Indian Premier League-IPL

ContentsConceptInceptionBusiness ModelFranchiseesSponsorsRules & RegulationsGoverning BodyPlayersThe Journey so far

Concept The IPL was designed after an intensive study of the primary sporting

leagues around the world such as the NHL, NBA, NFL and EPL. A detail & critical analysis of the theoretical models as well as

systematic evaluation of the result and impact of each of these leagues

SWOT analysis Individual market contexts are taken into consideration. Final blueprint is prepared The IPL design is one that has been meticulously refined to work for

Cricket. The league structure has been modelled so as to flourish in the

uniquely Indian context, and drive the development of grassroots talent in Indian cricket.

Such concept can only be successful if all stakeholders’ interests are safeguarded.

An in-depth analysis has been done in this context.

Inception Brain-child of Mr. Lalit Modi,then Vice- President, BCCI In late June 2007, discussed with Mr. Andrew Wildblood of the

International Management Group (IMG), the sports management giants. In 2008, the IPL was born. 20,February 2008-auction for players was held in Mumbai. 18,April 2008-first match of IPL took place in Bangalore. Schedule-46 days 59 matches

Business Model The revenues for the IPL and the franchisees come from three streams: media rights, sponsorships under the central or local pool, and gate receipts. A consortium including Sony Entertainment Television (SET) and World

Sports Group bought the broadcasting rights for a total of $1.026 billion for ten years. SET will spend $108 million on marketing, and the remaining $918 million goes into the central pool.

Central Revenues-

Media Rights

IPL Franchisees

Prize Money

2008-2013 20% 72% 8%

2013-2018 40% 60% Included in the 60%

2018-onwards increase decrease decrease

Revenues IPL Franchisee Prize Money

2008-2017 40% 54% 6%2018 onwards 50% 45% 5%

Cont. Gate Receipts

Other revenues include selling advertising space in the stadia for home matches, licensing products for their team like T-shirts, getting sponsorship for the team uniform, advertising on tickets and so on. As already mentioned, 20% of all of this will then go to IPL.

Gate Receipts IPL Franchisees

20% 80%

Franchisees 2008-2010-No. of Franchisees are 8

2011 onwards

Franchisee Owner(s) Price (USD)

Mumbai Indians Mukesh Ambani & RIL 111.9mn

Bangalore Royal Challengers

Dr.Vijay Mallya & UB Group 111.6mn

Deccan Chargers Deccan Chronicle 107mn

Chennai Super Kings India Cements & N Srinivasan 91mn

Delhi DareDevils GMR Holdings 84mn

Kings XI Punjab Ness Wadia,Preity Zinta,Karan Paul( Apeejay Surenera Group,Mohit Burman( Dabur)

76mn

Kolkata Knight Riders Shah Rukh Khan,Juhi Chawla,Jai Mehta 75.09mn

Rajasthan Royals Emerging Media( Manoj Badale,Lachlan Murdoch,Suresh Chellaram),Shilpa Shetty,Raj Kundra

67mn

Franchisee Owner(s) Price (USD)

Pune Sahara Adventure Sports Group 370mn

Kochi Rendezvous Sports World Limited 333.33mn

Franchisees own the teams in perpetuity, but make the payments in installments over the next 10 years.

In addition, each team spends $4-6 million per year on players and team personnel.

Players signed three-year contracts with the franchisee, and icon players excepted, can be traded after the first season.

Stadiums could cost up to Rs 30 lakh per match, and each team is also expected to spend approximately $3-4 million per year on marketing, promotion, and event management costs.

The franchisees’ expenses include team franchising installments, player and personnel, marketing, stadium expenses, and promotion, event management and administration.

Sponsors IPL Title Sponsor –DLF ( US$ 50mn) IPL Associate Sponsor –Hero Honda(US$ 22.5) IPL Tournaments Official Beverage –Pepsi(US$ 12.5mn) IPL’s Umpire Partner –Kingfisher(US$ 26.5mn) IPL Official Airline –Kingfisher Airlines IPL’s official Website Partner- Live Current IPL Hospitality Sponsor –ITC Welcomgroup IPL Official Performance Partners –Citi bank 

These got the rights for the first 5 years. Many more additions to this list- GCV, Google/ YouTube, Vodafone,etc..

Rules & Regulations Code of Conduct for Players, Team Officials, Umpires has been clearly defined. Anti-racism code Anti-Corruption code Anti-dope code Others include- The IPL is reaching two different kinds of agreements with players when it

gets them on board. Under one arrangement — called the "firm agreement", the IPL commits a certain fee to the player. If a franchisee bids more for that player in the auction between franchisees for different players, the IPL gets to keep the excess. Under the other - the "basic agreement" – the player gets whatever is bid for him. Not surprisingly, most players so far have opted for the "basic agreement”.

Team composition• Total 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.• A minimum of 4 local players must be included in each team.• Not less than 4 players from the BCCI under-22 pool in each team.

Governing Council Mr. Lalit Modi -Chairman And Commissioner, IPL Mr. Shashank Manohar -President, BCCI Mr. N Srinivasan- BCCI Secretary Mr. Niranjan Shah- IPL Vice-chairman Mr Inderjit Singh Bindra-President, Punjab Cricket Association Mr. M P Pandove-honorary Treasurer, BCCI Mr. Chirayu Amin- BCCI Vice-president Mr. Arun Jaitley - BCCI Vice-president And President, Delhi And District

Cricket Association Mr. Sanjay Jagdale - BCCI Joint-secretary Mr. Rajeev Shukla –Chairman, Media And Finance Committee, BCCI Mr. Ravi Shastri -Former India Captain Mr. Sunil Gavaskar-Former India Captain Mr. Mansoor Ali Khan Pataudi -Former India Captain

Players Sachin Tendulkar,Rahul Dravid,Saurav Ganguly,Yuvaraj Singh,Mahendra Singh

Dhoni,Ricky Ponting,Bret Lee, Matthew Hayden, Anil Kumble, Andrew Symonds, Adam Gilchrist,Shane Warne, Glen McGrath, Virender Sehawag,VVS Laxman,Umar Gul,Shoaib Akhthar,Misbah,Stephen Fleming to name a few…..

IPL 2008-Mahendra Singh Dhoni was the most expensive cricketer to be bought at $1.5 million followed by Andrew Symonds & Sanath Jayasuriya.

IPL 2009-Kevin Pietersen and Andrew Flintoff have become the costliest players in IPL as they were sold for a record price of $ 1.5 million followed by JP Duminy & Shaun Tait.

IPL 2010-Kieron Pollard and Shane Bond emerged as the most expensive players, being sold for a whopping $750,000 (approx. Rs3.42 crore) followed by Kemar Roach & Waney Parnell.

Domestic players like Manish Pandey,C Pujara,M Tiwary,A Mithun,R Jadeja,Y Pathan etc…..have become very successful which brought them into the limelight.

The Journey so far…. Indian cricket entered into a new era with the Indian Premier League

on 20 April,2008 in Bangalore. The UK-based brand consultancy, Brand Finance, has valued the IPL at

$4.13 billion in 2010.[It was valued at U$2.01 billion in 2009 by the same consultancy.

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.

A wonderful platform for the young Indian Cricket players. Platform for Corporates to market & promote their product and achieve

a healthy penetration.(eg;-Vodafone). Non-stop entertainment for viewers for almost 2months.