The document discusses the Indian Premier League (IPL), a professional Twenty20 cricket league established by the Board of Control for Cricket in India in 2008. It summarizes Lalit Modi's vision in founding the IPL to nurture local cricket talent through a competitive league structure. The IPL was highly successful in attracting massive viewership and generating substantial revenue through franchise fees, broadcasting rights deals, sponsorship agreements, and other avenues. However, some warned that the short format could damage the long-term appeal and integrity of the game.

1. And Then
What Started
Was A………
REVOLUTION

4. Businessman
Cricket Administrator
Visionary
LALIT KUMAR MODI

6. With IPL We Aim To Nurture And
Build Local Talent

7. A WIN WIN SITUATION FOR ALL
Opportunity to display their skills
Engagement of people with no
cricket background

9. Strengths
Fast- paced and exciting.
Appealed as a Mass Sport &
Spectator Sport
Economists maximized revenue.
The more unified the sport, the more
successful it is.
 Broadcast timing.
Weakness
T20 could damage the game that
generated it.
Stakes were too high.
 Over priced vs reasonably priced
advertising/ sponsorship

10. Opportunities
 Large potential mass audience.
 Using franchise for larger fan-base
and TV revenues.
Fixed franchise fees till 2017-18.
Corporate hospitality, season tickets
and TV pay-per-view
Merchandising
Youth as a long-term fan-base
Threats
Free Agency
Expected Return on Investment
 Franchises are expensive.
 Revenue should be a long-term
planning.

11. IPL MARKETING STRATEGY
Auctioning Broadcasting
Rights
Title Sponsorship
Corporate Sponsorship
Auctioning Franchisees
Rights
Official Umpire’s
Sponsorships
Tickets Sale (20%
allocated to IPL)
Auctioning Players
Team Owners selling
tickets personally
Cheerleaders
Closing and Opening
Ceremony

12. But….. Was the
Indian Premier
League only about
Cricket… Let’s
check it out…

14. Not just Cricket…

15. Not just Entertainment…

16. CRICKETAINMENT

17. TARGET MARKET
Youngistan
Cricket lovers
Bollywood lovers

18. IPL INCOME DISTRIBUTION
Share of broadcasting money with franchisees.
Share of sponsorship money with franchisees.
Share of ticket money with franchisees.
Inauguration expenses.
Prize money distribution

19. IPL EXPENSES
FRANCHISEE FEE: Different amount ranging from US$67 million to
US$112 million payable over a period of 10 years.
PLAYER ACQUISITION COST: Determined from the auction;
franchisee obliged to pay the players even if they’re not playing.
STADIUM HIRE CHARGES: Franchisee pay the local
association for the use of stadium.
MARKETING COSTS: Each franchisee is expected to incur a
marketing cost of US$3-4 million for team promotion
Other expenses like administration and event management.

20. Paid media

22. Owned media

23. Earned media

25. REVENUE
 TELEVISION RIGHTS: Out of the proceeds from global broadcast
rights, 20% went to IPL, 8% was given as prize money and 72% was
distributed to the franchisees.
 SPONSORSHIP RIGHTS: IPL predicted to bring BCCI approx.
US$1.6 billion. 40% went to IPL itself, 54% to franchises and 6% as
prize money.
 LOCAL SPONSORSHIPS: Team sponsorship revenues
 GATE RECEIPTS: Major source of revenue. 20% of tickets allotted to
IPL.
 MEDIA: UFO Moviez had theatre rights.
 Live telecast on YouTube.

26. BROADCASTS AND SPONSORSHIPS
Official Sponsors: Paid US$ 50 millions for 5 years
Television Rights: Sold for 10 years at INR 8700 crores
(US$1.94 billion)
Sponsorship deal worth US$22.5 million
Sponsorship deal for 2 years at US$12.5 million
Sponsorship deal for at US$26.5 million

27. TV Advertisers
(INR 7bn)
Central Sponsors
(INR 1.7bn)
BCCI (Organizer)Sony – WSG
(Broadcaster)
Team Owner/ Franchises
Ticket sales (Rs1bn)
Team Sponsors
(Rs1.3bn)
Merchandise (Rs300m)
Program tie-ups/Events
In-stadia ads (Rs400m)
Prize money (Rs270m)
Umpire salaries (Rs60mn)
Share of
• Broadcasting fee
• IPL Sponsorship
(Rs6.2bn)Broadcasting fees
(Rs6.7bn)
Prize money (Rs270mn)
Production
Cost
Franchises
Fee
(Rs3.3bn)
Player Salaries
(Rs2.1bn)
Stadium Leasing
(Rs280mn)
Team Advertising
(Rs570m)
Admin Costs (Rs720m)
REVENUE – EXPENSE MODEL

28. IPL BUZZ ACROSS THE GLOBE

29. Viewership in 2008

30. 8 Teams
59 Matches
44Days

31. `202
Total players

32. `$723.9 mnAuction

33. `INR 3,00,000
For every 10 seconds ad

34. INR 350 crores
Expected BCCI profit

35. 28.8%
Post IPL Set Max market share

36. 28
Brands advertised on TV

37. `INR 650 crores
Sony’s advertising revenue during IPL

38. `INR 10 crores
Champions’ prize money

39. `TRP 8.21
Inaugural match

40. `INR 645 crores
Government body declares gross income

41. `INR 51 crores
Profit