Slideshare ipl report events assignment

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COMPLETE REPORT ON IPL BY BITW

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Slideshare ipl report events assignment

  1. 1. Asad Hoosain BITW MBA-13-007 ENTERTAINMENT KA BAAP
  2. 2.  Designed after intensive study based on primary sporting leagues around the globe like NHL,NBA,NFL & EPL.  Designed with detailed ,critical analysis and systematic evaluation of these leagues.  League structure modeled to fit the unique format of Indian context and also build the local talent.  Can be successful only if all stakeholders’ interests are safeguarded.
  3. 3.  Brain child of Mr. Lalit Modi, the then VP,BCCI.  Late June 2007-discussed with Andrew Wildblood,IMG  2008- IPL CAME TO EXISTENCE  Feb. 2008- 1ST IPL Auction was held  April 2008- 1st IPL match , Bangalore,RCB VS KKR  Schedule – 46 days 59 matches.
  4. 4.  Revenues for IPL & FRANCHISEES come from 3 streams-  1. MEDIA RIGHTS  2. SPONSORSHIPS(under central or local pool)  3. GATE RECEIPTS.  Consortium incl. SONY ENTERTAINMENT TELEVISON (SET) & WORLD SPORTS GROUP bought BROADCASTING RIGHTS - $1.026 billion 10 yrs.
  5. 5.  Marketing by SONY -$108 million  Remainder ($ 918 million) – Central pool  Central Revenues Media Rights IPL Franchisees Prize Money 2008-2013 20% 72% 8% 2013-2018 48% 62% Included in the 60% 2018-onwards increase decrease decrease Revenues IPL Franchisee Prize Money 2008-2017 40% 54% 6% 2018 onwards 50% 45% 5%
  6. 6.  Other revenues include selling advertising space in the stadia for home matches, licensing products for their team like T- shirts, getting sponsorship for the team uniform, advertising on tickets and so on. As already mentioned, 20% of all of this will then go to IPL. Broadcast Rights  08-13 – 80% split among franchisees  13-18 – 60% split among franchisees Gate Receipts IPL Franchisees 20% 80%
  7. 7.  Franchisees own the teams in perpetuity, but make the payments in installments over the next 10 years  Players signed three-year contracts with the franchisee, and icon players excepted, can be traded after the first season.  Stadiums could cost up to Rs 30 lakh per match  The franchisees’ expenses include team franchising installments, player and personnel, marketing, stadium expenses, and promotion, event management and administration.
  8. 8.  2008-2010 Franchisee Owner(s) Price (USD) Mumbai Indians Mukesh Ambani & RIL 111.9mn Bangalore Royal Challengers Dr.Vijay Mallya & UB Group 111.6mn Deccan Chargers Deccan Chronicle 107mn Chennai Super Kings India Cements & N Srinivasan 91mn Delhi DareDevils GMR Holdings 84mn Kings XI Punjab Ness Wadia,Preity Zinta,Karan Paul( Apeejay Surenera Group,Mohit Burman( Dabur) 76mn Kolkata Knight Riders Shah Rukh Khan,Juhi Chawla,Jai Mehta 75.09mn Rajasthan Royals Emerging Media( Manoj Badale,Lachlan Murdoch,Suresh Chellaram),Shilpa Shetty,Raj Kundra 67mn
  9. 9.  2011  2012-2013 Franchisee Owner(s) Price (USD) Pune Sahara Adventure Sports Group 370mn Kochi Rendezvous Sports World Limited 333.33mn Franchisee Owner(s) Price (USD) Mumbai Indians Mukesh Ambani & RIL 111.9mn Bangalore Royal Challengers Dr.Vijay Mallya & UB Group 111.6mn Deccan Chargers Deccan Chronicle 107mn Chennai Super Kings India Cements & N Srinivasan 91mn Delhi DareDevils GMR Holdings 84mn Kings XI Punjab Ness Wadia,Preity Zinta,Karan Paul( Apeejay Surenera Group,Mohit Burman( Dabur) 76mn Kolkata Knight Riders Shah Rukh Khan,Juhi Chawla,Jai Mehta 75.09mn Rajasthan Royals Emerging Media( Manoj Badale,Lachlan Murdoch,Suresh Chellaram),Shilpa Shetty,Raj Kundra 67mn Pune Warriors India Subrata Roy(Sahara Group India) 370mn
  10. 10.  2014 Franchisee Owner(s) Price (USD) Mumbai Indians Mukesh Ambani & RIL 452.9mn Bangalore Royal Challengers Dr.Vijay Mallya & UB Group 331.6mn Sunrisers Hyderabad Sun TV Network 172 mn Chennai Super Kings India Cements & N Srinivasan 426mn Delhi DareDevils GMR Holdings, Muthoot Finance 302mn Kings XI Punjab Ness Wadia,Preity Zinta,Karan Paul( Apeejay Surenera Group,Mohit Burman( Dabur) 289mn Kolkata Knight Riders Shah Rukh Khan,Juhi Chawla,Jai Mehta 315.09mn Rajasthan Royals Emerging Media( Manoj Badale,Lachlan Murdoch,Suresh Chellaram),Shilpa Shetty,Raj Kundra 226 mn
  11. 11.  In the initial years, franchisee would get more part of Central Revenue.  IDEA BEHIND SUCH DISTRIBUTION? -Franchisee will start earning MORE local Revenue in later years as Brand will enhance.  Fan base is the only key behind revenue generation and making profit (long-run).  Marketing expenses each team approx. $ 3-7 mn. Growth at 12% per IPL.  Administrative ,Stadium, Travel and Stay and Event mgt. expenses –Growth at 5.2-6 %
  12. 12. I. ABSOLUTE VALUATION METHOD  Considers Income/Cash-flow Approach  Estimating Future cash flows (GROWTH STAGE )  Discount(rate) it back to current period for intrinsic value II. RELATIVE VALUATION METHOD  Price of any asset cant be evaluated in isolation  Involves merchandising also. (MATURITY STAGE)  Evaluated in what it buys in terms of earning/sales.
  13. 13. LOCAL REVENUE  Initial team sponsorship amount collected from web- sites.  Growth at 15%-20%.  MI rake around Rs.60-65 crore
  14. 14. GATE RECEIPTS  5% approx. growth for each team as per capita doesn’t increase much faster than 8-9% GDP
  15. 15. MERCHANDISING  Key Target.  Upbringing revenue source.  Still under development .  Depends upon loyal Fan Base.  Avg. franchise makes Rs.30-35 crore on various spaces in their jerseys.
  16. 16. 1. IPL goes international  2009- S.A (Expenditure 57.3% higher).  2014 – DUBAI (Expenditure 33.83% higher). 2. MEGA AUCTIONS  2008 –  2014 – 3. CONTROVERSIES
  17. 17. OUTCOME  I.  II.
  18. 18. THEN-  IPL Title Sponsor –DLF ( US$ 50mn)  IPL Associate Sponsor –Hero Honda(US$ 22.5)  IPL Tournaments Official Beverage –Pepsi(US$ 12.5mn)  IPL’s Umpire Partner –Kingfisher(US$ 26.5mn)  IPL Official Airline –Kingfisher Airlines  IPL’s official Website Partner- Live Current  IPL Hospitality Sponsor –ITC Welcomgroup  IPL Official Performance Partners –Citi bank
  19. 19. NOW  Walking Billboards  PEPSI,FLY EMIRATES,KARBONN,YES BANK TEAMS SPONSORS MI VIDEOCON D2H,ETIHAD,BRIDGESTONE, P&G, WALT DISNEY,DDB. CSK INDIA CEMENTS,AIRCEL,GULF,REEBOK. RCB FLY KINGFISHER,BOLT, HUAWEI. KKR NOKIA,MANYAVAR,USPA,ROYAL STAG,MRF. DD IDEA,MANYAVAR,JUST DIAL,QUIKR. RR ULTRATECH,AMITY,YEBHI,SUPERTECH,MITASHI,GARNIER. SRH MAKE MY TRIP,LIVE IN,PUMA,RED FM.,WH SMITH. KXIP TATA MOTORS PRIMA,TRIP FACTORY,ARISE,ACC,MCDOWELLS NO.1 .
  20. 20.  CSK & MI- $ 72 MN  KKR -$69 MN  RCB – $51 MN  RR- $45 MN  DD - $40 MN  KXIP - $32 MN  SRH- $25 MN Brand sentimental attachment.eg – SRK,MSD,ST.
  21. 21. YouTube  Game-changer  Has shown how consumption over internet is becoming mainstream(behind-the-scenes looks etc)  Live Streaming (#1 channel worlwide,20m + viewers)  Reason also as to why IPL screenings on big screen not taking off  Fans and their peers present online for the most part of the event(2nd most dominant medium after TV)  Provides a unique community experience to these fans
  22. 22. Twitter  If radio commentary was 1.0 and sms alerts 2.0, then twitter is definitely is 3.0 for all those looking for updates  Players involvement and interacting with fans. Amazon India  Merchandising rights for all 8 teams.
  23. 23.  Stadium preparation  Follow-up with Sponsors  Social media engagement (YT advertising)  Online Exposure (Ticket Sales, Pop-ups)  TVCs  Music Setup and DJ  Jingle (Themes)  IPL Auction  Brand placements
  24. 24.  Post match Presentations.  IPL Nights.  Chat-shows.
  25. 25.  MARRQUEE EVENTS PRIVATE LIMITED  IMG - EVENT MANAGEMENT  CINEYUG  AAGNI  CAA KWAN  CRAFT WORLD EVENTS PVT LTD  DNANETWORKS  PURPLE PEOPLE ENTERTAINMENT
  26. 26.  Therichest.com  Ft.com  Freepressjournal.in  Businesswireindia.com  Livemint.com/consumer  American appraisal  Research paper by Pratik Shah,Patrick Smyth.  Hindustan Times  NEILSEN  CISCO etc.
  27. 27. THANK YOU

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