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competition created by the Board of Control for Cricket in India (BCCI) and chaired by
the Chairman & Commissioner IPL, BCCI Vice President Lalit Modi. The first season of
the Indian Premier League commenced on 18 April 2008, and ended on 30 June 2008
with the victory of the Rajasthan Royals against Chennai Super Kings in the final at the
DY Patil Stadium, Navi Mumbai. As the second season of the IPL coincided with multi-
phase 2009 Indian general elections, the Indian Central Government refused to release
the Indian paramilitary forces to provide security, saying the forces would be stretched
too thinly if they were to safeguard both the IPL and the elections. As a result, the BCCI
decided to host the second season of the league outside India.[3] On 24 March 2009, the
BCCI officially announced that the second season of the IPL will be held in South
Africa.Though India did not host the second season, the format of the tournament
remained unchanged from the 2008 season format.
The third season of IPL is scheduled to be held in India from 12 March 2010 over a
period of 45 days[4] Four new venues, Nagpur, Vishakhapatnam, Ahmedabad and
Dharamsala, have been added[5][6]. Other changes include removal of icon players[7] and
granting permission to players who were involved in the Indian Cricket League to play in
the tournament
The winning bidders for the eight franchises were announced on 24 January 2008.[12]
While the total base price for auction was US $400 million, the auction fetched US
$723.59 million.[13] The official list of franchise owners announced and the winning bids
were as follows.
Price Price
Franchise Owner(s)
(USD) (Rupees)
$ 111.9 Rs. 503.55
Mumbai Indians Mukesh Ambani(Reliance Industries) m Cr
Royal Vijay Mallya (UB Group) $ Rs. 502.20
Challengers 111.6 m Cr
Bangalore
Deccan Chargers Deccan Chronicle(Venkat Ram Reddy) $ 107.0 Rs. 481.50
m Cr
Chennai Super India Cements (N.Srinivasan) $ 91.90 Rs. 413.55
Kings m Cr
Delhi Daredevils GMR Holdings (Grandhi Mallikarjuna $ 84.0 m Rs. 378.00
Rao) Cr
Kings XI Punjab Ness Wadia (Bombay Dyeing), Priety $ 76.0 m Rs. 342.00
Zinta, Mohit Burman (Dabur) and Karan Cr
Paul (Apeejay Surendera Group)
Kolkata Knight Red Chillies Entertainment (Shahrukh $ 75.1 m Rs. 337.95
Riders Khan, Gauri Khan, Juhi Chawla and J Cr
Mehta)
Rajasthan Royals Emerging Media (Lachlan Murdoch, A.R $ 67.0 m Rs. 301.50
Jha and Suresh Chellaram), Shilpa Shetty, Cr
Raj Kundra
The first players' auctions were held on 20 February 2008. The IPL placed icon status on
a select few marquee Indian players. These players were Rahul Dravid, Saurav Ganguly,
Sachin Tendulkar, Yuvraj Singh, and Virender Sehwag. VVS Laxman initially named an
icon player, later voluntarily opted out of his icon status to give his team (Deccan
Chargers) more money to bid for players.[14] For the second season, auctions were also
held, but free signings taking place in the off-season by franchises led to calls for a draft-
like system where the lowest ranked teams would be given a first opportunity to sign
players.
20% of these proceeds would go to IPL, 8% as prize money and 72% would be
distributed to the franchisees. The money would be distributed in these proportions until
2012, after which the IPL would go public and list its shares.[18]
On 4 March 2010 ITV announced it had secured the United Kingdom television rights for
the 2010 Indian Premier League. ITV will televise 59 of the 60 IPL matches on its ITV4
free to air channel.[19]
[edit] Sponsorships
India's biggest property developer DLF Group has paid US $50 million to be the title
sponsor of the tournament for 5 years.[2]
[edit] Revenue
The UK-based brand consultancy has valued the IPL at $4.1 billion. [3]
South Africa has seen moderate viewership of the IPL, however, many were unable to
relate to any of the teams, although a large number simply supported Mumbai Indians
because of the presence of Shaun Pollock.
The IPL did not overcome the power of Premier League in England, plus the country's
governing body did not allow many English players to take part. The IPL was very
popular with the Asian Population.
In the West Indies, the IPL became so popular that it, according to Vaneisa Baksh,
threatened to overtake test cricket completely in 'certain sections of West Indian fans'.
While free-to-air coverage has not been complete and it has not ignited passions, it has
remained a popular watch.
The IPL was less popular in Australia and New Zealand, mainly due to the time zone
differences. Nevertheless, the IPL consistently won its free-to-air timeslot of 8:30 P.M.
and 12:30 A.M. Australian Eastern Time, and 10:30 P.M. and 2:30 A.M. New Zealand
Time for subscription TV.
Snap polls indicate that more than 24 million people watched the telecast of the IPL 2008
finals (Rajasthan Royals v Chennai Super Kings),more than 20 million people saw the
Rajasthan Royals vs Delhi Daredevils match, whereas the second semi-final between
Chennai Super Kings and Kings XI Punjab attracted an audience of 19 million.[26]
[edit]
The BCCI had found itself in the middle of many conflicts with various cricket boards
around the world as a result of the IPL. The main point of contention was that signed
players should always be available to their country for international tours, even if it
overlaps with the IPL season. To address this, the BCCI officially requested that the ICC
institute a time period in the International Future Tours Program solely for the IPL
season. This request was not granted at a subsequent meeting held by the ICC.[31]
Because the inaugural IPL season coincided with the County Championship season as
well as New Zealand's tour of England, the ECB and county cricket clubs raised their
concerns to the BCCI over players. The ECB made it abundantly clear that they would
not sign No Objection Certificates for players—a prerequisite for playing in the IPL.
Chairmen of the county clubs also made it clear that players contracted to them were
required to fulfill their commitment to their county. As a result of this, Dimitri
Mascarenhas was the only English player to have signed with the IPL for the 2008
season.[32]
A result of the ECB’s concerns about players joining the IPL, was a proposed radical
response of creating their own Twenty20 tournament that would be similar in structure to
the IPL. The league — titled the English Premier League — would feature 21 teams in
three groups of seven and would occur towards the end of the summer season.[33] The
ECB enlisted the aid of Texas billionaire Allen Stanford to launch the proposed league.[34]
Stanford was the brains behind the successful Stanford 20/20, a tournament that has run
twice in the West Indies. On 17 February 2009, when news of the fraud investigation
against Stanford became public, the ECB and WICB withdrew from talks with Stanford
on sponsorship.[35][36] On February 20 the ECB announced it has severed its ties with
Stanford and cancelled all contracts with him.[37]
The BCCI also experienced run-ins with Cricket Australia (CA) over player availability
for Australia’s tour of the West Indies and CA’s desire for global protection of their
sponsors. CA had feared that sponsors of the IPL (and its teams) that directly competed
with their sponsors would jeopardize already existing arrangements. This issue was
eventually resolved [38] and it was also agreed upon that Australian players would be fully
available for the West Indies tour.
Many players from the Pakistan Cricket Team who were not offered renewed central
contracts (or decided to reject new contracts) decided to join the rival Indian Cricket
League (ICL). Two such players—Naved-ul-Hasan and Mushtaq Ahmed also held
contracts with English Counties. The PCB decided to issue No Objection Certificates for
these players to play with their county teams on the basis that since they were no longer
contracted to the PCB, there was no point in not granting them their NOCs. The latter did
not sit well with the BCCI, as it went against the hard line stance they had taken on
players who joined the ICL. After the 2008 Mumbai attacks, the Pakistan government
deemed it unsafe for its players to travel to India for the IPL. However, when the IPL was
shifted to South Africa, the Pakistani players requested the IPL organizers and Lalit Modi
to allow them to play but they refused by reasoning that the squads had already been
decided and there was no room for Pakistani players. Recently in the IPL auction no one
bid on any of the Pakistani cricket player given the reason that Pakistani players were less
than professional and ultimately mediocre players, when in fact, the Pakistani team had
been deemed the 2009 T-20 World Cup Champions. After questioning, the IPL board
members said that the reasoning behind none of the Pakistani players being selected was
simply natural and unaffected by any outside influences. However, two of the IPL team
owners and Bollywood Actresses, Preity Zinta and Shilpa Shetty, openly admitted to
being threatened by Shiv Sena. Shiv Sena also recently threatened Australian team to
play in the IPL. Many celebrities and well-known figures such as, Shah Rukh Khan,
Amitabh Bachchan, and former Indian cricket team captain, Kapil Dev, made comments
about this situation and how bad relations between India and Pakistan should not be
brought into the sport of cricket.
Smaller boards like the WICB and NZCB have raised concerns over the impact the IPL
will have on their player development and already fragile financial situation. Since
players from smaller cricketing nations are not compensated as much, they have more
motivation to join the IPL.
Initially the IPL enforced strict guidelines to media covering Premier League matches,
consistent with their desire to use the same model sports leagues in North America use in
regards to media coverage. Notable guidelines imposed included the restriction to use
images taken during the event unless purchased from cricket.com, owned by Live Current
Media Inc (who won the rights to such images) and the prohibition of live coverage from
the cricket grounds. Media agencies also had to agree to upload all images taken at IPL
matches to the official website. This was deemed unacceptable by print media around the
world. Upon the threat of boycott, the IPL eased up on several of the restrictions.[39] On
15 April 2008 a revised set of guidelines offering major concessions to the print media
and agencies was issued by the IPL and accepted by the Indian Newspaper Society.[40]
Even with the amended restrictions, specialist cricket websites such as cricinfo and
cricket365 continued to be banned from providing live coverage from the grounds and
from purchasing match images from press agencies. As a result, on 18 April several
major international agencies including Reuters and AFP announced their decision to
provide no coverage of the IPL.[41]
As per IPL rules, the winner of the previous competition decides the venue for the finals.
[42]
In 2009, the reigning Champions, Deccan Chargers chose the Brabourne Stadium in
Mumbai.[43] However, a dispute regarding use of the pavilion meant that no IPL matches
could be held there. The members of the Cricket Club of India that owns the stadium
have the sole right to the pavilion on match days, whereas the IPL required the pavilion
for its sponsors.[44] The members were offered free seats in the stands, however the club
rejected the offer, stating that members could not be moved out of the pavilion.[42][45][46]
[edit]
Governing Council
MR LALIT MODI
Chairman and Commissioner, IPL
Lalit Kumar Modi is one of the most accomplished cricket administrators in the world.
The scion of a leading Indian business family, he was the youngest Vice-President of the
BCCI in 2005. He is one of the driving forces behind the board's commercial activities
and has been instrumental in pushing its revenues over the USD 4 billion mark. But for
future generations, his biggest legacy would be the Indian Premier League. He is the man
behind the spectacularly successful franchise-based cricket league that has captivated
audiences globally. He has been acknowledged by the international cricketing, business
and media fraternities for revolutionising cricket and winning it more supporters and fans
than ever before. He has received 'The Business Standard Award' in 2008 for making
BCCI the Most Innovative Company in India. Time Magazine placed him 16th in their
list of Best Sports Executives in the World (2008), while in 2010 he was placed second
on Sports Illustrated's list of most influential Indians in sport.
MR SHASHANK MANOHAR
President, BCCI
Shashank Manohar, President of the Board of Control for Cricket in India, is a prominent
practicing lawyer from Nagpur. His father, VR Manohar, has served as the Advocate
General of the state. An efficient administrator, he is responsible for taking some epochal
decisions in BCCI's history. It is under his leadership that BCCI decided to have paid
National selectors. This move, along with the increased payments for domestic players
and an exclusive sports medicine centre, have helped Indian domestic cricket. His
suggestion of performance-related remunerations and contracts for the players is geared
towards making Indian cricket a more professional set-up. Manohar has also been the
President of the Vidarbha Cricket Association from 1996 to 2009.
MR N SRINIVASAN
BCCI SECRETARY
N Srinivasan, the BCCI Secretary, is a pioneer industrialist of Tamil Nadu. He is the Vice
Chairman & Managing Director of India Cements Ltd. Srinivasan was the Sheriff of
Chennai for two terms. He was an active member of the Prime Minister's high profile
Council of Trade and Industry between 1996 and 2001. An ardent advocate for education,
he is in involved with various trusts that run educational institutes. An avid golfer,
Srinivasan was captain of the Kodaikanal Golf Club from 1995-97 and is currently the
President of the Tamil Nadu Golf Federation. His love for cricket has seen him don many
roles, including the President of the Tamil Nadu Cricket Association. Srinivasan is also
the President of the All India Chess Federation.
MR NIRANJAN SHAH
IPL VICE-CHAIRMAN
Niranjan Shah, the Vice-Chairman of Indian Premier League, has always been keenly
interested and involved in cricket. He represented Saurashtra for a short duration, after
which he turned to the administration of the game. He was first elected as Honorary
Secretary of Saurashtra Cricket Association (SCA) in 1972-73 and has since been re-
elected continuously for the same office. Since that time, he has been representing SCA
and serving Indian cricket in some form or other. He has held various offices in BCCI at
different times. With four decades of experience in managing cricket activities, exposure
to regional, national and international sports bodies and an ability to plan, execute and
manage important sports events, Shah has been an admirable force for the promotion of
cricket.
MR MP PANDOVE
HONORARY TREASURER, BCCI
MP Pandove is the Board of Control for Cricket in India (BCCI) Treasurer. He was part
of the Punjab Ranji team for over two decades and skipper of the team for five years. His
unbeaten knock of 507 in 1962 in an inter-university tournament still remains
unconquered. He was appointed the honorary joint-secretary of the BCCI in 2005.
Pandove has grand plans to improve cricket at the grassroots by infusing funds into rural
area school grounds and as well as improving infrastructure in the rural sectors.
MR CHIRAYU AMIN
BCCI VICE-PRESIDENT
BCCI Vice-President Chirayu Amin is the Chairman and Managing Director of Alembic
Pharmaceuticals. The same passion and drive that made his company a leader in the
pharmaceutical industry has shown results in his role as a cricket administrator. His effort
to streamline and professionalise cricket administration has paid rich dividends for Indian
cricket. His contribution to BCCI's marketing committee cannot be stressed enough. It is
in his role as the President of Baroda Cricket Association that one can see the most
dramatic impact on Indian cricket. Under Amin's leadership, Baroda has emerged as one
of the most successful Ranji teams in recent times.
MR ARUN JAITLEY
BCCI VICE-PRESIDENT AND PRESIDENT, DELHI AND DISTRICT CRICKET
ASSOCIATION
Arun Jaitley is the Vice-President of the BCCI and one of the new-age politicians in
India. He is dynamic and finds favour with the media because of his oratory prowess.
Jaitley has been in-charge of several central government ministries during his political
tenure. A practicing lawyer, he served as the Additional Solicitor General of India for a
while. As the President of Delhi District Cricket Association (DDCA), he has been
responsible for the rise of many talented players like Virender Sehwag and Ishant Sharma
who have made it to the national team.
MR SANJAY JAGDALE
BCCI JOINT-SECRETARY
Sanjay Jagdale, the former Madhya Pradesh all-rounder, is BCCI Joint-Secretary. After
retiring from domestic cricket in 1983, he returned to the game as a cricket administrator.
He soon followed in the footsteps of his father, Madhavsinh Jagdale, when he became a
national selector. Sanjay and Madhavsinh Jagdale represent one of the rare father-son
pairs of Indian cricket selectors. He is also the junior selection committee convenor, and
as part of his role is responsible for helping spot and guide upcoming talent. From leggie
Narendra Hirwani to VVS Laxman and Murali Karthik, this right-arm off-break bowler
has been responsible for giving young talent the international platform it needs to grow.
MR RAJEEV SHUKLA
CHAIRMAN, MEDIA AND FINANCE COMMITTEE, BCCI
Rajeev Shukla is a multi-faceted personality fulfilling his duties as a Member of
Parliament, BCCI Vice-President, journalist, political commentator and television host
with equal levels of efficacy. Shukla started off his career as a reporter with a leading
publication in Uttar Pradesh and has since gone on to write for eminent publications
including Northern India Patrika, Jansatta and Dainik Jaagran. H has written for the
influential Sunday magazine and even was its political editor for eight years. He also was
the political editor of Sunday Observer for a while. He is a renowned political analyst and
has used his keen sense of insight in his role as a television host. He is known for his
leadership skills and his calm demeanour. He has also effectively played the role of
administrative manager of the Indian team on various foreign tours.
MR FAROOQ ABDULLAH
PRESIDENT, J&K CRICKET ASSOCIATION
The Union Minister for New and Renewable Energy, Mr Farooq Abdullah, is a respected
political leader of Jammu and Kashmir. He has been the Chief Minister of J&K several
times since the '80s. A superb orator, he has been at the forefront of developing cricket in
the northern state as the Jammu and Kashmir Cricket Association chief. As the Union
Minister for New and Renewable Energy, he is always working towards finding and
developing sustainable and environment-friendly sources of energy.
MR RAVI SHASTRI
FORMER INDIA CAPTAIN
Ravi Shastri is one of the best all-rounders India has produced. He served India for 12
years as a player and is admired widely in his new role as a commentator. A left-arm
orthodox spinner, he moved from being a lower-order batsman to opening the innings for
India. The high point of his career was when he was elected the Champion of Champions
in the World Championship of Cricket in Australia in 1985. It was in the same season of
1984-85 that he also equalled West Indies legend Sir Garry Sobers' record of hitting six
sixes in an over in first-class cricket. He is now a well-loved commentator, eloquent and
engaging behind the mic.
MR SUNIL GAVASKAR
FORMER INDIA CAPTAIN
Sunil Manohar Gavaskar is one of the greatest opening batsmen in the history of cricket.
The 'Little Master' set many records that remained unbroken for years after his retirement
from the game. His attention to detail, powers of concentration and perfect technique are
still guidelines for budding cricketers. He was the first player to score more than 10,000
runs in Tests and only one of two players to score centuries in each innings, thrice. This
Padma Bhushan awardee's record of 34 Test centuries stood for 20 years before being
broken by Sachin Tendulkar in 2005. After retiring, this former Indian captain took to
commentating on the game he loves with the same aplomb. He is also a respected
columnist. He has continued to serve cricket in various positions with the BCCI and ICC.
He is one of the first inductees in the International Cricket Council's (ICC) Hall of Fame.
Even cricket experts hailed Delhi Daredevils as one of the most balanced teams on the
field.
[picapp src="a/4/2/3/PicImg_Indian_Cricketers_Unveil_e9e6.JPG?
adImageId=5052460&imageId=4514590" width="234" height="161" /]Owned by
Bangalore-based infrastructure and construction group GMR Holdings Pvt. Ltd, the team
established itself as a serious player with strong performances in both the first and second
seasons of IPL.
The popularity of captain Virender Sehwag, along with Bollywood actor Akshay Kumar
as the face of the team in 2008, helped it build a loyal fan base and generated interest
among advertisers.
According to industry estimates, the team generated Rs15 crore in sponsorships in 2008,
and this was likely to have increased to Rs60 crore this year, thanks to the deals signed
with brands such as Coca-Cola, Fever 104 FM and Kingfisher Airlines.
**********************
DECCAN CHARGERS
Owners: Deccan Chronicle Holdings Ltd
Team captain: Adam Gilchrist
Franchisee fee: $107.01 mn
Current brand value: $11 mn
Current brand score: 44%
Sponsorships/brand associations: At least nine, including Odyssey, Puma, Kingfisher,
McDowell’s, Big 92.7 FM, Boomer, Pepsi, Serendipity Tours
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from team sponsorships:
2008: Rs20 crore
2009: Rs50 crore
Total*:
2008: Rs55 crore
2009: Rs126.5 crore
Valuations remained low but win may change things
The team was, indeed, all charged up this year. Beating Royal Challengers by six runs in
the final, the Deccan Chargers team not only scored in terms of popularity, but also made
its team owners, Hyderabad-based media company, Deccan Chronicle Holdings Ltd
richer by the Rs4.8 crore that it won in prize money.
The team’s valuation at $11 million (around Rs52 crore) was, however, not too
impressive. The absence of a popular brand ambassador, lower awareness about its
owners and fewer marketing and branding efforts prevented Deccan Chargers from
building a popular brand, says the MTI study.
However, there was enough advertiser interest in the team this year, with the number of
brand associations jumping from five to nine.
The team owners have been keen to sell a strategic stake in the team, but had not found
any takers at the price they were quoting. This may now change.
* The total income does not include gate receipts, revenue from merchandising and prize
money.
zyakaira notes: this being an official study, we will be using this to work on all things IPL
here and at http://twitterone.mobi
All IPL brands have earned 150-200 crores in 2009 edition with 110 million viewers
ratifying the IPL’s tag of 8200 crores ($1.3 bllion) for media rights. Now apart from their
going public, i feel the potential is such that at least a couple of these franchises like the
Daredevils will start earning closer to 300 crores from edition 3
Shah Rukh Khan's Kolkata Knight Riders may have shown a poor
performance in the second season of Indian Premier League, but in terms
of brand value it is the richest team of the Twenty20 tournament, with a
brand valuation of USD 22 million.
While the playing squads will change and the success of each team will
fluctuate over time, the brand is the constant that unites supporters and is
ultimately responsible for driving the long-term commercial sustainability
and success of the IPL franchises, MTI Consulting said in a statement.
In the ongoing tournament, KKR has shown up the worst performance with
just three wins in 14 matches, while Delhi Dare Devils and Chennai Super
Kings leading the tally.
Among the eight teams, KKR has been ranked as the most valued with a
brand value of USD 22 million, followed by Delhi Daredevils (USD 19
million), Chennai Super Kings (USD 39.4 million), Mumbai Indians (USD
17 million), Kings XI Punjab (USD 15 million), Royal Challengers
Bangalore (USD 14 million), Hyderabad Deccan Chargers (USD 11
million) and Rajasthan Royals (USD 10 million).
If you follow the brand valuations for the IPL here, you would note the vertical cliff
between revenues after season 1 and season 2. Also, the same is likely to repeat again in
season 3. However, most of us would find the pricing for outdoor/theatrical rights for IPL
coverage which in fact may not cover public radio and is unclear about use of team logos
etc, seems to have been a cheap affair for ESD. OR, if Lalit Modi has done his job right,
then there is as of now a very minimal revenue share for the TV network, the teams and
the On ground sponsors are also getting away scotfree..it probably would be a very
tightly monitored roll out as all the stakeholders would want to be visible and / or paid for
the game in action and the real brand value would probably factor in this roll out of IPL
at even 10 times the bid of INR 3300 crores at the very least.
Apart from this, team revenues would also need to rise vertically again for season 3 as
time for rebidding is close at hand and some voices will already be contemplating new
team mates in the pits. If not, trading is likely to get very ham handed despite the adding
teams in during seasons 3 and 4
Here are the few tweets about the rights being granted and what has been happening:
What are the revenue share arrangements for ESD? and ESD with Mall/Theatre
operators? MSM pays 80% to IPL till season 5, 60% till season 10
As per GoI broadcast Ministry rules all DTH providers have to get the channels from
MSM, now if ESD uses at theater?
Big TV had earlier pulled out of a on ground sponsorship whn Airtel earned on-air DTH
rights from MSM, Coke has on-air rights, Pepsi on grnd
MSM had earlier paid $1.79 billion to IPL for telecast rights for 10 years and the 160 cr
settlement later for season 2
ESD would thus control IPl coverage in cinema, stadia and other public places for 10
years..they should pay the TV ntwrk used for broadcast?
Entertainment Sports Direct wins IPL ‘theatrical’ rights for $71.7mln till 2019 from
Season 3 on, That means TV networks would now bid again
Lakers shining the Suns! At least NBA fans in India are happier with the new ESPN India
imports
SRK’s Kolkata Knight Riders is top IPL brand at $22 mn: Study
Indiantelevision.com Team
Delhi Daredevils, owned by GMR Group, walks into the crease at the second spot
with a brand valuation of $19 million, according to an evaluation by UK-based
valuation company Intangible Business and MTI Consulting, an international strategy
consultancy.
The "IPL Brand Value Scoreboard 2009" study, aimed at measuring the strengths
of the eight IPL franchises, puts Chennai Super Kings (owned by India Cements) at
the third place with $18 million, followed by Mukesh Ambani's Mumbai Indians at $17
million.
Surprisingly, Rajasthan Royals, the champions of the inaugural edition and now out
of IPL 2, is at the bottom of the heap with a brand value of $10 million.
The latest released study has pulled down the brand valuation of the IPL teams by
almost half from a earlier report by UK-based brand valuation consultancy Brand
Finance Plc. Though the KKR team was the most valuable showpiece, its brand value
was put at $42.1 million by Brand Finance. This was followed by Mumbai Indians and
Rajasthan Royals (See table for comparison).
Brand Finance had valued the IPL brand at $2 billion. The study was based on
various revenue lines such as broadcasting, IPL sponsorship, team sponsorship,
merchandising and gate receipts, the effect of performance, the catchment
population of the city, the capacity of the stadium and the presence of iconic players.
So what was the methodology used by Intangible Business and MTI Consulting?
Explains MTI Consulting CEO Hilmy Cader, "Brand values are a reflection of a brand's
ability to generate future income. It is a forward looking study that uses historic
performance and future trends to predict future activity. 2008 publicly available sales
data was gathered for each franchise. To determine the strength of the brands, each
brand was scored on a series of attributes that underpin the power and reach of the
each brand. These attributes are a mixture of hard measures and soft measures of
brand strength sourced from publically available information and from a qualitative
panel of cricket fans from each test playing nation. Using this data, each brand was
then valued using the relief-from-royalty methodology."
IPL has all ingredients to make a Hollywood pot – boiler, with both its on – field and off
– field activities. With exactly around one month to go, franchise of IPL has sprung into
life through various innovative activities like fan base, cheerleaders’ contests and
merchandising to generate money as well as branding.
Concept of fan base is literally not present in last year IPL. This year Rajasthan Royals
have come up with concept of fan base, where their premium membership by name
Maharaja Club cost around more than 2.5 lakhs , which is offered for not more than 200
people and also Young Royals club which cost the modest around 2500 rupees.
Rajasthan Royals have also commenced several reality shows, where they get to select
from the available Rajasthan Royals fans for ball boys (12 – 16 years) around the rope
and also a girl to lead their cheer leaders in ground.
Other franchise which have comes up with some marketing programs is Kings XI Punjab,
Chennai Super Kings, Delhi Dare Devils and Deccan Chargers. Deccan chargers have
come up with a innovative consumer connect with fans on Mobile phone and Internet,
where fans get access to fans favourite stars wall papers, can chat with their stars and
their merchandise etc.
Membership to Kings Club is around 500 for school children and Rs 1000 to rest of the
people. Chennai super kings is also said to be reaching to target audience through online
as well select cafe coffee day and Reebok outlets. They are also counting on options to
conduct shows like CSK Junior and CSK cheerleaders, so that they can market their
teams as well as players.
Last year, merchandising was one of the chief ways franchise promoted their team and
brand. This time through augmenting it with concept of fan base, they have made it into a
revenue generating model and success will be known by end of this edition of IPL.
Members of fan club are said to have special consideration and discounts for tickets they
buy. They will be getting their preferences and core benefits.
Experts in Marketing and Advertising field have second thoughts about the success of
these programs and fan base. Chief of Starcomm was quoted saying that it took exactly
150 years for a football team like Manchester united to launch their fan club. So it’s too
early to go for these types of marketing and promotional activities.
Franchises are very clear of the fact that branding and loyal fans will be pivotal for their
long term success and to
The IPL plans to augment its revenue three fold by entering into several new prospective
proposals. First, the IPL clinched a telecasting deal with ITV Brittan. Now, IPL has
entered into a merchandising arrangement with a swish watch company Bandelier. More
such proposals of merchandising deals are in the pipeline.
The Auction for the two teams to be added next year is over. The result of the winners
who will be awarded the franchisees will be known to day. The base price of the auction
for a team is fixed at $225 million. The IPL is very confident that the ultimate price for
one team may reach $300.This time, every participating bidder was asked to furnish a
bank guarantee of $100 million to become eligible for bidding. The higher amount of
base price and also a huge amount of bank guarantee has not limited the competition. It is
reliably learnt that many big industrial giants like VIDEOCON, ICICI and others are on
the fray. Initially, the MCC England had shown interest in participation for the bid. Now,
the MCC confirmed that they have decided not to bid for a
team. In fact, the representatives of MCC visited India to
study about the IPL bidding. The recommendation submitted
by the members was discussed and analyzed in depth. It was
decided by MCC that they will not bid for a team considering
the huge amount that they have to invest. However,
considering the popularity of IPL, through out the world, they
are looking forward for new avenues to associate with DLF
IPL. The MCC is deputing its president and head of There
will be more number of competitors now due to reduction of
the bank guarantee amount.
The tactical and innovative business proposals of IPL are going to definitely pay rich
dividends in terms of revenue.
Breaking News- The IPL management has taken a surprising decision in cancelling the
tender and proposes to recall the tender with less guarantee bid amount. There were many
requests to reduce the minimum guarantee amount of $100 million that is to be furnished
along with the bid. The DLF IPL management accepted the Font Size -A +A
request and revised
Agencies
Posted: Mar 10, 2009 at 1518 hrs IST
Mumbai
The Indian Premier League will take full responsibility for a centrally-managed security
set-up for the second edition of its high-profile Twenty20 league which will cost 10 times
more than last year.
IPL chairman Lalit Modi said on Tuesday that the security of players, officials and fans
will no longer be left to the individual franchises as was the case last year.
"Security is paramount for us. Players, officials and fans are all very important. Players'
security was the responsibility of the teams last year but this time we have gone venue by
venue managing the security centrally. Of course we will coordinate with the teams,"
Modi said at a function to unveil the new logo for IPL second season that starts April 10.
Ahmedabad and Visakhapatnam are the two new venues added to the second season and
Modi said talks were also on to get Nagpur and Dharamshala on the the roster. But he
didn't give out the much-awaited schedule, saying it was still being fine-tuned.
"We are talking to Dharamshala and Nagpur is also in fray. Schedule is still being fine-
tuned as I speak," he said.
Elaborating on the security plan, Modi said, "From the minute a (foreign) player lands
here to the minute he leaves India. From the minute an Indian player enters the hotel to
the minute he leaves, we will be managing the security."
"It's a cumbersome template that was used during the India-England Test series last year.
That was a rigorous plan put in place, shared with the government and the international
board, in that case the England and Wales Cricket Board," Modi added.
"Security (budget) will be 10 times more than last year," he said without divulging the
exact figure.
IPL's security has become a major issue after the Lahore terror attack on the Sri Lankan
cricketers, six of whom were injured, and last year's Mumbai carnage.
Asked about the reported apprehensions of foreign players and the host state
governments, Modi said, "Three state governments (of the eight involved) have already
given us their clearance in writing. The other five are expected to give it in a day or so.
One state government had asked for a change of date and we are working it out."
"No foreign player has so far contacted the IPL to say that he is apprehensive. They have
never been uncomfortable about coming here. India is not Pakistan, we are a safe
country," he said.
Modi also rejected the Federation of International Cricketers Association's demands for a
say in the security arrangements for IPL.
"The IPL is conducted by BCCI and the BCCI talks directly to the Boards. We have
never been in touch with FICA. But of course they will talk to the other Boards and
coordinate with them," he said.
The opening and closing ceremonies as well as the inaugural and summit ties of the April
10-May 24 event would be held at the D Y Patil Stadium in Nerul, Navi Mumbai.
Modi revealed that Chennai, home to last year's semi-finalists Chennai Super Kings, will
not get to host all seven of its planned games.
"There are a few blackout dates involved because of the elections. So they will not be
hosting all seven of their matches," he said.
Modi said tenders have been floated for multiplexes vying to show live telecast of the
IPL matches but with a clause. "If Mumbai is hosting a match, then the multiplexes there
cannot show that match on that day, they will have to show the match going on in some
other city," he said.
Modi also made it clear that the IPL Governing Council had decided not to allow the
Twenty20 League to be used for political campaigns by any party for the Lok Sabha
polls.
Modi said the confirmed contracted revenue for the second edition of the IPL has gone up
by Rs 1,725 crore. "Now it's Rs 10,790 crore. Two official partner slots are still open. We
are in talks and are close to signing up one of them", he said.
The Indian Premier League [ Images ] (IPL), the Board of Control for Cricket in India's
(BCCI) Twenty20 [ Images ] tournament, is estimated to generate an advertising revenue
of over Rs 600 crore in its first season.
In the first year, each of the eight team owners will spend around Rs 25 crore on
marketing and promotion, which include below-the-line activities, city-based club
activations and so on, say sources.
"We will spend in the range of Rs 20 crore on team promotions," said P K Iyer, managing
director, Deccan Chronicle, which owns the Hyderabad team.
Delhi team owner GMR Holdings and Jaipur [ Images ] team executives too confirmed
that they would spend around Rs 20 crore each in the first year.
Industry estimates put the total advertising pie for the country, including below-the-line
activities, at around Rs 22,000 crore a year.
Advertising for IPL will be generated through four major avenues, namely, air time sold
by Sony Entertainment Television, BCCI's own marketing plan, promotional activities of
the eight teams and from brands associated with the league.
An industry source said BCCI had allocated roughly Rs 100 crore as its advertising
budget, while Sony is estimated to earn nearly Rs 300 crore from ad slots. In addition,
close to Rs 200 crore will be spent on the teams for promotion and marketing.
"While the brands associated with the league may not necessarily increase their
marketing and promotional budget, they will cut their spends on a particular medium. So
their overall contribution may not be very high. However, for the first round, Rs 300
crore will be added to the total advertising pie. IPL will be a new contributor to the ad
industry," said R Gowthaman, managing director, south-west India, Mindshare. However,
experts believe the same may not hold true later.
"IPL will have a salient launch and the advertising spends will be substantial. But as the
league gains popularity, the ad spends will come down," said Vikram Sakhuja, COO,
South Asia, Group M.
<B>Team selections</B><BR>
Meanwhile, cricketing action in IPL is about to get under way as team owners make a
wish-list of the players they will aggressively bid for at the players' auction to be held on
Wednesday.
While Reliance Industries [ Get Quote ], which was the highest bidder in the team auction
and won the Mumbai [ Images ] team for $111.9 million, already has Sachin Tendulkar [
Images ] on board, it is believed to be in talks with ICC [ Images ] representative Jamie
Stewart for the position of advisor.
"The upcoming player auction will help decide the final composition of the team. We will
obviously aim for a winning combination and cannot divulge competitive strategy at this
stage," an RIL spokesperson said.
Vijay Mallya's [ Images ] Bangalore team, which was won for $111.6 million, will be
RIL's closest competitor, according to sources.
"We will be aggressive in our bids. Our team motto is 'playing to win' and this will be
reflected in everything we do," said Vijay Rekhi, president and managing director, UB
Group.
Rekhi added that they would also work towards building a loyal fan base for the
Bangalore team.
"Since the first match will be played between Shah Rukh Khan's [ Images ] Kolkata [
Images ] team and our team, we will dedicate a space in the stadium for fans to cheer," he
said.
With BCCI deciding that each team owner will have to bid between $3.3 million and $5
million a year to rope in players from the 80 the board has listed, which does not include
catchment area players, it will be a close call.
For instance, the Delhi franchisee owner, GMR Holdings, will spend around $4 million,
say sources. GMR has roped in T A Sekar (chief coach of the MRF Pace Foundation) as
the team advisory and has partnered event management and entertainment agency,
Wizcraft International.
Virender Sehwag [ Images ] was today announced as the tentative team captain with Greg
Shepherd as the coach. GMR has decided to name the team Delhi Daredevils [ Images ].
For the Jaipur team, the former managing director of IMG South Asia, Ravi Krishnan,
has been appointed vice-chairman. He will advise the team on commercial, operational
and on-field activities. Ogilvy is on board as the creative agency.
Emerging Media is keen on M S Dhoni [ Images ] as captain for the Jaipur team and will
bid for cricketers from South Africa [ Images ], Pakistan and Sri Lanka [ Images ].
Sources added that Greg Chappell [ Images ] would be the team's coach.
When West Indies T20 specialist Keiron Pollard was snapped up by Mumbai Indians
during the January 19 auction for the third season of the Indian Premier League, or IPL 3,
team boss Mukesh Ambani reportedly coughed up $1.8 million (Rs 8.3 crore) for the
batsman after three rival teams exhausted their original bid amount of $750,000 (Rs 3.4
crore).
Under IPL rules, the bid amount was not disclosed but, if the number is true, it would
make Pollard the most expensive IPL player to date. Much more than the $1.55 million
(Rs 7.1 crore) each that Chennai Super Kings paid for Andrew Flintoff and Bangalore
Royal Challengers for Kevin Pietersen, who were paid top dollar, in 2009.
If this is an indication of the success of IPL 3 even before the season has begun, then
things can only go one way: up. "In Season-III, IPL's earnings could cross Rs 700 crore-
over Rs 200 crore more than what it earned in Season II. And though it's early days, IPL
4 will see a big jump in revenues as well," says an official of the Board of Control for
Cricket in India (BCCI), the mover behind IPL, on condition of anonymity.
UK-based Brand Finance had valued the IPL enterprise at $2.01 billion (Rs 9,200 crore at
current rates) for Season-II; sources indicate this valuation could increase by 50 per cent.
With two new teams, a base price of $225 million for the teams ($113 million higher than
the most expensive team at present) and over 300 players set to go under the hammer in
October 2010, IPL 4 is sure to get bigger.
The cash-spewing innovations have already started: Apart from TV rights, IPL will also
rake in the moolah from theatrical rights. This year, IPL Chairman and Commissioner
Lalit Modi has raked in almost $70 million (Rs 330 crore) by selling theatre-screening
rights of the tournament to Entertainment Sports Direct, which, in turn, has partnered
with UFO Moviez to screen IPL matches in HD quality in 800 screens across the country.
Sanjay Gaikwad, CEO, UFO Moviez, expects box office collections from the IPL
matches to touch Rs 30 crore in season-III. Says Gaikwad: "This is probably the first time
that any sports league is leveraging this aspect of the business." The semi-finals and
finals will be screened in 3D, a first for sporting events.
IPL will also have an awards ceremony from this year, based on 56 League games,
Colors, the general entertainment channel, will telecast the awards night, after-match
parties, events, fashion shows and related events. Says Modi: "We will give every type of
viewer something to watch. Fashion, Bollywood and cricket will all be merged. Our
partnership with Colors takes the IPL "cricketainment" quotient into a new orbit." The
revenue of the tie-up will go to the franchises, he says. Then there is the online streaming
of matches on YouTube in a deal with Google (see Marketing Machine).
Rohit Gupta, President, Network Sales, Licensing and Telephony, Multi Screen Media,
the holding company of broadcaster SET Max, says, "With IPL back in India, we started
sales in mid-2009 so that marketers have enough time to create and plan extensive
creative or marketing communication." SET Max is commanding a premium of 20 per
cent on advertisements over last year's edition. The broadcaster is commanding Rs 5 lakh
for a 10-second ad spot for the matches. Last year, the average cost of a 10-second ad
spot was about Rs 3.75 lakh. While 80 per cent inventory has been sold, the balance has
been kept aside to be sold at a premium when the tournament is at its peak.
For Season-IV, the auctions for two new teams will be held by the end of February (eight
months before the October auction for 300 players) with a base price of $225 million (Rs
1,035 crore) each. This is more than double the value of the costliest team currently-
Mumbai Indians at $111.9 million (Rs 514 crore). All eight franchises will be given the
choice of retaining any six players (four Indians and two foreigners) they want. IPL boss
Modi, however, remains tightlipped when asked if a base price had been fixed for the
players. "Nothing has been decided yet. The modalities for Season-IV auction are still
being worked out," he says.
Long-term Play
Guarded though Modi is, it hasn't stopped speculation on some big names who are said to
be interested in buying new teams. The names of Hero Honda's Pawan Munjal, Sahara's
Subroto Roy and ADAG's Anil Ambani are already doing the rounds. In a recent
interview with Business Today, Munjal, the Managing Director of Hero Honda, had said
he wasn't interested in the outright purchase of an IPL team for the time being. "We are
associated with cricket at many levels. In the IPL we are the main sponsors of the Delhi
Daredevils (with whom Hero Honda signed a threeyear contract worth Rs 55 crore in
2008) as well as being a partner with IPL. We are also associated with the International
Cricket Council (ICC) as one of their global partners," says Munjal, adding that buying a
team is something the company hasn't thought about.
That may change as October nears and if IPL 3 lives up to its promise of a money
spinner. Sources suggest that Munjal is interested in owning a team in his personal
capacity. Others too are unwilling to commit themselves. Sahara sources said they were
weighing various options and would "decide about buying a team at an appropriate time".
Still, over 30 companies and individuals have shown interest in buying the teams so far.
What is luring them to IPL? Says Vivek Gupta, M and A Partner at BMR Advisors: "IPL
has turned out to be a huge media property.... It is not to feel good or boost their egos that
they want to own a team. It is a for-profit venture that is drawing them.
It's a long-term play."Adds Mahesh Ranka, General Manager of sports marketing firm
Relay Worldwide India: "Companies are encouraged by what IPL has delivered. What
the very high base price will do, though, is keep out people who are not serious... whose
funding is not strong. Also, IPL has shown how a sport, if marketed well, can be
profitable over time." Brand Finance had valued the teams after Season-II, taking into
account various revenue lines. Among the eight teams, Kolkata Knight Riders (KKR)
was ranked at the top with a brand value of $42.1 million (Rs 193.6 crore), followed by
Mumbai Indians ($41.6 million or Rs191.3 crore), Rajasthan Royals ($39.5 million or Rs
181.7 crore), Chennai Super Kings ($39.4 million or Rs 181.2 crore), Delhi Daredevils
($39.2 million or Rs 180.3 crore), Royal Challengers Bangalore ($37.4 million or Rs 174
crore), Kings XI Punjab ($36.3 million or Rs 167 crore) and Hyderabad Deccan Chargers
($34.8 million or Rs 160 crore).
Whatever doubts remained after some teams did not make a profit in Season-I were laid
to rest at the end of Season-II, when almost all teams were in the black. Rajasthan
Royals, despite having lost in the semi-finals, clocked profits of Rs 35 crore in Season-II.
This season, the Royals have set aside a budget of over $1 million (Rs 4.6 crore) for just
marketing and promotions, says Manoj Badale, co-owner with Bollywood actress Shilpa
Shetty's family, Rajasthan Royals.
Similarly, KKR, despite ending last in 2009, clocked profits of Rs 25.8 crore. The team,
owned by superstar Shah Rukh Khan, expects to do well this season, although KKR
officials are reticent. "Our main ambition this year is to make it to the semis. So you can
say onfield performance will be target #1," says Team Director Joy Bhattacharya. Delhi
Daredevils and Kings XI Punjab have tied up with bookmyshow. com for sale of tickets
online. "The stadium is a key source for revenue and we have had to put technology and
systems in place to ensure minimal erosion through pilfering," says Mohit Burman, co-
owner, Kings XI, and a director at Dabur India. The team is spending around Rs 4 crore
this season on marketing.
After having clocked profits of Rs 23.3 crore, Delhi Daredevils is expecting to improve
matters in Season-III. The team's GM Marketing P. Phaneendra expects 90 per cent of
tickets for its matches to be sold through bookmyshow.com. Ditto, Chennai Super Kings.
With the share of central sponsorship remaining unchanged, a team's profits depend on
sponsorship and ticket sales. "On both these accounts we plan to do better so our profits
should be a lot higher than the first two editions of IPL," says Rakesh Singh, GM, India
Cements and spokesman for the Chennai team, the runners-up in Season-I. Some owners,
however, do not agree with an India Infoline Research report that suggests all teams are
profitable. Burman says while teams did make money in Season-II, becoming "a
profitable company" is still some distance away for all franchises. Kings XI hopes to
reach operational break even in 2011 and then look forward to profits.
The question now being asked is: do these valuations and the profitability mean fertile
ground for equity deals? "The valuations look attractive," says Rajesh Jain, KPMG
India's National Industry Director for Information, Communications and Entertainment
(See IPL: How Big Can It Get). According to Jain, some private equity (PE) firms have
already shown interest in the teams though others such as Gupta of BMR Advisors says
such firms take a long term, 5-7 year view.
Many teams are evaluating options to unlock value. Some PE funds like New Silk Route,
Actis and TPG have shown interest in KKR and Kings XI Punjab. According to analysts,
Deccan Chargers, Royal Challengers and Chennai Super Kings, which are part of listed
companies Deccan Chronicle, UB Spirits and India Cements respectively, have been
valued at $150 million (Rs 690 crore) each. Ahead of IPL 3 and 4, that could climb to
$250 million (Rs 1,150 crore). India Cements is also not willing to hive off its IPL
property from the listed company.
Singh says, "Chennai Super Kings is a property of India Cements. It will remain so.
Whatever value it generates will remain within India Cements." On stake sales, Kings
XI's Burman and KKR CEO Shah Rukh told BT they were not considering such options.
"There may be a need for a rethink if the team's performance does not improve in season
3 and 4," he added. But there are risks and challenges in terms of maintaining the
heightened interest to keep the IPL alive all through the year, explains M. Unni Krishnan,
Country Head of Brand Finance in India. "...There are other T20 brands from other
cricketing nations emerging and so will face competition in the coming years," he says.
For the franchises, Relay Worldwide's Ranka says the challenges lie in how they take
advantage of the tournament. "The brands associated with IPL have not understood how
to leverage the scope and scale of IPL" in a cricket-crazed nation, he says. If the current
interest in IPL is anything to go by, that may soon be a thing of the past and IPL may be
talked about in the same breath as the Super Bowl and English Premier League.
Marketing Machine
He is shrewd, super confident and has no qualms about making us wait for over five
hours before he decides to meet us. He is none other than Lalit Modi, the man behind the
unprecedented success of the Indian Premier League. He is busy running in and out of
meetings amidst hosting two press conferences-one to announce IPL's tie up with Google
for online streaming of IPL Season 3 matches live on YouTube and the other with the
International Hockey Federation (FIH) to advance the timing of their first match on
March 13 to avoid a clash with the final of the Hero Honda FIH Hockey World Cup in
New Delhi.
More than anything, Modi is happy that IPL is back in India this year. He says, "This
year our theme is Back in India. And we want to make the most of it." When you speak to
Modi you realise he is well aware of what he has created. He knows he has an incredibly
successful product in the IPL. "Anything we do is all about marketing. My job clearly is
do things that are extraordinary and think out of the box," says Modi. The Google
partnership for online streaming of IPL on YouTube is one of his most significant
victories.
"I have never done anything like this before. It's a paradigm shift. Imagine, Google could
have approached any sporting event, the NBA or the EPL (English Premier League) but
they chose IPL for their first live sports broadcast on YouTube," Modi adds. Another first
to his credit is the selling of global theatre-screeing rights of IPL for 10 years to
Entertainment Sports Direct for Rs 330 crore and screening of the semi-finals and final
matches in 3D format. Modi does not shy away from controversy either.
Take, for instance, the recent flap over leaving out Pakistan players during the Season-III
IPL auction. "At times when we do things they are considered to be controversial. Again
we don't do things to create controversies. Controversies are part of our business but our
job is clearly to be in your face and be there all the time," he explains. Then, he is also
seen as very competitive and a fast decision maker.
When the Indian government could not guarantee security for players in Season-II due to
the general elections, he took a decision almost overnight to take IPL to South Africa .
This ability to pull out off difficult situations is rooted in his wide networks; important
people are just a phone call away. Kunal Dasgupta, former CEO, SET India, who is
currently consulting him on broadcasting, says: "I am there whenever he needs me."
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New Delhi: Broadcaster Multi Screen Media Pvt. Ltd (MSMPL), which operates Sony
Entertainment Television, is set to reap a bonanza from the third edition of the Indian
Premier League (IPL), which is expected to deliver Rs700 crore in advertising revenue
for the network.
That’s up more than half from the Rs450 crore it earned last year when the 20-overs-a-
side cricket tournament, the country’s most valuable sports property, was shifted to South
Africa to skirt security issues and avoid dates clashing with
the Indian general election.
The network has managed to sell close to 90% of its advertising inventory a full six
weeks ahead of the tournament’s launch date of 12 March despite a steep increase in spot
advertising rates and sponsorship fees.
MSMPL and World Sport Group Pte Ltd (WSG), a sports marketing company, paid
Rs8,200 crore for the broadcasting rights to IPL until 2017.
According to a senior executive from the WPP Group-owned Mindshare, a media buying
agency, the network began selling its 10-second advertising spots at Rs4.5 lakh, which is
200% more than the initial ad rates in the IPL season 1 at Rs1.5 lakh per 10 seconds and
80% higher than the initial rate of Rs2.5 lakh in the second season.
The executive did not wish to be identified because Mindshare manages the media
buying business for IPL. In the past one week, the rates increased further to Rs5.25 lakh
for 10 seconds.
“We are all sold out in spite of the spiralling advertising rates,” said Rohit Gupta,
MSMPL’s president of network sales, confirming the advertising rates.
The broadcaster is now holding back 10% of the inventory to sell it at a premium during
the final and semi-final matches. “These should be substantially higher than the Rs10
lakh per 10-second level of last year,” Gupta added.
Mobile phone firm Vodafone Group Plc and electronic goods maker Videocon Industries
Ltd have signed on as presenting sponsors on MSMPL’s SET Max channel, which will
telecast the matches, for Rs50 crore each, a 66% increase from last year’s Rs30 crore
sponsorship rate.
Among the advertisers who have picked the associate sponsorship rights are Pepsico
India Holdings Pvt. Ltd, LG Electronics India Pvt. Ltd, Hyundai Motor India Ltd,
Samsung Electronics India Pvt. Ltd, Hindustan Unilever Ltd, Godrej and Boyce
Manufacturing Co. Ltd and Tata Photon of Tata Teleservices Ltd.
They paid Rs35 crore each, a 25% increase from the Rs28 crore that associate sponsors
paid last year.
A host of other brands such as Max New York Life Insurance Co., Tata DoCoMo,
Havells India Ltd, Coca-Cola India Inc., Wipro Ltd, Sony India and ITC Ltd may have
given the sponsorship rights a miss this year, but have booked large deals with the
network, said Gupta.
“If you notice, most of the brands that have signed on with us this year have been present
on season 1 and 2 even though there’s been a tremendous increase in advertising rates.
Clearly, IPL delivers more than just good ratings for advertisers,” Gupta said.
“The IPL mileage has been tremendous for the brand, which is why we are putting in a
lot of money into the tournament this year as well,” said George Menezes, chief operating
officer of Godrej’s appliances division.
Still, electrical goods manufacturer Havells, a prominent sponsor during IPL Season 1
and 2, has been content with spot purchases this year because of the steep rise in cost.
“We are participating in IPL this year but the cost to be a sponsor has gone up
substantially,” said Vijay Narayanan, vice-president for marketing at Havells. “Since the
advertising budget is limited, one cannot put all the money in one property spread across
just over a month.”
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Agencies Tags : cricket, lalit modi, new logo, players security, ipl revenue Posted:
Tuesday , Mar 10, 2009 at 1518 hrs Mumbai:
The security will not be a responsibility of teams as the IPL has taken control of the
arrangements centrally.
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Fonseka
The Indian Premier League will take full responsibility for a centrally-
managed security set-up for the second edition of its high-profile Twenty20
league which will cost 10 times more than last year.
IPL chairman Lalit Modi said on Tuesday that the security of players,
officials and fans will no longer be left to the individual franchises as was
the case last year.
"Security is paramount for us. Players, officials and fans are all very
important. Players' security was the responsibility of the teams last year but
this time we have gone venue by venue managing the security centrally. Of
course we will coordinate with the teams," Modi said at a function to unveil
the new logo for IPL second season that starts April 10.
Ahmedabad and Visakhapatnam are the two new venues added to the second
season and Modi said talks were also on to get Nagpur and Dharamshala on
the the roster. But he didn't give out the much-awaited schedule, saying it
was still being fine-tuned.
• ad P V's blog
Comments
If you follow the brand valuations for the IPL here, you would note the
vertical cliff between revenues after season 1 and season 2. Also, the same is
likely to repeat again in season 3. However, most of us would find the
pricing for outdoor/theatrical rights for IPL coverage which in fact may not
cover public radio and is unclear about use of team logos etc, seems to have
been a cheap affair for ESD. OR, if Lalit Modi has done his job right, then
there is as of now a very minimal revenue share for the TV network, the
teams and the On ground sponsors are also getting away scotfree..it probably
would be a very tightly monitored roll out as all the stakeholders would want
to be visible and / or paid for the game in action and the real brand value
would probably factor in this roll out of IPL at even 10 times the bid of INR
3300 crores at the very least.
Apart from this, team revenues would also need to rise vertically again for
season 3 as time for rebidding is close at hand and some voices will already
be contemplating new team mates in the pits. If not, trading is likely to get
very ham handed despite the adding teams in during seasons 3 and 4
Here are the few tweets about the rights being granted and what has been
happening:
What are the revenue share arrangements for ESD? and ESD with
Mall/Theatre operators? MSM pays 80% to IPL till season 5, 60% till season
10
As per GoI broadcast Ministry rules all DTH providers have to get the
channels from MSM, now if ESD uses at theater?
Big TV had earlier pulled out of a on ground sponsorship whn Airtel earned
on-air DTH rights from MSM, Coke has on-air rights, Pepsi on grnd
MSM had earlier paid $1.79 billion to IPL for telecast rights for 10 years and
the 160 cr settlement later for season 2
ESD would thus control IPl coverage in cinema, stadia and other public
places for 10 years..they should pay the TV ntwrk used for broadcast?
Entertainment Sports Direct wins IPL ‘theatrical’ rights for $71.7mln till
2019 from Season 3 on, That means TV networks would now bid again
Lakers shining the Suns! At least NBA fans in India are happier with t
Last year, the government had received over Rs 90 crore through tax deducted at source
(TDS) from payments made in the IPL. BCCI and the IPLfranchisees’ liability this time
will only be known once returns are filed and scrutiny is made, a senior income tax
official said.
The loss to the exchequer is on account of India and South Africa having a double
taxation avoidance agreement under which anyone taxed in South Africa will be
exempted from being taxed again in India.
Thus, any player making an endorsement over television or on any other platform in the
host country and getting paid there would have no tax obligation on that count in India.
Recently, Bollywood actress Aishwarya Rai managed to get tax relief on earning through
her performances in the UK and US. The I-T Appelate Tribunal (ITAT), Mumbai had
allowed her to take credit for the tax already paid in UK and US.
The I-T department had earlier wanted to tax the actress on income of Rs 16 crore
through her performances abroad. Sources said that the net tax flow fromcricket may
increase after a proper scrutiny of BCCI and its franchisees’ receipts and payments is
done.
The IPL team franchisees get the lion’s share of the earning on broadcasting fees earned
by the BCCI. This time around, with a new deal being worked out for broadcasting, it is
expected that teams will have additional revenue of around Rs 90 crore to share among
themselves.