9. Strengths
Fast- paced and exciting.
Appealed as a Mass Sport &
Spectator Sport
Economists maximized revenue.
The more unified the sport, the more
successful it is.
Broadcast timing.
Weakness
T20 could damage the game that
generated it.
Stakes were too high.
Over priced vs reasonably priced
advertising/ sponsorship
10. Opportunities
Large potential mass audience.
Using franchise for larger fan-base
and TV revenues.
Fixed franchise fees till 2017-18.
Corporate hospitality, season tickets
and TV pay-per-view
Merchandising
Youth as a long-term fan-base
Threats
Free Agency
Expected Return on Investment
Franchises are expensive.
Revenue should be a long-term
planning.
11. IPL MARKETING STRATEGY
Auctioning Broadcasting
Rights
Title Sponsorship
Corporate Sponsorship
Auctioning Franchisees
Rights
Official Umpire’s
Sponsorships
Tickets Sale (20%
allocated to IPL)
Auctioning Players
Team Owners selling
tickets personally
Cheerleaders
Closing and Opening
Ceremony
18. IPL INCOME DISTRIBUTION
Share of broadcasting money with franchisees.
Share of sponsorship money with franchisees.
Share of ticket money with franchisees.
Inauguration expenses.
Prize money distribution
19. IPL EXPENSES
FRANCHISEE FEE: Different amount ranging from US$67 million to
US$112 million payable over a period of 10 years.
PLAYER ACQUISITION COST: Determined from the auction;
franchisee obliged to pay the players even if they’re not playing.
STADIUM HIRE CHARGES: Franchisee pay the local
association for the use of stadium.
MARKETING COSTS: Each franchisee is expected to incur a
marketing cost of US$3-4 million for team promotion
Other expenses like administration and event management.
25. REVENUE
TELEVISION RIGHTS: Out of the proceeds from global broadcast
rights, 20% went to IPL, 8% was given as prize money and 72% was
distributed to the franchisees.
SPONSORSHIP RIGHTS: IPL predicted to bring BCCI approx.
US$1.6 billion. 40% went to IPL itself, 54% to franchises and 6% as
prize money.
LOCAL SPONSORSHIPS: Team sponsorship revenues
GATE RECEIPTS: Major source of revenue. 20% of tickets allotted to
IPL.
MEDIA: UFO Moviez had theatre rights.
Live telecast on YouTube.
26. BROADCASTS AND SPONSORSHIPS
Official Sponsors: Paid US$ 50 millions for 5 years
Television Rights: Sold for 10 years at INR 8700 crores
(US$1.94 billion)
Sponsorship deal worth US$22.5 million
Sponsorship deal for 2 years at US$12.5 million
Sponsorship deal for at US$26.5 million
27. TV Advertisers
(INR 7bn)
Central Sponsors
(INR 1.7bn)
BCCI (Organizer)Sony – WSG
(Broadcaster)
Team Owner/ Franchises
Ticket sales (Rs1bn)
Team Sponsors
(Rs1.3bn)
Merchandise (Rs300m)
Program tie-ups/Events
In-stadia ads (Rs400m)
Prize money (Rs270m)
Umpire salaries (Rs60mn)
Share of
• Broadcasting fee
• IPL Sponsorship
(Rs6.2bn)Broadcasting fees
(Rs6.7bn)
Prize money (Rs270mn)
Production
Cost
Franchises
Fee
(Rs3.3bn)
Player Salaries
(Rs2.1bn)
Stadium Leasing
(Rs280mn)
Team Advertising
(Rs570m)
Admin Costs (Rs720m)
REVENUE – EXPENSE MODEL
