Upload
premdigarse
View
235
Download
0
Embed Size (px)
Citation preview
7/30/2019 Project Ipl
1/25
PROJECT REPORT ON
IPL AND ITS EFFECT IN INDIAN ECONOMY
(Under the guidance of Prof. Ruchi Nagpal )
SUBMITTED BY:
CHETAN DIGARSE
ATASH COLLEGE OF MANAGEMENT&TECHNOLOGY
PANDHURNA
7/30/2019 Project Ipl
2/25
CONTENTS
Introduction of IPLHistory and backgroung of IPLObjective of IPLRules and Regulations of IPLImpact of IPLResearch AnalysisFindings from Research workSWOT Analysis of IPLPopularity of IPLEffect on Indian EconomyBCCIs record earningCONCLUSION
BIBLIOGRAPHY
7/30/2019 Project Ipl
3/25
INDIAN PREMIUM LEAGUE
The Indian Premier League (often abbreviated as IPL), is a Twenty20 cricketcompetition initiated by the Board of Control for Cricket in India (BCCI)headquartered in Mumbai and supervised by BCCI Vice President ChirayuAmin, chairman & commissioner for IPL, and CEO, Sundar Raman. It presentlyincludes 10 teams (franchises) consisting of players from different countries. Itwas started after an altercation between the BCCI and the Indian CricketLeague.
In 2010, IPL became the first sporting event ever to be broadcast live on the
popular video sharing website YouTube. Its brand value was estimated to bearound $4.13 billion (over Rs 18,000 crore) the same year. According to global
sports salaries review, IPL is the second highest-paid league, based on first-
team salaries on a pro rata basis, second only to the NBA. It is estimated that the
average salary of an IPL player over a year would be 2.5 million.
HISTORY AND BACKGROUND OF IPL................
Kerry Francis Bullmore Packer, AC (17 December 1937 26 December
2005),was an Australian media tycoon whose family company owned
controlling interests in both the Nine television network and leading Australian
publishing company Australian Consolidated Press.Packer was best known for
founding World Series Cricket. In 1977 the Nine Network cricket rights deal led
to a confrontation with the cricket authorities, as top players from several
countries rushed to join him at the expense of their international sides.Packer's
aim was to secure broadcasting rights for Australian cricket, and he was largelysuccessful. Many of the well-known cricketers of that period left their national
team to play in Kerry Packers World Series cricket. Some of our legendry
cricketers also contacted to play in that series. But due to some controversies,
mainly with Australian board due to television rights, this league could not be
successful.
Getting inspiration from this zee television network organised a league called
Indian cricket league.The Indian Cricket League (ICL) was a private cricket
league funded by Zee Entertainment Enterprises that operated between 2007
7/30/2019 Project Ipl
4/25
and 2009 in India. Its two seasons included tournaments between four
international teams (The World, India, Pakistan and Bangladesh) and nine
domestic teams notionally located in major Indian cities as well as the
champions Lahore Badshahs who were based in Lahore, Pakistan. The matches
were played in the Twenty20 format.Zee T.V owner subhash Chandra founded
this league in the response of BCCIs some of working style. Many t imes
subhash Chandra give bid for television rights but every time he was rejected
even if his bid was the highest. This results in formation of Indian cricket
league(ICL). But due to some reasons this league could not be successful. Some
of reasons are commercial factors, lacking of the support of the BCCI and ICC.
BCCIsRESPONSE??????????
The BCCI refused to recognise the ICL as a cricket league, and criticised
KiranMore and Kapil Dev for joining the ICL. On August 21, 2007 KapilDev
was sacked from his NCA post.The International Cricket Council gave a
statement through its chief executive, Malcolm Speed, that the ICC would not
recognize the ICL unless the BCCI chooses to recognise it.
Faced with the threat of young players joining the ICL, the BCCI jacked up
prize money for winners, runners-up and losing semi-finalists across all
tournaments. An average domestic cricketer can hope to make around Rs
35,000 per match day from the season of 2007-08: more than double the Rs
16,000 they got in 2005-06. The BCCI has also planned to do away with
honorary selectors, who will be paid professionals from September 2008
onwards.
Then BCCI started its own international Twenty20 league. The official league,
which launched in April 2008, is called the Indian Premier League Twenty20
cricket.
OBJECTIVE OF IPL
The DLF Indian Premier League is an attempt to further propagate thepopularity of the sport in a country where the game is already considereda religion and to increase the fan base for cricket in India.
Furthermore, Indian cricket needed this boost at the domestic level. WithIPL, BCCI aim to nurture and build local talent.
BCCI is optimistic that the DLF Indian Premier League will turn into aglobal phenomenon, and help take cricket to the next level.
7/30/2019 Project Ipl
5/25
By organising IPL BCCI wants to superpower in world cricket. NowBCCI is the most powerful board in world cricket.
By organising IPL BCCI wants to develop the infrastructure of indiacricket.
RULES
There are five ways that a franchise can acquire a player. In the annualauction, buying domestic players, signing uncapped players, through
trading and buying replacements.In the trading window the player can
only be traded with his consent. The franchise will have to pay the
difference between the old contract price and the new contract price. If
the new contract is worth more than the older one then the difference willbe shared between the player and the franchise selling the player.
Some of the Team composition rules are:
Minimum squad strength of 16 players plus one physio and a coach. No more than 8 foreign players in the squad and at most 4 in the playing
XI.For the 2009 edition franchises are allowed 10 foreign players in the
squad. The number allowed in the playing XI remains unchanged at 4.
As this is domestic cricket so minimum of 8 local players must beincluded in each squad.
A minimum of 2 players from the BCCI under-22 pool in each squad.Some of the differences to international Twenty20 cricket:
A difference to international cricket is a timeout. It gives the players anopportunity to strategise and take a drink during the strict 2 minutes, 30seconds time limit. Each team is awarded two timeouts per innings
totalling to four timeouts for the whole game. The teams can take the
timeout when instructed, but is necessary to take it at the end of 9th and
16th over.
IPL is also known for having commercials during the game, hence thereis no time limit for teams to complete their innings. However, there may
be a penalty if the umpires find teams misusing this privilege at their own
choice.
7/30/2019 Project Ipl
6/25
The total spending cap for a franchisee in the first player auction was US$5 million. Under-22 players are to be remunerated with a minimum
annual salary of US $20,000 while for others it is US $50,000. The most
expensive players in the IPL to date are Andrew Flintoff and Kevin
Pietersen at US $1.55 million each.
EFFECTS OF IPL
INCREASING THE POPULARITY OF CRICKET IN INDIA
IPL has tremendous effect to propagate the sport in the more areas of the
country. Earlier cricket was being watched by the urban areas but after IPLmany people from the rural areas also watch cricket.Games were played every
night (including weekdays) during Indian prime-time and were broadcast live.
The IPL was the most watched TV program in India. Earlier on that time serials
were telecasted. Many viewers who dont like serials can now enjoy the
matches at that time. Most of the office going people doesnt have time to enjoy
cricket matches even if they want to watch the cricket matches. But after IPL
those people also can enjoy the match and these increases consumer base.
In India, the IPL has become one of the most popular events of the year.Snap
polls indicated that more than 48 million people watched the telecast of the IPL
2008 final between Rajasthan Royals and Chennai Super Kings, more than 40
million people saw the Rajasthan Royals vs Delhi Daredevils match, whereas
the second semi-final between Chennai Super Kings and Kings XI Punjab
attracted an audience of 29 million.
ENCOURAGING LOCAL TALENTED CRICKETERS......
IPL gives much more opportunity to domestic player and encourages many
talented players to play cricket. It gives a platform to show their talent. Earlier
lots of players did not get a platform to show their talent and their financial
condition was also not good. Even some of the players had to struggle for one
meal after their retirement. Only those players who get the chance to represent
the country was in good financial condition and after their retirement also they
could sustain by doing some advertisements and be a commentator. They could
also open cricket academies and earn some money as well as train youngplayers. But the players who did not get a chance had to struggle. So many
7/30/2019 Project Ipl
7/25
parents did not encourage their children to be a cricketer because there was no
prosperous future in that.
But now situation is changed drastically in india and lots of young players have
come to play cricket. Now parents also encourage their children to play cricket.Earlier players in the Indian team came mainly from Delhi, Mumbai or Punjab.
But now lots of players from rural areas also come to represent india. Even
present captain M.S Dhoni comesfrom a small town of india, Ranchi. In the
current Indian team 4 or 5 players represents from Uttarpradesh now. 10years
earlier this was not expected. Financial condition of the players also improves
now and even if they dont get a chance to represent the country then also they
have an option to play for a club and live a respectful life.
BRINGING COMPETITIVENESS TO INDIAN CRICKET......
IPL gives our Indian players a chance to play with many international players
like Hayden, Shane Warne, Mcgrath etc. Earlier it was not possible for an
youngster to play with an international players like this. Earlier we had to see
the county cricket and our talented cricketers went there and play cricket. But
now many foreign players come to india to play in IPL. This gives an
opportunity for our young players to learn from them. From IPL many of the
players like Raina, YousufPathan, RabidraJadeja get a chance to play for india.
IPL raise the standard of Indian cricket. Now there is much more competition in
our Indian team. Everybody knows that if they dont perform well they will
have to give chance to others. No player can think that his place is fixed. So this
increase the performance of Indian cricket. Now india is the no. 1 team in
cricket.
COMPETING WITH OTHER SPORTS................
Twenty-20 cricket makes a huge revolution to the game of cricket. Today most
of the countries like America, who earlier said that cricket is played by fool
people now wants to play cricket. This increases the popularity of game of
cricket. BCCI has made IPL a highly successful sporting event within 2 years of
its launch. To compete with the globally popular sports,such as football, tennis
and formula one races, BCCI introduced and adopted certain fundamental
changes to the game of cricket, and also used latest entertainment marketing
principles. IPL matches were watched by most part of the world. Cricket nowcan compete with other popular game like football, baseball in terms of fanbase.
7/30/2019 Project Ipl
8/25
It can compete with other sports in term of prize money also.IPL has brought
cricket at a completely different level from just being a sport.
IPL drew positive reactions from the rest of the world also. In Pakistan, the
reception was described as "massive". The matches were telecast live in GEOSuper. The matches also generated interest in Sri Lanka and Bangladesh,
despite only one Bangladeshi player being involved. The following in the sub
continental nations was aided by the prime time telecast of the matches as they
belong to adjacent time zones.
The IPL became a big hit in South Africa due to a large composition of South
Asians in their population.Another reason for the success is that the second
edition of IPL was hosted at South Africa drawing massive crowds from the
country as well as the other countries in the subcontinent.The IPL did not garner
much interest in Australia and New Zealand due to time differences. However,
in recent times the IPL has gained a much larger fan-base in these two
countries.
The third season of IPL saw interest rise dramatically in the United Kingdom.
This was, in part, due to TV coverage switching to free to view channel ITV4.
Previous editions of IPL were aired on the now defunct channel Setanta , which
entered administration in 2009. The ratings for ITV4s coverage have beenaround seven or eight times those achieved by Setanta last year. "ITV beats Sky
Sports over the weekend in number of viewers. The ITV numbers are double
that of rugby league. This is huge by all imaginations. UK figures for
viewership on ITV already 10 times that of last year.
HOW IT HELP BCCI?????
BCCI is the most powerful board in the cricket world. After organising IPL,
BCCI is now become the superpower in the cricket world. All cricket playingnations have to look at BCCI to take decision related to cricket. Organing IPL,
BCCI able to increase their profit. . BCCIs profit has apparently jumped to Rs
477 crore from Rs 350 crore last year. BCCI also some profit from Television
rights and sponsorships.
TELEVISION RIGHTS AND SPONSORSHIPS
The IPL is predicted to bring the BCCI income of approximately US$1.6
billion, over a period of five to ten years. All of these revenues are directed to a
7/30/2019 Project Ipl
9/25
central pool, 40% of which will go to IPL itself, 54% to franchisees and 6% as
prize money. The money will be distributed in these proportions until 2017,
after which the share of IPL will be 50%, franchisees 45% and prize money 5%.
The IPL signed up Kingfisher Airlines as the official umpire partner for the
series in a Rs. 106 crore (approximately 15 million) deal. This deal sees the
Kingfisher Airlines brand on all umpires' uniforms and also on the giant screens
during third umpire decisions.
TELEVISION RIGHTS
India's Sony Entertainment Television network and Singapore-based World
Sport Group secured the global broadcasting rights of the Indian Premier
League.The record deal has a duration of ten years at a cost of US $1.026
billion. As part of the deal, the consortium will pay the BCCI US $918 million
for the television broadcast rights and US $108 million for the promotion of the
tournament. After losing the battle in court, Sony Entertainment Television
signed a new contract with BCCI with Sony Entertainment Television paying
Rs 8,700 crore (US$ 1.89 billion) for 10 years. One of the reasons for payment
of this huge amount is seen as the money required to subsidize IPL's move to
South Africa which will be substantially more than the previous IPL. IPL had
agreed to subsidize the difference in operating cost between India and South
Africa as it decided to move to the African nation after the security concerns
raised because of its coincidence with India's general elections.
20% of these proceeds would go to IPL, 8% as prize money and 72% would be
distributed to the franchisees. The money would be distributed in these
proportions until 2012, after which the IPL would go public and list its shares.
Sony-WSG then re-sold parts of the broadcasting rights geographically to other
companies.On 4 March 2010 ITV announced it had secured the UnitedKingdom television rights for the 2010 Indian Premier League. ITV will
televise 59 of the 60 IPL matches on its ITV4 free to air channel.
SPONSORSHIPS
India's biggest property developer DLF Group paid US$50 million to be the title
sponsor of the tournament for 5 years from 2008 to 2013.
7/30/2019 Project Ipl
10/25
Other five-year sponsorship agreements include a deal with motorcycle maker
Hero Honda worth $22.5-million, one with PepsiCo worth $12.5-million, and a
deal with beer and airline conglomerate Kingfisher at $26.5-million.
REVENUE AND PROFITS
The UK-based brand consultancy, Brand Finance, has valued the IPL at Rs
18,500 crore (US$ 4.01 billion) in 2010.It was valued at U$2.01 billion in 2009
by the same consultancy.
There are disputed figures for the profitability of the teams. One analyst said
that four teams out of the eight made a profit in 2009.While the London Times
said that all but Kings XI Punjab made a profit.
In 2010, the IPL expects to have 80 official merchandising deals. It has signed a
deal with Swiss watchmaker Bandelier to make official watches for the IPL.
FROM FRANCHISEES PROSPECTIVE???
Its might be true that the winner gets more prize money, but, its not the onlymoney they get, they get a share from the sale copyrights Broadcasting byBCCI, Advertising is the other part where they each team makes a lot of money,
and the other way money from the sale of Tickets.If IPL has stood all youthought you knew about cricket on its head, it has done the same with financestoo. The strange thing is that two finalists, Royal Challengers and TeamHyderabad, made a fraction of the profit that bottom-of-table Knight Ridersmade,evenif we take prize money into account.The main reason for the healthierbottomlines is a jump in the share of revenues from broadcasting. Last year,each franchisee got Rs 25 crore from IPL as its share of the central pool. Thisyear that has risen to 67.50 crore. Sony max is also going to make profit thisyear. IPL franchisees who had been complaining about the event being shiftedto South Africa are in for a surprise: Every single team stands to make a profitfrom this years tournament.Had the matches been organized in India, its likelythe teams profits would have been even higher because of higher receipts fromticket and merchandise sale, which have averaged Rs 8 crore and Rs 50 lakhrespectively in South Africa.
In 2008, teams like Knight Riders, Mumbai Indians and Team Delhi earnedaround Rs 20 crore from ticket sales alone as the capacity of their home
stadiums was large enough to accommodate over 70,000 and the crowds justpoured in. According to a report by equity research firm IIFL, Team Jaipur will
7/30/2019 Project Ipl
11/25
make the highest profit of Rs 35.1 crore in the group matches of the secondedition of the tournament. Jaipur had also made the second-highest profit of Rs14.50 crore in 2008, including the Rs 4.50 crore ($1 million) prize money.
Knight Riders, which finished lowest in the league table during the qualifyinground in South Africa, will nevertheless end up with the third-highest profit ofRs 25.8 crore in the second edition of IPL. In fact, the only semifinalist whichalso stands to make over Rs 20 crore in profits is Delhi.
This is despite the fact that prize money in the IPL is a sizeable amount, with Rs4.8 crore for winner, Rs 2.4 crore for the runners-up and 1.2 crore each for thelosing semi-finalists. For those who didnt get past the league stage, the sumsare correspondingly smaller - Rs 80 lakh for the team that finished fifth (KingsXI Punjab), Rs 70 lakh for the sixth placed (Jaipur), Rs 50 lakh for the seventh(Mumbai Indians) and Rs 40 lakh for the lowest one.
What has helped the IPL and franchisees is essentially the re-awarding of thebroadcasting rights. The renegotiated contract was for $1.64 billion (Rs 8,200crore) for nine years -- a jump of 90% from the original figure.
Profit of franchisees in 2008(in crore)
7/30/2019 Project Ipl
12/25
Profit of Franchisees in 2009(in crore)
revenue RR CSK KKR KXIP DD MI RCB DCHBroadcasting 67.5 67.5 67.5 67.5 67.5 67.5 67.5 67.5Sponsorship 24 24 24 24 24 24 24 24Othrincome 14.2 18.5 18.9 14.7 14.3 14 13.5 13.5Prize money 0.7 1.2 0.4 0.8 1.2 0.5 2.25 4.5
Total 106.4 111.2 110.8 106.6 107.4 106 107.25 109.5
expenses RR CSK KKR KXIP DD MI RCB DCHFranchisefees
38.9 41.9 34.5 35 38.6 51.5 51.6 49.2
Salaries 20 20 20 20 20 20 20 20
Otherexpenses
20.5 27.5 30.5 25.5 25.5 27.5 27.5 25.5
Total 71.4 89.4 85 80.5 84.1 99 99.1 94.7
Profit 35.1 21.8 25.8 26.1 23.3 7 8.15 14.8
DEVELOPING INFRASTRUCTURE OF INDIAN CRICKET
Earlier most of the cricket matches were played in the major cities like Delhi,Mumbai, Bangalore etc. But IPL matches were played in small cities likecattack, mohali etc. Even some of the IPL matches were played in small townlike Dharmasala of Himachal Pradesh.This increases the popularty of cricket inIndia further. After creating kochi team in 4thIPL , BCCI tries to increase thepopularity in the southern part of india also where cricket is not so much
popular. BCCI spend some of their profit of IPL to develop new cricketstadium, e.g BCCI is making a stadium in Guwahati. This will definitely help tocreate some new talent in those areas and enrich the Indian cricket.
7/30/2019 Project Ipl
13/25
RESEARCH ANALYSIS
A research was conducted across 400 people in the city of Nagpur.
83% said follow IPL and 17% not follow IPL
44% did not miss a single match, 38% favorite teams matches only, 12%match highlights, and 6% only on holidays, Sundays and weekends
7/30/2019 Project Ipl
14/25
58% found a sustained interest level throughout the match, 34% surfedthrough the channels and 8% are not interested
63% because of crisp timing, 29% others factors attract them, 5% saidthat Bollywood stars tempted them to watch, and 3% found entertainmentvalue
7/30/2019 Project Ipl
15/25
62% preferred 8 to 11 pm, 12% no specific time to watch TV and equalnumber preferred to watch TV after 11 pm, 9% preferred afternoon slotof 2 to 5 pm, and 5% preferred morning time of 7 to 9 am
7/30/2019 Project Ipl
16/25
Only 24% did miss out on their favorite TV programs, and 76% answerednegatively
60% said that IPL brought about a change in their viewing habit, 11%said that viewership pattern changed to certain extent, and 29% felt that itdid not affect their viewership pattern in any way
7/30/2019 Project Ipl
17/25
38% feel that TRP of reality shows affected the most, 30% feel newschannel would have suffered that most, 28% said family soaps wereaffected, and 4% feel that other channels affected
37% feel that IPL is all about aggressive marketing, 31% said that greatfuturistic strategy, 26% feel that IPL is just a 45 days of masala, and 6%feel it is threat to TV and cinema
7/30/2019 Project Ipl
18/25
FINDINGS FROM THE RESEARCH
A research was conducted among 400 people in the Nagpur city. In this serveymany question was asked related to IPL and their response was recorded.
83% people follow IPL and 17% dont follow IPL. 44% did not miss a single match, 38% favourite teams matches only, 12%
match highlights, and 6% only on holidays, Sundays and weekends.
58% found a sustained interest level throughout the match, 34% surfedthrough the channels and 8% are not interested.
63% because of crisp timing, 29% others factors attract them, 5% saidthat Bollywood stars tempted them to watch, and 3% found entertainmentvalue.
62% preferred 8 to 11 pm, 12% no specific time to watch TV and equalnumber preferred to watch TV after 11 pm, 9% preferred afternoon slotof 2 to 5 pm, and 5% preferred morning time of 7 to 9 am
Only 24% did miss out on their favourite TV programs, and 76%answered negatively
60% said that IPL brought about a change in their viewing habit, 11%said that viewership pattern changed to certain extent, and 29% felt that itdid not affect their viewership pattern in any way
7/30/2019 Project Ipl
19/25
38% feel that TRP of reality shows affected the most, 30% feel newschannel would have suffered that most, 28% said family soaps wereaffected, and 4% feel that other channels affected
37% feel that IPL is all about aggressive marketing, 31% said that greatfuturistic strategy, 26% feel that IPL is just a 45 days of masala, and 6%feel it is threat to TV and cinema.
SWOT ANALYSIS OF IPL
STRENGTHS
Short span i.e., 2 hours therefore fast-paced and exciting Can be played on a weekday evening or weekend afternoon Very appealing as a mass sport as a spectator sport as well to TV
audiences. Revenue is maximized
WEAKNESSES
It is the verge of damaging the game that generated it. Stakes are very high! Some teams have overpriced their advertising/sponsorship in order to
gain some short-term returns .
OPPORTUNITIES
0Large potential mass audience is very attractive as a marketingopportunity, especially for advertisers and sponsors.
The long-term success of all of the franchises lies in the generation of asolid fan-base who will generate large TV revenues.
Different markets and revenue sources will emerge for IPL. Huge opportunity for merchandising.
THREATS
Maintaining the level of competition and interest in IPL or else therevenue will fall.
7/30/2019 Project Ipl
20/25
It won't be a quick return on investment - so owners need to be in it forthe long-term.
Franchises are very expensive. Therefore breaking even will also taketime.
The most highly priced teams may not be those that have the earlysuccess. Revenues will come from the most highly supported teams.POPULARITY OF IPL........
From the trend we see that popularity of IPL is decreasing from the 1st year. 2ndyear IPL was shifted to south Africa due to security reason. That is why TRP ofIPL decreases from 6.23% to 5.16%. Third IPL was again organised in Indiathen also TRP of IPL reduces. From that we can conclude that popularity of IPLis reducing. This may be due to increased number of matches in IPL.
Year: TRP
2008 6.23%
20095.16%
20105.72%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
2008 2009 2010
TRP
Series 2
Series 3
7/30/2019 Project Ipl
21/25
EFFECT IN INDIAN ECONOMY
Effect of IPL in Indian economy is long term. During this short span of time we
can not see much more effect in Indian economy. But there are definitely someeffects in our economy. It creates a good impression in the mind of the peoplefrom all over the world that india can also organise such a big event and itseconomy is also very stable. It definitely increases the amount of foreigninvestment in india. Now many foreign companies want to invest in the Indianmarket. Foreign investors want to invest their money in Indian stock exchange.It reflects in the stock exchange. we can see that amount of foreign investmentincreases day by day.
Anothereffect of IPL in Indian economy is that people from all over the worldcome to know about india after IPL. Earlier people from all over the world onlyknows some of the places like Mumbai, Bangalore, or Delhi. But after IPL,many places like Hyderabad, Cuttack etc are known to the world now. Thisgives them an opportunity to know about this cities and it increases thedevelopment in these areas also.
IPL may have an effect in our tourism industry also. To see the IPL matchesmany foreigner comes to india. This definitely increases the no. Of tourist visitindia. From them india can earn much more foreign currencies which effects
Indian economy. Earliar people from other countries only know some of thecities of india. But after IPL they came to know about different beutifull placesof india. After seeing this in television they eager to come to india to visit thoseplaces.
BCCI SET TO EARN RECORD RS2,000 Cr
The Board of Control for Cricket in India (BCCI) will earn a record Rs2,000crore revenue in the next 12-14 monthsthus reversing two years of revenuedeclines.
In 2010-11, the boards income will skyrocket with revenues generated frombroadcast, sponsorship and the board fees for the Indian Premier League (IPL)Season 3 that returns to home turf. Additional income is expected from theInternational Cricket Councils (ICC) World Cup to be held in March 2011.
7/30/2019 Project Ipl
22/25
The league earned Rs774 crorein 2009, a 17% rise over the Rs662 crore itearned the previous year. Interestingly, two-thirds of this was shared with team
owners and state associations that comprise the BCCI family.
While the franchisees received a total of Rs303 crore, against Rs220 crore in2008, the associations earned Rs202 crore (unchanged from the previous year).The losses, according to the note, are mainly due to shifting the venue to SouthAfrica.
IPL apparently spent more than Rs 300 crore on logistics, production and feestowards services, prize money and insurance, among other things. It incurredexpenses of Rs 808 crore, thus the Rs 34-crore loss.
The boards 2009-10 revenue is expected to be similar to that of the previousyear, when, for the first time in five years, income declined to Rs725.8 crorefrom Rs1,000 crore.
BCCIs income dropped in 2008 due to security reasons that forced several big
tournaments such as the Champions League, Pakistans tour of India as well as
Englands two ODIs (one day internationals) to be either cancelled or postponedcausing a significant loss of over Rs300 crore to BCCI, the official said. The
boards income for 2009 will be no different from that of 2008 because IPL wasshifted to South Africa.
According to Niranjan Shah, IPL3 is set to make in excess of Rs800 crore thisyear. Breaking down the math, Shah said Rs200 crore will be generated fromfranchisee rightsthe bid amount paid over 10 years; Rs210 crore fromfranchisee feesannual fees that franchises shell out to BCCI for use offacilities, etc., and are shared with the individual cricket state associations; and
Rs400 crore from central media sponsorship rights from title and groundsponsors as well as telecast rights. This is part of the Rs8, 200crore deal won bybroadcaster Multi Screen Media Pvt. Ltd and World Sport Group Pte Ltd(WSG), a sports marketing company, to air matches till 2017.
IPL will also be adding two more teams, which will double the revenues forIPL, but it is too early to tell what the amount coming in for the new teams willbe.
7/30/2019 Project Ipl
23/25
Apart from IPL and the World Cup, BCCI will also be raking in money frombilateral tournaments such as the Australia tour of India in October followed bythe New Zealand cricket team playing here in December.
For these tournaments, other than board fees and the sponsorship share forwhich the amount has not yet been decided, telecast rights alone will fetchBCCI Rs450 crore for 15 matches, with broadcaster Nimbus CommunicationsLtd paying the board Rs33 crore per match for all domestic tournaments.
In addition, BCCI will also get Rs50 crore from the Champions League, a worldchampionship for domestic Twenty20 club champions that kicked off last year,under a sharing ratio agreed by the organizing cricket bodies of India, Australiaand South Africa. It will get approximately Rs60 crore as participation fees forthe Twenty20 World Cup.
Sponsorship revenue, a combination of domestic and international sponsorshiprights held by Sahara India Pariwar, Nike India Pvt. Ltd and WSG, is projectedto go up to Rs125 crore in 2009-10 from Rs111 crore in 2008-09.
According to the BCCI official, the Indian board has already pledged Rs50crore as infrastructure subsidy for each state association that hosts the WorldCup matches.
With eight states stepping up to volunteer as host destinations, BCCI will be leftwith around Rs50 crore to fund all other expenses such as fees to players, dailyallowance, travel, lodging, expenses of support staff, match officials andselectors, besides sundry other charges.
CONCLUSION
The whopping success of IPL has not only ensured that teams like Jaipur,
Kolkata and Mohali are likely to break even in the first year itself, but alsotransformed the fortunes of its telecaster Sony Set Max. The biggest gainer,though, is arguably BCCI which is projected to rake in a profit of Rs 350crore from IPL in the first year itself. This would be more than BCCIs profit of
Rs 235 crore for all of 2007. In all, IPL will bring revenue of Rs 1,200 crore ayear into cricket, more than double the governments entire sports budget of Rs
490 crore.
The Set Max channels revenue marketshare has risen from a pre-IPL level of
5.7% to 28.8%. Its share of prime time has gone up to 29%, higher than thecumulative marketshare of the top nine Hindi general entertainment channels.
7/30/2019 Project Ipl
24/25
From next year, Sony is projected to gross about Rs 650 crore in advertisingrevenue for about 45 days of IPL, which would be 7% of the entire estimatedTV ad revenue of around Rs 9,000 crore for the whole year.
Ad rates for 10-second spots, which were at Rs 2 lakh per 10 seconds at the startof the tournament, have climbed rapidly to Rs 5 lakh and look set to rise furtherto Rs 10 lakh for the final, says the report. This would be even more than the Rs8 lakh per 10 second rate for the nailbiting T20 World Cup final between Indiaand Pakistan last year. IPLs success has also rubbed off on the franchisees.
According to the report, teams like Jaipur, Kolkata and Mohali, which have notspent much on franchisee fees, are likely to break even in the first year itself.
From this we can conclude that IPL is now a global event and it has takencricket to the next level. Some of the critics criticise IPL. They say that players
are not playing only for money and when players playing in IPL matches theydont feel that they are playing for the country. In spite of having some negative
point of IPL, there are many advantages. So looking at positive side we can saythat IPL is becoming a global event.
Now Indian economy is growing at a rapid pace, so much that people from allover the world are now looking towards India.
BIBLIOGRAPHY
www.iplt20.comen.wikipedia.org/wiki/Indian_Premier_Leaguewww.ipl.comMARKETING MASTERMIND ; NOVEMBER 2009 ISSUE.SPORTZPOWER ; DECEMBER 2009 ISSUE
http://www.iplt20.com/http://www.iplt20.com/http://www.ipl.com/http://www.ipl.com/http://www.ipl.com/http://www.iplt20.com/7/30/2019 Project Ipl
25/25