the business side of ipl
TRANSCRIPT
Presented by :- Amar Chand
I-Indian
P-Premier
L-League
Introduction
The Bidding Process
Official sponsors for IPL
Revenue Model
Impact of IPL on other media
Gambling in IPL
Contents
Teams
TEAM OWNER CAPTAIN SPONSOR AUCTIONED AMOUNT
RoyalsChallengerBangalore
Kingfisher(Vijay Mallya)
Virat kohli Reebok,Huawei Talecom
$ 111.6Million
MumbaiIndians
RelianceIndustriesLtd.(MukeshAmbani)
Rohit Sharma Idea Cellular,Pepsi
$ 111.9Million
KolkataKnight Riders
Shahrukh Khan , Juhi Chawla , & jay Mehta
Gautam Gambhir Nokia,9x
$75.9Million
Kings XI Punjab
Preity Zinta, Ness Wadia,Surendra(Dabour Group)
George Bailey Spice Telecom,Coca cola
$ 76Million
TEAM OWNER CAPTAIN SPONSOR AUCTIONED AMOUNT
DelhiDaredevils
GMR Infrastructure
Kevin Pietersen Hero honda , Kingfisher Airlines, Adidas
$ 84 Million
Deccan Chargers
Deccan Chronicle (VenkattramReddy)
KumarSangakkara
Deccan Chronicle,Pepsi,Kingfisher Airlines
$ 107 Million
RajasthanRoyals
ShilpaShetty, Raj Kundra
ShaneWatson
Kingfisher, Puma, UltratechCement
$ 67Million
ChennaiSuper kings
India cements Ltd.
M S Dhoni India Cement,Aircel, peter England
$ 91 Million
Bid amount need to be specified
Auction of player
4 player under 21 from catchment
area
Each squad min. 16 player max.9 international
Franchisees needto be specified
Bid for more than 1 city
Potentialfranchisees submit bids
Announcement of Tender inviting
bids
IPL
SPONSORS
FRANCHISEESBROADCASTERS
Advertisers ~Sponsors~Gate money~Advertising
Media Rights
~Bids~Franchisee
Rights
~Title~Licensing
Share from:~Central Revenue~Media Rights
REVENUE MODEL
The BCCI created history when it sold television rights of this yet untested format to sony-worlds sports consortium for US$1.02 bn
US$ 608mn
(Broadcasting rights next 5 yrs )
(-) US$ 108mn (promotion expenses)
US$ 1.02bn
US$ 316mn(Broadcasting rights first 5 yrs)
Broadcaster’s Revenue
Advertising revenues for Broadcaster have seen a steady increase since inception of IPL
IPL 2008- 3 Lakh for every 10 secs
IPL 2010- 5 Lakh for every 10 secs
IPL 2014- 8 Lakh for every 10 secs
Government RevenueIPL Season 1 : 91 cr
IPL Season 3: 200 cr
IPL Season 7: 385 cr
Direct Tax : Rs 1oo crTax deducted at source (TDS) from the remuneration paid to players,umpires,coches and commentators.
Service Tax : Rs 100 crAdvertising and marketing Services.
Franchisee Revenue
Media Rights- To be shared equally amongst franchisees after removing IPL’s share.
Sponsorship Rights (IPL sponsors)- 54% of the amount collected to be distributed equally amongst the franchisees.
Local Sponsorships- Team sponsorship revenues.
Gate Receipts- Are anticipated to be a major source of revenues. 20% of tickets are to be allocated to IPL.
All sponsorship revenues fall under the Central Pool
100%
40% IPL
6% Prize Money
54% Franchisee
IPL will cause a dent in the rating and revenues of other general entertainment channels (GECs).
There is a decline in the TRPs of top general entertainment shows during the IPL seasons.
There is a decline in the number of movie releases due to IPL.
IPL favour has a negative effect on the revenues of movies at the box office.
Impact of IPL on other Media
The Law says “NO”
There are bets for every match.
How to bet? Betting usually begins few hours before the match. Online betting possible on sites like betfair.com
What are Odds? Odds indicate the $’s that you will win in return for each $ you bet if your prediction comes true.
What are Payouts? Payout is the final amount of $ which you’ll earn if you win the bet .
Total IPL betting – 6000 cr.
Gambling in IPL
Any questions?