1. The Business of Sports Prepared by: MukeshRathi(10810036) Nishant(10810039) PranjalSrivastava(10810044)
2. Topics Top earning sports stars Most valuable sports teams Sponsorship BCCI IPL and related issues ICC Cricket World Cup CWG Delhi Beijing Olympics Betting in sports How betting works? Should gambling or betting be made legal? Sports management
3. Top Earning Sports Stars Tiger Woods Sport: Golf Income: $105 million Has won 14 major golf championships and 65 PGA tour events. In 2000 he signed a 5-year $105 million contract with Nike Woods' company Tiger Woods Design creates golf courses around the world
4. Top Earning Sports Stars Floyd Mayweather Sport: boxing Income: $65 million His May fight against Shane Mosley netted 1.4 million pay-per-view buys, the second-most lucrative non-heavyweight bout ever.
5. Top Earning Sports Stars Kobe Bryant Sport: basketball Income: $48 million Five-time NBA champ has the bestselling jersey in Asia, Europe and the U.S.
6. Most Valuable Sports Teams I. Manchester United Sport: Football Value: $1.83 billion Revenue: $459 million The Red Devils lay claim to having 333 million followers and 139 million core fans worldwide II. Dallas Cowboys Sport: American Football Value: $1.65 billion Revenue: $280 million New stadium landed NCAA Men's Final Four, NBA All-Star Game and Super Bowl.
7. Most Valuable Sports Teams III. New York Yankees Sport: Baseball Value: $1.6 billion Revenue: $441 million Leveraged most valuable brand in sports to create rich cable network and venue hospitality business. Source: Forbes
8. Sponsorship (The FA Premier League Case) Source: Branding, sponsorship and commerce in football, Department of Sociology, University of Leicester, UK
9. Competition Sponsor One who is the title Sponsor of the Competition. Promotion with advertisements in the stadium, on TV. Barclays-FA Deal worth GBP 65m for 3 years
10. Broadcast Sponsor One who has the right to broadcast the Competition on TV or the Internet. Different for different regions Earns from the sponsors. Sky Sports paid GBP1.314 bn for 92 games(Times UK)
17. One of the richest and most influential sporting concern in the World.
18. A net worth of more than US $1.5 billion as in 2006.
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20. Mumbai Indians: $111.9million (Rs 447.6 crore) Royal Challengers Bangalore: $111.6 million (Rs 446.4 crore) Deccan Chargers: $107 million (Rs 428.04 crore) Chennai Super Kings: $91 million (Rs 364 crore) Delhi Daredevils: $84 million (Rs 336 crore) Kings XI Punjab: $76 million (Rs 304 crore) Kolkata Knight Riders: $75.09 million (Rs 300.4 crore) Rajasthan Royals: $67 million (Rs 268 crore) Sahara Adventure Sports (Pune): $370 m(Rs 1702 crore) Rendezvous Sports World (Kochi): $333 m(Rs 1533 crore)
21. Some facts and figures about IPL The auction of these eight franchisees fetched approximately US $724 million for BCCI. It earned another $700m from the Pune and Kochi Teams in the 4th edition of IPL. Global broadcasting rights for the entire IPL Twenty20 tournaments till 2017 has been secured by World Sport Group (WSG) at a cost of US $1.026 billion. Top teams such as Chennai Super Kings, Mumbai Indians and Delhi Daredevils have commanded an average of Rs 25 crore a year for the lead sponsorship slot, and Rs 4-10 crore for associate sponsorship slots. The number of people watching IPL matches on television in India went up 17% to 143 million for the third season last year compared with 122 million in the 2009 edition.
22. Categories of Sponsors in IPL Official Multiplex Sponsor – Q-Cinema Title Sponsor – Emirates Principal Sponsor - TVS Apparel Sponsor – Reebok Team Partner – ACC Official games for challenge partner – USL Performance & protection partner – Gulf Oil Official Chewing Gum – Wrigley’s
24. Brand IPL The latest Brand Finance study pegs the IPL's worth at $3.67 billion, down from a peak of $4.13 billion a year ago. Aircel has signed the most expensive sponsorship deal in the Indian Premier League (IPL) with Chennai Super Kings. It paid more than 85 crore to renew its sponsorship contract with the Chennai team for three years. The deal beats two-wheeler maker Hero Honda's estimated 75-crore deal to sponsor Sachin Tendulkar-led Mumbai Indians for three years. The IPL organizers have this year allowed teams to sport different sponsors' logos for home and away matches. So, local companies can sponsor teams in the area of their operation.
26. Brand Sachin vs Brand Dhoni Talent management Group, which manages Sachin’s brands peg his earnings now at Rs 50 crore (Rs 500 million) a year. Coke, it is understood, is paying Tendulkar Rs 20 crore for a three-year deal. That’s more than what Dhoni is getting from PepsiCo. Dhoni signed a Rs 26 crore endorsement contract with Vijay Mallya’s UB Group, making him the highest paid sportsperson for a single endorsement deal in the country. Both Tendulkar and Dhoni get paid as much as Rs 5 crore per endorsement, which is set to rise to over Rs 7 crore this year. Sachin is endorsing 15 brands at present, compared to Dhoni’s 24.
27. CWG – Delhi 2010 India promised to provide US$100,000 to each participating country, along with air tickets, boarding, lodging and transport. The initial total budget estimated by the Indian Olympic Association in 2003 for hosting the Games was 1,620 crore (US$359.64 million). In 2010, however, the official total budget soon escalated to an estimated 11,500 crore (US$2.55 billion), a figure which excluded non-sports-related infrastructure development. Business Today magazine estimated that the Games cost 60,000 crore (US$13.32 billion).
28. Beijing Olympics 2008 The Beijing Organizing Committee for the Olympic Games reported that total spending on the games was "generally as much as that of the Athens 2004 Olympic Games", which was about $15 billion. Other sources, however, estimated that approximately $40 billion had been spent on the Games – making it the most expensive Olympic Games by a wide margin. The centerpiece of the 2008 Summer Olympics was the Beijing National Stadium, nicknamed "The Bird's Nest“ which alone cost around $500m.
29. Betting in sports Sports betting is the activity of predicting sports results and placing a wager on the outcome. It is illegal in India and throughout most of US but common in European countries. In Indian cricket alone, conservative estimates for the year 2007 put the turnover of the illegal industry at Rs.10,000 crore (more than $2 billion) per annum. In the recently concluded ICC CWC 2011, total betting estimates stood at more than Rs.5,000 billion(source: www.sportzpower.com).
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32. The teams' performances this season, in prior seasons, in last week's game, and against each other
39. Should betting or gambling be made legal in India? Worldwide, gambling is an important source of economic activity and also of employment. The gambling industry comes under the 'leisure' part of the travel and transportation industry. It includes sports betting, lottery, Bingo, casino, poker, horseracing and other games that might end up making or losing money for those who play it.
40. Should betting or gambling be made legal in India? According to H2 Gambling Capital, May 2010, the global e-gambling (gambling on the Internet) market is worth over $30 billion. In terms of output and employment, in the UK the gambling industry contributes significantly. In 2008, gambling was responsible for 3 billion pounds ($4.65 billion) in gross value-added terms and helped create 40,700 equivalent jobs. The total economic impact of the betting industry, in terms of direct and indirect influence, is to the tune of 6 billion pounds ($9.3 billion) and it also supports over 100,000 jobs in British economy. In Europe, countries such as France and Italy are in the process of drafting laws that would allow online gambling.
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43. Sports Management(contd.) A Sports Manager creates and markets events and sportspersons and manages all those activities that transform a sportsperson into a brand. For example, a Sports Manager associated with tennis star SaniaMirza works towards packaging and marketing her as a brand. This is done by the proper media interaction of the athlete, thereby maximizing his or her commercial benefits. Another example is that of the marketing strategy adopted by ESPN for the promotion of hockey, by the introduction of the Premier Hockey League.
44. Sports Management(contd.) In today's world, sports is a serious business with the adoption of sophisticated and complex operations of sports programmes. In fact, sports is one area where a lot of money is being pumped in and sports is considered to be a big business activity that generates a lot of revenue. Cricket is the most popular sport in India and is worth thousands of crores.
45. Sports Management(contd.) Professionally successful teams from different sports activities, and similarly successful individual players rake in a lot of money by the way of match fees, tournament prize money, advertisements, contracts, etc. A sportsperson or a team needs skillful marketing in order to reap the maximum profits. Coupled with the busy schedule of training and matches, it has become necessary for sportspersons to employ agents or managers for themselves.
