kkr brand vaolue

8/8/2019 Kkr Brand Vaolue

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RESEARCH PAPER OF BRAND FINANCE:

IPL as a business proposition is valued at $2bn and Kolkata Knight Riders (KKR) team is the

richest in terms of brand value. My first reaction was WTF. Second reaction was ± are youkidding me? Third reaction ± let¶s look at the data.

The valuation is done by Brand Finance which has done other valuations for Indian companies. Itis the company which placed Bharti Airtel among the top 25 globaltelecom brands.

If it is from any other source I would have rubbished the report. But,it is coming from Brand Finance and I respect that. Traditional mediahas reported this and I tried to search the website of Brand Finance but nothing came up. I will leave at that.

Brand Finance took various things in valuing the brand. Most of the things were relevant if the

tournament was conducted in India.

1. R evenue lines such as broadcasting,2. IPL sponsorship,3. Team sponsorship,4. Merchandising and gate receipts5. The effect of performance, 6. The catchment population of the city,7. The capacity of the stadium8. The presence of iconic players

Look at the things which Brand Finance has considered it all fits. But, only if the tournament isconducted in India. The reasons 6, 7 and 8 above are all in favor of Kolkata Knight R iders team because of the stadium capacity (Eden Gardens) and the population of Kolkata city.

In fact except the effect of performance everything else is in favor of Kolkata Knight R iders.This explains why KK R is the richest team on the circuit. But, that still does not explain their pathetic performance on the ground.

³Despite propping up the bottom of this year¶s edition of the IPL taking place in South Africa,the Kolkata Knight R iders are the most valuable franchise brand at USD 42.1 million. Celebrityco-owner Shah R ukh Khan¶s hard-selling of the KK R brand has counteracted the team¶s poor

on-field performance,´ Brand Finance said. (DNA India)

Kolkata Knight R iders is more a fancy dress competition than a cricket team. Still they havemanaged to bring up a better valuation for the team. All of it goes it the superstar Shah R ukhKhan and Brand Finance did not mention that. Without Shah R ukh the team got nothing to show.So, if Shah R ukh sells, whoever buys it might have to take a few million off the price for brandShah R ukh.



Rajasthan Royals is the other team which returns maximum revenue on your investment.Shilpa Shetty will be mighty pleased about this.

Brand valuations of the IPL teams :

1.

Kolkata KnightR

iders ± $42.1 million2. Mumbai Indians ± $41.6 million3. R ajasthan R oyals ± $39.5 million4. Chennai Super Kings ± $39.4 million5. Delhi Daredevils ± $39.2 million6. R oyal Challengers Bangalore ± $37.4 million7. Kings XI Punjab ± $36.3 million8. Deccan Chargers ± $34.8 million

The valuations are an arbitrary number based on some calculations and does not reflect the realvalue of the team. The reason for Mumbai Indians being a better brand just behind KK R is

because of the list of sponsors Mumbai has. It has 11 sponsors and KK R

has 10 sponsors.R ajasthan R oyals has only 3 sponsors to its credit.

Clearly this is not about cricket. It has moved beyond cricket and is at a place where no bodyyet knows what it is. And I thought it was about cricket ± silly me.

If you are still not convinced, let me leave you with this quote from the Fake IPL Player.

We are being paid by the 200 Million Indians who are following this tournament. Everybodywho has put in money ± the tournament organisers, TV channels, team owners etc. ± sell rightsand properties to brands and earn big profits. The brands, who have already paid millions, put in

a few millions more and advertise on every inch they can lay their hands on. Eventually, all youguys who have spent 4-8 hours in front of your TV watching a little bit of cricket and a lot of advertisements go out to the market and purchase the colas, the mobile phones, the clothes, andthe potato chips that you didn¶t really need. And that¶s how brands make their profit ± fromevery rupee of your hard earned money that you spend on them.

Two, some others have been asking me if the matches are fixed. I want to ask you, why fix

matches when you can fix the game? You take a 5-day game, make it into a day game, andthen further shorten it to a 3.5 hour game. Throw in scantily dressed dancers, cleavage-showinganchors, beauty contests, dumb ass commentators with stupid jokes. And some seriously goodcompetitive cricketers. And you have a magic potion that can hypnotize 200 Million people for 4hours every day for more than a month. That 200 Million population has more money in their hands than any betting syndicate in the world. The game¶s about your time and your money. Onthe issue of fixed matches, having seen guys like Aila, Sheikh, Lordie, Priest, Deewar from fairlyclose quarters now, I can tell you that no amount of money can lure them to lose a matchintentionally.

y Highest TR P for Kolkata knight riders in IPL2



y Financially, the Knight Riders were easily the most successful franchise in the IPL, achieving a

profit of Rs. 13 crore.

kkr brand vaolue

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