ROLE OF IPL IN COMMERCIALIZING CRICKET IN INDIA & ITS EFFECTS ON OTHERS SPORTS
1. ROLE OF IPL IN COMMERCIALIZING CRICKET IN INDIA AND ITS EFFECTS
ON OTHERS SPORTS – SUBMITTED BY RAM AVTAR BAJAJ
2. INTRODUCTION
Cricket is just one of those many sports which was conceived by the English and perfected by the world; the
Indian Premier League is just an extension of this phenomenon.
The Indian Premier League - IPL launched in 2008 celebrated as “India katyohar”.
The Indian Premiere League is a professional Twenty20 cricket league in India contested annually by franchise
teams representing Indian cities.
Indian Premier League(IPL) can say as a birth of “Cricketainment”.
The title sponsor of The Indian Premier League is Vivo Electronics, thus the league is officially known as Vivo
Indian premier League.
According to Brand Finance report the brand value of IPL US $6.8 Billion (47.500crores) in 2019 and
contributed around Rs 14-15 Billion to the GDP of Indian economy.
MI & CSK crowned most valuable IPL brand, 8.5% and 13.1% respectively 809crore and 732 crores.
The thought behind making city put together groups was based with respect to the model present in sports in US
and UK.
International Management Group( IMG) planned the IPL after a concentrated investigation of the essential
wearing alliances around the globe, for example, the NHL, NBA, NFL and EPL.
The IPL Governing Body is responsible for all the functions of the tournaments.
Also done the research on Marketing mix, SWOT & Ansoff Matrix on IPL.
3. THE MAKING OF FRANCHISE
The biggest USP of the Indian Premier League is that, here the teams are run and managed by various corporate
houses or Bollywood celebrities. The owners of the teams went through a bidding procedure to buy the teams
and after that; the cricketers were also put up for auction. The managements of the teams took part in the auction
and bid for their desired cricketers, with a view to make their team the strongest one among all others.
The winning bidders for the eight franchises were declared on 24 January 2008. The total base price for the
auction was US $400 million but the auction went on to fetch US $723.59 million
4. OPEN AUCTION FOR INDIVIUAL PLAYER
A team can acquire players through various ways:
Highest bidder becomes the buyer.
Each player has a ‘base annual fee’ which is on a pro-rata basis depending on his availability.
Each IPL franchise has a max limit to spend on bidding for players.
The annual auction.
Signing domestic players.
Signing Uncapped players.
Trading players.
Signing replacements.
5.
6. TOURNAMENT FORMAT
Currently, with eight teams each teams plays each other twice in a home-and away ground in round robin
format. At conclusion of the league stages the top four teams qualify for semi finals.
The top teams play each other in the first preliminary round match, with winner going straight to the final while
loser goes to the second preliminary round. The third and fourth places team play each other to decide who will
take on the loser from the first preliminary round match.
The winner of the second preliminary round match will move on to the final where the winners will be crowned
IPL Champions.
7. SPONSORSHIP
The IPL brings the BCCI income of approximately US$1.6 billion, over a period of five to ten years. All of these
revenues are directed to a central pool, 40% of which will go to IPL itself, 54% to franchisees and 6% as prize
money. The money will be distributed in these proportions until 2017, after which the share of IPL will be 50%,
franchisees 45% and prize money 5%.
These are tittle sponsor for IPL where as each franchise ahs their own sponsorship.
8. INDIVIDUAL TEAM SPONSOR
Reliance Industries mobile telecommunications Jio will be one common factor for all the eight teams for the
Indian Premier League( IPL) 2019 season whichever teams wins Jio will be the natural winner that is the kin of
sponsorship connect India single largest mobile network.
Franchise also have their sponsor in different category such as- Title sponsor, Principal sponsors, Associates
sponsor and Others sponsors.
Mumbai Indians, Chennai Super Kings and Sunrises Hyderabad have sponsor for all the available spots on
players jerseys.
9. TELEVISION RIGHTS
On 15 January 2008 it was announced that a consortium consisting of India’s Sony Entertainment Television
network and Singapore-based World Sport Group secured the global broadcasting rights of the Indian Premier
League. The record deal has duration of ten years at a cost of US $1.026 billion. As part of the deal, the
consortium will pay the BCCI US $918 million for the television broadcast rights and US $108 million for the
promotion of the tournament
10. IPL BUSINESS MODEL
The model is both profit and entertainment driven. Profit comes from the audience who watch the matches on
TV and in stadiums. A number of entities and process are involved in the business model. These include players,
teams and franchises, infrastructure, the actual game play, models and cheer leaders, revenue flows and games
allocation
11. ANSOFF MATRIX OF IPL
Product Development – ICC WT2007
The test was to build up the new item — T20 Cricket, in existing markets which were to a great extent used to Tests
and ODIs. The ICC followed two key systems for that reason.
12. ANSOFF MATRIX OF IPL
Market Penetration: Indian Premier League
In the air…. Sreesanth…. TAKES IT!!!!! India win!!! Unbelievable scenes here at the bullring!” These words by
Ravi Shastri will undoubtedly remain always edged in the psyche of an Indian Cricket fan.
IPL Chairman, understood the capability of the now existing item, T20, in reforming Cricket in unarguably its
greatest existing business sector — India.
Market Development : The Big Bash League( BBL)
A research conducted by Cricket Australia (CA) showed that for boys aged under 15, cricket was their seventh-
favorite sport and for girls it was their 14th.Clearly, Cricket was losing out on its youth market in Australia.
13. ANSOFF MATRIX OF IPL
The BBL managed to develop a completely new market — the Australian families for the existing product of
T20 Cricket.
Diversification: Cricket All Stars- Sachin Tendulkar & Shane Warne
Sachin Tendulkar and Shane Warne, arguably the two GOATs of the sport in their respective disciplines, came up
with ‘Cricket All Stars’ in 2015. All Stars can be clearly seen as a Diversification attempt to explore a new
market (USA).
14. MARKETING MIX OF IPL
Product: Indian Premier League, the brainchild of Lalit Modi is at present probably the most sweltering game
property on the planet. Begun in 2008, post India's effective t20 world cup winning effort. Its providing a stage
for many youngsters to show their performance and profitable to advertiser and broadcasting channels.
Price: Price is a key promoting instrument for a few essential purposes, The IPL brings the BCCI income of
approximately US$1.6 billion, over a period of five to ten years. All of these revenues are directed to a central
pool, 40% of which will go to IPL itself, 54% to franchisees and 6% as prize money. The money will be
distributed in these proportions until 2017, after which the share of IPL will be 50%, franchisees 45% and prize
money 5%. Sony Entertainment Television paying a staggering Rs. 8700 crores for 10 years.
Promotion: When Cricket & Bollywood met, the result will be IPL. It was truly entertaining to see one favorite
cricketer’s as well as Bollywood star on the same team. . The methods for publicizing, advertising, advertising,
online internet based life can be embraced to elevate the item to the objective crowd
15. MARKETING MIX OF IPL
Place: IPL choose its venue as India which has population of more than 1.2 billion people where cricket is not a
sport but a religion. All the matches takes place at the cricket grounds of the cities participating. IPL is a central
point contributing towards globalization of cricket from India.
16. SWOT ANALYSIS OF IPL
Strength: The IPL is set up upon the T20 cricket game which should be completed in 2.5 hours. That means that
is fast-paced and exciting, and moreover it can be played on a weekday evening. The IPL has employed
economists to structure its lead so that revenue is maximized.
Weakness: Twenty20 has been so popular that it could replace other forms of cricket i.e. damage the game that
generated it.
Stakes are high.
Some fans will also have to pay for travel to the ground.
Opportunities:There is a huge opportunity for merchandising e.g. sales of shirts, credit cards and other fan
memorabilia.
Grounds can also sell refreshments and other services during the games.
Since it has an enormous potential mass crowd, IPL is exceptionally alluring as a promoting interchanges
opportunity, particularly for publicists and supporters.
Threats: Moving of players from one franchise to another franchise wherever they receive high pay.
Role of Free Agency
Indian player never play others countries leagues because BCCI didn’t allow them
17. OBJECTIVE OF THE STUDY
The objective of this study will help us understand how the IPL has impacted major sports in India, how they
have changed and grown since 2008.
Research Objective: This will help in understanding all the factors which have helped in commercializing of
Indian cricket and other sports in India, particularly through IPL.
Does the IPL provide a recognizable and profitable advertising and promotional platform for brands.
18. LITERATURE REVIEW
IPL is the first league of Indian sports marketing initiatives. It has its share of up and downs. It has been in the new
for all the right reason and for all the wrong ones too. There was a time when everyone was ready to write off this
controversial league (Lakshman & Akhter, 2013). Not just the cricket the IPL as the politics of speed, but due efforts
of brands. The teams and the BCCI that the IPL continues with the season 11 this year for its viewers. The feeling of
associations and nostalgia makes views wait for the game every year every season.
Globalization of the Indian economy post 1991, has opened entryways for different money related chances. Cricket
in India has thumped on the correct entryway and gone into a period of development and change post Liberalization,
Privatization and Globalization (LPG) activity. Regardless of the Indian games industry being complicated, the size
of Indian games advertise isn't irrelevant and can't be disregarded. India is currently a supported goal for different
games, for example, world's driving T-20 class in type of the Indian Premier League(IPL), Hockey India
League(HIL), Pro-Kabaddi League, Badminton Premier League and a lot increasingly expanded games prevalence.
Game offers companies and different organizations a methods for getting through jumbled commercial centers,
conveying publicizing messages viably, and fragmenting by explicit socioeconomics. Indian Premier League has
contributed significantly towards the development of sports culture in India
19. LITERATURE REVIEW
Cricket is a religion in India and individuals everything being equal, station ideology and language stay stuck to
the TV or the radio to watch worldwide level matches. It is likewise the most extravagant game in India and top
players have star status and gain a great many rupees through game appearance expenses and supports. The
Indian Premier League - IPL is a '20-20' form of Cricket where expert club groups from various urban
communities play around 80 games with a last game choosing the boss. The conventional configuration is the
'Test' coordinate arrangement with the match of 5 days and two innings. The moderately late configuration of
one-day '50-50' arrangement has 50 overs bowled by each group. In the 'Twenty20' game each group plays 20
over's. A huge number of individuals around the globe watch the games and after the Olympics, FIFA World Cup
and Euro Cup, cricket is one of the most watched games. Begun in 2008, IPL arrangement and brand was
esteemed at 4.13 billion USD in 2009.
20. METHODOLOGY
In the previously chapter, various papers and study material as obtained have been reviewed and analyzed in
detail and gaps identified in the context of commercializing of sports in India. The aforementioned
considerations inspired a exploratory yet descriptive approach in development and design of this dissertation
project using both primary and secondary sources. A combination of quantitative and qualitative methodologies
have also been used given the data set and information collected. The researcher has chosen content analysis as a
method, as this helped in understanding the concept better, revealed more about the subject simultaneously
helped in interview schedule. It help researcher knowing more about impact that the marketing strategies and
commercialization of IPL to others sports in India.
For the purpose this research the method that the researcher adopted was cricket journalist interviews, articles,
commentators opinion . Websites etc from the fields sports marketing, advertising , cricket expert and
commercialization.
21. FINDING & CONCLUSION
IPL to me looks a very good option as far as providing the exposure to the young lots is concerned having
played with the biggies of the games like Sachin, Kumble, Ponting etc.
T20 is going to be the missionary of the cricketing world
The average value of players is set to increase every year in the IPL auction
As per nowadays IPL matches is hosted in major cities in India which are already host the test and odi matches.
IPL matches should be host in small cities like Kanpur, Guwahati and many more.
It has great scope and potential and with BCCI taking care of it so well it does not seem the trophy is gonna lose
any shine in near future.
IPL outshone even the Sydney Olympics Games remarked that Olympic was about two weeks but the league
lasted for 2 month. At around 8 Pm the whole country would tune in no matter what the game was or who was
playing.
The whole concept of the league is being looked on as a landmark in the history of cricket and the entire ideas
has thrown up another set of parallel , even alternate , loyalties – the clubs and cities.
22. CONCLUSION
IPL is the most popular league in the world. A lot of money is spent on the Organisation of the event.
The team compromise some of the best player in the world when high amount money is involved.
IPL seen as a potent platform for advertiser due to its TRP and wide viewing.
The game format has a wide appeal in terms of gender and age brands, it caters to a larger audience and wide TG
is an easy fit especially youth.
This investigation can be utilized in seeing all the elements which have helped in commercializing of Indian
cricket and different games in India, especially through IPL, This can turn into a model in commercializing any
game in India or abroad dependent on the IPL mode
24. REFERNCES
Abernethy, B. (1981). Mechanisms of skill in cricket batting. Australian Journal of Sports Medicine, 13(1), 3-10.
Abernethy, B., & Russell, D. G. (1984). Advance cue utilisation by skilled cricket batsmen. Australian Journal
of Science and Medicine in sport, 16(2), 2-10.
Konrad Jagodzinsk, Brand finance(2017)- https://brandfinance.com/news/press-releases/business-
value-of-indian-premier-league-hits-us5-billion-mark/
UK Essays(2017)- https://www.ukessays.com/essays/media/commercialization-of-indian-premier-
league-media-essay.php
