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    IPL : The birth of Cricketainment

    CERTIFICATE FROM GUIDE

    This is to certify that the project entitled "IPL: The Birth of Cricketainment" is

    successfully done by Shri. Sankalp Navghare during the Second year of his

    course MMS in partial fulfillment of the Master Degree in MARKETING

    MANAGEMENT under the University of Mumbai, through the N.L.Dalmia

    Institute of Management Studies & Research, Mira Road.

    Mumbai 400 068.

    This project represents the work done by Mr. Sankalp Navghare.

    This project in general is done under my guidance.

    Date: 31st March 2010

    Name of the Guide: Shri. R.Subramanium

    Signature of the Project Guide

    MMS IV

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    ACKNOWLEDGEMENT

    I take this opportunity to express my gratitude towards the management of N.L.Dalmia

    Institute of Management Studies & Research for having given me the opportunity to

    conduct a study in Marketing Research on the project titled "IPL: The

    Birth of Cricketainment"

    I express my sincere gratitude to Prof. R.Subramanium for his constant guidance,

    encouragement and support throughout the project and giving me his valuable time.

    Also I would like to thank my classmates who provided me with vital and valuable

    information and helped me to complete the study.

    MMS IV

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    IPL

    The birth of

    CricketainmentSankalp Navghare

    The study explains the elements involved in Sports

    Marketing. It analyzes the manner in which the shortest

    form of Cricket is marketed by BCCI. The study also

    explains the business behind it and how the corporate

    companies can make money through sports.

    MS IV

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    Table of Contents

    Preface .................................................................................................................................................... 7

    Cricket and India ..................................................................................................................................... 8

    World Series Cricket: The First Commercial Revolution in Cricket ........................................................... 9

    About IPL ............................................................................................................................................... 12

    IPL Teams ................................................................................................................................................. 14

    Team Composition ................................................................................................................................... 15

    IPL Organisation and Working ........................................................................................................... 15

    IPL: The Business Controversy ................................................................................................................. 16

    Challenges Preparing for the First Season ............................................................................................... 16

    Challenges During the First Season ..................................................................................................... 20

    IPL as a Management Case Study: ..................................................................................................... 22

    Blue Ocean Strategy: .......................................................................................................................... 26

    SWOT Analysis ................................................................................................................................... 27

    Why IPL is termed as one of the most successful sports league in the world? ...................................... 28

    Financial Perspective ............................................................................................................................... 29

    Balance Sheet ..................................................................................................................................... 30

    P & L of a franchise ................................................................................................................................... 33

    Research Analysis .................................................................................................................................... 34

    IPL Season 1: Study from Media Perspective ........................................................................................... 37

    IPL 1 Survey: ............................................................................................................................................. 40

    Conclusion ............................................................................................................................................. 43

    Impact on the Media and Entertainment Industry .................................................................................. 43

    IPL 2: The Dream Continues .................................................................................................................... 46

    Sports Outsourcing ................................................................................................................................... 48

    Geography is history ................................................................................................................................. 48

    'International' domestic tournament ............................................................................................................ 49

    Evolution by revolution .......................................................................................................................... 49

    Post IPL2 Study from Media Perspective .................................................................................................. 51

    Future Opportunities for IPL Twenty20 Cricket ...................................................................................... 60

    Potential Downsides of IPL ...................................................................................................................... 60

    Risks to IPL ............................................................................................................................................... 61

    Bibliography .......................................................................................................................................... 62

    MMS IV

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    India fulfilled a dream in an unbelievable manner and made the inauguralevent a reality. The people of India and the rest of the world embraced this

    tournament with their hearts and I feel really proud that we have taken the

    game of cricket...to a new level. It was difficult road for all of us involved in

    this venture to walk, there were sceptics...the success is there for all to see.

    Lalit Modi, Commissioner and Tournament Director of the Indian Premier league

    MMS IV

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    Preface

    On June 1, 2008, the Rajasthan Royals scored a dramatic lastminute victory

    over the Chennai Super Kings in the final match of the first season of the Indian

    Premier League (IPL). The game was played before a soldout stadium of

    55,000 fans in Mumbai, India. It took place in a festival atmosphere, precededby a spectacular show including Bollywood entertainers and fireworks. The IPL

    had been announced by the Board of Control for Cricket in India (BCCI) just

    nine months earlier. The league was made up of eight citybased teams

    throughout India, whose owners were not determined until January 24, 2008,

    and whose players were not selected until February. Yet, the league raised

    nearly $2 billion from the sale of media rights, sponsorships, and franchise

    fees. It attracted star players from around the world. The first season, running

    from April 18 until June 1, combined entertainment and sport played before

    packed stadiums, dominated television ratings in India, and riveted the

    country's attention. It also attracted a following among cricket fans worldwide.

    The IPL changed the landscape of cricket around the world. It was driven by

    commercial considerations, challenging the existing control of national cricket

    boards. The IPL created a free market for players, who could make far more in

    six weeks with their IPL teams than they could in a year (or more) playing for

    their national teams.

    The IPL had overcome many challenges during its first season, and now looked

    forward. How could it best capitalize on its success?

    However, the world looked very different in March 2009, as the second IPLseason was about to begin. In November 2008, terrorists had attacked

    Mumbai, in a siege lasting several days, and killing more than 170 people. On

    March 3, 2009, the Sri Lankan national cricket team was attacked by terrorists

    as it travelled to a match in Pakistan. Five police officers were killed, and

    several players wounded in the first major terror attack specifically directed at

    cricket. Lalit Modi, commissioner of the IPL, considered the impact of these

    events on the league, which was scheduled to start its second season on April

    10. In light of the security situation and with India's potentially destabilizing

    general election scheduled during the sixweek event, could the season

    proceed as planned? If not, what should Modi do?

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    Cricket and India

    India does not have a strong sporting culture, which is evident from its sorry

    record at the Olympic Games: just sixteen medals since Independence. But

    Indians are passionate about cricketthe game evokes strong emotional

    reactions to the national team's victory or defeat in international matches. In thepast, cricket matches in major tournaments such as the World Cup have

    topped television viewership ratings. Huge cricket stadiums are packed to

    capacity, with 100,000+ spectators, for major international matches.

    Cricket is traditionally played as a fiveday game known as test cricket. A

    shorter version is oneday cricket, in which each game lasts for 9 hours or less.

    In the 1970s, Australian billionaire Kerry Packer started a private intercountry

    league named World Series Cricket, where one day cricket was played under

    artificial lighting at night, with players wearing coloured clothing. This was aninstant hit, and changed the face of cricket, making the oneday format

    predominant over the fiveday format. Cricket has been primarily played on an

    intercountry basis internationally, and interprovince basis domestically.

    T20 is a new format in cricket a 3 hour game of cricket played by the traditional

    team size of 11 people, with new rules to make the game fast and exciting. T20

    was introduced in England to revive the falling interest in domestic cricket, as the

    longer versions of the game were unable to attract the youth, who were

    increasingly moving towards Football. T20 has led to a strong revival in the

    English domestic cricket circuit. The first T20 world cup held in 2007 was an

    instant hit across the world. The finals of the same had a viewership of an

    estimated 1 billion people, making it one of the most highly viewed events in

    the world.

    International Organisation and Governance

    The international governing body of cricket is the International Cricket Council

    (ICC). In 2008, it consisted of 10 full members, those countries that competedin Test matches. The ICC also included 34 associate member countries, and 60

    affiliate member countries. One of the important roles of the ICC was control

    of the international cricket calendar. Each ICC member country had a national

    governing bodyin India, this was the Board of Control for Cricket in India

    (BCCI).

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    World Series Cricket: The First Commercial Revolution in Cricket

    In 1976, Kerry Packer, head of a familyowned media conglomerate in

    Australia, attempted to gain the broadcast rights for Australian cricket, long

    held by the governmentfunded Australian Broadcasting Company (ABC).

    Despite a much lower bid than Packer's, ABC was awarded the rights by CricketAustralia, the Australian cricket board.

    Packer responded by setting up his own competitions, outside the established

    international schedule. At the time, professional cricket players were paid so

    poorly that they could not support themselves solely from cricket. Packer

    secretly signed lucrative contracts with a number of the world's top players,

    and formed World Series Cricket (WSC), which operated from 1977 to 1979.

    The WSC, though shortlived, changed international cricket in a number of

    important ways. First, top players became wellpaid, fulltime professionals,

    funded largely through vastly increased media rights fees. The game also

    became more commercial, with colourful uniforms replacing the traditional all

    white attire, merchandising, and theme songs. The WSC popularized the one

    day format for cricket, although the highest level of the sport was still viewed

    as the fiveday Test.

    Formation of the Indian Premier League

    Over time, India became the most important economic power in the global

    cricket world. In 2008, cricket was the sport generating the most passion in

    India. SportBusiness International observed that "A significant part of Indian

    life revolves around two things. Bollywood [the Indian movie industry] is one.

    And cricket is the other." India's dedication to the game, combined with its

    economic rise, made it the most important country for cricket. In 2007, India

    had a population of about 1.2 billion, with an economy growing at 9 percent

    annually. All income groups were avid cricket fans, but India's rapidlyincreasing middle class of 250 million people was a particularly attractive

    market for potential sponsors of cricket events.

    Cricket and Television: Founding the Indian Cricket League

    Cricket was particularly important for television in India, with 10 seconds of

    advertising during major matches selling for about $5,000. "The success of TV

    channels in India is predicted entirely on their access to cricket," according to

    SportBusiness International.

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    The importance of cricket to Indian television stations led to the founding of

    the Indian Cricket League (ICL) in April 2007 by the ownership of Indian TV

    network Zee TV. For years, Zee TV had tried to win the rights to televise Indian

    cricket, but had been continually rebuffed. Now, they would create their owncricket content, independent of the cricket establishment. The league would

    initially consist of six teams, based in Indian cities, and would use the

    Twenty20 format. The winner of the initial ICL tournament would receive $1

    million in prize money. The league planned to eventually expand to a total of 16

    teams. The ICL attracted strong resistance from national cricket boards,

    some of which banned players that joined the ICL from participating even in

    domestic matches. As a result, most of the initial players were stars that had

    retired from international competition. However, within a few months, the ICL

    had signed a number of cricket stars to lucrative contracts. The first ICL season

    began November 30, and was completed on December 16, 2007.

    The Indian Cricket Establishment Responds: Founding the Indian Premier

    League

    On September 13, 2007, the BCCI announced that it was forming a citybased

    twenty20 cricket league in India, called the Indian Premier League (IPL). Thisleague would have the approval of cricket authorities, and representatives of

    the ICC as well as several leading Test playing nations, whose representatives

    were present at the announcement. The league's first season would begin in

    April 2008, with $3 million in prize money. At the same press conference, the

    BCCI announced formation of a Champions Twenty20 League, in which top

    clubs from India, Australia, South Africa, and England would compete.

    The IPL would operate on a franchise basis, a common form of sportingorganization in the United States, but a novelty in India. Eight franchises would

    be sold through an auction, to be held in January 2008. The league would sell

    media rights and sponsorships, the revenue from which would be shared

    between the league and the franchise owners.

    The new league grabbed the attention of the cricket world. On October 10, the

    ICL sued a top Pakistani player who had signed with the ICL, for breaking his

    three

    year contract at $250,000 per season, in order to play for both thePakistani national team and the IPL at a higher salary.MMS IV

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    The announcement of the IPL also impacted the ICL's sponsorship, as several

    companies pulled out of the unauthorized league. To open space in the

    international cricket calendar, Pakistan agreed to delay the Asia Cup until June,

    and India agreed to play in the event. (The Asia Cup was to be played between

    India, Pakistan, and Bangladesh, but had been delayed or cancelled a numberof times due to political differences between the countries of India and

    Pakistan.) However, a number of national teams had matches scheduled

    during the IPL season. As a result, some international players were only

    available for a portion of the IPL season; players on the English national team

    would not be available at all.

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    About IPL

    The Board of Control for Cricket in India (BCCI), the apex governing body for

    cricket in India launched the Indian Premier League after a bitter rivalry with

    Zee's Indian Cricket League (ICL). IPL was launched on 14 th September 2007.

    This was the brainchild of Mr. Lalit Modi who made the format of IPL on thelines of football's English Premier League (EPL) and basketball's National

    Basketball League (NBA)

    IPL is a professional Twenty20 cricket league created and promoted by the

    BCCI and backed by the International Cricket Council (ICC), an international

    governing body of cricket. The BCCI was instrumental in setting up a governing

    council to run the IPL as a virtual company. The IPL governing council will have

    fiveyear term and will run, operate and manage the league independently of

    the BCCI. The governing council of IPL comprises of former BCCI President I. S.Bindra, VicePresidents Rajiv Shukla, Chirayu Amin and Lalit Modi, Arun Jaitley,

    and former cricketers Mansur Ali Khan Pataudi, Sunil Gavaskar and Ravi

    Shastri. While the BCCI officials are honorary members, Pataudi, Gavaskar and

    Shastri will be paid for their services.

    Man Behind IPL

    Lalit Modi is the scion of US$1.5bn (market cap) Modi

    Enterprises. He is also the Executive Director of Godfrey PhilipsIndia Ltd., a large cigarette company. Modi became the Vice

    President of BCCI in 2005. The setting of rebel cricket league (ICL) by a

    large group in January 2008 was a huge threat to BCCI. Modi was

    charged with setting up BCCI's own league, for which he engaged IMG, one

    of the world's

    leading sports entertainment companies. Modi ensured that IPL's journey from

    concept to execution was accomplished within four months. IPL's commercial

    success is to a large extent due to Modi's business acumen.

    IPL Franchises

    The IPL teams were auctioned on 24th January 2008. BCCI had identified 12

    cities: New Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Gwalior,

    Kanpur, Mohali, Jaipur, Ahmedabad and Cuttack. It was decided that for the

    first 3 seasons, the eight teams which attracted the highest bids will be

    selected. About 90 firms, including leading private companies in India like

    Bharti, Reliance ADAG, Kingfisher and Future Group, bought the franchise bid

    documents. Few private equity firms and celebrities such as Russel Crowe and

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    Shah Rukh Khan also participated in the bid process. BCCI had kept a reserve

    price of $50mn for an individual or corporate house to own an IPL Team.

    The auction for the franchise took place with a total base price of $400mn but

    the auction went on to fetch $723.59mn.

    The IPL franchisees will be able to run their teams in their own styles bring

    their own sponsors and were allowed to even name the team according to

    their choice. They are even being free to list their teams on the stock

    exchange.

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    IPL Teams

    City Team Name Logo Owner Price

    Bangalore Bangalore UB Group $111.6mn

    Royal (Vijay Malaya)Challengers

    Mohali Kings XI Preity Zinta, $76mn

    Punjab Ness Wadia,

    Karan Paul and

    Mohit Burman

    Chennai Chennai India Cements $91mnSuper Kings

    Kolkata Kolkata Red Chillies $75.09mn

    Knight Riders Entertainment

    Hyderabad Deccan Deccan $107mnChargers Chronicle

    Group

    Mumbai Mumbai Reliance $111.9mn

    Indians Industries Ltd.

    Delhi Delhi GMR Holdings $84mn

    Daredevils

    Jaipur Rajasthan Emerging $67mn

    Royals Media Group

    and Shilpa

    Shetty

    (season 2)

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    Team Composition

    Each team of IPL has a minimum of 16 players of whom 8 can be international

    (was raised to 10 players in season 2), 4 players need to be regional and also 4

    players need to be under21. Also, in the playing XI maximum only 4

    international players are allowed.

    After selecting the captain and the coach, the Franchise participated in the

    auction to select the players for their teams. The first ever auctioning of cricket

    players was held in Mumbai on 20th February 2008. 77 cricketers went for

    bidding in the player auction of IPL with cap of $5mn on buying of players by

    each of the eight IPL franchise.

    IPL Organisation and Working

    IPL works on a franchisee based system. Under the model, a sponsor wanting

    to have its team pays a stipulated fee to the BCCI to get ownership. The

    franchisee also shares revenues with the cricket board. To start with, IPL has

    franchised eight teams with two more to be added till 2013. The franchisee can

    at a later stage list the team on stock exchange, trade players, etc.

    Indian Premier League also introduced the concept of Icon player. An icon

    player is a player who can only play for his home city in the competition. These

    icon players don't have to go through bidding. These icon players have an

    advantage that they are guaranteed to get paid at least 15% more than the

    next top earner in their team.

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    IPL: The Business Controversy

    The IPL is a miracle in the world of cricket. We have experienced the drastic

    changes in cricket after the evolution of new concept, i.e. Twenty20 cricket.

    Lalit Modi brought out this dream concept to reality.

    Business Controversy is the situation where in new entrant in the market

    covers up the entire field and establishes itself as a new brand in a very short

    span of time affecting the existing ones directly or indirectly.

    Controversy could be an amazingly low cost marketing tool that makes for the

    phenomenal media coverage and can be very effective if managed well. It

    reaches the minds of the masses and is of immense help in eliminating the odd

    dose of adverse publicity in the short term.

    The DLF IPL entered the market with huge amount of money and various

    known celebrities. The attention of the people was grabbed by these two

    factors and hence all the controversies surrounding it in the first league like

    media boycott and various other cricket boards like ECB did not gain any

    importance in the mindset of a viewer.

    The First Season

    The IPL faced a number of challenges as it hurried to stage its inaugural

    tournament. With only four months from the auction of franchises to the firstmatch, schedules were tight. These challenges continued after the season

    began.

    Challenges Preparing for the First Season

    Disputes Over Tickets

    One of the challenges that confronted IPL franchises as they prepared for their

    first season was to arrange for stadiums for their home matches. Many

    stadiums were owned by local cricket associations. Some of these associations

    had agreements with their members under which the membership fee

    guaranteed tickets (at no additional cost) to all matches held in the association

    owned stadium. This posed a problem for IPL franchises, since the IPL franchise

    agreement stipulated that 20 percent of tickets were to be provided to the

    hosting cricket association, with the balance to be sold to the public. Sale of

    these tickets was an important revenue source for franchise owners.

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    The first, and most contentious, of the disputes over ticket availability was in

    Bengal, here the Kolkata Knight Riders, owned by Shah Rukh Kahn and his

    company, Red Chillies Entertainment, Ltd., leased the Eden Gardens stadium

    from the Cricket Association of Bengal (CAB). The CAB constitution guaranteed

    free tickets for all 31,000 members to any match organized by BCCI and CAB,except those that benefitted charity. This was far more than the 20 percent

    allotment for IPL matches. A group of members, the Cricket Members' Forum

    of Bengal, formed to demand free tickets, and filed suits against CAB and Red

    Chillies Entertainment, demanding free tickets for all CAB members. Shortly

    before the season began, the dispute was resolved in the team's favour and

    the Knight Riders' home games were played in Eden Gardens.

    In Mumbai, the venues for the Mumbai Indians home matches had not beenfinalized with only two weeks until the start of the tournament. Mumbai would

    also host the semifinals and finals, since the Mumbai owners had paid the

    highest price for their franchise, so 10 matches needed to be planned. The

    matches were originally planned for the Cricket Club of India (CCI) stadium, but

    they refused to allow the stadium to be used because the IPL would not give

    free tickets to all members. With the CCI stadium now unavailable, two other

    stadiums were considered. One was located in South Mumbai, but was

    substandard in several respects and planned renovation had been delayed. The

    other, DY Patil, was a modern stadium, located about 90 minutes away.

    The Mumbai Indians and IPL decided that five matches would be played at

    each stadium. Neither the Reliance Group, owner of the Indians, or the IPL and

    tournament manager IMG were happy about this arrangement, as using two

    facilities increased costs. Reliance and IPL/IMG did not agree on who should

    pay the increased costs. After the season started, the team decided that DY

    Patil was too far away, and players complained about a lack of privacy in their

    dressing room, so the final two regular season matches scheduled for the

    venue were moved to the smaller stadium. The semifinals and finals were held

    at DY Patil, however, due to its larger capacity.

    Media Rights Problems

    On April 3, the IPL released its media accreditation guidelines for journalists.

    The rules were extremely restrictive, and drew immediate and harsh criticism

    from new organizations. One of the rules was that photographers must uploadall images to the IPL website within 24 hours of a match, and give the IPL theMMS IV

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    unlimited right to use the images free of charge. If a photographer did not

    upload all images, access to IPL venues would be revoked. Media organizations

    were also restricted from using images on their own websites, except for those

    images that had been previously published in their print versions. Many news

    organizations objected to these terms. The bureau chief of the Agence France

    Presse (AFP) wire service said, "We won't be covering the IPL under those

    terms." The Editors Guild of India lodged a protest with the BCCI, calling these

    restrictions "unprecedented and unacceptable to the Indian media, to say the

    least." The Indian Newspaper Service threatened to boycott the tournament.

    The IPL and print media negotiated until just before the season began.

    Eventually, the IPL made concessions that the Indian media could accept.

    However, the league insisted that news agencies could not provide images towebsites dedicated to cricket. The major international news agencies, such as

    Associated Press, Reuters, and Agence FrancePresse did not agree to these

    restrictions, which would prohibit them from providing images to some of their

    subscribers, and they did not cover the IPL. As a result, in countries whose

    papers did not send their own reporters to cover the IPL and thus relied on

    agency coverage, the only information about the IPL came from the television

    stations that owned local broadcast rights, and the Internet.

    Specialty cricket websites were also banned from the matches, and could

    obtain photographs only from the IPLsanctioned service, not their normal

    news agencies.

    Three days before the season started, Indian television stations threatened to

    boycott IPL coverage due to restrictions on the availability of video clips that

    they could use to report on the matches. This was resolved two days before

    the first matches, and the IPL became a major subject of coverage on Indian

    television.

    Ticket Sales

    The IPL generated tremendous media attention in India in the months between

    the league's announcement and the start of the first season. The franchise

    auction, player auction, participation of Bollywood stars and other celebrities

    all served to build interest in the league.

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    SET, which had the television rights for the league in India, began an intensive

    advertising campaign on April 3, 2008. It promoted the league as "the father of

    all entertainment." SET pointed out that most cricket tournaments consisted of

    mismatchespoor teams playing strong teams. The IPL, however, would be

    competitive. All teams had good players, and there should be no poormatches.42

    The IPL season was put together quickly, with little chance to work out details

    such as ticket sales. Many teams had little success in publicizing how fans could

    buy tickets. Ticket sales did not begin until days before the first matches. The

    first team to sell tickets was the Deccan Chargers of Hyderabad, which began

    sales on April 11 for the April 18 season opening match. Just five days before

    the first matches, some franchises had not even announced when they would

    sell tickets. Ticket prices varied, with some franchises selling tickets at very lowprices (Rs50, or about $1) in order to generate excitement and make the

    games available to all fans.

    First day sales were very slow for some matchesShah Rukh Khan, the

    Bollywood star who owned one of the highestprofile teams, the Kolkata

    Knight Riders, was distressed with the first day ticket sales, just one week

    before the first match. A paltry 237 tickets had been sold. He said, "I am a bit

    surprised as to why, despite keeping ticket prices low, people are not showingany interest. Involvement with the Knight Riders is giving me sleepless

    nights." The next day, however, the situation looked entirely different. Long

    lines formed at ticket counters, and the team sold about 55,000 tickets. It

    expected to sell out within days. Even as late as April 14, at least one team had

    not started selling tickets, and three others were reporting very slow sales.

    Some teams did not sell tickets for one home match until the previous home

    match had been played, in order to prevent confusion among fans. This meantthat there was a short time frame for purchasing tickets for any individual

    match. Fans could purchase tickets in advance online, however. Despite the

    initial problems with establishing the ticket sales process, once fans knew how

    to purchase tickets, most teams had excellent sales, and most matches were

    well attended.

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    Security and Logistical Concerns

    The intense interest in the league, and high attendance at IPL matches, caused

    security and logistical problems. Additional security personnel were needed at

    the matches, causing disputes over compensation in some cases.

    Traffic, parking, and latenight transportation after matches also needed to be

    planned. The matches would be held in the afternoon and evening, so that

    fans could attend, and to maximize the television audience. Large, nighttime

    events were not common in Indiaavailability of lighted stadiums had been

    one of the criteria for cities to host IPL teams, and some stadiums installed

    lighting just in time for the IPL season. The infrastructure around some

    stadiums was not well suited to easy accessibility.

    Poor infrastructure resulted in high costs of staging events. Outdoor events

    generally cost about three times as much as indoor events, due to the lack of

    infrastructure.45

    Challenges During the First Season

    Player Availability

    The IPL had not existed when the international cricketing world prepared its

    schedule for 2008. The league chose the AprilMay timeframe for its season to

    avoid most previously scheduled events, but some national associations had

    conflicts with the IPL schedule. As previously noted, the English season started

    at the same time as the IPL, and players with national contracts could not

    participate. Many players from other countries that contracted with IPL teams

    had to miss some games, however, due to national association conflicts.

    A week before the start of the IPL season, the South African cricket board

    announced that its domestic tournament would take precedence over the IPL.

    The semifinals of that event were to take place on April 18 and 19, the

    beginning of the IPL season. The finals were scheduled for April 25. With the

    IPL season beginning on April 18, any South African player that was in the

    semifinals would have to miss the first IPL games. Players on teams in the

    South African finals would have to miss at least one week of IPL play.

    MMS IV

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    During the IPL season, there were also events involving the Pakistan, Australia,

    Bangladesh, and West Indies teams, creating doubt as to which players would

    be available for which IPL matches.

    Cheerleader Controversy

    The IPL wanted matches that created excitement beyond the competitive

    event. Matches were extravaganzas of entertainment wrapped around a

    cricket match. The Bangalore Royal Challengers planned to spend about $1.25

    million for entertainment during home matches. Other teams planned to

    spend at least $500,000.47 One part of the entertainment offering was

    inspired by American footballthe cheerleading squad. This was a novelty in

    India. The Bangalore Royal Challengers led the way, hiring the Washington

    Redskins cheerleaders to promote the team and perform at its first four

    matches. They would also help recruit and train local cheerleaders, with the

    squad's choreographer staying to work with the local squad when the Redskins

    cheerleaders returned home. Each of the 14 Redskins cheerleaders was

    reportedly paid $300 per hour. Other teams also hired cheerleaders, many

    imported from Europe. The cheerleaders attracted a great deal of attention.

    They were part of the entertainment before and during the matches. One

    newspaper reported of the television coverage, "Their 'performance' and high

    powered movements are as exciting as the shots of the players."

    However, the revealing uniforms that were accepted in the United States and

    Europe offended many in India. This led to outrage on the part of government

    authorities, law enforcement, Hindu activists, and other leaders. In some cities,

    local authorities asked for a ban on cheerleaders, and threatened to arrest

    franchise owners if cheerleaders dressed in an indecent fashion, which would

    violate their entertainment licenses.

    Eventually, at least one team (Mumbai Indians) disbanded its cheerleading

    squad. Other teams changed the attire of their squads to modest uniforms that

    were acceptable to Indian sensibilities, and the controversy subsided.

    MMS IV

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    IPL as a Management Case Study:

    We can study IPL as a management case with respect to the following

    functional areas of management

    1. Marketing Management

    2. Finance Management 3.

    Production Management

    4. Human Resource Management

    We will take the study of IPL as a marketing management study.

    Marketing Management:

    One can legitimately claim that an IPL is the best example to learn marketing as

    it has not left a single mode of promoting and positioning the service product for

    cricket fanatic India. Not only in India but world over the game is beingpromoted.

    We can see some Marketing Strategies that are involved to make this league a

    case of business revolution is as follows:

    1. Auctioning of Franchisees: This was the major crowd puller. IPL had not

    started even and was a huge hit. The kind of money and people involved

    made the league very popular. Giving franchisees to some big guns like

    Mukesh Ambani, Vijay Malaya, Shah Rukh Khan, etc. fetched a huge

    public attention and create a curiosity in their minds to follow thisleague.

    2. Auctioning of Players: Again, huge sums were involved and there was an

    open auction for players held between all the franchises. The IPL

    generated news for showing how the team was composed. Who were

    the main players and the amount of money that IPL was offering to the

    players made for an entirely new playground. Even, cricketers like Adam

    Gilchrist, Glenn McGrath, etc. who had retired from world cricket joined

    IPL.3. Cheerleaders: This was the fun part of IPL. It was also one of the

    most

    important factor to influence the people.

    4. Timing: As this format of cricket required only 3 hours as against 8 hours

    required for ODI and 5 Days required for Test Matches, it was positioned

    in the prime time category. This gave a tough fight to the daily soaps.

    The conventional strategies focused on Differentiation OR Low Cost, whereas

    the marketing strategies used by IPL were for Value Innovation.

    MMS IV

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    Value Innovation can be explained as the region where the company's actions

    favourably affect both its cost structure and its value proportion to the buyers.

    This can be done by following methods:

    Saving the costs byeliminating and reducing the

    factors on which the industry

    competes on.

    The buyer values are lifted by creatingand raising the values the industry has

    never offered the buyers.

    And then, over a period, reduce the costsfurther by bringing on economies of

    scale.

    Difference between Conventional and

    IPL Strategy

    Conventional Strategy

    Compete in existing market space

    Beat the competition

    Exploit current demand

    Make the value cost tradeoff

    Fight to win

    MMS IV

    Roll No. 129

    IPL Strategy

    Create a new market space

    Make competition irrelevant

    Create and capture new demand

    Break the value cost tradeoff

    Win without fighting

    Page | 23

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    IPL : The birth of Cricketainment

    IPL created a value curve by performing the following four actions:

    Eliminate -The factors that the industry takes for granted should be

    eliminated.

    Reduce -These factors should also be reduced well below the level of

    Industry's standards.

    Raise -Identify the factors that need to be raised well above the

    Industry's standards.

    Create -Factors should be created which the industry has never offered.

    For IPL, Lalit Modi and team followed the above strategy and made thefindings as below -

    Eliminate -Patience for watching an 8 hour long ODI or a 5 day long Test

    Match

    Reduce -Spectator Time Invested Competes with Movie or a Football

    MatchEmphasis on Classic Techniques T20 is generally a batsman's

    game.

    Emphasis on Perseverance

    Raise -Emphasis of Athleticism Fast cricket for young crowd.

    Pace of the Game Emphasis on how fast the game carries on

    Entertainment Presence of Bollywood Starlets and Cheerleaders

    Result Emphasis on the certainty of results.

    Create -City Loyalty

    Welcome to new entrants from different state and national

    tournaments

    MMS IV

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    The following chart gives us an idea of Cricket before and after IPL

    Cricket before IPL

    High

    Test Cricket

    One DayLow

    Spectator Time Classic Value of Team Emphasis on Entertainment Pacy Definite Result Athleticism

    Cricket After IPL

    High

    Technique Reputation Patience &

    Perseverance

    Test Cricket

    One Day

    2020

    Low

    Spectator Classic Value of Team Emphasis on Entertainment Pacy Definite Result Athleticism City Loyalty Open toTime Technique Reputation Patience & Dummies

    Perseverance

    MMS IV

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    Blue Ocean Strategy:

    Definition

    Blue Ocean Strategy was conceptualised in a book written by W. Chan Kim and

    Renee Mauborgne of INSEAD, an international business school. Blue Ocean

    Strategy promotes creating a new market space or "Blue Ocean" rather than

    competing in an existing industry.

    According to the authors, the metaphor of Red and Blue Oceans describe the

    market universe.

    Red Ocean are all the industries in existence today - the known market space.

    In the red oceans, industry boundaries are defined and accepted, and the

    competitive rules of the game are known. Here companies try to outperform

    their rivals to grab a greater share of product or service demand. As the market

    space gets crowded, prospects for profits and growth are reduced. Products

    become commodities or niche, and cutthroat competition turns the ocean

    bloody. Hence, the term Red Oceans.

    Blue Oceans, in contrast, denote all the industries not in existence today - the

    unknown market space, untainted by competition. In blue oceans, demand is

    created rather than fought over. There is ample opportunity for growth that is

    both profitable and rapid. In blue oceans, competition is irrelevant because the

    rules of the game are waiting to be set. Blue Ocean is an analogy to describe

    the wider, deeper potential of market space that is not yet explored.

    Imperatives

    Globalisation Supply exceeding demand Accelerated product life cycles & obsolescence Comodification of products Learning curves getting saturated Branding becomes more and more difficult Increasing price wars Shrinking profit margins Efficiency and Effectiveness reaching a plateau

    MMS IV

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    SWOT Analysis

    Strengths Weaknesses Opportunities Threats

    Based on T20 format

    Only 2.5 hrs of playing

    time needed

    Money can replacesportsmanship

    Can create internal rivalrybetween players

    Great Opportunity foradvertisers and sponsors

    Each franchisee willperform as a seperate

    entity and will be able tocreate their own fanbas

    eand source of revenue

    Domestic tournamentscan take a hit

    Other boards can stopsending the players andmay impose a ban on I

    PLto prevent overexhaustion

    of players

    Can be marketed asaprime time sporting action

    Inclusion of big names

    from corporate andentertainment industry

    Stakes are quite high and

    thus may affect thecareers of people who

    could not able to perform

    Players will be now takenas assets with a price tag

    attached to them

    Huge opportunity formerchandising

    Franchisee have a sound

    investment option

    The league is quite longand thus may burnout the

    players

    There may be imbalancein economies of scale and

    thus might effect theloyalty of the person

    towards his own home

    team

    Cricket has now become abusiness

    MMS IV

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    Why IPL is termed as one of the most successful sports league in the

    world?

    1. It has penetrated in the entertainment industry as Manoranjan Ka Baap.

    Major films and TV programmes are not scheduled to coincide with the

    IPL as it will bring huge losses.2. Each and every associate of IPL has benefited from it.

    3. Market share of sponsors have experienced good results. In the second

    edition Zoozoos of Vodafone have created a whole new marketing

    challenge for Vodafone's rivals.

    4. There is a whole new genre created. First, it was the ODI world cup

    which came once in 4 years. But, IPL is to be played every year and thus

    the excitement has lived on.

    5. Sony Entertainment Television has trebled their TRPs.

    6. The media coverage of IPL has been phenomenal.

    7. Mixture of Cricket and Entertainment, two of the most favourite past

    times of Indian population.

    MMS IV

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    IPL : The birth of Cricketainment

    Financial Perspective

    Opening Doors to the next big media movement

    IPL ushers in a new era of marketing in sports entertainment. IPL already a

    US$2bn property, is essentially an attempt to sell cricket as a reality show.

    Creation of club culture was its key to success. Also, it creates an entire

    new

    genre which cuts across classes. The franchises see it as a promotion vehicle as

    well as an Asset in which they can invest. According to a study, the top 3 teams

    could easily generate revenue of Rs. 3bn per year for the next three - four

    years. Also, all the teams will turn profitable after three seasons which gives an

    operating profit margin of 15 - 20 %.

    Broadcasting Angle

    The BCCI created history when it sold television rights of this yet untested

    format to Sony-World Sports consortium for US$1.02bn. However, of this

    US$1.02bn, US$108mn is to be spent by Sony on promoting the event over the

    next 10 years. This brings down the actual cost to US$918mn. Of this

    US$918mn, Sony has to pay US$316mn for rights of broadcasting for the first

    five years, and then pay US$608mn - if this format has been remunerative in the

    first five years. In the first year, payouts are not dependent on TRPs.

    However, TRPs would drive payouts from the second year. The franchisee havea share of 80% in the first year decreasing to 60% in the fifth year of

    broadcasting rights and the balance would go to IPL. There is an overall cap of

    US$918mn on the rights which can be shared with the franchisees.

    MMS IV

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    IPL : The birth of Cricketainment

    Balance Sheet

    IPL committee had devised the sources of revenues for franchises also the

    expenses were chalked out. IPL had given a whole proposal to attract the

    franchises.

    Sources of Revenue

    Broadcast rights: The broadcast rights have been sold by IPL to World Sports

    Group (WSG) and Sony for $1.026 billion for 10 years in a contract that is

    linked to the success of the League and to television rating points (TRPs).

    In the first two years, 80 per cent of the money earned from the broadcast

    rights will be shared by the franchisees equally with the rest going to IPL. Thelatter's share will increase gradually and by the fifth year, IPL will get to share

    40 per cent of the broadcast revenue.

    Sponsorship: The title sponsorship fee of over $50 mn paid by DLF, a leading

    real estate company in India, will be shared with the franchises. IPL will retain

    40 per cent of this and the balance 60 per cent will be shared between the

    franchisees equally. While these revenues accrue from the central pool to the

    franchisees, they will generate team sponsorship at individual levels as well. Inaddition to these, Hero Honda and Pepsi were associate sponsors worth

    $22.5mn and $12.5mn for five years. Also, Kingfisher Airlines were IPL's umpire

    partners worth $26.5mn. The incomes through these were equally shared

    between the franchisees.

    Ticket sales: The final revenue source is ticket sales at home stadiums. Each

    franchise will get seven matches at home and the revenues from ticket sales

    will be shared with IPL, which will get 20 per cent, with the rest going to the

    franchisee.

    Other sources: There are also other smaller revenue sources such as from in

    stadia advertising a part of which will go to the franchisee.

    MMS IV

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    Expenses

    Franchisee fee: The two big expenses incurred by Franchise are player costs

    and the franchise fee paid to IPL. The franchise fee will be payable in equalsums over a 10 year period. For instance, if a franchise is to pay $100 million

    to IPL, he will pay $10 million every year to IPL.

    Player acquisition cost: The player costs were determined in the auction. The

    franchisee has to pay players who are available even if they are on the bench.

    Players have a threeyear contract with the franchise that bought them but

    they can be traded at the end of the first year between the franchisees.

    Stadium Hire Charges: The franchisees also have to pay for the use of the

    stadiums for which they have to enter into contracts with the local association.

    For instance, the Kolkata franchisee will have to pay the Cricket Association of

    Bengal for the use of Eden Gardens.

    Other Expenses: There are also other marketing costs such as events forpromotion of the team, star ambassadors, and so on, which the franchisees

    have to bear.

    MMS IV

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    MMS IV

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    IPL : The birth of Cricketainment

    P & L of a franchise

    MMS IV

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    IPL : The birth of Cricketainment

    Research Analysis

    Q1

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    MMS IV

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    Roll No. 129 Page | 34

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    IPL : The birth of Cricketainment

    %age of

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    IPL : The birth of Cricketainment

    %age of

    Q10 IPL for me is Respondents

    Conclusions

    45 Days of Masala Entertainment

    Futuristic StrategyAggressive marketing vehicle

    Threat to TV and Cinema

    26.00%

    31.00%37.00%

    6.00%

    1 IPL is a winning formula, its marketing and crisp timing being its USP

    It has a potential to beat the prime time TV shows as is evident from the views of

    2 the people

    3 But, IPL needs to keep up to its expectations

    MMS IV

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    IPL : The birth of Cricketainment

    IPL Season 1: Study from Media Perspective

    IPL gave a major boost to its broadcasting partner Sony Entertainment

    Television. The ratings were so high that MAX increased the prices for their

    television slots.

    The first five matches itself delivered a rating of 5.6 a record in its own feat.

    10

    9

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    CS 4+ YRS M15+ ABC CS F15+ABC CS

    1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

    Not only the men were glued to IPL but also, IPL attracted many from the fairer

    sex. One of the surveys found out that IPL was considered to be with more

    entertainment than the daily soaps.

    10

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    26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

    MMS IV

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    IPL : The birth of Cricketainment

    IPL also broke the myth that Indian viewers watched cricket only if India was

    winning.

    Over the whole season, nevertheless it was long, IPL ruled the airwaves. Star

    Plus and Zee TV followed neck to neck on the second and third place. Whereas

    post IPL Star Plus regained its No.1 status.

    98765432

    10

    MAXZee TV

    Star PlusMax settlesdown post-

    IPL

    MMS IV

    Roll No. 129 Page | 38

    18-Apr

    20-Apr

    22-Apr

    24Apr

    24-Apr

    26-Apr

    28-Apr

    30-Apr

    02-May

    04-May

    06-May

    08-May

    10-May

    12-May

    14-May

    16-May

    18-May

    20-May

    22-May

    24-May

    26-May

    28-May

    30-May

    01-Jun

    03-Jun

    05-Jun

    07-Jun

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    IPL was a favourite amongst all age groups of Men

    Not only that, IPL was thrice more effective amongst Men than Star Plus or Zee

    during Prime Time

    MMS IV

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    IPL 1 Survey:

    Q1. Are shorter formats the future of Cricket?

    600

    500

    400

    300

    200

    100

    0

    Tot Time/Match

    540

    58

    Avg Time Spent (Mins)

    480

    38

    Tot Time/Match

    300

    18

    Avg Time Spent (Mins)

    240

    17

    70

    60

    50

    40

    30

    20

    10

    0

    24th Mar (Samsung Cup - 19th Feb (Hutch Cup - 2006) 20th Sep (ICC T20 Cup - 2007) 26th May (IPL DLF Cup -2004) 2008)

    Result:

    Shorter formats hold more attention.Looking at the ratio of the Total Match

    time and Average Time Spent on the matches, both ICC and IPL versions of

    T20. Also, if we take any match from start to end the viewership only

    increases.

    MMS IV

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    Q2. Did IPL open up noncricket markets?

    80

    70

    60

    50

    40

    30

    20

    10

    0M ah Guj PHCHP Raj UP MP Orissa WB Ker TN Kar AP All India

    IPL ICC T20

    Result:

    IPL worked better than any international World Cup. The low cricket viewing

    markets like TN and Kerala also opened up because of regional factor put into

    IPL.

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    Reach@

    5+

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    Q3. Is Magic of Reality Shows matching up to IPL?

    8

    7 M 25+ ABC CS F 25+ ABC CS

    7

    6

    5

    4

    5

    45

    432

    10

    3

    43

    3 3

    22 2

    3

    Zee Star Plus:Nach Star Plus:Star Sony TV:Indian Sony TV:Jhalak Star Plus:Chote Max:IPL 08TV:Saregamapa Baliye3 07 VOI 07 Idol3 07 Diklaga2 07 Ustad Star VOI

    07 08

    18161412

    M 25+ ABC CS F 25+ ABC CS

    15

    10

    10

    86420

    6

    86

    86

    7

    45 3 44 6

    Zee TV:Saregamapa07 Star Plus:Star VOI 07 Sony TV:Jhalak Max:IPL 08Diklaga2 07

    Result:

    IPL was bigger than the biggest reality shows on Hindi GECs among maleswhereas among females Zee Saregamapa was at par. Also, IPL final was the

    most highly rated grand finale amongst all reality shows in Hindi GECs.

    MMS IV

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    Conclusion

    IPL proved that a good vision, well activated can create magic. To think that IPL

    is a marketing success or that it succeeded because it mixed Bollywood and

    cricket is sheer over simplification.

    IPL was just waiting to happen. It gave viewers everything soaps should be

    giving, plus it gave cricket. It broke the false barrier of patriotism and gave

    viewers a reason to like the sport for itself. It celebrated the spirit of sports

    when players who have fiercely competed against each other and who had

    barely met each other until a few weeks before the start of the tournaments

    were performing in the field as if they have forever been a team.

    It had heroes who fell, under dogs who became heroes, shame faced icons,

    glamorous fans, cheerleaders, scandalous exstars fighting to redeem

    themselves, doubts, suspense, a nail biting finish and victory of the underdog.What more do you expect from entertainment? This was TV and sports at their

    glorious best.

    Impact on the Media and Entertainment Industry

    The acquisition cost was then considered steep for domestic tournament.

    According to the KPMG report, SET has to pay $ 316 million (Rs 12.6 billion) in

    equal instalments over the initial five year and $ 608 million (Rs 24.3 billion) forthe next 5 years. That means SET had to pay about Rs 2.53 billion to BCCI

    in

    2008.

    However, with the success and popularity of the tournament the investment

    seems to have paid off for the broadcaster. The league, screened every

    evening in a prime slot at 8 pm pulled in viewers in large volumes. As per TAM

    ratings, the final of IPL on 1 June 2008 fetched Max an average of 4.7 over 57matches on SET Max, showing that audience interest was sustained

    throughout the long tournament, which was a concern at the beginning. These

    ratings were unprecedented for domestic cricket tournament.

    The report further states, the huge viewership that the matches gained pushed

    up advertisement rates for 10second spots to Rs 500,0001 million, which was

    marketed at Rs 200,000 per 10 seconds at the start of the tournament. ESPN

    Star Sports had charged about Rs 750,0001 million for 10 second spots for the

    IndiaPakistan T20 World Cup final in September 2007, which delivered a TRP

    MMS IV

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    of 15.9. Max reaped in the benefits of the leap in viewership which pushed it to

    the number 1 slot on channel viewership share bases during Q2 2008 during

    the broadcast of IPL.

    The report also states that IPL provided a good opportunity to marketers.

    FMCG companies like ITC, Mother Dairy and Nestle, insurance companies,

    Pizza Hut and Cipla were the leading advertisers during the first edition. Many

    players like the suiting major S Kumar's Nationwide who were the apparel

    sponsors of team Jaipurentered at the later part of the tournament, after

    gauging its success and popularity. Franchisee owners also spend money on

    marketing and promoting their respective teams, and in turn generated

    revenue from team Sponsorships. Industry players are unanimous in their

    views that IPL has acted as a big driver for advertising spends this year.

    Future prefect in the immediate run

    Gauging by the industry reaction, IPL is expected to continue as a prime driver

    in the M&E industry for the coming year. Further, advertising rates for other

    cricket telecasts are also expected to increase since the IPL rates are also

    expected to be used as future reference points by the broadcasters.

    Many retail majors plan to tie

    up with IPL franchisee, given the fact that thebusiness format of IPL is modelled on the EPL, which has built its properties

    through retail tieups and merchandise. Industry players also plan to capitalise

    on celebrity brand ambassadors and merchandising. Celebrity endorsed

    branded Tshirts, sunglasses, wallets and travel bags are expected to be

    promoted in a big way, says the report.

    In the long run

    The report also gave some speculation on how the IPL could sustain in the longrun. IPL's ability to sustain and grow its popularity in the long term depends on

    the ability of individual franchisee to 'break out' and become large media

    properties on their own. Franchisees may have to increase their marketing and

    promotional spends to effectively monetise their fan base and build brands out

    of their respective teams.

    Franchisees also need to think about how to maintain fan's interest when

    there are no matches to watch. Even though the success of the domestic

    MMS IV

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    cricket league tournament has been unprecedented, rating show that it still

    trailed the T20 world cup final in terms of viewership. In the future too more

    teams sponsors, franchisees may try to increase the mix of premium seating in

    their home stadiums, and generate revenues from Food and Beverages.

    Further, the report states that the league itself is set to expand with the

    addition of 4 new franchisees from 200910. This is likely to take the total

    number of teams to 12 and is expected to automatically increase the scale of

    the tournament. In turn, it is also likely to provide more opportunities for

    advertisers.

    For the immediate future however, even as India waits for the next edition of

    IPL, pure business logic makes the tournament pretty compelling for the

    advertisers and media buyers in India, and in turn exciting prospects for the

    M&E industry.

    MMS IV

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    IPL 2: The Dream Continues

    IPL T20 Two, was scheduled to commence from 10th April 2009 in India but

    since the dates of the matches clashed with the Indian Elections it was decided

    to move the tournament outside India. Lalit Modi the Chairman of IPL T20

    flew to Johannesburg and it was announced there that the tournament will be

    held from 18th Apr 2009 at various venues in South Africa comprising of fifty

    six round robin matches , two semifinals and the final.

    The world is enjoying this billion dollar extravaganza. The streets are half

    empty just before 4.00 PM every evening in India and people are glued to their

    TV sets impatiently waiting for the first ball to be bowled. I am sure the same

    would be happening in other parts of the world. How is all this managed?How

    did Lalit Modi achieve this?

    Management has two main facets one 'Optimum utilization of all available

    resources and manpower' and two 'depute the right man for the right job'.

    Agreed, that South Africa is a cricket loving country they have the stadia the

    basic infrastructure the lights for day night matches then boxes for the VIPs

    and the media and well laid pitches. But still there is a lot more to be done. Let

    us first look at the tasks involved.

    In all there are eight teams comprising of 16 players plus one physio and onecoach that makes it eighteen in all. Now they have to be provided

    accommodation, food of their choice and transport from their hotel to the

    stadium and back after the match. So there are total of 144 team members to

    be looked after. If the match is in another city then proper flight arrangements

    are to be made and then hotel accommodation for all members has to be done

    also, before the team arrives there. And this occurrence arises every alternate

    day as each team has to play all the seven other teams in a round robin two

    phased schedule.

    Similarly there are two umpires on the ground and one upstairs with a match

    referee also who also have to be taken care of. These umpires have to be

    selected from the ICC approved panel of umpires. They have also to be

    changed in every game I wonder how many umpires are there to oversee the

    whole tournament. . I believe some help must have been obtained from

    WorldTel also, a consortium which has a number of approved commentators

    to facilitate proper ball by ball description of all matches.

    MMS IV

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    Then each team has to be provided with uniforms. I think 'Nike' would have

    arranged to design the dresses of all the teams. And then there are logos

    of

    various sponsors on the shirts of the players. Monograms of sponsors are also

    on the cricket bats. Also, which player is sponsoring which product needs to beseen. Don't forget that dresses have to be provided to the umpires also.

    Then we need at least eight to ten 'official scorers' to script the proceedings of

    each match ball by ball. And one out of these has to give out a press release to

    the media regarding the scores after the match is over. Then, gate passes have

    to be issued to VIPs, officials, scorers, media personnel and owners of the

    teams. No gatekeeper dares to stop Vijay Malaya or Preity Zinta from entering

    the stadium.

    Apart from the above and beyond that also, Lalit Modi has to check all

    the spouts from which the money is pouring in. Firstly the TV rights

    allotted

    globally, then the stadium tickets sales, the indoor hoardings, the car parking's,

    the small stalls that sprout here and there outside the stadium during matches

    selling ice creams, cold drinks and beer etc. So, one Lalit Modi cannot be

    everywhere and he has to distribute the various tasks to the 'right man for the

    right job'. The gate money and the resources generated from inside and

    outside are perhaps, looked after by the stadium in charge himself.

    Alongside the income there are expenses also. Guarantee money must have

    been paid to Cricket Control Board of South Africa, then there are payments

    for utilizing the stadia, payments to hotels, airlines, food, catering and prize

    money to the winning team and the runner up as also the player who hit the

    highest number of sixes as well as MOM in each match and not forgetting the

    fair play awards constituted.. Then he has to pay the eight owners of their

    respective teams as the owners have already spent millions of dollars in buying

    the players and then he has to mint money for the BCCI.

    Then, we have seen that Lalit Modi has also given donations to few schools to

    the tune of a hundred thousand Rands each for their welfare. He has to have a

    full fledged office and a team of management experts who ensure that the

    tournament passes off without a glitch. Did you ever see any match with only

    one umpire? Eh!

    WOW! This is a job of gigantic proportions. Requires immense stamina,

    management skills and a keen eye for every detail.

    MMS IV

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    All this is definitely not a one man's job. His management team has to perform

    under his guidance. Hats off to you Lalit Modi and I have to mention here that

    Late Shri Raj Kapoor was very right when he said that "There is no

    business greater than show business". I think that this quote is also

    relevant to thecontext.

    Sports Outsourcing

    Blink if you must. A domestic tournament of one country, involving teams

    represented by players of 10 countries, is being staged in another country and

    reaching viewers worldwide through television. The emigration to South Africa of

    the second season of the Indian Premier League (IPL) technically a

    domestic event, the liberal sprinkling of international stardust notwithstandingis possibly without precedent in the history of sport.

    In a sense there exists a parallel with golf's European Tour. Born in the

    continent from which it derives its name, it has branched out to encompass

    Asia, Australia and South America while continuing to be called the European

    Tour. And yet, while the experiment of staging domestic matches at offshore

    venues is not entirely novel (American sports having taken steps in this

    direction), and cricket itself has occasionally been forced by necessity into

    staging bilateral series at neutral sites, the instance of an entire domestic

    tournament organised by one country being hosted by another is unique, a

    defining moment, and a pointer to the possible future of sport.

    Geography is history

    While the cosmopolitan composition of the competing teams in the IPL has

    revolutionised cricket by challenging conventional notions of nationalitythe

    basic differentiator of international sport the change in address (read: c/oSouth Africa) of the most lucrative tournament in the game proves that the

    portability of sport has power enough to make geography history. It is rare for

    an event driven by the publicity and anticipation attendant upon the IPL to be

    an unknown quantity to the nonTV spectators who will keep it afloat. But such

    is the case with the madeinIndia IPL having been shifted to South Africa.

    Considering that the catchment area of the IPL spans all major cricketplaying

    countries, it was perhaps inevitable that the tournament would move to

    foreign shores at some stage; few though would have expected it to happen as

    early as it has.

    MMS IV

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    With terrorismrelated threats and political imperatives lurking in the

    background, the decision to relocate the tournament found official justification

    in the clash of IPL II dates with the general elections in India. If the show goes

    on, as it must, it is because of the fact that it is not so much the popularity of a

    sport, but market forces, that dictate its reach and scope.

    'International' domestic tournament

    Even as argumentative Indians debate the loss of national pride accompanying

    the outsourcing of the IPL, it must necessarily be accepted that the reshaping

    of the tournament by circumstances is a development with a silver lining. The

    relocation of the IPL has created a giveandtake case study that the rest of the

    cricketing world will study with interest.

    What the Board of Control for Cricket in India (BCCI), the organiser of the IPL,

    proposedplay surrogate mother for a tournament it has fathered Cricket

    South Africa (CSA) agreed to dispose. By agreeing to bail out the BCCI and thus

    allow the IPL to proceed on schedule, CSA has not only strengthened cricketing

    ties between the two nations, but also earned for itself an opportunity to earn

    revenue in a manner hitherto unexplored.

    There now exists in world sport a business model worthy of replication that

    of the 'international' domestic tournament. A bunch of wiseheads, cricketers,

    business magnates and millions of everready eyeballs have combined to make

    this possible.

    As with any business arrangement, the books will bear scrutiny only when the

    dust has settled; nonetheless, even as territorial expansion of the game plays a

    supporting role as a continuing process, the economic globalisation of the

    gamerepresented by the outsourcing of the IPL, by default if not design

    has become an actuality. And with no greenbacks demanded in exchange forthe IPL II blueprint, the cult of 'free' market economy is as exciting as it sounds.

    Evolution by revolution

    Followers of Indian cricket have seen far too many brave new dusks to

    dispense with cynicism just yet but those who appreciate the potential of theIPL will be less guarded with their optimism. That the audience for the IPL hasMMS IV

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    expanded because of its shift to South Africa is obvious. Moreover, with the

    creation of a satellite India on South African soil for the tournament, the

    Indianness of the IPL is now more pronounced. Simultaneously, if the IPL were

    to be defined by the direction of its audience growth, then the tournament's

    organisers would be tempted to rechristen it as the International PremierLeague. And IPL IIin which Indian players are not 'natives' but 'foreigners'

    because of where the tournament is being staged can only further reduce

    the nationalism and narrowness that often threatens to reduce the sport to

    political football.

    The second season of the IPL promises to generate money, a cultural imprint

    and goodwill for India in South Africa. And possibly vice versa. In that context,

    cricket@outsourcing is an evolutionary step, an idea whose time had come.

    MMS IV

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    Post IPL2 Study from Media Perspective

    Research Methodology

    1. Consumer Research to understand involvement in IPL 2a. The viewing patterns

    b. Team and player preferences

    c. Brand Associations

    2. Online Survey across the nation

    3. All TAM ratings in 15years+, SEC ABC, All India, CS homes

    IPL 1 vs. 2 - From a viewer perspective

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    MMS IV

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    MMS IV

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    MMS IV

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    Which brands were most noticed in IPL 2?

    MMS IV

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    MMS IV

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    MMS IV

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    Is there a shift in Team Support?

    Summary

    Consumers feel they have watched more of IPL in season 2 and will

    continue watching. Elections did not affect 70% of people's IPL viewing However, the ratings have dipped with more people watching for lesser

    time. Overall 16% drop in ratings.

    More Off Prime matches with a 19% rating drop also contributed topulling down the ratings

    DLF and Vodafone Top of Mind on association with IPL KKRNokia, CSKAircel, and MIIdea were the strongest TeamBrand

    associations

    Execution of branding is more important than the position of the logo.

    MMS IV

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    Future Opportunities for IPL Twenty20 Cricket

    Title sponsorship: DLF paid around $50 million to secure the title sponsorship

    for the first five years and this is renegotiable after the third year. If IPL Cricket

    gains momentum, it can be much higher.

    Player trading: In the IPL trade window, players can be sold for many times the

    cost at which they were acquired.

    Gate fees: Beyond the third year, gate fees can increase significantly if the IPL

    takes off in a big way.

    Franchise sale: After the third year, a franchisee has the option to sell out. This

    could lead to a windfall.

    Franchise forever: The franchise fee is for the first 10 years, after which

    franchisees continue to own the teams for perpetuity.

    Potential Downsides of IPL

    Not enough eyeballs: SonyWSG and the franchises could suffer losses if IPL

    fails to wins over spectators and viewers, and draws a critical mass.

    Not enough star players: Constant availability of top overseas players may not

    be possible due to growing number of international Cricket tournaments.

    Other tournaments: Potential viewership threat if the ICC decides to hold an

    annual international Twenty20 cricket championship.

    Ad blues: Recession and change of venue could affect plans of potential

    advertisers.

    Game pull: Business prospects may be affected if the franchisees fail to create

    a loyal fan following in their turf.

    MMS IV

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    Risks to IPL

    Though IPL seems to be going from strength to strength, it does face some

    risks:

    1. Success of any league depends on it remaining competitive. The cap on

    the amount of money that can be spent on the players can be raised or

    removed, making it easy for the teams with deep pockets to corner the

    best players.

    2. Any reduction in the maximum number of international players will

    adversely affect the IPL.

    3. Success of IPL may prompt other countries like Australia to organise

    similar events, whose schedules could conflict with IPL. This would posea risk to the participation of top international players.

    4. Lack of coordination with ICC may lead to conflict between IPL's

    schedule and other international matches.

    MMS IV

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    Bibliography

    www.iplt20.com

    www.wikipedia.com

    Stanford University Case Studies

    Sport Business International

    Press Trust of India Limited

    Financial Express

    Indian Express

    Mint

    The Times of India

    The Economic Times The Hindu Business Line

    www.cricinfo.com

    Business Line

    Business Today

    Daily News and Analysis (DNA)

    Business Standard

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