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Ipl is it true to sports or business
- 4. • Many players got selected in the national team. • Experience of playing with and against great players. • Share views and knowledge. • Nice friendship stories and many more… 😍 😍
- 5. IPL founded by Mr. Lalit Modi
- 6. MEDIA RIGHTS BRAND SPONSORSHIPS TITLE SPONSOR PRIZE MONEY IPL earns more than $10 Billion in one season
- 7. Media rights are the main and important source of revenue for any IPL team. For some teams, it is about 60% of their total revenue. BCCI sells Media rights or broadcasting rights to Channels.
- 8. The title sponsor is the one whose name comes before the IPL like DLF IPL, VIVO IPL. These are the sponsors who sponsor the title of the league and get registered under their name. Revenue’s 40 percent is distributed among 8 teams.
- 9. Brand sponsorship to teams is also an important part of revenue for the teams like Gulf to CSK EROS to RCB. These sponsors invest their money in the team to get promotion through logo and name placement on the jersey.
- 10. • Almost 60% of the matches in IPL have a full house. • Each franchise plays a minimum of 7 home matches.
- 11. • Winners and runners- up were awarded the prize money alongside their trophies and medals . • Minimum 50 percent of the amount must be shared among the players. • In the 2019 season, Winner (MI) - 20 crore INR Runners up (CSK) -12.5 crore INR.
- 13. YOUNGSTARS TARGETED HUGE ENTERTAINMENT COMERCIALISATION
- 14. Yay, it’s really a business. Jab Ho Zubaan pe Keshar aur Josh dilon me, toh India khelega apnehi andaz se.
- 15. 😍 😵
Editor's Notes
- All our team members are grateful to our respected teachers, Monami mam and Madhurima mam, whose insightful leadership and knowledge benefited our group to steer out this project successfully. Thank you for your continuing support for our important work in this field ! We would also like to underscore the dynamic effort of the teammates and their contribution in making this presentation.
- The Indian Premier League (IPL) is a professional Twenty20 cricket league in India usually contested between March and May of every year by eight teams representing eight different cities or states in India. The league was founded by the Board of Control for Cricket in India (BCCI) in 2007.
- Cricket is a Sport. A sport is entertainment to some people. For few getting selected for the national team is a dream .India being a cricket loving country, there are many deserving, Talented, Energetic players who compete to get to 15 member squad of national team.Indians do not give as much importance to sports as they give for becoming an engineer or a doctor so we do not excel in sports.Now due to IPL few uncapped players ( people not familiar with IPL- uncapped players are those who did not get to play for their national team) who have ability, talent get a right platform to showcase their talent in shorter formats of game in form of IPL. We have examples of many players who used this platform to get to national team as a result the quality of play in Indian dressing room also increased.For example you can see in the pictures like hardik pandya yuzvendra chahalthese are the 2 big names in present Indian cricket who has shaped their carrier by playing the IPL.Along with that the players get experience of playing withhey and against great and legendary players.many big names has played in IPL like Ricky Ponting Adam Gilchrist hey Sachin Tendulkar sourav GangulyWasim Akram hey and many more just imagine young yuzvendra Bowling against Brendon McCullum or hardik pandya backing against Morne morkel .so that is IPL for you. now the players can also share their views and knowledge With each other like you can see many times Dhoni giving advice to players PL-1) Buvaneswar gets to play and learn from worlds best bowler-Steyn2) Virat kohli-ABD-Gayle3)Dhoni-aswin-jadeja-Faf4)unmukt-bajji-malinga5)mccullum-raina(just imagine if these two players are a one man)6)Duminy-Yuvi7)miller-sehwag-maxwellThese people get to exchange their talents and strategies. Winning a game is for people who only watch cricket but playing quality cricket and keep the gentlemans game alive and prosperous is what world wants.The experience of legends like Dravid, Sachin, VVRichards, Laxman will always help young generation to learn and be lucid in their game of play.These things is as far as cricket is concerned. On the other hand BCCI is the richest cricket board and it is the only reason India is being given importance in ICC actions.We have few spot fixing spats and few controversies too. But that is present everywhere . More over there is Indian premier tennis league, badminton, football leagues were started with plethora of games being played. this is actually a new beginning for generation of games in India.
- In true sense, IPL is not just a game but is also a business which has helped team owners and broadcasters to earn some good money. Whether it is a real game or IPL fantasy game, there is money involved where the player earns money. It was invented by Lalit Modi for BCCI to earn surplus amount of money through advertising. They knew that India is a cricket crazy nation. If they want to make a sure shot profit giving investment, then nothing will be better than cricket. So they started IPL and to make it popular overseas they allowed foreign players to take part in it. If it was to find young talents, then nothing can be compared to Ranji as a 20 over game can not guarantee that a player will be able to play ODI and Tests at international level. (Look at Rohit Sharma and Ravindra Jadeja). Then they started strategic time outs for more money through sponsorship. Now that’s ok. But what are these??? Player has played a nice shot, he is awarded Fashion Big Bazaar Stylish Player of the Day, Perfect catch of the match, Dream11Game changers of the match, Altroz Super Strikers of the match, Cred Power Player etc are all ways to earn money. Now there was a funny award StarPlus Nayi Soch Award. Seriously…Now soch is also sponsored. Now not only during awards, they shout it with the sponsor name during commentary as well. So it is a sure shot business. The real IPL has also given birth to IPL fantasy game where players can create their own team and play using money. Over the years, more and more cricket lovers have joined this IPL Fantasy game and are really enjoying the format. But ultimately BCCI is fully making profit from all those stuffs.
- I have recently read in one article, which says IPL has created the history in terms of earning. IPL earns more than $10 Billion in one season which is more than one year earning of ICC. The franchise of the team doles out millions of dollars to buy star players and we see there is always a competition for owning the franchises of the IPL teams. So when Most of the franchises of the IPL teams are businessman like the Ambanis, it is obvious that they will not let so much of the amount flow just for the fun and definitely they will be trying to earn from this investment. The IPL is valued at a $6.8 Billion as of 2020, which is an incredible feat for a tournament which has just completed its 13th season recently. So, have you ever wondered, what makes IPL a money-making machine for its franchises and the BCCI? There are two important factors to this, one off course being the monetary part, the second being the social factor which includes people’s support and crowd engagement. A league is as popular as the craze and enthusiasm of its fans. And IPL has set very high standards in terms of numbers, averaging at an incredible 32000 attendance per match. With the digital platform becoming mainstream for viewership, the first match of the IPL 2020 recorded a massive 200 Million viewers. Now for the monetary part, IPL apart from being a cricket league is a business with a very successful business model. How can we be so sure about that, you ask? So today we tried to dig out the answer of this question and here is our attempt to give a brief about how the IPL franchises are earning money:
- BCCI distributes revenue earned from media rights between teams after excluding their share from it. In 2008 Sony Entertainment has given …crore rupees for broadcasting for 10 yrs from … to … And from 2018 to 2022, Star has dealt … for broadcasting for 4 yrs. Now if you calculate for 1 yr, the amount is aprox 3200 crore, i.e. they will give 3200 crore per year to BCCI.
- Now the secondary income comes from the title sponsors. Now what are title sponsors. when IPL started it was called dlf IPL then there came Pepsi IPL And now there are the vivo IPL and the dream 11 IPL. Vivo had signed a 5 year deal worth rupees 2199 crore to become the title sponsor of IPL in 2017 paying almost 440 crore to the BCCI every year. but this year they pulled off from the IPL due to some issues. And now dream 11 has given Rs 222 crore to BCCI in 2020. Now see for only showing their logo before the IPL they have given 222 crore to bcci. Well Vivo is expected to return in 2021 and continue their remaining years of the deal. Other than Dream11, IPL has many other sponsors like JIO, TATA, Cred, PayTm etc. Now this revenue’s 40 percent is distributed among 8 teams. So each team either they wins or looses, either you watch or not will get approx. 1 crore. Now this revenue which I have mentioned till now is known as the central pool as BCCI is giving the amount to the franchises. Now the franchises, other than this central pool, earn by themselves from many ways.
- The first thing a team needs is sponsors, as they bare the administrative costs, such as travel, logistics and promotions. Team jerseys work out as a fruitful way to promote these sponsor brands with the front side, back side, left and right shoulder arm are individually up for grab. Everywhere in a jersey there is a sponsor, in the helmet also there is a sponsor. This allows a team to have 4 or even more than that unique sponsors that get to promote their brands for an exorbitant amount of money. Some popular sponsors include Muthoot Finance for CSK, JSW for Delhi Capitals.
- What is Gate Revenue? Money earned through the sales of tickets for matches. IPL has always been welcomed warmly by the Indian fans. Almost 60% of the matches in IPL have a full house. The home team gets to keep a share of the ticket sales. That is the reason each team has 7 home games, thus making them liable to be part of the financial transaction partly with the state cricket boards. Suppose the match is being played at Eden Gardens the homeground of KKR. And if 50000 people are coming and if we take average ticketing price as 1000, they are getting 5 crore rupees from the stadiums. Apart from the ticket sale, the franchises decides tender for foods and drinks, and they also sell their merchandise, tshirts, pamphlets, and do many more things. Along with that they earn from the local brands who couldn’t afford advertising rights in TV and install banners in the ground. All in all each team is getting approx. 7 crore from the ground.
- Apart from the sponsors and the gate revenue, teams earn from the prize money. Now IPL’s prize money is not a minor amount. What if I say, that the prize money for IPL 2020 that was halved because of the pandemic situation to Rs.10Cr, is still 3 times that of the prize money offered for winning the Big Bash League (the second most viewed cricket tournament in the world). In the 2019 season winner amount reward to Mumbai Indians are 20 crore INR and runner up the amount of 12.5 crore INR rewarded to Chennai super King. Now BCCI has made a law that 50 percent of the amount that you will earn from the prize money has to be given to the players. Now if you are getting 16 crore, for example, from the prize money you have to give minimum 8 crores to the players. This is the minimum amount. If you wish you can give the wholesome to the players. So you are seeing every person associated with the IPL is earning every second.
- BCCI allots 80 crore for every team for buying players. You can bid with that amount. Now if they want, they can buy a player of 80 crore, or they can make a team of 25 players. Obviously, they will not buy a single player with this huge amount. With this you can buy max 8 overseas players and can make 4 overseas to play in a playing 11 and remaining 7 has to be Indians. So this 80 crore is used for making team. Now there are arrangements for players’ staying, food, drinks, and many more nourishments. And there is also travel cost from one city to another city. Now the teams has to do brandings for increasing their sponsors. More people will see, so more sponsors will come and there will be greater earnings. There are many such expenses which every franchise has to do in individual level. Now BCCI, here, is the boss. Boss in the sense, either you win or loss, you have to give 20 percent of your revenue to BCCI. This means that the BCCI is the ultimate boss.
- The main moto of IPL is to provide entertainment and to attract audience and viewers, so these are points of marketingstrategies they follow to achieve their goal. Franchise can sell the team or a player to other companies for ad and promotion and the players do the ad without taking any money from the franchise or the company. The money which is paid by companies for ad to the player goes to franchise. Interesting thing signed in the bond is: No player can ignore the direction of their franchise for ad and promotion.Players of the IPL team are not allowed for do any ad or promotion without permission of their franchise during the IPL match. Indians are very obsessed with bollywood actors and they make them their idol so ipl use them as their team representatives or owners to gain more attention and interests.
- So this Ipl is not a game this is a business model for earning money. They earn so much in this 2 months that you just cant imagine. And now you will say, everyone is earning, so who are availing the loss? We are making the loss. In this 4 to 5 hrs when we can study or do our activities, we are wasting our time by watching an IPL match so that they can earn money. Now this is our thinking. Your mind can say other thing. That IPL is an entertainment, its fine. Everybody loves cricket, even we also love cricket. But what we are watching in this 4 hrs, if we can use that time to develop ourselves or earn ourselves then we think that will be better. We are not earning money, in fact, we are wasting money.
- Now what people do, they gamble, bet, make fantasy teams etc. Ipl guys are earning, individual people are earning money and the villagers are also earning. So when everyone is making profit, there must be someone’s loss. Franchises also make losses. Last year many teams were in loss. But they cope up with these losses bcz the products, brands are their own. Let's assume Jio is mine and I have bought a team. Even if I make a loss of 10 crore rupees in 45 days, I have promoted Jio so much in that 45 days with that 10 crore that I can't even do through a TV channel in a year. So everything is looked on long term and brand is promoted. Everywhere the money is of sponsors. If Star sports give 3000 crore to Bcci every year, so it means Star must avail 5 to 10 crore from the sponsors. The rate of 1 sec in between the broadcast is so much that you will be confused. So money comes from everywhere. Hence IPL is a business, and we are the viewers. So guys, our 1 sec is converted into crore, lakhs in this process and we don’t know the price of our 1 sec.