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Project Report on IPL - Indian Premier League

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A Comprehensive Project Report on the Indian Premier League and its impact on Indian Economy

A Comprehensive Project Report on the Indian Premier League and its impact on Indian Economy

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  • 1. PROJECT REPORT ON “INDIAN PREMIER LEAGUE (IPL)” BACHELOR OF MANAGEMENT STUDIES SEMESTER V 2012-2013 SUBMITTED IN PARTIAL FULLFILLMENT OF REQUIREMENT FOR THE AWARD OF DEGREE OF BACHELOR OF MANAGEMENT STUDIES BY: KAUSTUBH BARVE ROLL NO. 121 BIRLA COLLEGE OF ARTS, SCIENCE & COMMERCE MURBAD ROAD, KALYAN (W). UNIVERSITY OF MUMBAI 2012-2013 PROJECT REPORT ON “INDIAN PREMIER LEAGUE (IPL)” 1
  • 2. BACHELOR OF MANAGEMENT STUDIES SEMESTER V 2012-2013 SUBMITTED IN PARTIAL FULLFILLMENT OF REQUIREMENT FOR THE AWARD OF DEGREE OF BACHELOR OF MANAGEMENT STUDIES BY: KAUSTUBH BARVE ROLL NO. 121 BIRLA COLLEGE OF ARTS, SCIENCE & COMMERCE MURBAD ROAD, KALYAN (W). 2
  • 3. BIRLACOLLEGE OF ARTS, SCIENCE, & COMMERCE, KALYAN (Conducted by Kalyan Citizens’ Education Society) (Affiliated by University of Mumbai) BACHELOR OF MANAGEMENT STUDIES CERTIFICATE This is to certify that MR. KAUSTUBH BARVE Roll No. 121 has satisfactorily carried out the project work on the topic ―INDIAN PREMIER LEAGUE (IPL)”, for the V Semester of T.Y.B.M.S., in the academic year 2012-2013. Place:-Kalyan Date:-________ ________________ _______________ Signature of Examiner BMSCo ordinator 3
  • 4. CERTIFICATE I, MR. ANIL TIWARI hereby certify that MR. KAUSTUBH BARVE, of T.Y.B.M.S (SemV), Roll No. 121 has completed project on “INDIAN PREMIER LEAGUE (IPL)” in the academic year 2012-2013. The information submitted is true and original to the best of my knowledge. Place: Kalyan Date: ___________________ Signature of Project Guide 4
  • 5. DECLARATION I, MR KAUSTUBH BARVE student of T.Y.B.M.S semester V (2012-2013) hereby declare that I have completed the project on “INDIAN PREMIER LEAGUE (IPL)”. I further declare that the information imparted is true and fair to the best of my knowledge. SIGNATURE (MR.KAUSTUBH BARVE) ROLL NO. 121 5
  • 6. ACKNOWLEDGEMENT I hereby express my heartiest thanks to all sources who have contributed to the making of this project. I oblige thanks to all those who have supported, provided their valuable guidance and helped for the accomplishment of this project. I also extent my hearty thanks to my family, friends, our coordinator MR ANIL TIWARI, college teachers and all the well wishers. I also would like to thanks my project guide MR. ANIL TIWARI for his guidance and timely suggestion and the information provided by him on this particular topic. It is matter of outmost pleasure to express my indebt and deep sense of gratitude to various person who extended their maximum help to supply the necessary information for the present thesis, which became available on account of the most selfless cooperation. Above all its sincere thanks to the UNIVERSITY OF MUMBAI for which this project is given consideration and was done with outmost seriousness. 6
  • 7. Executive summary 7
  • 8. INDEX Contents PREFACE ........................................................................................................................................................ 9 INTRODUCTION TO THE INDIA PREMIER LEAGUE (IPL) .............................................................................. 10 HISTORY AND BACKGROUND OF FORMATION OF THE IPL ......................................................................... 12 Indian Premier League v/s Indian Cricket League ....................................................................................... 14 RULES AND REGULATIONS .......................................................................................................................... 15 THE TEAMS AT A GLANCE ........................................................................................................................... 16 SUCCESSFUL START ..................................................................................................................................... 27 SUMMARY OF THE SEASONS : .................................................................................................................... 28 2008 INDIAN PREMIER LEAGUE – FIRST SEASON........................................................................................ 28 2009 INDIAN PREMIER LEAGUE – SECOND SEASON ................................................................................... 29 2010 INDIAN PREMIER LEAGUE – THIRD SEASON ...................................................................................... 31 2011 INDIAN PREMIER LEAGUE – FOURTH SEASON................................................................................... 33 2012 INDIAN PREMIER LEAGUE – FIFTH SEASON ....................................................................................... 35 CRITICISM AND CONTROVERSIES................................................................................................................ 36 BUSINESS MODEL OF THE IPL ..................................................................................................................... 44 IPL BUSINESS MODEL & RETURNS .............................................................................................................. 56 THE DEATH OF ONE DAY INTERNATIONAL?................................................................................................ 58 CONCLUSION ............................................................................................................................................. 63 BIBLIOGRAPHY/WIBLIOGRAPHY ................................................................................................................. 70 8
  • 9. PREFACE I have collected the information with the secondary source information of the IPL. I have tried my best level for doing various analysis for making the report with the available data. And I have provided the correct and relevant information and data in the report. This report has been prepared in accordance with the guideline of The University of Mumbai to understand the Indian Premier League (IPL) in the cricket world. RESEARCH METHODOLOGY Extensive research was carried out for the successful completion of this project. Both primary and secondary data were collected from various Sources. PRIMARY DATA: The main data was collected from the zonal office of IPL situated in Mumbai. An email which contains the typical details and strategies was received as feedback. The Marketing wing of IPL was contacted for preparing this assignment. Due to expense factor, communication was mostly done via email. The marketing department gave relevant information about the data. SECONDARY DATA: The secondary data in this study is collected from various magazines, Newspapers and Websites. Analysis and others parts are done on the basis of these secondary data and knowledge collected from the marketing lectures. 9
  • 10. INTRODUCTION TO THE INDIA PREMIER LEAGUE (IPL) The Indian Premier League (IPL) is a professional league for Twenty20 cricket championship in India. It was initiated by the Board of Control for Cricket in India (BCCI), headquartered in Mumbai and is supervised by BCCI Vice President Rajeev Shukla, who serves as the league's Chairman and Commissioner. It is currently contested by nine teams, consisting of players from around the world. 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 YouTube in association with Indiatimes. Its brand value is estimated to be around US$2.99 billion in fifth season. The IPL works on a franchise-system based on the American style of hiring players and transfers. These franchises were put for auction, where the highest bidder won the rights to own the team, representing each city. The auction for the same took place on January 24, 2008 and the total base price for the auction was $400 million. The auction went on to fetch $723.59 million. The Mumbai franchise owned by Mukesh Ambani‘s Reliance Industries Limited (RIL) was the most expensive franchise - fetching $111.9 million closely followed by Vijay Mallya‘s United Breweries which paid $111.6 million for the Bangalore franchise. Media house Deccan Chronicle won the Hyderabad chapter of the IPL for $107 million, while India Cements‘ Chennai franchise cost $91 million. Bollywood also made its presence felt with two of its leading stars bagging the ownership of their respective teams - Shah Rukh Khan and Juhi Chawla‘s Red Chillies Entertainment buying out Kolkata for $75.09, while Preity Zinta and her beau Ness Wadia bought the Mohali team for $76 million. 10
  • 11. GMR , the infrastructure development group which who are involved in a project for revamping the Delhi airport, bagged the ownership of the Delhi team for $84 million and the Emerging Media , consisting of its CEO Fraser Castellino, Manoj Badale and Lachlan Murdoch and other investors won the rights for the Jaipur franchise for $67 million. On 21 March 2010, Pune and Kochi were unveiled as the two new franchises for the fourth edition of the Indian Premier League. The base price was $225 million. While Pune was bought by Sahara Adventure Sports Group for $370 million, the Kochi franchise was bought by Rendezvous Sports World Limited for $333.3 million. The process was to have been completed on 7 March but was postponed by two weeks after many bidders and the BCCI objected to stiff financial clauses. The second franchise auction fetched total $703 million. Over 200 million Indian viewers, 10 million international viewers, 4 million live spectators: the Indian Premier League (IPL) is a sports and entertainment revolution in the making, surpassing all records of viewership on ground and on media. Advertising revenue and ticket sales have exceeded all expectations, making IPL highly profitable for the organizers, broadcasters and successful team owners. Zealous fan following—even hostility for visiting teams—shows local loyalties are building up faster than anyone expected. 11
  • 12. HISTORY AND BACKGROUND OF FORMATION OF THE 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. On the background of this idea, Zee Entertainment Enterprises organized 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. In Its two seasons included tournaments between four international teams (The World XI, India, Pakistan and Bangladesh) and nine 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. 12
  • 13. The ICL was set up with a billion dollar Indian Rupee corpus, and was to initially comprise six teams playing Twenty20 cricket, with plans to expand to sixteen teams within three years and to eventually move to 50-over matches. These plans, if they had been realised, would have made the ICL the richest professional league in India. On 24 July 2007, some famous international names were announced to have signed to play in the ICL, including highest innings record-holder Brian Lara. 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 was launched in April 2008, was called the Indian Premier League Twenty20. 13
  • 14. Indian Premier League v/s Indian Cricket League 14
  • 15. RULES AND REGULATIONS There are five ways that a franchise can acquire a player: In the annual auction, signing domestic players, signing uncapped players, through trading, and signing 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 difference 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 11 foreign players in the squad and maximum 4 foreign players should be in the playing eleven.  Minimum of 14 Indian players must be included in each squad.  A minimum of 6 players from the BCCI under-22 pool in each squad. IPL games utilize television timeouts, 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. Additionally, each team is awarded two strategic timeouts of 2:30 each per innings—the teams can take the timeout when instructed, but is necessary to take it from 6th to 9th and 13th to 16th over. 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 expensive players in the IPL to date is Gautam Gambhir of India fetched the highest price of $2.4 million from Kolkata Knight Riders at the auction for season 4 15
  • 16. THE TEAMS AT A GLANCE Team Name Chennai Super Kings City Chennai Deccan Chargers Hyderabad Delhi Daredevils New Delhi Kings XI Punjab Mohali Ness Wadia, Preity Zinta, Kolkata Knight Riders Kolkata Shahrukh Khan Mumbai Indians Mumbai Pune Warriors India Pune Rajasthan Royals Jaipur Royal Challengers Bangalore Bangalore Kochi Tuskers Kerala Kochi Owner(s) Gurunath Meiyappan India Cements T Venkattram Reddy Deccan Chronicle Group GMR Group Red Chillies Entertainment Juhi Chawla, Jay Mehta Mukesh Ambani Reliance Industries Subrato Roy Sahara Lachlan Murdoch Emerging Media Shilpa Shetty, Raj Kundra Vijay Mallya UB Group Kochi Cricket Private Ltd (Defunct) 16 Captain Mahendra Singh Dhoni Head Coach Stephen Fleming Kumar Sangakkara Darren Lehmann Virender Sehwag Adam Gilchrist Eric Simons Gautam Gambhir Trevor Bayliss Harbhajan Singh Robin Singh Michael Bevan Sourav Dermot Reeve Ganguly Rahul Dravid Monty Desai Daniel Vettori Ray Jennings
  • 17. CHENNAI SUPER KINGS : Chennai Super Kings (often abbreviated as CSK) is a franchise cricket team based in Chennai, Tamil Nadu that plays in the Indian Premier League. Founded in 2008, the team is currently captained by Mahendra Singh Dhoni and coached by Stephen Fleming, a former New Zealand cricketer. The team's home ground is the M. A. Chidambaram Stadium (often referred to as Chepauk) located in Chennai. Chennai Super Kings is the most successful team in the Indian Premier League team so far. The team has won the IPL title twice in succession (2010 and 2011) and reached the play-offs every season. They were also the first Indian team to have won the Champions League Twenty20. The leading run-scorer of the side is Suresh Raina, while the leading wicket-taker is Ravichandran Ashwin. The brand value of Chennai Super Kings in 2012 was estimated at US$75.13 million, making them the most valuable franchise in the IPL The franchise is currently owned by India Cements, who paid $91 million to acquire the rights to the franchise for 10 years in 2008. N. Srinivasan, ViceChairman and Managing Director of India Cements Ltd., is the de facto owner of the Chennai Super Kings, by means of his position within the company. He is also the President of the BCCI. Krishnamachari Srikkanth, former captain of the Indian cricket team and the current Chairman of the National Selection Committee, was the brand ambassador for the franchise until the end of season three when his 3year contract expired, and former Indian opener V. B. Chandrasekhar is the Chief Selector. 17
  • 18. DECCAN CHARGERS : Deccan Chargers known in short as DC is a cricket franchise based in the city of Hyderabad in the Indian Premier League. They, after finishing last in the first season of the IPL, won the second season held in South Africa in 2009, under the captaincy of former Australian wicketkeeper batsman Adam Gilchrist. Gilchrist was the captain of the team for the first three seasons of the IPL. From the fourth season, Kumar Sangakkara has been leading the team and Cameron White has been playing as his deputy. The team is coached by Darren Lehmann, former Australian cricketer. The Deccan Chargers franchise is owned by the Deccan Chronicle Holdings Limited. The media group acquired the franchise for an amount of USD 107 million on 24 January 2008. The Chargers logo is a charging bull. From the 2009 season, the team changed the colour of the jersey (from beige and black to sparkling silver and blue) and the logo (from gold and red to white and blue). There is no Icon Player for the team as the former captain V.V.S. Laxman rejected the offer to be an icon player in order to free funds and enable the franchise to buy & encourage younger players. On 11 August 2009, Dinesh Wadhwa, former Regional Manager of ICICI Bank was appointed chief operating officer for 2010. 18
  • 19. DELHI DAREDEVILS : Delhi Daredevils is the Delhi franchise of the Indian Premier League in cricket. The franchise is owned by the GMR Group. Founded in 2008, the team is currently captained by Virender Sehwag and coached by former South African cricketer Eric Simons. They play all their home matches at the historic Feroz Shah Kotla Ground. Virender Sehwag has been accorded the icon player status in the Delhi Daredevils team and was also the captain of the side during the first two seasons. However, he resigned and passed on the leadership to his opening partner Gautam Gambhir for the 2010 season. But after Gambhir left the team for Kolkata Knight Riders in the fourth edition, Sehwag was once again given the duty to captain the team. During the franchise auction for the Indian Premier League teams, the GMR Group purchased the Delhi Daredevils for $84 million. Bollywood superstar Akshay Kumar was the brand ambassador of the team during the 2008 Season but opted not to return for the 2009 season due to a busy schedule. However, Akshay was seen at a few of the team's games cheering them on. Famous Bollywood playback singer Kailash Kher has sung the team anthem "Khel Front Foot Pe" a.k.a. " Play on the front foot or play aggressively". It is played at every Delhi Daredevils match. Delhi Daredevils launched their new anthem "Munday Dilli Ke" on 5 March 2012 on the social networking site YouTube. 19
  • 20. KINGS XI PUNJAB Kings XI Punjab is a cricket franchise based in Mohali, Punjab in the Indian Premier League. It is currently captained and coached by former Australian wicketkeeper batsman Adam Gilchrist. The team plays its home matches at the PCA Stadium, Mohali. Since 2010 IPL, they have been playing some of their home games at Dharamsala. The first owners of the franchise included Preity Zinta, Karan Paul (Apeejay Surendera Group) and Mohit Burman (Dabur). The group paid a total of $76 million to acquire the franchise. Following the controversy surrounding the BCCI and Lalit Modi the Indian Premier League announced that it had terminated the franchise contracts of Kings XI Punjab and Rajasthan Royals The teams announced that they would take whatever legal action possible to remain in the Indian Premier League Initially the team tried to negotiate a solution with the league but when that couldn't be reached they decided to file a case in Mumbai High Court accusing the IPL off getting rid of two teams so that when the bidding process starts for the 2012 IPL season the contract would be given to a more lucrative bidder. A division bench of Hon. High Court of Mumbai has upheld the injunction order passed on by Hon. Justice Vajifdar of Mumbai High court. This order stays till the arbitrator, chosen by mutual consent of BCCI and Kings XI Punjab settles the issue. The team wass allowed to take part in the player's auction to be held on 8th & 9 January post fulfillment of certain financial clauses imposed by Hon. Justice Vajifdar. 20
  • 21. KOLKATA KNIGHT RIDERS Kolkata Knight Riders (often abbreviated as KKR) is a cricket franchise representing Kolkata in the Indian Premier League and owned by Bollywood actor Shah Rukh Khan's company Red Chillies Entertainment in partnership with actress Juhi Chawla and her husband Jay Mehta from the Mehta Group. The team is currently captained by Gautam Gambhir and coached by Trevor Bayliss, a former Australian cricketer. The bowling legend, Wasim Akram is the team's bowling consultant and mentor. Sourav Ganguly, who was the team's Icon Player for the first three seasons, captained the side in the first and third seasons of the tournament while Brendon McCullum led the team in the intervening period. The team won its first title in 2012 by defeating defending champions Chennai Super Kings by 5 wickets at their home ground in Chennai. The official theme of the team is Korbo, Lorbo, Jeetbo Re (We will do it, Fight for it, Win it) and the official colors are purple and gold. The brand value of the Kolkata Knight Riders was estimated at $57.5 million in 2011, ranking third amongst all ten teams Initially, when Kolkata knight Riders were first introduced in 2008, the logo of the team consisted of a blazing golden Viking helmet against a black background with the name of the team Kolkata Knight Riders written in gold next to it. However, the black background was changed to purple in the third season. In 2012, a new logo, which consist of a blazing purple Corinthian helmet trimmed with gold, with Kolkata Knight Rider written within a shield has been introduced. The name Knight Riders has been chosen keeping in view the kids and the youth. 21
  • 22. MUMBAI INDIANS Mumbai Indians is a franchise cricket team representing the city of Mumbai in the Indian Premier League. The team is one of the eight founding members of the IPL in 2008. Mumbai Indians are currently led by Harbhajan Singh and coached by Robin Singh. They are one of the main teams in the city, together with clubs like the Mumbai cricket team and football club Mumbai FC. The team is owned by India's biggest conglomerate, Reliance Industries, through its 100% subsidiary IndiaWin Sports. Mumbai Indians is ranked No.2 in the IPL with a brand value of $57.13 million in season four of IPL after Chennai Super Kings (who are the no. 1 with brand value of $70 million) Mumbai Indians were the winners of the 2011 edition of the Champion League Twenty20 which was held in the Indian Sub-Continent this season. They defeated the Royal Challengers Bangalore in the final held at Chennai by 31 runs. The team logo has the Sudarshana Chakra with the team's name engraved in it. The team colours was almost the same in 2008 and 2009, except for the colour shade and additional sponsors. In 2010 a new kit with golden stripes was unveiled. In 2011, kit used in 2010 is being used with a change in the main sponsor name. The 2011 jersey also has three gold stripes going towards the back on the side of the jersey for the new players in the team. 22
  • 23. PUNE WARRIORS INDIA Pune Warriors India is a franchise cricket team that plays in the Indian Premier League (IPL) representing the city of Pune, Maharashtra. The team is one of two new franchisees added to the Indian Premier League (IPL) for the 2011 season, alongside the Kochi Tuskers Kerala. On 21 March 2010, Sahara Adventure Sports Limited made the winning bid of $370 million (approximately Rs 1900 crore) for the Pune franchise. The bid is the highest bid by any company in the short history of IPL. The Videocon Group lost the bid for the Pune IPL Team. Sourav Ganguly, the former captain of Pune warriors India, serves as the mentor of the team. Former South African pacer Allan Donald is the bowling coach of the team. The team's home ground is the newly-constructed Subrata Roy Sahara Stadium in Pune. For the 4th season of IPL Pune Warriors India played their home matches at the DY Patil Stadium ground located at Navi Mumbai as the MCA Stadium was still under Construction. The team logo has a spear wielding warrior riding a stallion, with the team's name next to it. The team colour is Turquoise blue and Silver [2012 Season]. They kept their name Sahara Pune Warriors but later changed it to Pune Warriors India . 23
  • 24. RAJASTHAN ROYALS Rajasthan Royals is an Indian Premier League franchise based in the city of the Jaipur. It is currently captained by former Indian captain Rahul Dravid. They won the inaugural edition of the Indian Premier League under the captaincy of former Australian spin-legend Shane Warne. In 2010, they were terminated by the BCCI for a brief period for violations in terms of agreement but were allowed to play in the league soon after the Board lost the case in the Supreme Court. Rajasthan Royals were the least active franchise during the players' auction. The team didn't have a designated icon player, which saved a lot of cap space for the franchise. However, the franchise was surprisingly low key during the auction, and in the end got penalized by the IPL committee for failing to meet the minimum bidding criteria of $3.3 million. Prior to the start of the inaugural IPL season, many considered the Royals as possibly the weakest team in the IPL, giving them little chance of competing well in the tournament. Evidence of the latter opinion seemed to be confirmed when the team lost its first match against the Delhi Daredevils in a 9 wicket loss. However, The Royals secured a place in the finals with a victory against the Delhi Daredevils. The Rajasthan Royals became the winner of the first IPL tournament, when they defeated the Chennai Super Kings by 3 wickets in the final played on 1 June 2008. With the scores level with one ball remaining, Sohail Tanvir scored the winning run and therefore prevented the match from being decided on a bowl out. 24
  • 25. ROYAL CHALLENGERS BANGALORE Royal Challengers Bangalore (often abbreviated as RCB) is a cricket team based in Bangalore that plays in the Indian Premier League. The team is currently led by Daniel Vettori and coached by South African Ray Jennings. The team is owned by Vijay Mallya, through his flagship firm UB Group. The director of the team is Siddharth Mallya. The team won only 4 matches in the inaugural season, losing 10 matches and finishing second from the bottom in the table. RCB plays all its home matches at the M. Chinnaswamy Stadium. The franchise has been one of the most successful and consistent in the IPL having reached the semis/play-off's every season apart from 2008 and 2012. It was the only team in the world to have qualified for and played in all the three seasons of the Champions League Twenty20 tournament, until in 2012, RCB came fifth in the points table, and failed to qualify for either the playoffs or the Champions League Twenty20 2012. Vijay Mallya wanted to associate one of his top-selling liquor brands, either No. 1 McDowell's or Royal Challenge with the team. The latter was chosen, hence the name. The jersey colours of the team are red and golden yellow, the same as the Karnataka state flag, and the logo consists of the RC emblem with "Royal Challengers Bangalore" in standard format. 25
  • 26. KOCHI TUSKERS KERALA (NOW DEFUNCT) Kochi Tuskers Kerala was a franchise cricket team that played in the Indian Premier League (IPL) representing the city of Kochi, Kerala. The team was one of two new franchisees added to the Indian Premier League (IPL) for the 2011 season, alongside the Pune Warriors India. The team franchise was owned by Kochi Cricket Pvt Ltd., which was a consortium of multiple companies. On September 19, 2011, the BCCI announced that the Kochi Tuskers Kerala IPL franchise was terminated for breaching its terms of agreement. The consortium that owns Kochi is reported to have defaulted on an annual payment of 156 crores as a bank guarantee. The two new franchises, which made their debuts in 2011, had sought a 25% waiver on the grounds that the BCCI had stated in the bidding document that each team would play 18 league matches in a season. The schedule was later reduced to 14 matches per team. The chairman of Kochi Tuskers Kerala, Mukesh Patel, however, denied that the franchise owed the board any money. Soon after the termination of the contract, the owners of KTK threatened legal action against the BCCI. Mukesh Patel claimed that Kochi Tuskers had never defaulted payments and that the BCCI would be paying them 12-15 crore in October 2011 as a part of their central revenue. On 21 September 2011, owners of Kochi Tuskers moved the Bombay High Court to challenge the BCCI's decision to terminate the team's contract. However, the franchise's plea seeking to restrain the BCCI from encashing its bank guarantee of 156 crore was rejected by a single bench of Justice SF Vajifdar. 26
  • 27. SUCCESSFUL START The inaugural match was played in Bangalore, between Kolkata and Bangalore. A packed 55,000-capacity stadium under lights, cheerleaders dancing to music through the match, and the presence of team owners Shah Rukh Khan and Vijay Mallya set the perfect stage for the match. The Kolkata team rose to the occasion with a high total, but the home team collapsed a long way from the target. The match saw a TRP rating of 8.3—higher than any other programme on Indian Television during the first season. Though ratings have dropped since then, they remain at above 5—higher than any other programme running on TV. That‘s marginally higher than India‘s most popular soap Kyunki Saas Bhi Kabhi Bahu Thi, which has an average rating of nearly 5. IPL‘s rating of 5 is no mean achievement, given that it has 59 matches packed within 44 days. 27
  • 28. SUMMARY OF THE SEASONS : 2008 INDIAN PREMIER LEAGUE – FIRST SEASON The 2008 Indian Premier League season was the debut season of the Indian Premier League, established by the BCCI in 2007. The season commenced on the 18 April 2008 with the final match held on 1 June 2008. The competition started with a double round robin group stage, in which each of the 8 teams played a home match and an away match against every other team. These matches were followed by two semi-finals and a final. In a match which went down to the last ball, Rajasthan Royals defeated Chennai Super Kings in the final to win the title, with Yusuf Pathan named the player of the match and Shane Watson adjudged the player of the tournament. Sohail Tanvir won the purple cap for being the top wicket-taking bowler while Shaun Marsh won the orange cap for leading run-scorer in the tournament. Shreevats Goswami was awarded the best under-19 player award and the special award for Fair Play was won by the Mahendra Singh Dhoni-led Chennai Super Kings. 28
  • 29. 2009 INDIAN PREMIER LEAGUE – SECOND SEASON The 2009 Indian Premier League season, abbreviated as IPL 2 or the 2009 IPL, was the second season of the Indian Premier League, established by the Board of Control for Cricket in India (BCCI) in 2007. The tournament was hosted by South Africa and was played between 18 April and 24 May 2009. IPL 2 was the second biggest cricket tournament in the world, after the Cricket World Cup, and was forecast to have an estimated television audience of more than 200 million people in India alone. SHIFTING TO SOUTH AFRICA Concerns were raised in India that the tournament was the prime target of terrorists. Because the second season of the IPL coincided with multi-phase 2009 Indian general elections, the Government of India refused to commit security by Indian paramilitary forces. As a result, the BCCI decided to host the second season of the league outside India. On 24 March 2009, the BCCI officially announced that the second season of the IPL will be held in South Africa.[7] Though India did not host the second season, the format of the tournament remained unchanged from the 2008 season format. Relocating the tournament posed extreme logistical challenges for the BCCI since more than 10,000 cricketers and other staff members needed to be flown from India to South Africa within a span of a few weeks. The IPL injected approximately US$100 million into South Africa's local economy. In addition, the BCCI signed a Rs. 8,200 crores (US$1.63 billion) contract with Multi Screen Media to broadcast matches live from South Africa to India. 29
  • 30. The IPL was hosted successfully in South Africa and was hailed as an "extraordinary" accomplishment. The tournament was particularly praised for globalizing cricket and had set record television viewership. The tournament was won by Deccan Chargers while the Bangalore Royal Challengers were declared as runners-up. CHANGES IN RULES AND REGULATIONS Some of the rules were changed for the 2009 edition of the IPL. The number of international players allowed in any one squad was increased from 8 to 10 although the number allowed in any playing 11 remained at 4. The players purchase cap was increased from 5 to 7 million. The BCCI also negotiated with the ECB to allow English cricketers to participate in the 2009 edition of the IPL. English players were allowed to play for 21 days in between their tour to West Indies and the subsequent return tour. The format was the same as previous season. 30
  • 31. 2010 INDIAN PREMIER LEAGUE – THIRD SEASON The 2010 Indian Premier League season, abbreviated as IPL 3 or the 2010 IPL, was the third season of the Indian Premier League, established by the Board of Control for Cricket in India (BCCI) in 2007. The tournament was hosted by India and had an estimated television audience of more than 200 million people in the country.It was played between 12 March and 25 April 2010. It was also the first ever cricket tournament that was broadcast live on YouTube. The final four matches of the tournament were screened in 3D across movie halls in India. The tournament was won by the Chennai Super Kings, who defeated the Mumbai Indians in the final played at Navi Mumbai. The purple cap went to Pragyan Ojha of Deccan Chargers, while the orange cap and the player of the tournament award were awarded to Sachin Tendulkar of the Mumbai Indians. Saurabh Tiwary was declared the U-23 success of the tournament, while the Chennai Super Kings won the Fair Play Award. ADDITION OF VENUES Five new venues were introduced for the third edition of IPL. These included Nagpur, Cuttack, Navi Mumbai, Ahmedabad and Dharamsala. Nagpur, Cuttack, and Navi Mumbai amongst them hosted the home games for Deccan Chargers, and Ahmedabad and Dharamsala shared some of the home matches of Rajasthan Royals and Kings XI Punjab respectively. Additionally, Hyderabad, which hosted all Deccan's home games in 2008, did not host any games this season. This was attributed to the possibility of unrest due to a Telengana state succession. 31
  • 32. SECURITY CONCERNS In one of the last games of the tournament, two bombs went off in Bangalore, while another was defused. The game on the day did continue, however, after an hour's delay. As a consequence both semi-finals were moved out of the city. A third device was defused on 18 April 2010. All three devices were hidden in the stadium's perimeter wall and the two explosions were believed to have injured 15 people. Initial investigations suggested that the explosives used in the devices were locally made and were of low intensity. Former cricketers Sir Ian Botham, Brian Lara, Steve Waugh and Shaun Pollock urged the players not to give in to terrorism by opting out of the league PLAYER AUCTION 11 players were sold at the player auction held on 19 January 2010 in Mumbai. This was from a list of 97 registered players, which was then shortlisted to 66. West Indian all rounder Kieron Pollard and New Zealand fast bowler Shane Bond were the highest bid players in the auction who were bought for $750,000 but not before their prices went in the silent tie breaker round. Kieron Pollard was bought by Mumbai Indians and Shane Bond by Kolkata Knight Riders. The rules and format were the same as the previous season with the exception of the strategic timeout. Each innings had two mandatory timeouts of two-and-a-half minutes each. The fielding captain must take one at the end of over six, seven, eight or nine, and the batsmen at the end of over 13, 14, 15 or 16 32
  • 33. 2011 INDIAN PREMIER LEAGUE – FOURTH SEASON The 2011 Indian Premier League season, abbreviated as IPL 4 or the IPL 2011, was the fourth season of the Indian Premier League, the top Twenty20 cricket league in India. The tournament was hosted in India and the opening and closing ceremonies were held in M. A. Chidambaram Stadium, Chennai, the home venue of the reigning champions Chennai Super Kings. The season ran from 8 April to 28 May 2011. This season the number of teams in the league went from eight to ten with the additions of the Pune Warriors India and the Kochi Tuskers Kerala. The tournament was won by the Chennai Super Kings for the second successive season, defeating Royal Challengers Bangalore by 58 runs in the final in Chennai, with the winning team's Murali Vijay being named Man of the Match. With this win Chennai Super Kings became the only team to have won the IPL on more than one occasion. Despite Bangalore failing to win the title, one of the team's players, Chris Gayle was named as the tournament's best player. He scored 608 runs in twelve innings – the most in the tournament – as well as picking up eight wickets, having joined the team after the start of the season due to an injury to another overseas player, Dirk Nannes. Mumbai Indians' Lasith Malinga set a new record for most wickets taken within an Indian Premier League season, claiming 28 wickets during the campaign, but Mumbai had to settle for third place in the tournament, having lost to Bangalore in the second qualifier. Chennai, Bangalore and Mumbai represented India in the Champions League 2011 tournament in September. The Fly Kingfisher Fair Play Award was again won by the Chennai Super Kings for topping the fair-play table 33
  • 34. CHANGE IN FORMAT With the introduction of 2 new teams, a new ten-team format was created. This new format consists of 74 matches and was introduced as retaining the previous format would result in 94 matches, significantly greater than the 60 matches from the previous season, where teams compete in a double round-robin tournament. The knockout stage was changed to a playoff format. If a match ends in a tie, a Super Over will be played to determine the winner. The ten teams are divided into two groups of five. In the group stage, each team plays 14 games: facing the other four teams in their group two times each (one home and one away game), four teams in the other group once, and the remaining team two times. A random draw was used to determine the groups and who plays whom across the groups once and twice. Each team plays the team in the same row and the same column twice, and all others once. For instance, Pune Warriors will play Chennai Super Kings and the other Group A teams twice but the other teams from Group B (Kolkata Knight Riders, Kochi Tuskers Kerala, Royal Challengers Bangalore and Rajasthan Royals) only once. Similarly Kochi Tuskers Kerala will play Delhi Daredevils and the other Group B teams twice but all other teams from Group A only once. 34
  • 35. 2012 INDIAN PREMIER LEAGUE – FIFTH SEASON The 2012 Indian Premier League season, abbreviated as IPL 5 or the IPL 2012 or the DLF IPL 2012 (owing to title sponsorship reasons), was the fifth season of the Indian Premier League, initiated by the Board of Control for Cricket in India (BCCI)in 2007 with the first season played in 2008. The tournament began on 4 April and ended on 27 May 2012. Kolkata Knight Riders were the winning team, beating defending champions Chennai Super Kings by five wickets in the final. This season the number of teams in the league went from ten to nine with the termination of Kochi Tuskers Kerala. Despite a slow start, IPL 5 earned a higher cumulative viewership than any previous edition of the IPL. The cumulative reach for 74 IPL 5 matches was recorded at 163 million against 162 million for 73 matches in IPL 4, and the final match had a higher reach than any previous final. This edition of the IPL has been the most competitive with 19 matches in which team won in the last over and 6 matches in which team won by a margin of less than 10 runs. Near the end of the season, the season faced various hurdles including a spot fixing case, which allegedly included 5 players caught on a sting operation carried on by a local news channel. The top three teams of the tournament (Kolkata Knight Riders, Chennai Super Kings and Delhi Daredevils) will represent India in the 2012 Champions League Twenty20. The Fair Play Award was won by Rajasthan Royals, while Kings XI Punjab batsman Mandeep Singh was named the tournament's "Rising Star" and Kolkata Knight Riders bowler Sunil Narine was Player of the Season. 35
  • 36. CRITICISM AND CONTROVERSIES MEDIA RESTRICTIONS : Initially the IPL enforced strict guidelines to media covering matches, consistent with their desire to use the same model sports leagues in North America use in regards to media coverage. Notable guidelines imposed included the restriction to use images taken during the event unless purchased from cricket.com, owned by Live Current Media Inc (who won the rights to such images) and the prohibition of live coverage from the cricket grounds. Media agencies also had to agree to upload all images taken at IPL matches to the official website. This was deemed unacceptable by print media around the world. Upon the threat of boycott, the IPL eased up on several of the restrictions. On 15 April 2008 a revised set of guidelines offering major concessions to the print media and agencies was issued by the IPL and accepted by the Indian Newspaper Society. CONFLICTS WITH THE ENGLAND AND WALES CRICKET BOARD : Because the inaugural IPL season coincided with the County Championship season as well as New Zealand's tour of England, the ECB and county cricket clubs raised their concerns to the BCCI over players. The ECB made it abundantly clear that they would not sign No Objection Certificates for players—a prerequisite for playing in the IPL. Chairmen of the county clubs also made it clear that players contracted to them were required to fulfill their commitment to their county. As a result of this, Dimitri Mascarenhas was the only English player to have signed with the IPL for the 2008 season. A result of the ECB's concerns about players joining the IPL, was a proposed radical response of creating their own Twenty20 tournament that would be similar 36
  • 37. in structure to the IPL. The league — titled the Twenty20 English Premier League — would feature 21 teams in three groups of seven and would occur towards the end of the summer season. The ECB enlisted the aid of Texas billionaire Allen Stanford to launch the proposed league. Stanford was the brains behind the successful Stanford 20/20, a tournament that has run twice in the West Indies. On 17 February 2009, when news of the fraud investigation against Stanford became public, the ECB and WICB withdrew from talks with Stanford on sponsorship. On February 20 the ECB announced it has severed its ties with Stanford and cancelled all contracts with him. CONFLICTS WITH CRICKET AUSTRALIA : The BCCI also experienced run-ins with Cricket Australia (CA) over player availability for Australia's 2008 tour of the West Indies and CA's desire for global protection of their sponsors. CA had feared that sponsors of the IPL (and its teams) that directly competed with their sponsors would jeopardize already existing arrangements. This issue was eventually resolved and it was also agreed upon that Australian players would be fully available for the West Indies tour. CHEERLEADERS : The IPL has been criticised by a few politicians and feminists for bringing in foreign cheerleaders, which is seen by many to not be in the traditional spirit of the game, as well as being against some Indian sensibilities. Two cheerleaders from London were asked to leave the ground at Mohali ―because of the colour of their skin‖ by Wizcraft International Entertainment, which handles the team Kings XI 37
  • 38. Punjab. Ellesha Newton and Sherinne Anderson, both from London and of African ancestry were allegedly barred from entering the stadium by employees of Wizcraft International Entertainment on the pretext that "people don‘t like dark girls here". Both the girls also allege that an employee referred to them with the racial slur ″nigger″. Board of Control for Cricket in India (BCCI) said a probe would be initiated by the IPL only if the two women officially complain to IPL commissioner Lalit Modi. BCCI and IPL officials are surprised that the two cheerleaders did not complain about the alleged racist behaviour while they were in India and spoke about it only after they returned to London. "We have not received any complaint from any cheerleaders that they were asked to leave by the Mohali-based Kings XI Punjab franchise recently because of the colour of their skin," BCCI joint secretary M.P. Pandove said in Mohali. SREESANTH - HARBHAJAN SINGH ALTERCATION : On 25 April 2008, following the King's XI Punjab (KXIP)'s victory in the Indian Premier League over the Mumbai Indians at Mohali, KXIP player Sreesanth was slapped under his eye by Harbhajan Singh, the stand-in captain of Mumbai Indians. The incident came to light as Sreesanth was caught by TV cameras sobbing inconsolably on the field before the presentation ceremony. Sreesanth had since downplayed the incident saying he had no complaints against Harbhajan who was "like an elder brother" to him. Harbhajan's team had lost their third consecutive match when he apparently reacted violently to Sreesanth's approaching him and reportedly saying "hard luck". The footage of the slap has not yet been released for public viewing. The BCCI launched an investigation into the incident and decided to ban Harbhajan for the remainder 11 matches of the Twenty20 tournament. 38
  • 39. CONFLICT WITH CRICKET CLUB OF INDIA : As per IPL rules, the winner of the previous competition decides the venue for the finals.In 2009, the reigning Champions, Deccan Chargers chose the Brabourne Stadium in Mumbai. However, a dispute regarding use of the pavilion meant that no IPL matches could be held there. The members of the Cricket Club of India that owns the stadium have the sole right to the pavilion on match days, whereas the IPL required the pavilion for its sponsors. The members were offered free seats in the stands, however the club rejected the offer, stating that members could not be moved out of the pavilion SUSPENSION OF LALIT MODI : On 25 April 2010, the BCCI suspended Lalit Modi, the IPL chairman, for "alleged acts of individual misdemeanours". The suspension notice was served on him by Rajeev Shukla, BCCI vice-president, and N Srinivasan, the board secretary, sending an e-mail to the same effect. It followed a day of negotiations with interlocutors attempting to persuade Modi to resign but pre-empted a potentially flashpoint at a scheduled IPL governing council meeting, which Modi had said he would attend. Modi was officially barred from participating in the affairs of the Board, the IPL and any other committee of the BCCI Chirayu Amin, an industrialist and head of the Baroda Cricket Association, was named interim chairman of the IPL by the BCCI, following Lalit Modi's suspension.According to BCCI, many important documents were missing from the IPL and BCCI offices. "Many of the records are missing. The IT is asking for documents. We don't have them. We have asked BCCI CAO Prof Ratnakar Shetty to look into the missing records and papers," said BCCI President Shashank Manohar 39
  • 40. CONTROVERSY ABOUT TAX EXEMPTION : A controversy was triggered when the Centre gave away potential revenue of 45 crore by granting exemption to International Cricket Council (ICC) on the revenue generated from the recently concluded World Cup Cricket Tournament. In connection the PIL filed by Shiv Sena leader Subhash Desai seeking a direction to the Maharashtra government and the Income Tax Department to recover entertainment tax from IPL. He also asked the petitioner to make Sharad Pawar a party if he wanted to make allegations against him as he headed the apex cricketing body two years ago. In August 2011, Finance minister Pranab Mukherjee said Tuesday that the Income Tax Department is probing allegations of financial irregularities and "criminal activities" against some of the franchisees in the Indian Premier League (IPL) In June 2011, the Chennai High Court said it ―could not appreciate‖ the tax exemption to the Indian Premier League and sought a response from Tamil Nadu government on the issue. The PIL filed by Vasan, alias Sakthi Vasan, had contended that the matches conducted by the IPL ―are for the entertainment of the public. He submitted that the tickets for the IPL matches were being sold at exorbitant rates and the higher range of tickets are purchased by the rich and the affluent. The petitioner said the Income Tax Department was the authority for regulating the tariff for entertainment, which he said would include the IPL matches, but the department failed to regulate the (IPL) tariff. 40
  • 41. TERMINATION OF THE KOCHI FRANCHISE On September 19, 2011, the newly elected BCCI president N Srinivasan, after the annual general meeting in Mumbai, announced that the Kochi Tuskers Kerala IPL franchise was terminated by the BCCI for breaching its terms of agreement.Under the terms of the agreement, each franchise has to submit a bank guarantee every year that covers the fee payable to the BCCI. The 2010-founded team was bought for Rs 1,550 crore and the consortium has to pay a bank guarantee of 156 crore every year till 2020. The consortium that owns Kochi is reported to have defaulted on an annual payment of 156 crores as a bank guarantee. In April 2010, the BCCI's working committee had rejected demands from Kochi and Pune Warriors for a reduction in their franchise fees. The two new franchises, which made their debuts in 2011, had sought a 25% waiver on the grounds that the BCCI had stated in the bidding document that each team would play 18 league matches in a season. The schedule was later reduced to 14 matches per team. 2012 SPOT FIXING CASE On 14 May 2012, an Indian news channel India TV aired a sting operation which accused 5 players involved in spot fixing. Reacting to the news, Indian Premier League president Rajiv Shukla immediately suspended the 5 uncapped players. The five players were, TP Sudhindra (Deccan Chargers), Mohnish Mishra (Pune Warriors), Amit Yadav, Shalabh Srivastava (Kings XI Punjab) and Abhinav Bali, Delhi cricketer .However, the report went on to claim that none of the famous cricketers were found guilty. On the reliability of the report, Rajat Sharma, the editor-in-chief of news channel India TV quoted that the channel had no doubts about the authenticity of the sting operation and prepared to go to court. 41
  • 42. Mohnish Mishra who was part of Pune Warriors India team for the season, admitted to have said that franchises pay black money, in a sting operation. Mishra was caught on tape saying that franchisees paid them black money and that he had received 1.5 crore (US$271,500) from the later, among which 1.2 crore (US$217,200) was black money. He was also suspended from his team INITIAL VIEWERSHIP The first matches of the season had recorded an average Television Viewership Rating (TVR) of 3.76, 18.7% less than the previous season. The viewership was also reportedly low for the opening ceremony with a rating of 1.3 TVR. The decline was attributed to the number of matches being played, as the count stands at 76 among 9 teams.The rating continued to fall as the cumulative number of people who tuned in to watch the first 16 games also declined from 127.40 million in 2011 to 122.44 million. However, despite this slow start, IPL 5 garnered a higher cumulative viewership than any previous edition of the IPL. The cumulative reach for 74 IPL 5 matches was recorded at 163 million against 162 million for 73 matches in IPL 4, and the final match had a higher reach than any previous final OTHER CHARGES IN SEASON FIVE : 42
  • 43. 9 April: Shah Rukh Khan, owner of the Kolkata Knight Riders, was served a notice by the Rajasthan Police for smoking in public. Shah Rukh was caught smoking on camera during a match between the Kolkata Knight Riders, the IPL team he owns, and the Rajasthan Royals on April 8. 14 May: An Indian news channel India TV aired a sting operation that accused five players involved in spot fixing. 16 May: Shah Rukh Khan, owner of the Kolkata Knight Riders, received a five-year ban from the Wankhede Stadium for arguing with security at the ground after a match. 18 May: Luke Pomersbach, a Royal Challengers Bangalore batsman, was arrested on charges of molesting an American woman. He was later granted interim bail. 20 May: Rahul Sharma and Wayne Parnell, Pune Warriors players, were detained by Mumbai Police along with hundreds at a rave party bust. 43
  • 44. BUSINESS MODEL OF THE IPL These are the basic 4 components of an IPL and there are many contracts between these parties. Franchises Umpires and Match Officials Players and Team Officials IPL Television Rights Sponsorships 44
  • 45. FRANCHISES IPL invites offers to bid for franchises through auction process. The party to be selected for franchise will be at the discretion of IPL body. The winning party holds the franchisee for perpetuity unless the termination of contract takes place. The franchisee holding fee is paid in a period of 10 years. Franchises‘ agreement is treated as contract based intangible asset and all the accounting and evaluation rules are applicable to team owners. The main terms and conditions of the contracts between IPL and franchises that define their earning and expenses are: Franchise can earn revenues through Broadcast rights (Franchise: IPL 80:20) Sponsorship (Franchise: IPL 60:40) Team sponsorship Gate receipts (Franchise: IPL 80:20) In-stadia Advertising Main expenses Franchisees have to bear Franchise fee to IPL Player Acquisition cost Stadium hire charges Team costs (Coach, travel, insurance, office, other expenses) Marketing/ Promotion costs 45
  • 46. Other legal aspects may include: The franchise must disclose its shareholding pattern to BCCI. Any changes in shareholding or transfer of ownership must be intimated to BCCI and their consent is required. The number of players, domestic and foreign, that a franchise can own and the composition of team to be formed should follw IPL guidelines. Termination of contract Contract can be terminated on the grounds of Breach of contract. Mutual consent of franchisee and IPL Rules for Franchises 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 difference 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 10 foreign players in the squad and at most 4 in the playing XI. 46
  • 47. 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. 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 expensive players in the IPL to date is Gautam Gambhir of India fetched the highest price of $2.4 million from Kolkata Knight Riders at the auction for season 4 47
  • 48. PLAYERS CONTRACT There is a 3 years contract between the Franchisee and players of that Franchisee. According to the contract if a player play no games or less than a quarter they will still be paid the minimum payment, which is 25% of their contracted amount. Players are treated as intangible assets for franchises. When a franchise bids for certain players, it wins a ‗Right to Play‘ of such players during the tournament. TERMINATION OF CONTRACT The contract is said to be terminated by the mutual consent of players and franchisee owning the player. The contract would also be terminated if there is a breach of contract i.e if there is violation of Code of Conduct defined by IPL by any of the involved parties. AUCTIONING OF PLAYERS In annual auction, domestic players are bought and uncapped players signed through trading and buying replacements. In the trading window the player can only be traded with his consent. If the new contract is worth more than the older one then the difference will be shared between the player and the franchise selling the player. GUIDELINES FOR REPLACEMENTS In a bid to streamline the registration process for "replacement" of players, The Indian Premier League (IPL) laid down guidelines for franchisees who want 48
  • 49. "replacements" to substitute contracted players unavailable due to injury or any other reason. The Franchisees must seek prior approval ahead of the Second Player Auction from the IPL for all such "replacements". The DLF IPL stipulates that "replacements" would be allowed only for players not available for the whole season. The franchisee will be able to recruit a "replacement" outside of the 2009 auction, at a player fee no more than that of the replaced player and would not be counted as part of the 2009 Auction Purse of US $ 2 million. Additionally players not purchased during the auction will be available as "replacement" at a player fee equivalent or greater than the reserve price. Also "uncapped" overseas players or Indian players defined as under the player trading rules would be available as "replacement‖. The DLF IPL also stipulates that if the "replacement" player is an overseas player, then he would require an NOC from his domestic board. 49
  • 50. UMPIRES & REFEREES: (ON FIELD MATCH OFFICIALS) IPL has a standard set of rules called code of conduct for these match officials. It is a contract between the IPL committee and the official, and thus breach of contract can also happen. In general if such a breach of contract is noted, then it can be reported to IPL by following people: 1. The Team Manager 2. The Franchisee of one of the teams playing the match 3. IPL Chairman 4. However in case a referee finds a breach of contract involving umpire, then he can also report the same to the IPL body. In case of such breach of contract reported, a hearing is held By Commission in accordance with the procedure set out in Operational Rules with IPL acting as claimant and the Umpire or referee as Respondent. Code of Conduct 1 Umpires and Referees shall not make any public pronouncement or media comment which is detrimental to: (a) The game of cricket in general, or (b) Any particular Match between Teams in which any such Umpire or Referee is involved, or (c) The League; or 50
  • 51. (d) Relations between IPL, BCCI and any Team and/or Franchisee. 2 Umpires and Referees shall not disclose or comment upon any alleged breach of this Code of Conduct or the Code of Conduct for Players and Team Officials or any hearing, report or decision arising from such a breach unless such disclosure is required under the provisions of this Code of Conduct or the Code of Conduct for Players and Team Officials. 3 Umpires and Referees shall not engage, directly or indirectly, in betting or any conduct described in the Appendix. 4 Umpires and Referees shall not use or in any way be concerned in the use or distribution of illegal drugs. 5 Umpires and Referees shall at all times observe and comply with the provisions of any regulation of IPL which applies to Umpires and Referees including but not limited to the Operational Rules. 6. Umpires and Referees shall not engage in any conduct which is prejudicial to the interests of the game of cricket and/or the League. 51
  • 52. TELEVISION RIGHTS On 17 January 2008 it was announced that a consortium consisting of 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. A proper contract was created for the same with all the terms and conditions defined. This deal was challenged in the Bombay High Court by IPL, and got the ruling on its side. The contract was challenged on basis of following breaches: 1. Obstructive commercialization 2. Excessive Advertising 3. Poor broadcast quality After losing the battle in court, Sony Entertainment Television signed a new contract with BCCI with Sony Entertainment Television paying 8,700 crore (US$1.57 billion) for 10 years. One of the reasons for payment of this huge amount is seen as the money required to subsidise IPL's move to South Africa which will be substantially more than the previous IPL. IPL had agreed to subsidise 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 general elections. 52
  • 53. 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 (But in March 2010, IPL decided not to go public). Sony-WSG then re-sold parts of the broadcasting rights geographically to other companies.It is officially broadcasted on Set Max and in internet in Times internet. Broadcasting rights were sold to its current owners SONY, WSG after a proper auction (offer to invitation). On 15 January 2008 it was announced that a consortium consisting of India's Sony Entertainment Television network and Singapore-based World Sport Group secured the global broadcasting rights of the Indian Premier League. 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. On 1 April 2011, Rogers Media announced that it signed a four year exclusive deal in Canada to broadcast 36 group stage matches, 3 playoff matches and 1 championship match on its channel Sportsnet One. In the 2012 season, its coverage will also include a weekly highlight show and four matches on its Omni Television multicultural stations, and the IPL Final will be broadcast on the main Sportsnet regional channels 53
  • 54. SPONSORSHIPS: Sponsorship rights in IPL can be given to interested parties for a particular fee, but it is also subject to: – IPL sponsorship guidelines – Governing body rules (IPL Governing Council) – General Laws (e.g. limitations on alcohol and tobacco advertising) Some of the sponsorship rights given in IPL are as follows: – Rights to hospitality company – Rights to individual player appearances and endorsements. – Rights to player images – Rights to use logos and sponsorship designations – Promotional and advertising rights across media – Right to display logo on team and replica apparel – Right to name the team or event (DLF IPL) – Right to branding and visibility at venues – Right to match tickets – Rights to in-stadium hospitality – On air rights etc. 54
  • 55. Some Major clinched by IPL areThe IPL signed up Kingfisher Airlines as the official umpire partner for the series in a 106 crores (US$23.53 million) (approximately £15 million) deal. This deal sees the Kingfisher Airlines brand on all umpires' uniforms and also on the giant screens during third umpire decisions. India's biggest property developer DLF Group paid US$50 million to be the title sponsor of the tournament for 3 years from 2008 to 2010. Other year sponsorship agreements include a deal with motorcycle maker Hero Honda worth $22.5-million, one with PepsiCo worth $12.5-million. 55
  • 56. IPL BUSINESS MODEL & RETURNS Unlike its counterparts such as EPL or NBA, the major source of revenue for IPL is not stadium ticket sales but media rights. Other sources of revenue for IPL are title sponsorship, the sale of franchises and licensed merchandise and products. A part of the revenues so raised are retained by the BCCI, a part distributed as prize money and the remaining is divided equally among the franchises based on a pre agreed model.  BCCI inflow: The biggest source of revenue for the BCCI so far has been the proceeds from franchise bids amounting to a total of $1.42bn. Another major source of revenue is media rights that were awarded to Sony for $1bn for a period of 10 years and starting from IPL-3, an undisclosed amount for media streaming rights awarded to Youtube .  Title sponsorships (DLF, Coca Cola etc.) form another big chunk of the revenues.  Finally, proceeds from stadium tickets, merchandise sales etc. complete the list of major sources of revenues for IPL.  BCCI outflow: Apart from the revenues generated from the bidding of franchises, almost all other revenues are shared with the franchises in different proportions  The ones with the least to lose are the gentlemen at the BCCI. Legally, the IPL is a sub-committee of the BCCI, and it has already guaranteed itself close to $1.75 billion in television rights and franchise sales figures. 56
  • 57.  The title sponsorship for the inaugural IPL tournament, and the commission from the player auctions - each of the eight franchise teams can "buy" up to four foreign cricketers through IPL - will earn it more. Of course, two-thirds (64 per cent, to be precise) of the central rights money television and title sponsorship, for example - will have to be shared with the franchisees/clubs. Even so, by the simple expedient of sanctioning a new product, Twenty20 cricket, the BCCI/IPL has earned the cheapest billion in Indian history. 57
  • 58. THE DEATH OF ONE DAY INTERNATIONAL? The success of the IPL has made it clear that something has to give to accommodate it, and on the current evidence that something will be the 50-over game .When you consider how much the Indian Premier League borrowed from World Series Cricket, it¹s quite ironic that its success might lead to the eventual extinction of the pajama cricket that was the cornerstone of the Packer revolution. As much as World Series cricket was about fair pay, improved TV coverage and superior marketing of the sport, it was also about establishing one-day cricket as a distinct entity, played in coloured clothes, under lights, and in front of crowds that came expecting to be entertained. it was razzmatazz with some substance. Packer¹s focus was on gladiatorial fast bowlers, and the stroke players that could take them on. Three decades later, the IPL advertised its players as warriors. When Andy Roberts fractured David Hookes¹ jaw with a vicious bouncer, people knew that the World Series wasn¹t some hit-and-giggle enterprise. The IPL had a similar moment, when Zaheer Khan left Dominic Thornely looking like a young Mike Tyson had seen to him. Packer was a pioneerand an original, and the IPL¹s copycats succeeded because they took his blueprint, adapted it to an Indian context, and threw in a dash of Bollywood for good measure. This year, after an uninterrupted run of 28 years, Cricket Australia pulled the curtain down on the annual tri-series. It¹s fair to say that its decline had mirrored that of the one-day game. After the spectacular success of the ICC World Twenty20 in South Africa, and the inaugural IPL season, the one-day game is on life-support, and it may only be a matter of time before the plug is pulled. Crowds and television 58
  • 59. audiences caught in the thrall of the Twenty20 game are unlikely to shed a tear. It¹s amusing to hear greats of the past talking of how the IPL¹s success could have dire consequences for Test cricket. Nothing could be further from the truth. The Test-cricket constituency is a distinct one, and it generally consists of people who have played the game at some level, whether that¹s back garden, park, first-class or international. More importantly, it¹s a group of people that appreciate what Milan Kundera called Slowness, those not obsessed with instant gratification. Such fans will never abandon Test cricket for the crash-bangwallop thrills that Twenty20 offers. He or she may go and watch Dumb and Dumber, but it¹s never going to replace 400 Blows or In the Mood for Love in his affections. Sadly, one-day cricket has no identity. In that respect, its like your stereotypical Bollywood movie with the hackneyed script that tries to have something for everyone, and ends up having nothing. It says much about the lack of imagination of those that administer the game that the 50-over game has evolved so little since the Packer years. Compare that with Lalit Modi. You may not like the man or his hubris, but he has taken an existing concept, fine-tuned it, and ensured that the cricket world will never be the same again. After the first season Sunday night¹s final, which could have been scripted by Gregory Howard of Remember the Titans fame, Modi and the IPL hold all the cards, while the ICC and other boards have next to nothing to bargain with. The last World Cup in the Caribbean was a fiasco, an object lesson in how not to organize an event. Poor crowds, overpriced tickets, a lack of atmosphere and an interminable schedule all combined to make it perhaps the worst of all major competitions. In contrast, the IPL¹s head honchos didn¹t behave like stentorian 59
  • 60. schoolmasters, and the entertainment package that accompanied the games attracted everyone from five-year-olds with temporary tattoos to middle-aged women who had decided to forego a staple diet of TV soaps. Where now for the IPL? After what happened on Sunday night, there¹s little doubt that the second season will be huge. Despite the concerns of the ECB and others, every single one of the world¹s top players is likely to take part. If they do try to prevent the likes of Kevin Pietersen from playing, they will only end up being checkmated like the Australian Cricket Board were after Packer¹s bold gambit. What is likely to happen is this: Both England and Australia, and perhaps South Africa and Pakistan too, will Endeavour to jazz up their own T20 events so that they can at least compare to the IPL. A Champions League has resulted from it, because the stupendous Response in India has confirmed that people are ready to invest both time and money to watch the best play the best, even if it‘s only over three hours. The franchises, none of whom are likely to be too perturbed by the huge amounts invested in the first year, also have a role to play. Manoj Badale, of the Emerging Media group that owns the Rajasthan Royals, reckoned that it would take a couple of years for the club culture to truly take root, but you can rest assured that teams like Rajasthan won¹t be spending the next 10 months idle. The reality is that no league can prosper if it operates only over six weeks. American Football has the shortest season of any major sport, but even that lasts 16 weeks, and then a month of play-offs. The football [soccer] seasons in Europe, the NBA in North America and Major League Baseball all last much longer, which is why they become such an integral part of fans lives. What does the Indian cricket 60
  • 61. fan do now? Next up is a tri-series in Bangladesh, followed by an Asia Cup that features teams like Hong Kong. It¹s the classic champagne-followed-by-flat-beer scenario and it will be interesting to see what the TV ratings are like. Back when Doordarshan, the national broadcaster was all we had, everyone watched it. Then, with the onset of cable TV, no one bothered. The IPL has created a revolution, especially in the fan demographic, but has now left town. For the moment, the talk is of creating a four-week window, most likely in April. It¹s only a band-aid solution. In the long run, we are looking at a three-month season where teams play weekend games and the occasional midweek one as they do in 16 the major football leagues. Those will alternate with Champions League games featuring the top sides. A six or eight-month period might be set aside for Test cricket and other bilateral contests, but the fact is that cricket needs a 50-oversaside game between India and Hong Kong like it needs a hole in the head. After watching McGrath against Jayasuriya and Warne against Ganguly, why would anyone settle for such mediocrity? Unless one-day cricket can reinvent itself, and four innings of 20 overs each is the best suggestion I¹ve heard, it has one foot in the grave, with the fact that the World Cup is the jewel in the ICC crown being the only thing keeping it alive. It¹s an opinion that even players share. Stephen Fleming was New Zealand¹s finest captain, the one who led them to their only major one day triumph, the ICC Knockout in 2000. I am worried about the amount of one-day cricket, how much appeal one-day cricket is going to have with tournaments like this, he said. I think the majority feels that it could cause a problem for the international calendar. The response to the first season of World Series Cricket, with the forces of orthodoxy ranged against it, was so lukewarm that a desperate Packer was reduced 61
  • 62. to counting the cars in the parking lot. No one saw Modi doing anything similar, and the perfectly scripted final has guaranteed that all the franchises will be counting next year are even bigger gate receipts. As for one-day cricket, the message has been bellowed out through a foghorn. Transform or perish. 62
  • 63. Economics of the Indian Premier League Q: How does IPL make money? Auction of broadcasting rights Title sponsorship and corporate sponsorship Sale of tickets (20% of tickets allocated to IPL) Auction of franchisees rights Official umpire‘s sponsorships Q: How is the IPL income distributed? Share of broadcasting money with franchisees Share of sponsorship money with franchisees Share of ticket money with franchisees Inauguration expenses Prize money: $5 million ($3 million for winner; $2 million divided among others) Q: What are the sources of income for an IPL Franchisee (ROI)? Share in revenue from broadcast rights (equal share for all franchisee after IPL‘s share) Share in sponsorship money (60% of the amount distributed equally) Share in revenue from sale of tickets Revenue from in-stadium advertising Sale of players to other franchisee Revenue from own sponsorship and corporate sponsorship Q: How is the Franchisee income distributed? Franchisee fees – 10% of total franchisee costs every year to IPL Players‘ cost (Each franchise have paid around $4-6 million per year) Match fees and Inauguration expenses Rent of stadium (expense of around Rs.2.5mn per match) Marketing and promotional cost (around $3-4mn per team) Fee for coaches, physiotherapists and other members. Administrative cost 63
  • 64. 64
  • 65. FUTURE OPPORTUNITIES FOR IPL TWENTY20 CRICKET Title sponsorship: DLF paid around $50 million to secure the title sponsorship for the first five years and this is is renegotiable after the third year. If IPL Cricket gains momentum, it can be much higher. Player trading: In the IPL trade window, players can be sold for many times the cost at which they were acquired. Gate fees: Beyond the third year, gate fees can increase significantly if the IPL takes off in a big way. Franchise sale: After the third year, a franchisee has the option to sell out. This could lead to a windfall. Franchise forever: The franchise fee is for the first 10 years, after which franchisees continue to own the teams for perpetuity. Potential Downsides of IPL Not enough eyeballs: Sony-WSG and the franchises could suffer losses if IPL fails to wins over spectators and viewers, and draws a critical mass. Not enough star players: Constant availability of top overseas players may not be possible, due to growing number of international Cricket tournaments. Other tournaments: Potential viewership threat if the ICC decides to hold an annual international Twenty20 cricket championship. Ad blues: Recession and change of venue could affect plans of potential advertisers. Game pull: Business prospects may be affected if the franchisees fail to create a loyal fan following in their turf. SWOT ANALYSIS OF IPL STRENGTHS Short span i.e., 2 ½ hours therefore fast-paced and exciting 65
  • 66. 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 WEAKNESSES 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 Large potential mass audience is very attractive as a marketing 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 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. EFFECT IN INDIAN ECONOMY 66
  • 67. 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. Another effect 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, Bangalore, 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 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. 67
  • 68. CONCLUSION IPL‘s ability to sustain and grow its popularity in the long-term depends on the ability of individual franchises to break out and become large media properties on their own. Franchisees may also have to increase their marketing and promotional 68
  • 69. spends to effectively monetize their fan base and build brands out of their respective teams. Apart from finding more team sponsors, franchisees may try to increase the mix of premium seating in their home stadiums. At the moment a bit might be too different if we look IPL and ICL. In the recent format advantage can be taken by organizing matches between this two winners that is more matches can be played between the two leagues. In the coming year more innovation is expected we might be able to see 10- 10 or a 5-5 over format of cricket. 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 69
  • 70. 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. BIBLIOGRAPHY/WIBLIOGRAPHY Wibliography http://www.iplt20.com/ http://en.wikipedia.org/wiki/Indian_Premier_League 70
  • 71. http://www.espncricinfo.com/indian-premier-league2012/content/current/series/520932.html http://articles.economictimes.indiatimes.com/keyword/indian-premier-league Annexure 71
  • 72. Thank You!!!!!!!!! 72

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