BCCI CHANNEL

A FEASIBILITY STUDY
PROPOSAL

To establish an autonomous body/public

limited company to fully exploit the
potential of BCCI cricket in particular and
promote the sport of cricket in India in
general.
WHAT WILL THIS ENTITY DO?
To launch a premier 24/7 hour cricket related channel.
Promote the cause of domestic cricket league.
Exploit the full potential of Indian cricket among the South
Asian diaspora spread around the world (i.e.; UK/Europe,
US/Canada and the Caribbean's, Australia/New Zealand and Far
East and Middle East and Africa.
Explore alternate media to generate other business
opportunities (Radio broadcast, internet and web streaming and
other emerging media.)
Generate opportunities in allied activities like
merchandising, event management and franchising etc.
 BENEFIT TO BCCI & VARIOUS STATE
CRICKET ASSOCIATIONS?
Need to review the business with a fresh outlook to realise
the full potential of cricket.
To maximize the revenues generated from sports rights to
enhance viewership, brand appeal and additional sources of
revenue.
Review the BCCIs contribution to the promotion of the
sport of cricket in India, in terms of infrastructure, revenue
and popularity of the game, and move ahead from its
yeomans service.
 BENEFIT TO BCCI & VARIOUS STATE
CRICKET ASSOCIATIONS?

Our proposal to BCCI:

Consider launching a cricket channel in India
To realize the full potential of revenues so generated
To plough revenues so generated back into the affiliate
associations, cricketers present and past and in upgrading
cricket infrastructure in India.
Further strengthen BCCIs unique position amongst ICC
members and create a sustainable leadership position.
 ENHANCING OVERALL REVENUE OF
BCCI RIGHTS

Creation of a valuable brand which can be

leveraged for multiple streams of business and
revenues
Generate substantial stream of revenues as
compared to trading of rights.
Unlock the potential of realizing subscription
revenues in addition to the sponsorship and
airtime revenues.
Unlock revenue opportunities in the areas of
Merchandising, Events and Franchises etc.
 ENHANCING OVERALL REVENUE
OF BCCI RIGHTS
Unlock revenue opportunities in the overseas markets.
Rope in cricket stars to endorse the channel.
Establish a dynamic professional organization that
can acquire a leadership position in the sports
business.
Effectively and significantly enhance & create
shareholder value.
To boost the growth of other sports in India by
generating visibility for Indian sports persons and
their particpn in International cricketing events not
covered by other channels
 KEY SUCCESS FACTORS ?

A professional and independent organization

answerable to a designated board.
Creation of sound production competencies.
Airtime marketing skills.
[

Pay distribution skills.

International business development skills.
Creation of skills for merchandising and event
management.
 KEY THREATS & OPPORTUNITIES
Threats:

International cricket rights

Consent of Overseas Boards whether on a bidding basis or
through mutual negotiations.

Opportunity :

Fragmented Rights for cricket amongst existing sports channels

in India.
Buoyant capital markets. Appropriate time for IPO or listing.
Make Indian public stake holder in the venture good will.
Sorts out the current legal issues in award of Rights.
 KEY ASSUMPTIONS
International Matches in India :
Number of Test : 10 Total Days 50
Number of ODI : 15 Total Days 15

International Matches outside India but involving India

Number of Test : 4 Total Days 20
Number of ODI : 7 Total Days 7

International Matches outside India without India

Number of Test : 15 Total Days 75
Number of ODI : 21 Total Days 21

Total Days of Domestic Cricket : 118 Days

Domestic Cricket League :
Total number of teams : 8
Round robin league on home & away basis : 56
Semifinals : 2
Final : 1
Total number of Matches : 59
 KEY ASSUMPTIONS
Sharing of Rights with DD and AIR
If required by law, TV Rights will be shared with DD for
simulcast of all one day matches involving India.
Test matches to be exclusive to BCCI Channel.
All Highlights to be shared with DD.

Other alternatives
Even if all international matches are simulcast both channels
shall have separate productions as a differentiating factor.
Value addition on BCCI channel through better commentators
and lead in and wrap up programmes.
Simulcast with DD but the entire Air Time inventory is
marketed by BCCI channel and DD gets opportunity cost of
DD Air Time.
 BCCI MATCHES
BCCI should strive to maximize international cricket played in
India as a policy.
Provide for at least two Test Match cum one day series each
year and a triangular one day international tournament in
India (may be in the summer months)
India to only play one away series each year.
Provide for higher match fees for visiting Teams in India as an
incentive to draw larger number of overseas teams.
BCCI should negotiate as a precondition TV Rights for India
market as part of the package of reciprocal visit of Indian
Team to other countries.
 BCCI MATCHES

BCCI to also negotiate for procuring overseas boards rights to

archival TV footage.
Encourage live production of all Domestic cricket as
promotional effort.
Promote a Domestic Cricket League :
Total of 8 City Teams
Round robin league on Home & away basis : 56
Semifinals :2 matches
Final : 1
Total no. of Matches : 59
Revenues from the overall business to be ploughed back to
Associations, Sports persons and in upgrading cricketing
infrastructures.
 BCCI MATCHES INTL
Subscription Revenues are a mix of DBS and Cable
subscription platforms.

No revenue from web casting or any other emerging media

have been forecast.

Advertising Revenues from Middle East, Africa, S. E. Asia,

Australia/New Zealand not projected.

No Revenues from Radio have been considered.

Subscription revenues from Bangladesh, Nepal, Pakistan,

Srilanka, Maldives not factored.
 BCCI MATCHES Other assmpns.
Revenues from Title and Team Sponsorship not factored
though these are well established revenue sources.
Revenues from Merchandising and Franchises not factored
but these potential revenue streams will develop as the
business evolves.
Syndication Revenue stream has also not been factored
though could develop healthily as the business evolves.
Revenue from Events not factored also. This too can evolve
and in addition can provide strong marketing, PR and
programming value additions
Revenues from web casting not factored.
Revenues from DVDs, Cricket academy videos etc. not
factored.
Revenues from Radio in India not factored.
 PRODUCTION AND TECHNICAL

The overall emphasis will be on outsourcing live productions

to competent agencies.
However, to minimize costs and facilitate logistics only fly
away uplinks equipments and out door production vans have
been provided as Capital Expenditure items.
Core competence for in-house productions, graphics etc. will
however be created.
Therefore, a total capex of 40.00 crores as one time cost for
Broadcast operations center, studios, shooting floor, on-line
edit room, non-linear edit room and graphics room will be
housed in a centrally air conditioned 5000 sq. ft. of space.
 PRODUCTION & TECHNICAL (contd.)

Commentators will be outsourced on contract.

For Live International Matches in India since BCCI will
provide Fly Away uplinks and OB Vans we estimate paying
at the rate of USD 50000 per day as production cost to an
outsourced Agency such as TWI or World Tel or Channel
Nine.
For Domestic live Matches a second domestic agency will
be outsourced for production at USD 30000 per day.
 PRODUCTION &TECHNICAL (contd.)

All promos, fillers and interstitials to be produced at in-

house facilities.
All technical, creative and production personnel to be
employed on yearly retainers.
Event Mascots etc would be produced in house.
Channel ID and supportings would be created at the in-
house facilities.
A core team of 38 would manage the entire operations.
 THE ORGANIZATION
A flat organization with CEO reporting to a Board of Directors has
been contemplated.
Given the size and scale of operations contractual retainerships are
contemplated for production and broadcast operations in non core
areas.
An in-house Airtime marketing and Distribution Team is being
recommended.
For overseas operations, personnel for effecting airtime sales and
distribution are being proposed for the international markets.
Payroll functions, PF and other statutory functions and even legal
support can be outsourced.
No provision for peons/drivers and class IV employees has been
made.
Accent will be on team building, transparency and multifunctionality
skill based organization.
 ORGANOGRAM
CEO
SECRETARY
COO
SECRETARY

MARKETING CORPORATE AFFAIRS & DISTRIBUTION PRODUCTION, TECHNICAL FINANCE & GENERAL
Departments Personnel Number INTERNATIONAL OPERATIONS Departments Offices In Cities & BROADCAST OPERATIONS ACCOUNTS ADMINISTRATION
PR 2 Number of Personnel HEAD 1 Departments Personnel Number Departments Number Departments Number
4 DISTRIBUTION PRODUCTION HEAD 1 FINANCE & 1 HEAD-ADMN 1
BRAND Director 1 ACCOUNTS

GM 1 SMS 4 TECHNICAL HEAD 1 ADMIN 3

Brand Mgr 1 COMPANY 1
Supp Staff 3 TECHNICAL 3 BROADCAST SECRETARY LEGAL 3
TRAFFICKING 5 ACCOUNTS 7 OPERATIONS HEAD 1 REGIONAL 10 HR 4
AIRTIME SALES Delhi Gen Mgr -1+4 SALES Delhi HEAD LIVE 20 H.O. 10 TOTAL 11
Mumbai 4 REGIONAL Mumbai INCLUDING

Bangalore 3 OFFICES Bangalore BROADCAST TOTAL 22

Kolkata 3 Kolkata OPERATIONS

Support Staff + Ahmedabad HEAD STUDIO Production 5

Assistants 4 REPRESENTATION
Hyderabad BASED Assistants 5
Secretary 4 OFFICES Kanpur Support 5
RESEARCH & 2 ONLY Ludhiana TOTAL 38
ANALYSIS Jaipur
TOTAL 38 Indore
TOTAL 75

India : 198
Intern'l : 20

Note : Detailed departmentwise organogram can be prepared in the detailed project report
 NECESSARY STEPS AND TIMELINES
Decision by the BCCI in approving the concept.
Constitution and registration of an appropriate vehicle whether Company/Board or any
other body and the statutory approvals thereof.
45 Days.
Registration of logo, brand name and other trade marks in India and overseas markets.
45 Days to 3 months.
Approval of Ministry of Information and Broadcasting for the license of the channel and
its registration.
3 / 4 months.
Funding the capex and equity in the proposed venture as per Board Decision.
Setting up the organization and in hiring a suitable core team including the CEO.
4 months.
Launch to coincide with the forth coming tour of Sri Lanka to India in
September/October.
Enter into arrangements with DBS and cable platforms in UK/Europe, US/Canada,
Middle East and Africa, Singapore, Malaysia, Hong Kong and Australia/New Zealand.
From 4 months to 1 year.
The launch of channels in these markets will be staggered accordingly.
 PROJECT EXECUTION

Recommend a stage by stage approach.

All International markets may not be served since inception
and instead can be launched step by step.
 REVENUE

(All Figures in Rs. Million) Year 1 Year 2 Year 3 Year 4 Year 5 Total
In 5 Years
Revenue

Airtime 4,403 5,083 5,877 6,794 7,807 29,963

Airtime - India on DD feed - - - - - -
Sale of Title sponsorship rights - - - - - -
Sale of Title sponsorship rights Overseas - - - - - -
Radio- India and Overseas - - - - - -
Emerging media - - - - - -
Syndication - - - - - -
Merchandise - - - - - -
Events - - - - - -
Board Partners - - - - - -
Franchise - - - - - -
Subscriber Revenue India 6,000 7,920 9,583 11,596 14,031 49,130
Subscriber Revenue International 10,876 11,963 14,475 17,515 21,193 76,023
Revenue from DTH 221 613 1,386 2,793 4,788 9,801

Total Revenue 21,499 25,579 31,321 38,698 47,819 164,916

 COSTS

(All Figures in Rs. Million) Year 1 Year 2 Year 3 Year 4 Year 5 Total
In 5 Years
Costs

Airtime Sales Commission 660 762 881 1,019 1,171 4,494

Dealer Incentive sub revenue - India 300 396 383 406 491 1,976
Revenue shared with Platforms 3,439 3,783 4,460 5,255 6,358 23,296
Cricket Rights 1,544 1,544 1,544 1,544 1,544 7,721
Salaries, Office and Administrative Cost 258 291 329 372 420 1,671
Production Cost 532 604 695 809 954 3,594
Transponder Cost 18 19 20 21 22 99
Backhaul cost india incoming 25 29 33 38 44 169
Backhaul cost india outgoing 75 86 99 114 131 506
Marketing Cost 250 275 316 380 474 1,695
Total Costs 7,102 7,790 8,761 9,957 11,610 45,221
 PROFIT AND LOSS
(All Figures in Rs. Million) Year 1 Year 2 Year 3 Year 4 Year 5 Total
In 5 Years

Total Revenue 21,499 25,579 31,321 38,698 47,819 164,916

Total Costs 7,102 7,790 8,761 9,957 11,610 45,221

EBITDA 14,397 17,789 22,560 28,741 36,208 119,695

EBITDA % 67 70 72 74 76

Depreciation 39 48 56 64 72 279

EBIT 14,358 17,741 22,504 28,677 36,136 119,416

Interest - - - - - -

EBT 14,358 17,741 22,504 28,677 36,136 119,416

Tax 4,833 5,972 7,575 9,653 12,164 40,195

EAT 9,525 11,769 14,929 19,024 23,973 79,220

Note :
*Sharing of International matches with DD but share of revenue not factored.
* Revenue from radio not factored.
* Title and team sponsorship revenues not factored.
* Revenues from syndication, events, merchandising etc have not been factored.
* In a 5 year time frame all these revenue streams can deliver enhanced revenue and profitability.