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IPLCricket and Commerce
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What is IPL?
Game of cricket
Concept of club city affiliation
Worlds hottest sporting property
Fastest appreciating sporting business
Franchises
Auction rules
In line with US NBA / UK EPL home and away matches.
IPL I,II-?
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What is IPL?
Team composition
20 players
8 Overseas players
4 Catchment's players
Auction-amount ceiling, %availability time
Home-away concept
Second highest paying sporting event, based on averageplayer
salary
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Stakeholders
BCCI earner-license fee , revenue share
Franchises investor (spend on license, player,
matches,logistics, + earn through revenue share, merchandise,
home
matches) Sponsors - spender
Players - earner
Fans - spender
Media spender + (earner)
Advertisers - spender
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Why franchise?
Visibility
Seen as connecting with people, community, youth, and city
Promoting and nurturing talent
Business sense
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Franchise owners10 year license fees
GMR-$84M
India cements-$91M
Gp-1 Karan Paul, Mohit Burman, NessWadia, Preity Zinta-$76M
Emerging Media with Shilpa, Raj Kundra$67 M
RIL-112M,
Red Chilies-$75M
UB-@112M Deccan Chronicles-$107 M
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Source of money
License fees to bcci / from franchise
Media rights 20/80
Central revenue 40/60
Money raised by Franchises 20/80
Theatre screening
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BCCI
High Revenue-Low Risk License fee Rs. 333 crores per year (from
8 team owners) was
auctioned in IPL-1 for 10 year ownership. When 2 new teamadded
this year end-the license fee of new teams 3270 crores -License fee
earning doubled.
TV screening right-Rs 870 crore per year 10 year-revenueshared
with franchises
Theater screening rights Rs 33 crore per year toentertainment
sports direct which will license screen viewingacross 800
multiplexes.
Google Youtube telecast rights
Central sponsorship (DLF, HeHo, Pepsi, KiFi, Citi,VoFo)-120
cr-shared with franchises.
Hospitality boxes Rs 50,000 per ticket
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Franchise
High Revenue-High Risk
Major expense heads- License fee, Player fee - bulk
expense,Grounds, Service-other expenses-about Rs. 70-75 crores
peryear.
TV screening right-each gets Rs 67 crore (80% of revenueshared
by franchisers)
Central sponsorship each team gets about Rs 9 crores.
Money raised by franchises
Stadium adsProduct licensingTickets (gate money)
Ad on tickets
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Impact of increasing teams 8-10
Central sponsors DLF/Hero Honda/King Fisher/Pepsi
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THANK YOU
