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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
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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
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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
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REVENUE MODEL
Broadcasters IPL
Sponsors
Franchisees
Share from :
- Central revenue
- Media rights
Advertisers
- Title
- Licensing
Mediarights
-Bids-Franchisee Rights
-Sponsors-Gate Money
-Advertising-Merchandise
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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)
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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
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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
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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
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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
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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
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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
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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
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