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Presented by :- Amar Chand I-Indian P-Premier L-League

The business side of ipl

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Page 1: The business side of ipl

Presented by :- Amar Chand

I-Indian

P-Premier

L-League

Page 2: The business side of ipl

Introduction

The Bidding Process

Official sponsors for IPL

Revenue Model

Impact of IPL on other media

Gambling in IPL

Contents

Page 3: The business side of ipl

Teams

Page 4: The business side of ipl

TEAM OWNER CAPTAIN SPONSOR AUCTIONED AMOUNT

RoyalsChallengerBangalore

Kingfisher(Vijay Mallya)

Virat kohli Reebok,Huawei Talecom

$ 111.6Million

MumbaiIndians

RelianceIndustriesLtd.(MukeshAmbani)

Rohit Sharma Idea Cellular,Pepsi

$ 111.9Million

KolkataKnight Riders

Shahrukh Khan , Juhi Chawla , & jay Mehta

Gautam Gambhir Nokia,9x

$75.9Million

Kings XI Punjab

Preity Zinta, Ness Wadia,Surendra(Dabour Group)

George Bailey Spice Telecom,Coca cola

$ 76Million

Page 5: The business side of ipl

TEAM OWNER CAPTAIN SPONSOR AUCTIONED AMOUNT

DelhiDaredevils

GMR Infrastructure

Kevin Pietersen Hero honda , Kingfisher Airlines, Adidas

$ 84 Million

Deccan Chargers

Deccan Chronicle (VenkattramReddy)

KumarSangakkara

Deccan Chronicle,Pepsi,Kingfisher Airlines

$ 107 Million

RajasthanRoyals

ShilpaShetty, Raj Kundra

ShaneWatson

Kingfisher, Puma, UltratechCement

$ 67Million

ChennaiSuper kings

India cements Ltd.

M S Dhoni India Cement,Aircel, peter England

$ 91 Million

Page 6: The business side of ipl

Bid amount need to be specified

Auction of player

4 player under 21 from catchment

area

Each squad min. 16 player max.9 international

Franchisees needto be specified

Bid for more than 1 city

Potentialfranchisees submit bids

Announcement of Tender inviting

bids

Page 7: The business side of ipl
Page 8: The business side of ipl

IPL

SPONSORS

FRANCHISEESBROADCASTERS

Advertisers ~Sponsors~Gate money~Advertising

Media Rights

~Bids~Franchisee

Rights

~Title~Licensing

Share from:~Central Revenue~Media Rights

REVENUE MODEL

Page 9: The business side of ipl

The BCCI created history when it sold television rights of this yet untested format to sony-worlds sports consortium for US$1.02 bn

US$ 608mn

(Broadcasting rights next 5 yrs )

(-) US$ 108mn (promotion expenses)

US$ 1.02bn

US$ 316mn(Broadcasting rights first 5 yrs)

Page 10: The business side of ipl

Broadcaster’s Revenue

Advertising revenues for Broadcaster have seen a steady increase since inception of IPL

IPL 2008- 3 Lakh for every 10 secs

IPL 2010- 5 Lakh for every 10 secs

IPL 2014- 8 Lakh for every 10 secs

Page 11: The business side of ipl

Government RevenueIPL Season 1 : 91 cr

IPL Season 3: 200 cr

IPL Season 7: 385 cr

Direct Tax : Rs 1oo crTax deducted at source (TDS) from the remuneration paid to players,umpires,coches and commentators.

Service Tax : Rs 100 crAdvertising and marketing Services.

Page 12: The business side of ipl

Franchisee Revenue

Media Rights- To be shared equally amongst franchisees after removing IPL’s share.

Sponsorship Rights (IPL sponsors)- 54% of the amount collected to be distributed equally amongst the franchisees.

Local Sponsorships- Team sponsorship revenues.

Gate Receipts- Are anticipated to be a major source of revenues. 20% of tickets are to be allocated to IPL.

Page 13: The business side of ipl

All sponsorship revenues fall under the Central Pool

100%

40% IPL

6% Prize Money

54% Franchisee

Page 14: The business side of ipl

IPL will cause a dent in the rating and revenues of other general entertainment channels (GECs).

There is a decline in the TRPs of top general entertainment shows during the IPL seasons.

There is a decline in the number of movie releases due to IPL.

IPL favour has a negative effect on the revenues of movies at the box office.

Impact of IPL on other Media

Page 15: The business side of ipl

The Law says “NO”

There are bets for every match.

How to bet? Betting usually begins few hours before the match. Online betting possible on sites like betfair.com

What are Odds? Odds indicate the $’s that you will win in return for each $ you bet if your prediction comes true.

What are Payouts? Payout is the final amount of $ which you’ll earn if you win the bet .

Total IPL betting – 6000 cr.

Gambling in IPL

Page 16: The business side of ipl

Any questions?