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D-Delhi

L-LeasingF-FinanceI-IndianP-PremierL-League

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It was in late June 2007 that two men arranged for a meeting for discussing

an interesting but different sporting event.

It was Lalit Modi (Vice-President of the Board of Control for Cricket in Indiawith Andrew Wildblood (International Management Group, the sports

management ).

Then in April 2008, the maiden IPL tournament which Modi had

conceptualized and ideated was on the way to come on the forefront.

In the month of February in 2008 experienced the hysterical player

auction, created the not-so much needed media hype.

The most powerful and rich Diaspora of the India community came up in

the bidding process. The bigwigs are from the corporate sector to the

entertainment industry who added all the needed lusture to the

tournament.

Whooping amounts for different players were being seen - $1.5m forMahendra Singh Dhoni, $1.35m for Andrew Symonds, $950,000 for Ishant

Sharma. Cricket could be so costly an affair nobody could even think of.

Everybody was waiting for recreating history in Indian cricket.

Bollywood stars like Shah Rukh Khan, Preity Zinta, Shilpa Shetty - owner and

co-owners of the Kolkata Knight Riders team; Kings XI Punjab and RajasthanRoyals respectively made this mega sports event all the more a success.

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Objectives

Market Entry strategies Personal Selling

SWOT Analysis Cost leadership

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istan

Youngsters targeted

Huge entertainmentCommercialization

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Fan Following Curiosity

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Local Talents Got Exposure.Will be Accepted Globally.New Market Segments

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Early RetirementsIntegrity Towards CountryStrategy Copy

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Title Sponsors

Amt. $50 mn

Umpire Sponsors

Amt. $106 Crore

Beverage Sponsors

Amt. $12.5 million

Official Partner

Amt. $25 million

Official Partner

Amt. $22.5 mn

Food Supplier

Broadcaster

Amt.$1.026 billion

Official Partner

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Success for2008 Season

REVENUE MACHINE

Huge growth for BCCI & other corporateNew forms of EntertainmentSpectacular Television Rating Point (TRP)ratingsPlatform for Youngsters

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Success For 2009 Seasons

Fourth spot of the Forbes list

Record TV Viewership WorldwideBiggest Tournament after world cup

Globalizing Cricket

Boost more money

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Success for 2010 Seasons

Theatrical rightsIPL On lineIPL Tie up with VROCK Mobile

PR ActivitiesDonation , Charity to South AfricanSchools

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TEAM OWNER CAPTION COACH SPONSER AUCTIONED

AMOUNT

Royals

Challenger

Bangalore

Liquor Barron

Vijay Mallya

(UB Group)

Anil kumble Rey Jennings

(South Africa)

Royal

Challenge &

Other UB

Brands

$ 111.6

Million

Mumbai

Indians

Reliance

IndustriesLtd.

(Mukesh

Ambani)

Sachin

Tendulkar

Robin Singh Idea Cellular,

Pepsi

$ 111.9

Million

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TEAM OWNER CAPTION COACH SPONSERS AUCTIONED

AMOUNT

Kolkata

Knight Riders

Shahrukh

Khan , Juhi

Chawla , &

jay Mehta

Sourav

Ganguly

Dave

Whatmore

HDIL , Nokia,

Belmonte

$75.9

Million

Kings XI

Punjab

Preity Zinta,

Ness Wadia,

Surendra(Dabour

Group)

Kumara

Sangakara

Tom Moody

(Australia)

Spice

Telecom, 9X,

ProvogueCoca cola

$ 76

Million

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TEAM OWNER CAPTION COACH SPONSERS AUCTIONED

AMOUNT

Delhi

Daredevils

GMR

Infrastructure

Gautam

Gambhir

Gerg

Shipperd

(Australia)

Hero honda ,

Kingfisher

Airlines,

Adidas,

104FM

$ 84

Million

Deccan

Chargers

Deccan

Chronicle(Venkattram

Reddy)

Adam

Gilchrist

Darren

Lehman(Australia)

Deccan

Chronicle,Puma, Mc

Dowells,92.7

FM,Pepsi,Kin

gfisher

Airlines

$ 107

Million

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TEAM OWNER CAPTION COACH SPONSERS AUCTIONED

AMOUNT

Chennai

Super kings

India

cements Ltd.

M S Dhoni Stephen

Fleming

(New

Zealand)

India Cement,

Aircel, Reebok,

peter England

Nevia , 9 Cloud

$ 91

Million

Rajasthan

Royals

Emerging

Media, Shilpa

Shetty, RajKundra

Shane

Warne

Shane

Warne

(Australia)

Kingfisher,

Puma, Boost

,UltratechCement

$ 67

Million

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The inaugural season of the tournamentstarted on 18 April 2008 lasted for 46 days with 59 matches scheduled,out of which 58 took place and 1 was washed out

due to rain. The final was played in DY Patil Stadium, Nerul , Navi Mumbai. The top four ranking sides progressed to the

knockout stage of semi-finals followed by afinal. Rajasthan Royals defeated ChennaiSuper Kings in a last ball thriller and emerged asthe inaugural IPL champions.

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The 2009 season coincided with the generalelection in India . Owing to concerns regarding players' security, the

venue was shifted to South Africa. Finally Deccan charger defeated RoyalChallengers Bangalore in the final. Deccan set atarget of 144 with the help of Gibbs(53) and

defended it.

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The third [season] opened in January 2010 withthe auction for players. 66 players were on offer but only

11 players were sold. In this season, Hyderabad Deccan Chargers did notplay at their preferred home location of Hyderabad, Indiadue to the ongoing political crisis in the Telangana region. The new bases for the champions this seasonwere Nagpur , Navi Mumbai and Cuttack. Four teamsqualified for the semi-finals. The first semi-final was wonby Mumbai Indians who defeated Bangalore Royal

Challengers by 35 runs. Chennai SuperKings defeated Hyderabad Deccan Chargers in thesecond semi-final. The final was played between Chennai Super Kings

and Mumbai Indians. Chennai Super Kings won by amar in of 22 runs.

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On 21 March 2010, it was announced in Chennai that two

new teams from Pune and Kochi will be added to the IPL forthe fourth season. Later, Lalit Modi was also removed from IPL chairmanshipby BCCI. On 5 December 2010, it was confirmed that Kochiwill take part in the fourth season of IPL. Chennai Super Kings won their second consecutive IPLtitle after defeating Royal Challengers Bangalore by 58 runs inthe fourth season of IPL The top four teams namely CSK, RCB, KKR and MI have

also qualified for the Champions League. MI are the currentChampions League Twenty20 champions by defeating RCB inthe finals.

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The fifth season, this time with 9 teams (after thetermination of the Kochi franchise) started on 4 April 2012 inMumbai, for which the players auction was held on 4 February2012 in Bangalore. The season saw IPL authority increasing the number ofplayers in each squad to 33 from the previous limit of 30 .

The first match between Champions League 2020 winnersMumbai Indians and the defending champions Chennai SuperKings was won by Mumbai Indians by eight wickets. Man ofthe match Richard Levi scored a 35 ball 50 with 6 fours and 3

sixes. The season will comprise of 9 teams, with 76 matches to beplayed. It began and will end in Chennai with the openingmatch on April 4 and the final on May 27. It will be played at 11venues

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Bid amount need tobe specified

Auction of

player

4 player under 21

from catchment area

Each squad min. 16

player max.4

international

Awarding of

franchisees

Bid for more than

1 city

Potential franchisees

submit bids

Announcement of

Tender inviting

bids

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IPL Season 1 : 91 cr. IPL Season 2 : major loss as IPL held in south Africa IPL Season 3 : 200 cr.

Direct Tax : Rs 100 cr.Tax deduction at source TDS for the remuneration

Paid to players , umpires, coach and commentators.

Service Tax : Rs 100 cr.Advertising , marketing and consultancy services

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Team franchising costs : A franchisee has to pay 10% of

total franchisee costs every year to IPL . Player costs : US $ 4-6 mn. per year this includes cost ofmanager and coaches. Each franchise has 18-22 playerswho are tradable after a year . The players have a threeyear contract with the franchise . Marketing costs : US $ 3-4 mn. By franchise forpromoting its team Stadium expenses : franchises have to contract stadiumfor 7 matches at BCCI agreed rate . On an average , the

expenses is Rs 2.5mn.per match . Other expenses : Administration and event managementRs 7 Cr.

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How they made money :

The media right : itself were sold for a whooping Rs 4104

Cr For 10 years . of this Rs 432 Cr it will have to spend onthe Marketing event. The Franchisee cost : The 8 Teams franchisee auctionput Together fetched IPL another Rs 2896 Cr to be collectedOver 10 years The Sponsorship : Title and associate sponsorship

Fetched another 200 Cr per year The Share of IPL : is the only set to increase with the yr asper the contract .Look like BCCI has hit upon another goldengoose of its own.

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The share of the Broadcastings rightsmoney Rs 25 Cr

The share of the central sponsorshipMoney Rs 15 Cr The Local sponsor they can getsupporting Side Rs 25 Cr ApproxThe share of the ticket earnings from theHome grounds Rs 13 Cr F & B Share Rs.3 Cr

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Firm v/s Basic Agreement

Prize Money :I. For winner Team 4.8 CrIncrease to 6 Cr in IPL 4II. For Runner up Team 2.4 Cr - Increase to 3 Cr in IPL 4III. Two SemiFinalist 1.2 Cr Increase to 1.75 Cr in IPL 4IV. For Rest Its 50 Lakh-80 Lakh Increase to 1 Cr

Bonusw.r.t Position at which the Team Finishes SalariesI. Each year it should not be less the $ 3.3 MillionII. Player Earns about Rs 80 Lakh or more per session on average

Daily AllowanceI. $100 per Day

Note * : Today IPL is making Rs 54 Cr by selling 150 seconds airtime onSet Max by carrying ads on the scoreboard during an over.MRF pays Rs 15 Cr to have its blimp in the sky for 24 matches

during this season of IPL .

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EARNINGS OF IPL

Central sponsors, YouTube sponsors,

theatrical rights:Rs 170 cr

Broadcasting fees: Rs 134 cr

Franchises fees: Rs 330 cr

TOTAL: Rs 634 cr

EXPENSES OF IPL

Umpire salary: Rs 6 cr

Prize money: Rs 27 cr

Others including travel,:

security and organisationRs 50-65 cr

TOTAL: Rs 83-98 cr

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World Sport Group Pte Ltd (WSG), a sports marketing company, paidRs8,200 Cr for the broadcasting rights to IPL until 2017. According to a senior executive from the WPP Group-ownedMindshare, a media buying agency, the network began selling its 10-

second advertising spots at Rs4.5 Lakh, which is 200% more than theinitial ad rates in the IPL season 1 at Rs1.5 Lakh per 10 seconds and 80%higher than the initial rate of Rs2.5 Lakh in the second season. the rates increased further to Rs5.25 Lakh for 10 seconds.

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Income

I . Generation of Incomei. Revenue from Auction of Broadcasting rights :

ii. Revenue from Title sponsorship & Co. Sponsorship

iii. Revenue from auction of franchisee rights

iv. Revenue From official umpires Sponsorship

II. Distribution of Income

i . Share of Broadcasting money with Franchisee/s

ii. Share of sponsorship money with Franchisee/s

iii. Share of Ticket Money with Franchisee/siv. Inauguration Expenses

I-II = Total Income

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Income

1) Generation of Income

I. Share in revenue from broadcasting rights

II. Share in sponsorship Money

III. Share in revenue from sale of tickets

IV. Revenue from inside stadium advertisement

V. Sale of Players (From one Franchise to another)VI. Revenue from own sponsorship & Co. Sponsorship

2) Distribution of Income

I. Franchisee fee & player cost

II. Match fees to coaches and supporting staffIII. Rent of stadium & market / Promotional cost

IV. Inauguration expenses

V. Fees of coaches & others

VI. Administrative cost

III = Total income

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How to Bet ?

There are bets for every match. Betting usually begins fewhours before the matches. What are Odds ?Odds indicate the $s that you will win in return of each $ you bet if yourpredictions comes true Odds in the game may vary while the betting isopen depending on many factors . What are Payouts ?

payouts is the final amount of $s which you'll earn if you win thebet. Total IPL betting 6000 Cr *

The Law Says No Online betting possible on sites like betfair.com Bookies says its MI this time

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1. The money being put into cricket is harming thedevelopment of other sports. ?

Reason for no more gentle game ?

1. The cricketers - Abhinav Bali, TP Sudhindra (Deccan Chargers),Mohnish Mishra (Pune Warriors), Amit Yadav (Kings XI Punjab) andShalabh Srivastava (Kings XI Punjab)

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