Final Gp4 Ipl

8/3/2019 Final Gp4 Ipl

http://slidepdf.com/reader/full/final-gp4-ipl 1/15



BIRTH OF AN IDEA

The league started in April 2008

Brain child of LALIT MODI

Promoted by BCCI

On lines of EPL & NFL

Tackling rebel ICL



VISION OF IPL

Establish a World Class City based sports league

Make IPL an international brand

Professionalize the working of IPL

Teams comprise of national & international players

Induce interests in the game by fielding comparable

strength



SALES

Sales By Tickets

Selling of media rights

Sponsorship Given By DLF

Sponsorship Umpire Uniform By Kingfisher

Cloud 9 Official Energy Drink Partner Of IPL



REVENUE MODEL

Broadcasters IPL

Sponsors

Franchisees

Share from :

- Central revenue

- Media rights

Advertisers

- Title

- Licensing

Mediarights

-Bids-Franchisee Rights

-Sponsors-Gate Money

-Advertising-Merchandise



MEDIA RIGHTS BCCI sold TV Broadcasting Rights for 10 yrs to SET-WSG for record $1.026 billion

$108 million had to be spent on Marketing over 10 yrs

$1026 million

(-) $108 million(promotion)

= $918 million( actual cost)

$ 316 million

(Broadcasting Rights ± first 5 yrs)

$ 608 million

(Broadcasting Rights ± next 5 yrs)



SPONSORSHIPSCompany Amount(in$) Paid to Year Reasons

DLF 50mn BCCI 2008 to 2010 Title Sponsor

Hero Honda 22.5mn -do- -do- -do-

Pepsi Co 12.5mn -do- -do- -do-

Kingfisher 26.5mn -do- -do- -do-

Kingfisher 23.53mn -do- -do- (official umpire

partner)

Live current

media

50mn -do- 10 years To run &

operate its

portals

You Tube NA --- 2011 LiveS

treamingonline



BOOTY SHAREMoney Source BCCI Franchisees Players

Media Rights

(upt o 2012, thereafter

BCCI share goes up)

Central Revenues

(upt o 2017 )

Central Revenues

( 2018 onw ar ds )

Franchise Bid Money

Money Raised by

Franchisees

20%

40%

50%

100%

20%

72%

54%

45%

----

80%

8% as prize money

6% as prize money

5% as prize money

----

Players receive their

pay from the

franchisees



HIGHLIGHTS IPL 4

It had largest financial deals Viewership 39% less than IPL 3

IPL 2011 regarded as moving season

Merchandise space not fully exploited

Club culture has started taking root TRPs <2 averaged during league matches and 5.2 during

finals

Reluctance of International Player

Lacked Vibrancy Brand building related activities ltd

It was sold / bought in half measure



Attributes IPL EPL NFL

No. of Teams 10 20 32

Champion

League

Yes Yes No

Controlling

Organization

BCCI gets a share of

the money

- -

Max Foreign

Players

4 None None

GeographicalViewership Cricketing NationsPrimarily Worldwidepopularity North America

Available on

Youtube

Yes No No

Auction Process Yes No No

MATRIX



MATRIXAttributes IPL EPL NFL

Season Apr - May Aug - May Aug - May

Controlled By BCCI Football

Association

National

Football League

BroadcastingDeal

As a single entity As a single entity As a single entity

Salary Cap Upper limit 9m No salary cap Salary cap

available

Brand Value $3.7 Billion in

2011 (4 years )

$12 Billion in

2010 (19 years )

Broadcast

Rights $

2008:$918m for

10 years

2010-13 :$3.182

bn

2011 & 2013

:$20.4bn



CASE ANALYSIS Assumption of SET-WSG : Profitable Survivability of IPL till 2017

FOR AGAINSTGaining popularity of 20:20 version across sexes

, age groups and especially upper strata of

society

Sidelining of commoners the die hard fans

of the game

Robust financial structure of the IPL model BCCI acting as Shylock, getting its pound of

flesh from all stakeholders with minimal

financial contribution

IPL is staged during vacation season in India

ensuring high revenues

Box office collections, TV Soaps TRP falling.

They may aggressively take on IPL

Advertisers are willingly paying astronomical

sums for ad spots of IPL

Advertisers may get attracted by lower cost

and high visibility at Formula1, PHL, Tennis,Golf and other branded sport events

Financial Bonanza for uncapped players Salary Cap of $9mn for players is meager

amount in the overall model

IPL is a S portai nment and Indian Businesses

with deep pockets are willing to splurge on IPLbrand without inhibitions

Dilution of IPL Brand with other foreign cricket

leagues poaching domestic players



CASE ANALYSIS

BCCI is cashing on desire and rage among Corporates on newlyfound celebrity status. This was earlier limited to Bollywood,

Politicians and Cricketers

The segmentation of teams based on cities and states may notsustain in future

Value Proposition

KKR : Entertainment &S

RK factorMI & CSK : Performance & Professionalism

RCB : Style & Glamour

RR : Elegance, Royalty & Shilpa Shetty

Balance Teams are yet to define their Value Propositions





Documents

Final Gp4 Ipl