BACKGROUND ENTRY INTO CRICKRT MONEY MAKER INDIAN PREMIRE LEAGUE KEY FEATURES OF IPL IPL FROM PLAYERS,SPECTATORS,FRANCHISES, STRATEGIES EMPLOYED BCCI POINT OF VIEW DEALS OF IPL FOR BCCI HIS AWARDS & RECOGNITIONS CONCLUSION
Born in 1963 in Delhi, India, Lalit Kumar Modi studied at the prestigious St.Josephs College, Nainital. He attended Duke University in the United States, graduating in 1986 with a degree in marketing. He is the scion of Modi Enterprises, a multi Billion Dollar group, the industrial conglomerate founded in 1933, it has interests in agro-chemicals, tobacco, tea and beverages, education, entertainment and Real estate. He also sits on the board of Godfrey Philips, one of Indias tobacco companies
He Joined BCCI in 2004 as a Marketing Director. Modi was in the side of Jagmohan Dalmiya in the power struggle between Jagmohan Dalmiya and Sharad Pawar. But after the defeat of Dalmiya he came in the side of Sharad Pawar. Then he said "no one in cricket wants to be in wrong side".
Team Sponsorship Deal for Team India with Sahara group for 4 years - 103 million dollars (415 Crores) on 20.12.05 Team Apparel Sponsor Deal for Team India with Nike for 4 year - 53 million dollars (215 Crores) on 24.12.05 Media Rights Deal with Nimbus for 4 years- 612 million dollars on 18.2.06 Media Rights for overseas matches with Zee for 4 years - 219 million dollars 0n 7.4.06 BCCI Sponsorship Deal with WSG - 46 million dollars (173 Crores) on 27.8.07
The BCCI launched the Indian Premier League (IPL) on the lines of football’s English Premier League and the National Basketball League (NBA) of the US. The IPL is a professional Twenty20 cricket league created and promoted by the BCCI and backed by the ICC
IPL has been conceived on the lines of the English premier league, where local football teams with a defined fan base(supporters) play against each other. The idea behind IPL is to sell cricket as a high involvement reality show that would appeal to all audiences. IPL has eight teams sold to franchises for perpetuity. These franchises can run the league in their individual styles and can raise resources from the primary market.
IPL- already a US$ 2bn property, is essentially an attempt to sell cricket as a reality show. Some of the franchisee would look at IPL as a means to promote their brand (UB group) while the others would look it as a financial investment e.g. (India Cements). Our belief is that the three successful teams could easily do revenues of Rs 3bn per year in the next three-four years He has a vision of Champions league and BCCI own Tv channel
Top players are earning minimum 1-2 crores per season. (with highest being Mahendra Singh Dhoni how is paid 6 crores per season). Lalit Modi rightly points out, “It benefits world cricket because it benefits all their players - they are able to supplement their income by coming to us IPL is an opportunity to take cricket to new audiences, new frontiers. The emphasis on innovation and the fan-friendly format have already proven wildly popular at domestic level in England, South Africa and Australia
IPL team owners have two channels of revenue, central and local. · Central - Includes Media, sponsorship and suppliers, which BCCI will sells and shares with the teams. · Local - Includes things like stadium ticket sales, local sponsorship. Concessions, merchandise , which franchisees will be responsible for selling. IPL – We have nothing to lose!!! (BCCI’s prospective)
The vision to take IPL global through international partnerships with Google-Youtube. His strategy to keep the IPL alive even after the season by organizing international off season matches to keep the audience engaged and boost the brand recall of IPL. The inspiration that he imbibed in every youngster in India who dreams to be the next generation Sachin Tendulkar,Kapil Dev or a Saurav Ganguly. He provided the platform for players like Asnodkar, R. Khan who could not even dream of earning such huge sums from their cricketing abilities. IPL inspired them to believe in themselves and put in their hard work so that they get the chance to play for their nation and this dream has been realized by players like Manpreet Gony, Murali Vijay, Ravinder Jadeja who have got their bright chances.
Lalit Modi provided us the ultimate product mix of Cricket + Bollywood which has no other match in terms of entertainment value delivered. And, ultimately to take on the other commercial sport events of the west like the American Baseball , the English Premier League or may be other soccer leagues in the Europe. As, the growth rate of IPL in the sports industry clearly poses a major threat to these leagues in the coming future. So, he is making India shine globally.
One, “Packaging of the Event” from day 1 as entertainment is the biggest strategic hit. Cricket just happens to be there! Two, to keep it focussed in 20 overs and inviting International players, not only enhanced the entertainment value but also factored in the fastest growing segment of high income youth. This segment is short of time and wants everything to be packaged small. Three, It structured teams around states thereby ensuring team and brand loyalties and assured eyeballs when it comes to media.
Four, attracting the movie stars like Shah Rukh Khan, Preity Zinta and Shilpa Shetty along with highly placed industrialist as team owners, ensured ample media and public interest which further contributed to the success of the event. Five and finally, organisers packaging of all above and ensuring the event was always in controversies and news, meant branding exercise of the kind that has not been seen in sports. At the end of the end, we have a happy lot of bunches – public, sponsors, media and most importantly IPL bankers! Six he also applied a rule of only 4 foreign players could play in 1 match so local support could be got.Even a strategy of cheerleaders to attract crowd.
IPL Media Rights Deal with Sony - 1.26 Billion Dollars 0n 15.1.08 IPL Teams Sale with various parties -723.6 million Dollars on 25.01.08 Web Media Rights to Live current Media - 50 million dollars on 18.4.08 IPL Title sponsorship and Ground sponsors - 220 million dollars - mar-apr 2008
Channel Genre Average TRPSONY & SET MAX IPL 10-11ZEE Soaps + Rock and 5 - 5.5 Roll familySTAR Soaps + Paachvi 4-5 Pass (SRK)9X Chak De Bacche+ 0.7 - 1.35 RealityNDTV Mythological + 1.25 - 2.12 Drama
Teams Owners Franchises AmountMumbai RIL $111.9 mDelhi GMR Group $84 mKolkata Red Chillies $75.09 m EntertainmentChennai India Cements $91 mJaipur Emerging Media $67 mHyderabad Deccan Chronical $107 mBangalore UB Group $111.6 mMohali Preity Zinta, Ness $76 m Wadia
"The Business Standard Award" for making BCCI the Most Innovative Company "Brand Builder of the Year" by Asia Brand Conference CNBC Awaaz "The Consumer Award for Transforming Cricket in India“ NDTV Profit "The Most Innovative Business Leader in India". Frost & Sullivan Growth Excellence Awards For "Excellence in Innovation“ CNBC Business Leader" award He was listed among Indias 20 most powerful people by India Today magazine. Lalit Modi was voted no 19 in the list of 25 most powerful Global Sports figures.
Cricinfo says “ Lalit Modi will be known as the man who changed the landscape of cricket. “If there is no Lalit Modi IPL can run better.” Lalit Modi will be remember as the person who change the face of Indian and the world cricket forever & bring cricket to cricket business
Ipl.com wikipedia.org godfreyphillips.com modi.com Business Today Outlook THANK YOU