bcci ipl

4
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 a company and plan future course of action by bolstering the areas of strength and minimizing effects of the weakness. While opportunities have to be anticipated and seized upon when they present themselves, threat is omnipresent in any dynamic model and the BCCI would do well to perceive the imperceptible 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 pa st cricketers have little say in running cri cket 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 p layed 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.

Upload: pari-mehta

Post on 05-Apr-2018

216 views

Category:

Documents


0 download

TRANSCRIPT

8/2/2019 bcci ipl

http://slidepdf.com/reader/full/bcci-ipl 1/4

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.

8/2/2019 bcci ipl

http://slidepdf.com/reader/full/bcci-ipl 2/4

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.

8/2/2019 bcci ipl

http://slidepdf.com/reader/full/bcci-ipl 3/4

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

8/2/2019 bcci ipl

http://slidepdf.com/reader/full/bcci-ipl 4/4

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]