soccer. It is appealin# as a spectator sport, as ell to T; audiences. The I01 has e"ployed econo"ists to structure its lead so that re*enue is "a/i"i+ed. The "ore unified the sport, the "ore successful it is.
$EAKNESSES
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Tenty$% has been so popular that it could replace other for"s of cric!et i.e. da"a#e the #a"e that #enerated it. So"e fans ill also ha*e to pay for tra*el to the #round. There "ay be lar#e ueues for the "ost popular #a"es. There "ay be so"e distance beteen here the fan li*es and the cric!et #round. Sta!es are *ery hi#hN So"e tea"s "ay not eather shortter" failures and "ay be too uic! to #et rid of !ey "ana#ers and players if thin#s donOt #o ell uic!ly. a"ously, Royal hallen#ers Ban#alore -RB sac!ed their 6 haru Shar"a for atchin# his tea" lose E fro" their first = #a"es. So"e tea"s ha*e o*erpriced their ad*ertisin#Psponsorship in order to #ain so"e shortter" returns -e.#. Royal hallen#ers, and so"e sponsors and are "o*in# their in*est"ent the "ore reasonably priced tea"s.
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OPPORTUNITIES
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Since it has a lar#e potential "ass audience, I01 is *ery attracti*e as a "ar!etin# co""unications opportunity, especially for ad*ertisers and sponsors. The lea#ue functions under a nu"ber of franchises. 6ach franchisee is responsible for "ar!etin# its tea" to #ain as lar#e a fanbase as possible. The lon#ter" success of all of the franchises lies in the #eneration of a solid fanbase. The fan base ill #enerate lar#e T; re*enues. Different fans ill pay different a"ounts to atch their sport. There ill be corporate hospitality, season tic!ets, aay tic!ets, T; payper*ie and other ays to se#"ent the "ar!et for the I01. There is a hu#e opportunity for "erchandisin# e.#. sales of shirts, credit cards and other fan "e"orabilia. :rounds can also sell refresh"ents and other ser*ices durin# the #a"es Mar!eters belie*e that the teena#e se#"ents need to be tar#eted so that they beco"e the lon#ter" fanbase. Their parents and older cric!et fans "ay prefer the lon#er, "ore traditional #a"e. The youth "ar!et "ay also i"press on their parents that they ant the" to buy their clubOs "erchandise on their behalf as a differentiator or status sy"bol. ranchise fees ill re"ain fi/ed for the up until $%(5(=, hich "eans that the in*est"ent is safe a#ainst inflation hich is traditionally relati*ely hi#h in India.
THREATS
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The le*el of co"petition that the Board of ontrol for ric!et in India -BI can #enerate deter"ines lon#ter" *iability of the lea#ue. If the le*el of co"petition drops, then re*enue ill fall. or e/a"ple, if the top na"es in cric!et cannot be attracted to India, the appeal of the #a"e ill fall. ften #ettin# hold of the bi# na"es is a proble" Australian do"estic cric!et runs concurrent ith the I01 and if players "o*e for" Australia to India to follo the "oney then their do"estic #a"e ill be hit. This is !non as Oree A#ency.O If the franchiseeOs fanbase does not #enerate inco"e then they "ay not ha*e the cash to pay the salaries of the best players. Hoe*er, if you in*est in the best players and they do not in the trophies, then you "ay not see a return on your in*est"ent. It onOt be a uic! return on in*est"ent so oners need to be in it for the lon#ter". ranchises are *ery e/pensi*e. The "ost e/pensi*e franchise Mu"bai Indians as bou#ht by Mu!esh A"bani for 8(((.& "illion, hereas the loest priced franchise Rajasthan Royals as pic!ed up by Manoj Badale for a "ere 8E5 "illion.
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$H! IPL IS TERMED AS ONE OF THE MOST SUCCESSFUL SPORTS LEAGUE IN THE $ORLD •
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It has penetrated in the entertain"ent industry as Manoranjan ?a Baap. Major fil"s and T; pro#ra""es are not scheduled to coincide ith the I01 as it ill brin# hu#e losses. 6ach and e*ery associate of I01 has benefited fro" it. Mar!et share of sponsors ha*e e/perienced #ood results. In the second edition 2oo+oos of ;odafone ha*e created a hole ne "ar!etin# challen#e for ;odafone3s ri*als. There is a hole ne #enre created. irst, it as the DI orld cup hich ca"e once in 4 years. But, I01 is to be played e*ery year and thus the e/cite"ent has li*ed on.
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Sony 6ntertain"ent Tele*ision has trebled their TR0s.
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The "edia co*era#e of I01 has been pheno"enal.
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Mi/ture of ric!et and 6ntertain"ent, to of the "ost fa*ourite past ti"es of Indian population.
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FINANCIAL PERSPECTIE
OPENING DOORS TO NEXT BIG MEDIA MOEMENT
Indian 0re"ier 1ea#ue ushers in a ne era of "ar!etin# of sports in India. e ta!e this opportunity to analy+e I01 and co"pare it ith lea#ues li!e 601 and I1 -Indian ric!et 1ea#ue. I01 already a )S8$bn property, is essentially an atte"pt to sell cric!et as a reality sho. reation of club culture ' ould be !ey to its success. 7e*ertheless I01 pro*ides a ne entertain"ent #enre hich cuts across classes. So"e of the franchisee ould loo! at I01 as a "eans to pro"ote their brand -)B #roup hile the others ould loo! it as a financial in*est"ent e.#. -India e"ents. The concept is yet to e*ol*e and re*enues strea"s thou#h difficult to predict ould be nu"erous. ur belief is that the three successful tea"s could easily do re*enues of Rs@bn per year in the ne/t threefour years and all the tea"s are li!ely to turn profitable after to three years. Their 0Ms could ran#e fro" (9$%J.
BROADCASTING ANGLE
The BI created history hen it sold tele*ision ri#hts of this yet untested for"at to Sony'orld Sports consortiu" for )S8(.%$bn. Hoe*er, of this )S8(.%$bn, )S8(%="n is to be spent by Sony on pro"otin# the e*ent o*er the ne/t (% years. This brin#s don the actual cost to )S8&(="n. f this )S8&(="n, Sony has to pay )S8@(E"n for ri#hts of broadcastin# for the first fi*e years, and then pay )S8E%="n ' if this for"at has been re"unerati*e in the first fi*e years. In the first year, payouts are not dependent on TR0s. Hoe*er, TR0s ould dri*e payouts fro" the second year. The franchisee ha*e a share of =%J in the first year decreasin# to E%J in the fifth year of broadcastin# ri#hts and the balance ould #o to I01. There is an o*erall cap of )S8&(="n on the ri#hts hich can be shared ith the franchisees.
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BALANCE SHEET
I01 co""ittee had de*ised the sources of re*enues for franchises also the 6/penses ere chal!ed out. I01 had #i*en a hole proposal to attract the ranchises.
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BROADCAST RIGHTS The broadcast ri#hts ha*e been sold by I01 to orld Sports :roup -S: and Sony for 8(.%$E billion for (% years in a contract that is lin!ed to the success of the 1ea#ue and to tele*ision ratin# points -TR0s. In the first to years, =% per cent of the "oney earned fro" the broadcast ri#hts ill be shared by the franchisees eually ith the rest #oin# to I01. The latter3s share ill increase #radually and by the fifth year, I01 ill #et to share 4% per cent of the broadcast re*enue. SPONSORSHIP The title sponsorship fee of o*er 89% "n paid by D1, a leadin# real estate co"pany in India, ill be shared ith the franchises. I01 ill retain 4% per cent of this and the balance E% per cent ill be shared beteen the franchisees eually. hile these re*enues accrue fro" the central pool to the franchisees, they ill #enerate tea" sponsorship at indi*idual le*els as ell. In addition to these, Hero Honda and 0epsi ere associate sponsors orth 8$$.9"n and 8($.9"n for fi*e years. Also, ?in#fisher Airlines ere I013s u"pire partners orth 8$E.9"n. The inco"es throu#h these ere eually shared beteen the franchisees. TICKET SALES The final re*enue source is tic!et sales at ho"e stadiu"s. 6ach franchise ill #et se*en "atches at ho"e and the re*enues fro" tic!et sales ill be shared ith I01, hich ill #et $% per cent, ith the rest #oin# to the franchisee. OTHER SOURCES There are also other s"aller re*enue sources such as fro" instadia ad*ertisin# a part of hich ill #o to the franchisee.
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FRANCHISEE FEE The to bi# e/penses incurred by ranchise are player costs and the franchise fee paid to I01. The franchise fee ill be payable in eual su"s o*er a (% < year period. or instance, if a franchise is to pay 8(%% "illion to I01, he ill pay 8(% "illion e*ery year to I01. PLA!ER ACUISITION COST The player costs ere deter"ined in the auction. The franchisee has to pay players ho are a*ailable e*en if they are on the bench. 0layers ha*e a three
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T* IPL ,*(*>* @5+ 'A>5
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Inard arros are re*enue inflos, hile outard arros are re*enue outflos.
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IPL-1 S IPL-2 FROM IE$ER PERSPECTIE
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onsu"ers feel they ha*e atched "ore of I01 in season $ and ill continue atchin#. 6lections did not affect 5%J of people3s I01 *iein# Hoe*er, the ratin#s ha*e dipped ith "ore people atchin# for lesser ti"e. *erall (EJ drop in ratin#s. More ff 0ri"e "atches ith a (&J ratin# drop also contributed to pullin# don the ratin#s D1 and ;odafone Top of Mind on association ith I01 ??R < 7o!ia, S?
FUTURE F>0>,* O,0>)0)* @, IPL T+*0;2% C,)/:*0 T)05* ,) D1 paid around 89% "illion to secure the title sponsorship for the first fi*e years and this is rene#otiable after the third year. If I01 ric!et #ains "o"entu", it can be "uch hi#her. P5;*, 0,<) In the I01 trade indo, players can be sold for "any ti"es the cost at hich they ere acuired. G0* @** Beyond the third year, #ate fees can increase si#nificantly if the I01 ta!es off in a bi# ay. F,/)* 5* After the third year, a franchisee has the option to sell out. This could lead to a indfall F,/)* @,*(*, The franchise fee is for the first (% years, after hich franchisees continue to on the tea"s for perpetuity.
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P0*0)5 D+)<* @ IPL N0 *> *;*=55 Sony<S: and the franchises could suffer losses if I01 fails to ins o*er spectators and *ieers, and dras a critical "ass. N0 *> 0, 5;*, onstant a*ailability of top o*erseas players "ay not be possible due to #roin# nu"ber of international ric!et tourna"ents. O0*, 0>,*0 > 0otential *ieership threat if the I decides to hold an annual international Tenty$% cric!et cha"pionship. A< =5>* Recession and chan#e of *enue could affect plans of potential ad*ertisers. G* >55 Business prospects "ay be affected if the franchisees fail to create a loyal fan folloin# in their turf.
RISKS TO IPL Thou#h I01 see"s to be #oin# fro" stren#th to stren#th, it does face so"e ris!s> •
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Success of any lea#ue depends on it re"ainin# co"petiti*e. The cap on the a"ount of "oney that can be spent on the players can be raised or re"o*ed, "a!in# it easy for the tea"s ith deep poc!ets to corner the best players. Any reduction in the "a/i"u" nu"ber of international players ill ad*ersely affect the I01. Success of I01 "ay pro"pt other countries li!e Australia to or#ani+e si"ilar e*ents, hose schedules could conflict ith I01. This ould pose a ris! to the participation of top international players. 1ac! of co
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I01 pro*ed that a #ood *ision, ell acti*ated can create "a#ic. To thin! that I01 is a "ar!etin# success or that it succeeded because it "i/ed Bollyood and cric!et is sheer o*er si"plification. I01 as just aitin# to happen. It #a*e *ieers e*erythin# soaps should b e #i*in#, plus it #a*e cric!et. It bro!e the false barrier of patriotis" and #a*e *ieers a reason to li!e the sport for itself. It celebrated the spirit of sports hen players ho ha*e fiercely co"peted a#ainst each other and ho had barely "et each other until a fe ee!s before the start of the tourna"ents ere perfor"in# in the field as if they ha*e fore*er been a tea". It had heroes ho fell, under do#s ho beca"e heroes, sha"e faced icons, #la"orous fans, cheerleaders, scandalous e/
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It has a potential to beat the pri"e ti"e T; shos as is e*ident fro" the *ies of the people. I01 has the potential of creatin# *alue for the Indian econo"y.
THIS IS $HAT $E CALL CRICKETAINMENT
BIBLIOGRAPH!
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