Ipl econmy presentation


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Ipl econmy presentation

  1. 1. PRESENTED BY :SONU KUMAR ROLL . NO :114CCMA047 COLLEGE :D-DelhiL-LeasingF-FinanceI-IndianP-PremierL-League
  2. 2. It was in late June 2007 that two men arranged for a meeting for discussingan interesting but different sporting event.It was Lalit Modi (Vice-President of the Board of Control for Cricket in Indiawith Andrew Wildblood (International Management Group, the sportsmanagement ). Then in April 2008, the maiden IPL tournament which Modi hadconceptualized and ideated was on the way to come on the forefront. In the month of February in 2008 experienced the hysterical playerauction, created the not-so much needed media hype. The most powerful and rich Diaspora of the India community came up inthe bidding process. The bigwigs are from the corporate sector to theentertainment industry – who added all the needed lusture to thetournament.Whooping amounts for different players were being seen - $1.5m forMahendra Singh Dhoni, $1.35m for Andrew Symonds, $950,000 for IshantSharma. Cricket could be so costly an affair – nobody could even think of.Everybody was waiting for recreating history in Indian cricket.Bollywood stars like Shah Rukh Khan, Preity Zinta, Shilpa Shetty - owner andco-owners of the Kolkata Knight Riders team; Kings XI Punjab and RajasthanRoyals respectively made this mega sports event all the more a success.
  3. 3.  Market Entry strategies Personal Selling SWOT Analysis Cost leadership Objectives
  4. 4. istanYoungsters targetedHuge entertainmentCommercialization
  5. 5.  Fan Following Curiosity
  6. 6. Local Talents Got Exposure.Will be Accepted Globally.New Market Segments
  7. 7. Early RetirementsIntegrity Towards CountryStrategy Copy
  8. 8. Title Sponsors Official PartnerAmt. $50 mn Amt. $22.5 mn Food Supplier Umpire Sponsors Amt. $106 Crore Broadcaster Amt.$1.026 billion Beverage Sponsors Amt. $12.5 million Official Partner Official Partner Amt. $25 million
  9. 9. Success for2008 Season  “REVENUE MACHINE” Huge growth for BCCI & other corporate New forms of Entertainment Spectacular Television Rating Point (TRP) ratings Platform for Youngsters
  10. 10. Success For 2009 SeasonsFourth spot of the Forbes listRecord TV Viewership WorldwideBiggest Tournament after world cupGlobalizing CricketBoost more money
  11. 11. Success for 2010 SeasonsTheatrical rightsIPL On lineIPL Tie up with VROCK MobilePR ActivitiesDonation , Charity to SouthAfrican Schools
  12. 12. TEAM OWNER CAPTION COACH SPONSER AUCTIONED AMOUNTRoyals Liquor Barron Anil kumble Rey Jennings Royal $ 111.6Challenger Vijay Mallya (South Africa) Challenge & MillionBangalore (UB Group) Other UB BrandsMumbai Reliance Sachin Robin Singh Idea Cellular, $ 111.9Indians Industries Tendulkar Pepsi Million Ltd. (Mukesh Ambani)
  13. 13. TEAM OWNER CAPTION COACH SPONSERS AUCTIONED AMOUNTKolkata Shahrukh Sourav Dave HDIL , Nokia, $75.9Knight Riders Khan , Juhi Ganguly Whatmore Belmonte Million Chawla , & jay MehtaKings XI Preity Zinta, Kumara Tom Moody Spice $ 76Punjab Ness Wadia, Sangakara (Australia) Telecom, 9X, Million Surendra Provogue (Dabour Coca cola Group)
  14. 14. TEAM OWNER CAPTION COACH SPONSERS AUCTIONED AMOUNTDelhi GMR Gautam Gerg Hero honda , $ 84Daredevils Infrastructure Gambhir Shipperd Kingfisher Million (Australia) Airlines, Adidas, 104FMDeccan Deccan Adam Darren Deccan $ 107Chargers Chronicle Gilchrist Lehman Chronicle, Million (Venkattram (Australia) Puma, Mc Reddy) Dowells,92.7 FM,Pepsi,Kin gfisher Airlines
  15. 15. TEAM OWNER CAPTION COACH SPONSERS AUCTIONED AMOUNTChennai India M S Dhoni Stephen India Cement, $ 91Super kings cements Ltd. Fleming Aircel, Reebok, Million (New peter England Zealand) Nevia , 9 CloudRajasthan Emerging Shane Shane Kingfisher, $ 67Royals Media, Shilpa Warne Warne Puma, Boost Million Shetty, Raj (Australia) ,Ultratech Kundra Cement
  16. 16.  The inaugural season of the tournamentstarted on 18 April 2008 lasted for 46 days with 59 matchesscheduled, out of which 58 took place and 1 waswashed out due to rain. The final was played in DY Patil Stadium, Nerul , Navi Mumbai. The top four ranking sides progressed to theknockout stage of semi-finals followed by afinal. “Rajasthan Royals” defeated “ChennaiSuper Kings” in a last ball thriller and emergedas the inaugural IPL champions.
  17. 17.  The 2009 season coincided with the generalelection in India . Owing to concerns regarding playerssecurity, the venue was shifted to South Africa. Finally “Deccan charger “ defeated “RoyalChallengers Bangalore “ in the final. Deccan seta target of 144 with the help of Gibbs(53) anddefended it.
  18. 18.  The third [season] opened in January 2010 withthe auction for players. 66 players were on offer but only11 players were sold. In this season, Hyderabad Deccan Chargers did notplay at their preferred home locationof Hyderabad, India due to the ongoing political crisis inthe Telangana region . The new bases for the champions this seasonwere Nagpur , Navi Mumbai and Cuttack. Four teamsqualified for the semi-finals. The first semi-final was wonby Mumbai Indians who defeated Bangalore RoyalChallengers by 35 runs. Chennai SuperKings defeated Hyderabad Deccan Chargers in thesecond semi-final. The final was played between Chennai Super Kingsand Mumbai Indians. Chennai Super Kings won by amargin of 22 runs.
  19. 19.  On 21 March 2010, it was announced in Chennai thattwo new teams from Pune and Kochi will be added to theIPL for the fourth season. Later, Lalit Modi was also removed from IPLchairmanship by BCCI. On 5 December 2010, it wasconfirmed that Kochi will take part in the fourth seasonof IPL. Chennai Super Kings won their second consecutiveIPL title after defeating Royal Challengers Bangalore by58 runs in the fourth season of IPL The top four teams namely CSK, RCB, KKR and MIhave also qualified for the Champions League. MI are thecurrent Champions League Twenty20 champions bydefeating RCB in the finals.
  20. 20.  The fifth season, this time with 9 teams (after thetermination of the Kochi franchise) started on 4 April2012 in Mumbai, for which the players auction was heldon 4 February 2012 in Bangalore. The season saw IPL authority increasing the numberof players in each squad to 33 from the previous limit of30 . The first match between Champions League 20–20winners Mumbai Indians and the defending championsChennai Super Kings was won by Mumbai Indians byeight wickets. Man of the match Richard Levi scored a 35ball 50 with 6 fours and 3 sixes. The season will comprise of 9 teams, with 76 matchesto be played. It began and will end in Chennai with theopening match on April 4 and the final on May 27. It willbe played at 11 venues
  21. 21. Announcement of Each squad min. 16 Bid amount need toTender inviting player max.4 be specified bids internationalPotential franchisees Auction of 4 player under 21submit bids player from catchment areaBid for more than Awarding of1 city franchisees
  22. 22.  IPL Season 1 : 91 cr. IPL Season 2 : major loss as IPL held in south Africa IPL Season 3 : 200 cr. Direct Tax : Rs 100 cr.Tax deduction at source TDS for the remunerationPaid to players , umpires, coach and commentators.Service Tax : Rs 100 cr.Advertising , marketing and consultancy services
  23. 23.  Team franchising costs : A franchisee has to pay 10%of total franchisee costs every year to IPL . Player costs : US $ 4-6 mn. per year this includescost of manager and coaches. Each franchise has 18-22 players who are tradable after a year . The playershave a three year contract with the franchise . Marketing costs : US $ 3-4 mn. By franchise forpromoting its team Stadium expenses : franchises have to contractstadium for 7 matches at BCCI agreed rate . On anaverage , the expenses is Rs 2.5mn.per match . Other expenses : Administration and eventmanagement Rs 7 Cr.
  24. 24. How they made money : The media right : itself were sold for a whooping Rs4104 Cr For 10 years . of this Rs 432 Cr it will have tospend on the Marketing event. The Franchisee cost : The 8 Team’s franchiseeauction put Together fetched IPL another Rs 2896 Cr tobe collected Over 10 years The Sponsorship : Title and associate sponsorshipFetched another 200 Cr per year The Share of IPL : is the only set to increase with theyr as per the contract .Look like BCCI has hit uponanother golden goose of its own.Financial Perspective
  25. 25.  The share of the Broadcastingsrights money Rs 25 Cr The share of the central sponsorshipMoney Rs 15 Cr The Local sponsor they can getsupporting Side Rs 25 Cr ApproxThe share of the ticket earnings fromthe Home grounds Rs 13 Cr F & B Share Rs.3 Cr
  26. 26.  Firm v/s Basic Agreement Prize Money :I. For winner Team 4.8 Cr –Increase to 6 Cr in IPL 4II. For Runner up Team 2.4 Cr - Increase to 3 Cr in IPL 4III. Two Semi –Finalist 1.2 Cr – Increase to 1.75 Cr in IPL 4IV. For Rest Its 50 Lakh-80 Lakh – Increase to 1 Cr Bonusw.r.t Position at which the Team Finishes SalariesI. Each year it should not be less the $ 3.3 MillionII. Player Earns about Rs 80 Lakh or more per session on average Daily AllowanceI. $100 per DayNote * : Today IPL is making Rs 54 Cr by selling 150 seconds airtime on Set Max by carrying ads on the scoreboard during an over. MRF pays Rs 15 Cr to have its blimp in the sky for 24 matches during this season of IPL .
  27. 27. EARNINGS OF IPLCentral sponsors, YouTube sponsors, Rs 170 crtheatrical rights:Broadcasting fees: Rs 134 crFranchises fees: Rs 330 crTOTAL: Rs 634 crEXPENSES OF IPLUmpire salary: Rs 6 crPrize money: Rs 27 crOthers including travel,: Rs 50-65 crsecurity and organisationTOTAL: Rs 83-98 cr
  28. 28.  World Sport Group Pte Ltd (WSG), a sports marketing company,paid Rs8,200 Cr for the broadcasting rights to IPL until 2017. According to a senior executive from the WPP Group-ownedMindshare, a media buying agency, the network began selling its 10-second advertising spots at Rs4.5 Lakh, which is 200% more thanthe initial ad rates in the IPL season 1 at Rs1.5 Lakh per 10 secondsand 80% higher than the initial rate of Rs2.5 Lakh in the secondseason. the rates increased further to Rs5.25 Lakh for 10 seconds.
  29. 29. IncomeI . Generation of Incomei. Revenue from Auction of Broadcasting rights :ii. Revenue from Title sponsorship & Co. Sponsorshipiii. Revenue from auction of franchisee rightsiv. Revenue From official umpire’s SponsorshipII. Distribution of Incomei . Share of Broadcasting money with Franchisee/sii. Share of sponsorship money with Franchisee/siii. Share of Ticket Money with Franchisee/siv. Inauguration Expenses I-II = Total Income
  30. 30. Income1) Generation of IncomeI. Share in revenue from broadcasting rightsII. Share in sponsorship MoneyIII. Share in revenue from sale of ticketsIV. Revenue from inside stadium advertisementV. Sale of Players (From one Franchise to another)VI. Revenue from own sponsorship & Co. Sponsorship2) Distribution of IncomeI. Franchisee fee & player costII. Match fees to coaches and supporting staffIII. Rent of stadium & market / Promotional costIV. Inauguration expensesV. Fees of coaches & othersVI. Administrative cost I –II = Total income
  31. 31.  How to Bet ?There are bets for every match. Betting usually begins fewhours before the matches. What are Odds ?Odds indicate the $’s that you will win in return of each $ you betif your predictions comes true Odds in the game may vary whilethe betting is open depending on many factors . What are Payouts ? payouts is the final amount of $’s which youll earn if you winthe bet. Total IPL betting – 6000 Cr * The Law Says “No” Online betting possible on sites like betfair.com Bookies says its MI this time
  32. 32. 1. The money being put into cricket is harming the development of other sports. ?Reason for no more gentle game ?1. The cricketers - Abhinav Bali, TP Sudhindra (Deccan Chargers), Mohnish Mishra (Pune Warriors), Amit Yadav (Kings XI Punjab) and Shalabh Srivastava (Kings XI Punjab)