Prepared by:

Shrikant Athavale & Anuj Jindal

MBA-SEMESTER-II

Cosmic Business School, New Delhi

Under the guidance of: col. K.G. Puri.

E-mail- shrikantathavale@rediffmail.com
 Index

Sr.No. Contents
1) Historical Background
Indian premier league as:
2) business controversy.
IPL as a case for management
3) students.
4) core facts of IPL
Why IPL is looked as a case for
5) business controversy.
The Board of Control for Cricket in India (BCCI) is the apex body
governing the cricket in India. The board was formed in 1929, and has been
registered under Tamil Nadu societies Registration Act.
As the member of International cricket council it enjoys the right to
choose the players, umpires, & allied officials for international events, and
levies the control over them.

BCCI has state cricket associations as the members for instance Maharashtra
cricket association, Mumbai cricket association. The President of BCCI is
Sharad Pawar& Niranjan Shah is the secretary.

The Indian Premier League is a Twenty20 cricket competition created by

the Board of Control for Cricket in India (BCCI). The first season of the
Indian Premier League commenced on 18 April 2008, and it will end on 1
June 2008 when the final is played at the DY Patil Stadium, Navi Mumbai.

Lalit Modi is the man behind the scene, who has brought out the dream
concept in reality. Under Robin round teams will play twice against each
other and the top four teams will be heading to the semi finals. Final will be
played in Navi Mumbai on DY Patil stadium on 1st June, 2008.
Indian Premier
League (IPL): the
Business
Controversy
Indian premier league (IPL): the Business Controversy

The Indian premier league (IPL) is a miracle in the world cricket. We

have experienced the drastic changes in cricket after the evolution of new
cricket concept the t-20 cricket.
Lalit Modi is the man behind the scene, who has brought out the dream
concept in reality.lets not talk about the history of Indian premier league. Let
us see how IPL is the case for marketing controversy.

Marketing controversy either way, the end result is unparalleled

coverage; residual awareness of your product, which later most definitely
translates into brand recall, and even sales.

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 will be of immense help in eliminating
the odd dose of adverse publicity in the short term.

IPL: the DLF Indian premier league is a big drama which has involved huge
amount of money and intellectual capital. In the first week of April2008, ,
Indians woke up to headlines screaming that the newly launched Indian
Premier League could, well, face a total media boycott – an unthinkable
situation in a country where cricket is not a sport but a religion.

The IPL has entered the cricketing business through various controversies.
 The controversies with media about the photographs & with other cricket
boards like Australia, New Zealand and England for signing their players
and county cricket. This helped IPL to get the media coverage and people’s
thought.

IPL: The Case For

management Students.
Let us take a look at IPL as the management case. This would be discussed
with reference to the functional areas management viz.
Marketing management
Finance management
Production management
Humana resource management

Marketing management

One can legitimately claim that an IPL is the best example to learn the
marketing as it has not left a single mod of promoting and positioning the
service product for cricket fans. Cricket is a religion in India and IPL is a
Prasad to Indian cricket worshipers.
Not only Indians but through out the world the game has been promoted.
Some of the marketing strategies (that are broadly seen & made the league a
case for business revolution) are as mentioned below.

1) Auctioning the franchisees: the first step of giving franchisees to

some big guns in India like Mukesh Ambani, Shahrukh Khan, Vijay
Mallya and the likes, which fetched huge public attention and helped
creating curiosity in their minds.
2) Auctioning the players participating in the IPL tournament: BCCI
has not any let any marketing strategy go down they announced the
amounts for players by asking a bid by some sponsors, players like
Mahendra Singh Dhoni,S.Shrisanth, R.P.Singh, Sachin Tendulkar,
Sourav Ganguli, Rahul Dravid called for a huge amount, that
eventually gave the IPL a publicity stunt.
3) Advertisements on various TV and radio channels.
4) Cheerleaders: one can’t deny the fact that cheerleaders are one of the
most important factors influencing the people to come watch the
game.
 5) Worldwide telecast: the broadcasting rights were given to various TV
channels across the world. The names of some channels and the
amount involved would be shown in the table ahead.
6) Locations: the venues selected for the games are the cities of which
the franchisee is named after.
7) Conflicts with some media partners and some other cricket boards
again demanded the attention of people.
8) Timing: time selected for the game is in the evening so that people can
have a great entertainment after the hectic experience in the offices.
9) ICL: the rival ICL had been one of the reasons for the publicity and
emergence of IPL. People started comparing the IPL & ICL that
caused the huge publicity for the IPL.
10)Franchises taken by film stars like Shahrukh Khan, Pretty Zinta, juhi
chawla etc are the center for attraction.
11)Opening ceremony gala.
12) Live concerts like one show by Hariharan before Chennai and
Mumbai match.

Production management:
The IPL is a concept sale product.
The production of IPL as a service product is exemplified by the mere
volume of the production of revenue from every aspect of the game.
Teams, players and every small aspect related to IPL has become a IPL
product.
Factors like material management for stadiums, players,
Facilities arrangement for players, spectators, Guests, etc transportation
management and allied activities require a proper management and BCCI
has made all possible efforts to provide with the best facilities to everyone
from spectators to players and third parties involved.
Financial management: The investment decision in IPL by The Board of
Control for Cricket in India (BCCI) is a daring financial decision which
required damn financial planning. The return on investment calculation
would have given the proper idea of the financial planning
IPL has collected the huge money thorough sponsorships to teams and
players, telecasting rights, advertisement banners and hoardings, and other
allied activities. Even small aspect related to the IPL has become the product
for IPL and fetched the money. This requires the management of funds
coming in and going out, analysis of rise and fall in actual revenue and
expected revenue. Further planning for funds and budgeting. Allocation of
the funds to franchisees & players, payment of wages, etc. are the financial
activities. These revenues generated from sponsorships and other activities
fall under the Central Pool, 40% of which will go to IPL, 54% distributed to
franchisees and 6% to prize money. The money will be distributed in these
proportions till 2017, after which the share of IPL will be 50%, franchisees
45% and prize money 5%.

HUMAN RESOURCE MANAGEMENT:

One can imagine how much human capital is required to make this event a
happening.
BCCI has been efficient and effective organization for managing the human
resource. Labors like grounds men, security guards,
Managers and other human factors everyone has been given the special
attention and has been managed effectively by BCCI.
One can’t deny the relationship management is the important aspect in
today’s business scenario, there is no need to give any explanation on
BCCI’s relations with all parties involved in the IPL.

Organizational culture: the discipline and code of the conduct, player’s

involvement in the game’s promotion, the governance of BCCI gives the
look of well developed and sound organizational culture.

The explanation above is more than enough to explain the IPL as case for
management students.
Some important facts
and figures of IPL
 TELEVISION RIGHTS

Winning
Regional Broadcast Rights Terms of Deal
Bidder

Sony/World 10 years at USD

Global Rights, India
Sport Group 1.026 Billion

5 years at AUD
Network Ten Free-to-air television in Australia
10-15 Million.

5 years, terms
Setanta Sports United Kingdom and Ireland on a subscription basis
not disclosed.

Middle East broadcast rights on ADD's ART Prime

Sport channel. Will broadcast to United Arab
Arab Digital Emirates, Bahrain, Iran, Iraq, Jordan, Kuwait, 10 Years, terms
Distribution Lebanon, Oman, Qatar, Palestine, Saudi Arabia, not released.
Syria, Turkey, Algeria, Morocco, Tunisia, Egypt,
Sudan and Libya.

Rights to distribute on television, radio, broadband 5 years, terms

Willow TV
and Internet, for the IPL in North America. not released.

Terms not
Super Sport South Africa broadcast rights
released

Terms not
GEO Super Pakistan broadcast rights
released

Asian Canadian broadcast rights. Aired on ATN's CBN &

5 years, terms
Television ATN Cricket Plus channels on a subscription basis.
not released
Network Aired on XM Radio's ATN-Asian Radio as well.

Franchisees
 Franchise Owner(s) Price (USD)

Mumbai
Mukesh Ambani and Reliance Industries Limited $111.9 million
Indians

Royal
Challengers Vijay Mallya and UB group $111.6 million
Bangalore

Hyderabad
Deccan Deccan Chronicle $107 million
Chargers

Chennai Super
India Cements and N Srinivasan $91 million
Kings

Delhi
GMR Holdings $84 million
Daredevils

Kings XI Preity Zinta, Ness Wadia, Karan Paul (Apeejay

$76 million
Punjab Surendera Group) and Mohit Burman (Dabur)

Kolkata Knight Shahrukh Khan, Juhi Chawla Mehta and Jai Mehta
$75.09 million
Riders (Red Chillies Entertainment)

Rajasthan Emerging Media: (Manoj Badale, Lachlan Murdoch,

$67 milliSon
Royals Suresh Chellaram)
Sponsorship rights
Indian real estate developer DLF Universal secured exclusive rights to the
Indian Premier League title sponsorship worth INR 200 crore (over US$50
million) for five years. Hero Honda has been selected as an associate
sponsor for five years in a deal worth US$22.5 million.

In addition, soft-drink giant Pepsi secured the title as the tournament's

Official Beverage by signing a five year deal worth USD 12.5 Million. The
proceeds of the latter are to be shared equally by the league's franchise
owners. [

Kingfisher Airlines has been named IPL's umpire partner with rights to
advertise of umpire's clothes and also sponsoring third umpire decisions for
five years. The deal is worth Rs. 106 crores (appx. US$ 26.5 million)
 WHY
IPL IS LOOKED AS
A CASE FOR
BUSINESS
CONTRAVERSY?

Some of the reasons are; Why IPL is a case for business controversy?

1) It has penetrated the entertainment industry as manoranjan ka baap.

 2) Every associate is benefited from IPL.
3) Market share of sponsors have experienced good results.
4) Restaurants in metros have experienced the growth in orders for their
food products.
5) Sony entertainment television has experienced the tremendous growth
in TRP over all the TV channels.
6) Other cricket boards like Pakistan cricket board are planning to open
their own leagues.
7) It has brought the revolution in cricket world.
8) IPL has been in publics mind for every small affaire and that has
brought a change in media.
9) IPL has gotten the huge media coverage.
10)Franchisees signing a player have to keep him in the team irrespective
of the performance of the player.

Given the controversies involved with the IPL (as they are publicity stunts
for IPL) this makes for a study of the case business controversy

(References: The Hindustan times, internet, BCCI’s official website,

wikipedia)