The document discusses the business of sport and provides context on key revenue drivers. It notes that sport competes with other forms of entertainment for viewership. The three main sources of revenue for sports teams are identified as broadcast rights, sponsorship deals, and matchday sales including tickets. Uncertainty of outcome, prowess of athletes, developing a shared experience, and the joy of competition are highlighted as key factors that drive fan demand for sport. The economics of sport are also examined, noting that monopolies are destructive as they kill market interest, and that short formats like T20 cricket have helped grow the game globally.

1. Sport Business
A Primer
A
Vijay Bharadwaj
1

2. What is Sport?
QuickTime™ and a
decompressor
are needed to see this picture.
2

3. Do we remember this
What emotions did we go through?
3

4. Key Element
Sport like any other form of entertainment
provides non tangible psychic satisfaction.
Sport like any other form of entertainment
provides non tangible psychic satisfaction.
4

5. So where do we fit?
Learnings
‣ Sport is a part of the
entertainment Industry
Cricket ‣ We all need leisure and
find it in different forms
Sport ‣ Sport competes with
other forms of
Entertainment entertainment
including TV, movies,
theatre, Malls etc
5

6. What drives the demand for sport
or Why do we watch sport?
6

7. Here goes
Uncertainty of outcome Prowess
Non scripted entertainment - The best Admire something which is a
reality show ever? personification of the human body and
mind
Commonality Competition
Develop common topics and friends Absolute and relative
Our pals at facebook have taken this to a new 7

8. The pure joy of winning
8

9. Some facts and figures
‣ Sports related activities 13th largest contributor to the US GDP
‣ The London Olympics will generate £10bn in revenue for the British
economy as a whole.(Lloyds TSB)
‣ Indian cricket rights for a 6 year period went at Rs 3851 Cr (40 cr a
match)
• IPL Year 1: Mumbai Indians -$ 124 m
• IPL Year 4: Sahara Pune warriors - $375.2 mn
• 52% of olympic revenue comes from TV rights approx 32% from
corporte sponsorship
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10. Our working life depends on this
10

11. Lifelong aim move from D1 to D2
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12. As a business person our
As a business person our
key aim is to maximize
key aim is to maximize
demand and hence raise
demand and hence raise
revenue.
revenue.
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13. Demand Shifters
Team Quality Population
Is it worth following my team?, Am i Population of city
winning?
Create new markets
Competitors Fan Income
The more you earn - More can you spend
Price of competitive goods
So Mumbai is more expensive than a 13

14. Other shifters
Future expectations Media coverage
Player investments, New stadium, better More media coverage
future
Lifestyle changes Short term peaks
Get a fillip
Get fitter
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15. A sports product? - What creates
revenue
Sportsper The Sportsperson is a product - endorsements,
son player transfers, merchandise
For a team sport the team identity and brand is a
The team product
The biggest element without a contest nothing
Contest works
Ancillary Equipment, Academies etc
products
15

16. Strange economics?
16

17. We all would love this
17

18. In Sports a team which wins
everything or has a huge share
of revenue kills the market.
Hence monopoly is destructive.
18

19. Revenue elements
All sports teams mainly have 4 sources of revenue
Match day
Broadcast Sponsorship Licensing
sales
19

20. Sporting contests
Each team plays the other - All teams have a
League minimum no of matches - EPL
League+pl NFL, IPL
ayoff
Knock out Tennis matches
Others Golf
20

21. Is T20 the best way to grow cricket
globally?
21

22. Why?
22

23. IPL Salary Cap Why?
23

24. Thank you
24