IPL AS A BUSINESS MODEL

IPL AS A BUSINESS MODELBy Presented Dharmveer Thakur

Brief intro.. It was initiated by Lalit Modi, who served as the league's first Chairman and Commissioner and Board of Control for Cricket in India (BCCI) in the year 2008.

In 2010, IPL became the first sporting event ever to be broadcast live on YouTube.

Its brand value is estimated to be more than US $ 5 billion in fifth season.

It became the biggest competitor of multiplex in India.

IPL TEAMS LOGO

TEAM BIDDING

TEAMCITYOWNERSPRICE(US $)CSKChennaiN. Srinivasan (India Cements)91 millionDDDelhiGMR Group84 millionKXIPMohaliPreity Zinta,Ness Wadia (Bombay Dyeing),Mohit Burman (Dabur)Karan Paul (Apeejay Surendera Group),The Oberoi Group76 millionKKRKolkataShahrukh Khan (Red Chillies Entertainment),Juhi Chawla, Jay Mehta(Mehta Group)75.9 millionMIMumbaiMukesh Ambani (Reliance Group)111.9 millionPWPuneSubrata Roy (Sahara India Pariwar)370 millionRRJaipurLachlan Murdoch (Emerging Media),Shilpa Shetty, Raj Kundra(UK Trade corp Ltd)67 millionRCBBangaloreVijay Mallya (UB Group)111.6 millionSHHyderabadSun TV Network159 millionREVENUE COMES FROMREVENUE MODEL OF IPL

Broadcasting revenue distributionFRANCHISEE REVENUESMedia rights-to be shared among the franchisee after removing IPLs shares.Sponsorship rights- 60 % amount collected to be distributed equally amongst the franchiseeLocal sponsorship-team sponsorship revenues Gate receipts- major source of revenue ,20% are allocated for IPL.

PLAYERS REVENUE BCCI REVENUE (Rs. in billion)HOW IS THE IPL INCOME DISTRIBUTED ?Share of broadcasting money with franchisees.

Share of sponsorship money with franchisees.

Share of ticket money with franchisees.

Prize money: $5 million ($3 million for winner; $2 million divided among others).

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