IPL project

PROJECT REPORT ON ³IPL AND ITS EFFECT IN INDIAN ECONOMY´ (Under the guidance of Prof. PragyanSarangi )

SUBMITTED BY: Mr.CHINMAY ANAND SAMAL Mr.HEMEN LAHKAR

Bhavan¶sCenterFor Communication And Management

UNIT- III, Kharvelanagar, Bhubaneswar 751001

BHARATIYA VIDYA BHAVAN

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CONTENTS

 Introduction of IPL  History

and backgroung of IPL

 Objective  Rules

of IPL

and Regulations of IPL

 Impact

of IPL

 Research

Analysis

 Findings

from Research work

 SWOT

Analysis of IPL

 Popularity  Effect

of IPL

on Indian Economy

 BCCI¶s

record earning

 CONCLUSION  BIBLIOGRAP HY


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INDIAN PREMIUM LEAGUE The Indian Premier League (often abbreviated as IPL), is a Twenty20 cricket competition initiated by the Board of Control for Cricket in India (BCCI) headquartered in Mumbai and supervised by BCCI Vice President Chirayu Amin, chairman & commissioner for IPL, and CEO, Sundar Raman. It presently includes 10 teams (franchises) consisting of players from different countries. It was started after an altercation between the BCCI and the Indian Cricket League. 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 be around $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 firstteam 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 largely successful. Many of the well-known cricketers of that period left their national team to play in Kerry Packer¶s 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 and 2009 in India. Its two seasons included tournaments between four international teams (The World, India, Pakistan and Bangladesh) and nine BHARATIYA VIDYA BHAVAN

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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 BCCI¶s some of working style. Many times 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.

BCCI¶sRESPONSE?????????? 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 y

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The DLF Indian Premier League is an attempt to further propagate the popularity of the sport in a country where the game is already considered a religion and to increase the fan base for cricket in India. Furthermore, Indian cricket needed this boost at the domestic level. With IPL, BCCI aim to nurture and build local talent. BCCI is optimistic that the DLF Indian Premier League will turn into a global phenomenon, and help take cricket to the next level. By organising IPL BCCI wants to superpower in world cricket. Now BCCI is the most powerful board in world cricket.


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y

By organising IPL BCCI wants to develop the infrastructure of india cricket.

RULES y

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There are five ways that a franchise can acquire a player. In the annual auction, 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 di fference will be 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 be included 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:

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A difference to international cricket is a timeout. It gives the players an opportunity to strategise and take a drink during the strict 2 minutes, 30 seconds 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 there is 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. 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


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expensive players in the IPL to dat e 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 IPL many 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 don¶t like serials can now enjoy the matches at that time. Most of the office going people doesn¶t 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 an d 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 encourage s 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 youn g players. But the players who did not get a chance had to struggle. So many parents did not encourage their children to be a cricketer because there was no prosperous future in that.


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But now situation is changed drastically in india and lots of young pla yers 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 don¶t 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 cricket ers 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 don¶t 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 now can compete with other popular ga me like football, baseball in terms of fanbase. 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.


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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 GEO Super. 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 been around 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 playing nations have to look at BCCI to take decision related to cricket. O rganing IPL, BCCI able to increase their profit. . BCCI¶s 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 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%. BHARATIYA VIDYA BHAVAN

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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 s creens 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 gen eral 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 United Kingdom 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. 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.


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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 only money they get, they get a share from the sale copyrights Broadcasting by BCCI, 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 stoo d all you thought you knew about cricket on its head, it has done the same with finances too. The strange thing is that two finalists, Royal Challengers and Team Hyderabad, made a fraction of the profit that bottom-of-table Knight Riders made,evenif we ta ke prize money into account. The main reason for the healthier bottomlines 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. This year that has risen to 67.50 crore. Sony max is also going to make profit this year. IPL franchisees who had been complaining about the event being shifted to South Africa are in for a surprise: Every single team stands to make a profit from this year¶s tournament.Had the matches been organiz ed in India, it¶s likely the teams profits would have been even higher because of higher receipts from ticket and merchandise sale, which have averaged Rs 8 crore and Rs 50 lakh respectively in South Africa.

In 2008, teams like Knight Riders, Mumbai Indi ans and Team Delhi earned around 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 just poured in. According to a report by equity research firm IIFL, Team Jaipur will make the highest profit of Rs 35.1 crore in the group matches of the second edition of the tournament. Jaipur had also made the second -highest profit of Rs 14.50 crore in 2008, including the Rs 4.50 crore ($1 million) prize money.


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Knight Riders, which finished lowest in the league table during the qualifying round in South Africa, will nevertheless end up with the third -highest profit of Rs 25.8 crore in the second edition of IPL. In fact, the only semifinalist which also 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 Rs 4.8 crore for winner, Rs 2.4 crore for the runners-up and 1.2 crore each for the losing semi-finalists. For those who didn¶t get past the league stage, the sums are correspondingly smaller - Rs 80 lakh for the team that finished fifth (Kings XI 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 the broadcasting rights. The renegotiated contract was for $1.64 billion (Rs 8,200 crore) for nine years -- a jump of 90% from the original figure. Profit of franchisees in 2008(in crore)


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Profit of Franchisees in 2009(in crore) revenue

RR Broadcasting 67.5 Sponsorship 24 Othrincome 14.2 Prize money 0.7 Total 106.4

CSK 67.5

KKR 67.5

KXIP 67.5

DD 67.5

MI 67.5

RCB 67.5

DCH 67.5

24

24

24

24

24

24

24

18.5 1.2 111.2

18.9 0.4 110.8

14.7 0.8 106.6

14.3 1.2 107.4

14 0.5 106

13.5 13.5 2.25 4.5 107.25 109.5

expenses Franchise fees Salaries Other expenses Total

RR 38.9

CSK 41.9

KKR 34.5

KXIP 35

DD 38.6

MI 51.5

RCB 51.6

DCH 49.2

20 20.5

20

20

20

20

20

20

20

27.5

30.5

25.5

25.5

27.5

27.5

25.5

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 like cattack, mohali etc. Even some of the IPL matches were played in small town like Dharmasala of Himachal Pradesh.This increases the popularty of cricket in India further. After creating kochi team in 4 thIPL , BCCI tries to increase the popularity 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 cricket stadium, e.g BCCI is making a stadium in Guwahati. This will definitely help to create some new talent in those areas and enrich the Indian cricket.


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RESEARCH ANALYSIS y

A research was conducted across 400 people in the city of Nag pur.

83% said follow IPL and 17% not follow IPL

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44% did not miss a single match, 38% favorite teams matches only, 12% match highlights, and 6% only on holidays, Sundays and weekends


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58% found a sustained interest level throughout the match, 34% surfed through the channels and 8% are not interested

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63% because of crisp timing, 29% others factors attract them, 5% said that Bollywood stars tempted them to watch, and 3% found entertainment value


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y

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62% preferred 8 to 11 pm, 12% no specific time to watch TV and equal number preferred to watch TV after 11 pm, 9% preferred afternoon slot of 2 to 5 pm, and 5% preferred morning time of 7 to 9 am

Only 24% did miss out on their favorite TV programs, and 76% answered negatively


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y

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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 it did not affect their viewership pattern in any way

38% feel that TRP of reality shows affected the most, 30% feel news channel would have suffered that most, 28% said family soaps were affected, and 4% feel that other channels affected


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y

37% feel that IPL is all about aggressive marketing, 31% said that great futuristic strategy, 26% feel that IPL is just a 45 days of masala, an d 6% feel it is threat to TV and cinema


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FINDINGS FROM THE RESEARCH

A research was conducted among 400 people in the Nagpur city. In this servey many question was asked related to IPL and their response was recorded. y y

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83% people follow IPL and 17% don¶t 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% surfed through the channels and 8% are not i nterested. 63% because of crisp timing, 29% others factors attract them, 5% said that Bollywood stars tempted them to watch, and 3% found entertainment value. 62% preferred 8 to 11 pm, 12% no specific time to watch TV and equal number preferred to watch TV after 11 pm, 9% preferred afternoon slot of 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 it did not affect their viewership pattern in any way 38% feel that TRP of reality shows affected the most, 30% feel news channel would have suffered that most, 28% said family soaps were affected, and 4% feel that other channels affected 37% feel that IPL is all about aggressive marketing, 31% said that great futuristic 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 y

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Short span i.e., 2 ½ 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


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WEAKNESSES y

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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 y

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0Large potential mass audience is very attractive as a marketi ng opportunity, especially for advertisers and sponsors. The long-term success of all of the franchises lies in the generation of a solid fan-base who will generate large TV revenues. Different markets and revenue sources will emerge for IPL. Huge opportunity for merchandising.

THREATS y

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Maintaining the level of competition and interest in IPL or else the revenue will fall. It won't be a quick return on investment - so owners need to be in it for the long-term. Franchises are very expensive. Therefore breaking even will also take time. The most highly priced teams may not be those that have the early success. 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. 2nd year IPL was shifted to south Africa due to security reason. That is why TRP of IPL decreases from 6.23% to 5.16%. Third IPL was again organised in India then also TRP of IPL reduces. From that we can conclude that popularity of IPL is reducing. This may be due to increased number of matches in IPL. Year:

TRP

2008

6.23% 5.16%

2009 5.72% 2010


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7.00%

6.00%

5.00%

4.00%

TRP Series 2

3.00%

Series 3

2.00%

1.00%

0.00% 2008

2009

2010

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 some effects in our economy. It creates a good impression in the mind of the people from all over the world that india can also organise such a big event and its economy is also very stable. It definitely increases the amount of foreign investment in india. Now many foreign companies want to invest in the Indian market. Foreign investors want to invest their money in Indian stock exchange. It reflects in the stock exchange. we can see that amount of foreign investment increases day by day. Anothereffect of IPL in Indian economy is that people from all over the world come to know about india after IPL. Earlier people from all over the world only knows some of the places like Mumbai, Ban galore, or Delhi. But after IPL, many places like Hyderabad, Cuttack etc are known to the world now. This gives them an opportunity to know about this cities and it increases the development in these areas also. IPL may have an effect in our tourism industry also. To see the IPL matches many foreigner comes to india. This definitely increases the no. Of tourist visit india. From them india can earn much more foreign currencies which effects Indian economy. Earliar people from other countries only know some of the BHARATIYA VIDYA BHAVAN

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cities of india. But after IPL they came to know about different beutifull places of india. After seeing this in television they eager to come to india to visit those places.

BCCI SET TO EARN RECORD RS2,000 Cr The Board of Control for Cricket in India (BCCI) will earn a record Rs2,000 crore revenue in the next 12-14 monthsthus reversing two years of revenue declines. In 2010-11, the board¶s income will skyrocket with revenues generated from broadcast, sponsorship and the board fees for the Indian Premier League (IPL) Season 3 that returns to home turf. Additional income is expected from the International Cricket Council¶s (ICC) World Cup to be held in March 2011.

The league earned Rs774 crorein 2009, a 17% rise over the Rs662 crore it earned 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 in 2008, the associations earned Rs202 crore (unchanged from the previous year). The losses, according to the note, are mainly due to shifting the venue to South Africa. IPL apparently spent more than Rs 300 crore on logistics, production and fees towards services, prize money and insurance, among other things. It incurred expenses of Rs 808 crore, thus the Rs 34 -crore loss. The board¶s 2009-10 revenue is expected to be similar to that of the previous year, when, for the first time in five years, income dec lined to Rs725.8 crore from Rs1,000 crore. ³BCCI¶s income dropped in 2008 due to security reasons that forced several big tournaments such as the Champions League, Pakistan¶s tour of India as well as England¶s two ODIs (one day internationals) to be eith er cancelled or postponed causing a significant loss of over Rs300 crore to BCCI,´ the official said. ³The


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board¶s income for 2009 will be no different from that of 2008 because IPL was shifted to South Africa.´

According to Niranjan Shah, IPL3 is set to make in excess of Rs800 crore this year. Breaking down the math, Shah said Rs200 crore will be generated from franchisee rights²the bid amount paid over 10 years; Rs210 crore from franchisee fees²annual fees that franchises shell out to BCCI for use of facilities, etc., and are shared with the individual cricket state associations; and Rs400 crore from central media sponsorship rights from title and ground sponsors as well as telecast rights. This is part of the Rs8, 200crore deal won by broadcaster 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 for IPL, but it is too early to tell what the amount coming in for the new teams will be.

Apart from IPL and the World Cup, BCCI will also be raking in money from bilateral tournaments such as the Australia tour of India in October followed by the New Zealand cricket team playing here in December. For these tournaments, ot her than board fees and the sponsorship share for which the amount has not yet been decided, telecast rights alone will fetch BCCI Rs450 crore for 15 matches, with broadcaster Nimbus Communications Ltd paying the board Rs33 crore per match for all domestic tournaments. In addition, BCCI will also get Rs50 crore from the Champions League, a world championship for domestic Twenty20 club champions that kicked off last year, under a sharing ratio agreed by the organizing cricket bodies of India, Australia and South Africa. It will get approximately Rs60 crore as participation fees for the Twenty20 World Cup. Sponsorship revenue, a combination of domestic and international sponsorship rights held by Sahara India Pariwar, Nike India Pvt. Ltd and WSG, is projected to 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 Rs50 crore as infrastructure subsidy for each state association that hosts the World Cup matches.


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With eight states stepping up to volunteer as host destinations, BCCI will be left with around Rs50 crore to fund all other expenses such as fees to players, daily allowance, travel, lodging, expenses of support staff, match officials and selectors, 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 also transformed 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 350 crore from IPL in the first year itself. This would be more than BCCI¶s profit of Rs 235 crore for all of 2007. In all, IPL will bring revenue of Rs 1,200 crore a year into cricket, more than double the government¶s entire sports budget of Rs 490 crore. The Set Max channel¶s 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 the cumulative marketshare of the top nine Hindi general entertainment channels. From next year, Sony is projected to gross about Rs 650 crore in advertising revenue for about 45 days of IPL, which would be 7% of the entire estimated TV 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 start of the tournament, have climbed rapidly to Rs 5 lakh and look set to rise further to Rs 10 lakh for the final, says the report. This would be even more than the Rs 8 lakh per 10 second rate for the nailbiting T20 World Cup final between India and Pakistan last year. IPL¶s success has also rubbed off on the franchisees. According to the report, teams like Jaipur, Kolkata and Mohali, which have not spent 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 taken cricket 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 they don¶t 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 say that IPL is becoming a global event. Now Indian economy is growing at a rapid pace , so much that people from all over the world are now looking towards India.


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BIBLIOGRAPHY y

www.iplt20.com

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en.wikipedia.org/wiki/Indian_Premier_League www.ipl.com

y

MARKETING MASTERMIND ; NOVEMBER 2009 ISSUE.

y

SPORTZPOWER ; DECEMBER 2009 ISSUE

y


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IPL project

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