bcci ipl
TRANSCRIPT
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I was surprised at the number of items under the 'Strength' column when I sat down to do a
Strength, Weakness, Opportunity and Threat (SWOT) Analysis for the BCCI. But then when you
consider that it brought the World Cup in to the sub-continent, almost wresting it from the MCC as it
were, brought back crowd in hordes and started the path-breaking IPL on the lines of the UEFA
Champions League, and the cash counters jingling, it is hardly surprising.
A SWOT analysis is usually carried out in industry to get an overall insight into the operation of acompany and plan future course of action by bolstering the areas of strength and minimizing effectsof the weakness. While opportunities have to be anticipated and seized upon when they presentthemselves, threat is omnipresent in any dynamic model and the BCCI would do well to perceive theimperceptible signs before long they explode to unleash its full impact.
The BCCI, with an approximate worth of $2 billion, is perhaps the richest sporting body in the world.
When other sports associations are faction-ridden and operate as personal fiefdoms, the BCCI has
conducted its affairs reasonably well and has grown in stature gathering enormous clout.
It brought the World Cup thrice to the subcontinent in 1987, 1996 and in 2011 when India won in
Mumbai. After India won the World Cup in 1983, cricket grew in leaps and bounds and with the
advent of satellite TV it has all but replaced every other know form of entertainment in the country.When the IPL was introduced on the lines of the UEFA Cup, it created history with players like
Sachin Tendulkar, Kieron Pollard and Sanath Jayasuriya rubbing shoulders playing with the likes of
MS Dhoni, Muttiah Muralitharan and Doug Bollinger. This was a whole new ball game of carnival for
fans and a market which saw leading brands eyeing for a slice in the ever enlarging cricket pie.
If players became overnight stars commanding huge sums, the authority running the show, the
BCCI, became a power centre. Central ministers and ex- chief ministers came running to be part of
the circus.
Such untrammeled power does bring its share of problems; the BCCI had a run-in with India's home
minister when the centre refused to grant security to IPL2 as their dates was directly clashing with
general elections.
Of late the BCCI is on a direct collision course with the sports ministry on the Right to Information
(RTI) Act. It remains to be seen how this gets played out.
There is some valid criticism that fact past cricketers have little say in running cricket in the country.
The BCCI should realize that they cannot take on the government for long, no matter how powerful a
body it may be. For cricket to survive you need grounds and maidans and most of these are owned
by the government, state or centre.
The IPL is market-driven and is played as evening cricket consuming lot of power supplied by state
electricity boards under the state government. In these days of terrorism where a 24 X 7 security
blanket is a must, you need the government's support at every step. Reconciliation with the
government while maintaining independence in its operations would be the best option for the BCCI.
STRENGTH :
1. The BCCI is the richest sports body in the world.
2. It is professionally well managed.
3. With political support by ministers at the centre and states, it has a very big clout.
4. It has helped neighboring cricket bodies in one way or other.
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5. It is chiefly responsible for bringing the World Cup to Asia.
6. It earns more than 50% revenue for the ICC and brought back the surging crowd.
7. It ensured past cricketers are well taken care of through pension scheme etc.
8. It is a comparatively cohesive body compared to other faction-ridden and fiefdoms in other sports
bodies.WEAKNESS:
1. The BCCI is perceived as a 'big bully' in cricket circles functioning in an autocratic manner.
2. Ultimately its fight with the government, especially on RTI, can be its undoing
3. Its hard line against the ICC in matters such as the DRS can be counterproductive.
4. It must address a rotation policy to improve bench strength
5. Playing it safe in home pitches might disadvantage India when they tour.
6. No serious involvement to make the Ranji Trophy a 'catchment area' for Test cricket hopefuls.
7. It still does not really have a foolproof system in place for match-fixing.
8. It has no effective mechanism with WADA on drug testing.
OPPORTUNITY:
1. Must resolve issues with the sports ministry and bring better transparency in its operations.
2. Flexibility in approach and in its operation with the ICC.
3. Must get more cricketers on board to run the game.
4. Create a large pool of talented cricketers to cater to different formats and replacements for
injuries.
5. Clean up their act, on IPL affairs especially IPL2 organized in South Africa.
6. IPL is a cash cow. The BCCI seized the opportunity to create a niche market and a Brand.
7. Take cricket to smaller cities and spread the base.
THREAT:
1. A hard-line approach with the government may work to its disadvantage.
2. The government may not give security which can jeopardize cricket in future.
3. The BCCI may be brought in par with rest of sports bodies and may lose its importance
4. Continued Secrecy on IPL finances and funding can result in legal hassles and the government
clamping closure at some stage.
5. Too much cricket can turn public away.
6. Utilities like power, water belong to the government which may be stopped to make them come
around.
Being aware of all the forces that operate simultaneously and taking effective steps there is noreason why the BCCI cannot continue to prosper both with the government and the ICC in a state of
harmony.
Therein lies the wisdom.
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IPL
SWOT Analysis Indian Premier League (IPL)Where will you find the Mumbai Indians, the Royal
Challengers, the DeccanChargers, the Channai Super Kings, the Delhi Daredevils, the Kings XI Punjab,
theKolkata Knight Riders and the Rajesthan Royals? In the Indian Premier League (IPL)- the most exciting
sports franchise that the World has seen in recent years, withseemingly endless marketing opportunities(and strengths, weaknesses and threatsof course!).Strengths•The Indian Premier League (IPL) is
based upon the Twenty20 cricket gamewhich should be completed in 2 ½ hours. That means that is fast-
paced andexciting, and moreover it can be played on a weekday evening or weekend afternoon.That
makes it very appealing as a mass sport, just like American Football,Basketball and Soccer. It is appealing
as a spectator sport, as well to TVaudiences.•The IPL has employed economists to structure its lead so
that revenue ismaximized. The more unified the sport, the more successful it
is.Weaknesses•Twenty20 has been so popular that it could replace other forms of cricketi.e. damage
the game that generated it.•Some fans will also have to pay for travel to the ground. There
may be largequeues for the most popular games. There may be some distance between where thefan
lives and the cricket ground.•Stakes are very high! Some teams may not weather short-term failures andmaybe too quick to get rid of key managers and players if things don't go wellquickly. Famously, Royal
Challengers Bangalore (RCB) sacked their CEO Charu Sharmafor watching his team lose 6 from their first
8 games.•Some teams have overpriced their advertising/sponsorship in order to gainsome short-term
returns (e.g. Royal Challengers), and some sponsors and are movingtheir investment the more
reasonably priced teams.Opportunities•Since it has a large potential mass audience, IPL is very
attractive as amarketing communications opportunity, especially for advertisers and sponsors.•The
league functions under a number of franchises. Each franchisee isresponsible for marketing its team to
gain as large a fan-base as possible. Thelong-term success of all of the franchises lies in the generation of
a solid fan-base. The fan-base will generate large TV revenues.•Different fans will pay different amounts
to watch their sport. There willbe corporate hospitality, season tickets, away tickets, TV pay-per-viewand otherways to segment the market for the IPL.•There is a huge opportunity for
merchandising e.g. sales of shirts, creditcards and other fan memorabilia. Grounds can also sell
refreshments and otherservices during the games.•Marketers believe that the teenage segments need
to be targeted so that theybecome the long-term fan-base. Their parents and older cricket fans may
prefer thelonger, more traditional game. The youth market may also impress on their parentsthat they
want them to buy their club's merchandise on their behalf - as adifferentiator or status
symbol.•Franchise fees will remain fixed for the up until 2017-18, which means thatthe investment is
safe against inflation which is traditionally relatively high inIndia.
Threats•The level of competition that the Board of Control for Cricket in India(BCCI) can generate
determines long-term viability of the league. If the level ofcompetition drops, then revenue will fall. For
example, if the top names incricket cannot be attracted to India, the appeal of the game will fall.
Oftengetting hold of the big names is a problem - Australian domestic cricket runsconcurrent with the
IPL and if players move form Australia to India to follow themoney then their domestic game will be hit.
This is known as 'Free Agency.'•If the franchisee's fan-base does not generate income then they may not
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havethe cash to pay the salaries of the best players. However, if you invest in thebest players and they
do not win the trophies, then you may not see a return onyour investment. It won't be a quick return on
investment - so owners need to bein it for the long-term.•Franchises are very expensive. The most
expensive franchise - Mumbai Indians- was bought by Mukesh Ambani for $111.9 million, whereas the
lowest pricedfranchise - 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.The Indian Premier League (also known as the "DLF Indian Premier
League" forsponsorship reasons; often abbreviated as IPL), is a Twenty20 cricket competitioncreated by
the Board of Control for Cricket in India (BCCI).
Finances
BCCI currently has the highest income of any national cricket board, with a revenue of
868 crore (US$173.17 million) in 2010-11.[9]
It is not required for BCCI to make its balance sheets
public.[citation needed ] The global media rights for international cricket to be held in India between March 2010
and March 2014 were awarded to production house Nimbus for US$612 Million.[10]
Official kit sponsorship
rights for 5 years from 2010 to 2013 inclusive were awarded to Nike for US$43 Million.[11]
While Air
Sahara became the official Indian cricket team sponsor for a period of four years at a cost of US$70
Million.[12]
The media rights for 25 neutral venue one-day matches to be played over the next 5 years
were awarded to Zee Telefilms for US$219.15 Million.[13]
Business Standard [14]
reports that it will get
another Rs 2,000 crore ($450 million) from the sale of other rights, including hotel, travel and ground
sponsorship. Mr Lalit Modi was partly responsible for the transformation of the finances of BCCI when he
took over as the Vice President in Dec 2005 under the stewardship of Mr Sharad Pawar.[citation needed ]
The BCCI has recently established an inter-city cricket league, the Indian Premier League in limited-overs
and Twenty20 format. It is structured along the lines of other professional leagues such as theEnglish Premier League, except without the relegations and promotions system as there are only ten
official teams as of now. The league has recruited several prominent overseas cricketers and will have
separate TV, internet, mobile, merchandising, sponsorship and ground signage rights. The IPL founder
and Creator Lalit Modi predicted that it would become the single largest revenue earning avenue for BCCI
after its establishment.[15]
On 12 September 2006 BCCI announced that it will spend $347 Million (Rs. 16
Billion) over the subsequent one year to upgrade the cricket stadiums around the country.[16][17]