HISTORY OF IPL

HISTORY -IPL
The concept of IPL was initialized when Lalit Modi, the Vice President of the Board of Cricket Control in India (BCCI) put forth his vision for the Indian Premier League.

 The IPL is same format as that of the club football in Europe, particularly the English Premier League(EPL). IPL was launched as a competitive response to the Indian Cricket League (ICL) which was launched by the Zee Group.

 The IPL has created history in the Indian cricket sphere, getting the required approval from the Indian Cricket Board. It has brought in huge scope for the entertainment industry as well. The Twenty20 cricket has come on the surface phenomenally after India won the Twenty20 World Cup.

 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 India) with Andrew Wildblood (International Management Group, the sports management bigwig) who participated in this history-creating discussion.

 In April 2008, the maiden IPL tournament which Modi had conceptualized and ideated was on the way to come on the forefront. 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 Bollywood stars like Shah Rukh Khan, Preity Zinta, Shilpa Shetty - owner and co-owners of the Kolkata Knight Riders team; Kings XI Punjab and Rajasthan Royals respectively made this mega sports event all the more a success.

Ipl-swot

Strengths
Fast-paced and exciting.

The IPL has employed economists to structure its lead so that revenue is maximized.

Weaknesses
Twenty20 has been so popular that it could replace other forms of cricket i.e. damage the game that generated it. Some fans will also have to pay for travel to the ground. There may be large queues for the most popular games. There may be some distance between where the fan lives and the cricket ground.

Opportunities
Marketing communications opportunity. (IPL is very attractive as a marketing communications opportunity, especially for advertisers and sponsors)

Threats
The level of competition that the Board of Control for Cricket in India (BCCI) can generate determines longterm viability of the league. If the level of competition drops, then revenue will fall. Franchises are very expensive. The most expensive franchise - Mumbai Indians - was bought by Mukesh Ambani for $111.9 million, whereas the lowest priced franchise - Rajasthan Royals was picked up by Manoj Badale for a mere $67 million. The most highly priced teams may not be those that have the early success. Revenues will come from the most highly supported teams

ECONOMICS ASPECTS OF IPL

How does IPL make money?

Auction of broadcasting rights Title sponsorship and corporate sponsorship Sale of tickets (20% of tickets allocated to IPL) Auction of franchisees rights Official umpires sponsorships

How is the IPL income distributed?

Share of broadcasting money with franchisees Share of sponsorship money with franchisees Share of ticket money with franchisees Inauguration expenses Prize money: $5 million ($3 million for winner; $2 million divided among others)

What are the sources of income for an IPL Franchisee (ROI)?

Share in revenue from broadcast rights (equal share for all franchisee after IPLs share) Share in sponsorship money (60% of the amount distributed equally) Share in revenue from sale of tickets Revenue from in-stadium advertising Sale of players to other franchisee Revenue from own sponsorship and corporate sponsorship

How is the Franchisee income distributed?

Franchisee fees 10% of total franchisee costs every year to IPL Players cost (Each franchise have paid around $4-6 million per year) Match fees and Inauguration expenses Rent of stadium (expense of around Rs.2.5mn per match) Marketing and promotional cost (around $3-4mn per team) Fee for coaches, physiotherapists and other members. Administrative cost

Future Opportunities for IPL Twenty20 Cricket

Title sponsorship Player trading: Gate fees Franchise sale Franchise forever:

Potential Downsides of IPL

Not enough eyeballs: Sony-WSG 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.