COMPLETE REPORT ON IPL BY BITW

1. Asad Hoosain BITW
MBA-13-007
ENTERTAINMENT KA BAAP

2.  Designed after intensive study based on primary sporting
leagues around the globe like NHL,NBA,NFL & EPL.
 Designed with detailed ,critical analysis and systematic
evaluation of these leagues.
 League structure modeled to fit the unique format of
Indian context and also build the local talent.
 Can be successful only if all stakeholders’ interests are
safeguarded.

3.  Brain child of Mr. Lalit Modi, the then VP,BCCI.
 Late June 2007-discussed with Andrew Wildblood,IMG
 2008- IPL CAME TO EXISTENCE
 Feb. 2008- 1ST IPL Auction was held
 April 2008- 1st IPL match , Bangalore,RCB VS KKR
 Schedule – 46 days 59 matches.

4.  Revenues for IPL & FRANCHISEES come from 3 streams-
 1. MEDIA RIGHTS
 2. SPONSORSHIPS(under central or local pool)
 3. GATE RECEIPTS.
 Consortium incl. SONY ENTERTAINMENT TELEVISON
(SET) & WORLD SPORTS GROUP bought
BROADCASTING RIGHTS - $1.026 billion 10 yrs.

5.  Marketing by SONY -$108 million
 Remainder ($ 918 million) – Central pool
 Central Revenues
Media Rights IPL Franchisees Prize Money
2008-2013 20% 72% 8%
2013-2018 48% 62% Included in the 60%
2018-onwards increase decrease decrease
Revenues IPL Franchisee Prize Money
2008-2017 40% 54% 6%
2018 onwards 50% 45% 5%

6.  Other revenues include selling advertising space in the stadia
for home matches, licensing products for their team like T-
shirts, getting sponsorship for the team uniform, advertising
on tickets and so on. As already mentioned, 20% of all of this
will then go to IPL.
Broadcast Rights
 08-13 – 80% split among franchisees
 13-18 – 60% split among franchisees
Gate Receipts IPL Franchisees
20% 80%

7.  Franchisees own the teams in perpetuity, but make the
payments in installments over the next 10 years
 Players signed three-year contracts with the franchisee, and
icon players excepted, can be traded after the first season.
 Stadiums could cost up to Rs 30 lakh per match
 The franchisees’ expenses include team franchising
installments, player and personnel, marketing, stadium
expenses, and promotion, event management and
administration.

8.  2008-2010
Franchisee Owner(s) Price (USD)
Mumbai Indians Mukesh Ambani & RIL 111.9mn
Bangalore Royal Challengers Dr.Vijay Mallya & UB Group 111.6mn
Deccan Chargers Deccan Chronicle 107mn
Chennai Super Kings India Cements & N Srinivasan 91mn
Delhi DareDevils GMR Holdings 84mn
Kings XI Punjab Ness Wadia,Preity Zinta,Karan Paul( Apeejay
Surenera Group,Mohit Burman( Dabur)
76mn
Kolkata Knight Riders Shah Rukh Khan,Juhi Chawla,Jai Mehta 75.09mn
Rajasthan Royals Emerging Media( Manoj Badale,Lachlan
Murdoch,Suresh Chellaram),Shilpa Shetty,Raj
Kundra
67mn

9.  2011
 2012-2013
Franchisee Owner(s) Price (USD)
Pune Sahara Adventure Sports Group 370mn
Kochi Rendezvous Sports World Limited 333.33mn
Franchisee Owner(s) Price (USD)
Mumbai Indians Mukesh Ambani & RIL 111.9mn
Bangalore Royal Challengers Dr.Vijay Mallya & UB Group 111.6mn
Deccan Chargers Deccan Chronicle 107mn
Chennai Super Kings India Cements & N Srinivasan 91mn
Delhi DareDevils GMR Holdings 84mn
Kings XI Punjab Ness Wadia,Preity Zinta,Karan Paul( Apeejay
Surenera Group,Mohit Burman( Dabur)
76mn
Kolkata Knight Riders Shah Rukh Khan,Juhi Chawla,Jai Mehta 75.09mn
Rajasthan Royals Emerging Media( Manoj Badale,Lachlan
Murdoch,Suresh Chellaram),Shilpa Shetty,Raj
Kundra
67mn
Pune Warriors India Subrata Roy(Sahara Group India) 370mn

10.  2014
Franchisee Owner(s) Price (USD)
Mumbai Indians Mukesh Ambani & RIL 452.9mn
Bangalore Royal Challengers Dr.Vijay Mallya & UB Group 331.6mn
Sunrisers Hyderabad Sun TV Network 172 mn
Chennai Super Kings India Cements & N Srinivasan 426mn
Delhi DareDevils GMR Holdings, Muthoot Finance 302mn
Kings XI Punjab Ness Wadia,Preity Zinta,Karan Paul( Apeejay Surenera
Group,Mohit Burman( Dabur)
289mn
Kolkata Knight Riders Shah Rukh Khan,Juhi Chawla,Jai Mehta 315.09mn
Rajasthan Royals Emerging Media( Manoj Badale,Lachlan
Murdoch,Suresh Chellaram),Shilpa Shetty,Raj Kundra
226 mn

12.  In the initial years, franchisee would get more part of
Central Revenue.
 IDEA BEHIND SUCH DISTRIBUTION? -Franchisee will
start earning MORE local Revenue in later years as Brand
will enhance.
 Fan base is the only key behind revenue generation and
making profit (long-run).
 Marketing expenses each team approx. $ 3-7 mn. Growth at
12% per IPL.
 Administrative ,Stadium, Travel and Stay and Event mgt.
expenses –Growth at 5.2-6 %

13. I. ABSOLUTE VALUATION METHOD
 Considers Income/Cash-flow Approach
 Estimating Future cash flows (GROWTH STAGE )
 Discount(rate) it back to current period for intrinsic value
II. RELATIVE VALUATION METHOD
 Price of any asset cant be evaluated in isolation
 Involves merchandising also. (MATURITY STAGE)
 Evaluated in what it buys in terms of earning/sales.

14. LOCAL REVENUE
 Initial team sponsorship amount collected from web-
sites.
 Growth at 15%-20%.
 MI rake around Rs.60-65 crore

15. GATE RECEIPTS
 5% approx. growth for each team as per capita doesn’t
increase much faster than 8-9% GDP

16. MERCHANDISING
 Key Target.
 Upbringing revenue source.
 Still under development .
 Depends upon loyal Fan Base.
 Avg. franchise makes Rs.30-35 crore on various spaces
in their jerseys.

17. 1. IPL goes international
 2009- S.A (Expenditure 57.3% higher).
 2014 – DUBAI (Expenditure 33.83% higher).
2. MEGA AUCTIONS
 2008 –
 2014 –
3. CONTROVERSIES

18. OUTCOME
 I.
 II.

24. THEN-
 IPL Title Sponsor –DLF ( US$ 50mn)
 IPL Associate Sponsor –Hero Honda(US$ 22.5)
 IPL Tournaments Official Beverage –Pepsi(US$ 12.5mn)
 IPL’s Umpire Partner –Kingfisher(US$ 26.5mn)
 IPL Official Airline –Kingfisher Airlines
 IPL’s official Website Partner- Live Current
 IPL Hospitality Sponsor –ITC Welcomgroup
 IPL Official Performance Partners –Citi bank

25. NOW
 Walking Billboards
 PEPSI,FLY EMIRATES,KARBONN,YES BANK
TEAMS SPONSORS
MI VIDEOCON D2H,ETIHAD,BRIDGESTONE, P&G, WALT
DISNEY,DDB.
CSK INDIA CEMENTS,AIRCEL,GULF,REEBOK.
RCB FLY KINGFISHER,BOLT, HUAWEI.
KKR NOKIA,MANYAVAR,USPA,ROYAL STAG,MRF.
DD IDEA,MANYAVAR,JUST DIAL,QUIKR.
RR ULTRATECH,AMITY,YEBHI,SUPERTECH,MITASHI,GARNIER.
SRH MAKE MY TRIP,LIVE IN,PUMA,RED FM.,WH SMITH.
KXIP TATA MOTORS PRIMA,TRIP
FACTORY,ARISE,ACC,MCDOWELLS NO.1 .

26.  CSK & MI- $ 72 MN
 KKR -$69 MN
 RCB – $51 MN
 RR- $45 MN
 DD - $40 MN
 KXIP - $32 MN
 SRH- $25 MN
Brand sentimental attachment.eg –
SRK,MSD,ST.

27. YouTube
 Game-changer
 Has shown how consumption over internet is becoming
mainstream(behind-the-scenes looks etc)
 Live Streaming (#1 channel worlwide,20m + viewers)
 Reason also as to why IPL screenings on big screen not
taking off
 Fans and their peers present online for the most part of the
event(2nd most dominant medium after TV)
 Provides a unique community experience to these fans

28. Twitter
 If radio commentary was 1.0 and sms alerts 2.0, then
twitter is definitely is 3.0 for all those looking for
updates
 Players involvement and interacting with fans.
Amazon India
 Merchandising rights for all 8 teams.

29.  Stadium preparation
 Follow-up with Sponsors
 Social media engagement (YT advertising)
 Online Exposure (Ticket Sales, Pop-ups)
 TVCs
 Music Setup and DJ
 Jingle (Themes)
 IPL Auction
 Brand placements

30.  Post match Presentations.
 IPL Nights.
 Chat-shows.

31.  MARRQUEE EVENTS PRIVATE LIMITED
 IMG - EVENT MANAGEMENT
 CINEYUG
 AAGNI
 CAA KWAN
 CRAFT WORLD EVENTS PVT LTD
 DNANETWORKS
 PURPLE PEOPLE ENTERTAINMENT

32.  Therichest.com
 Ft.com
 Freepressjournal.in
 Businesswireindia.com
 Livemint.com/consumer
 American appraisal
 Research paper by Pratik Shah,Patrick Smyth.
 Hindustan Times
 NEILSEN
 CISCO etc.

33. THANK YOU