The Business Side of IPL

Presented by :- Amar Chand

I-IndianP-PremierL-League

IntroductionThe Bidding ProcessOfficial sponsors for IPLRevenue ModelImpact of IPL on other mediaGambling in IPL

Contents

Teams

TEAM OWNER CAPTAIN SPONSOR

AUCTIONED AMOUNT

RoyalsChallengerBangalore

Kingfisher(Vijay Mallya)

Virat kohli Reebok,Huawei Talecom

$ 111.6Million

MumbaiIndians

RelianceIndustriesLtd.(Mukesh Ambani)

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

TEAM OWNER CAPTAIN SPONSOR AUCTIONED AMOUNT

DelhiDaredevils

GMR Infrastructure

Kevin Pietersen

Hero honda , Kingfisher Airlines, Adidas

$ 84 Million

Deccan Chargers

Deccan Chronicle (Venkattram Reddy)

Kumar Sangakkara

Deccan Chronicle,Pepsi,Kingfisher Airlines

$ 107 Million

Rajasthan Royals

Shilpa Shetty, Raj Kundra

ShaneWatson

Kingfisher, Puma, Ultratech Cement

$ 67Million

Chennai Super kings

India cements Ltd.

M S Dhoni India Cement,Aircel, peter England

$ 91 Million

The Bidding ProcessBid amount need to be specified

Auction of player

4 player under 21 from

catchment area

Each squad min. 16 player max.9

international

Franchisees need

to be specified

Bid for more than 1 city

Potentialfranchisees submit bids

Announcement of Tender inviting bids

Official sponsors for IPL

IPL

SPONSORS

FRANCHISEES

BROADCASTERS

Advertisers ~Sponsors~Gate money~Advertising

Media Rights

~Bids~Franchisee Rights

~Title~Licensing

Share from:~Central Revenue~Media Rights

REVENUE MODEL

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)

Broadcaster’s RevenueAdvertising 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

Government RevenueIPL Season 1 : 91 crIPL Season 3: 200 crIPL Season 7: 385 cr

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

Service Tax : Rs 100 cr Advertising and marketing Services.

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.

All sponsorship revenues fall under the Central

Pool

100%

40% IPL

6% Prize

Money

54% Franchis

ee

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

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

That’s all folks!

Any questions?