Post on 14-Jan-2015
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IPL : BIRTH OF CRICKETAINMENT
Presented by-
Nimish Pant
Saurabh Srivastava
Rahul Raj
Pratyush Mani Tripathi
Ravi Shekhar
FROM “MANORANJAN KA BAAP” TO VIRAL MARKETING.
INTRODUCTION
The Board of Control for Cricket in India (BCCI), the apex governing body launched the Indian Premier League (IPL)
On the lines of football’s English Premier League and the National Basketball League(NBA) of the U.S.A.
Backed by the International Cricket Council (ICC), an international governing body of cricket.
A virtual company. The IPL governing council is having five-year term
and will run, operate and manage the league independently of the BCCI.
Valued at approximately $4 billion (about Rs 18,000 crore).
BUSINESS MODEL
works on a franchise-system based on the American style of hiring players and transfers.
a sponsor wanting to have its team pays a stipulated fee to the BCCI to get ownership.
franchisee also shares revenues with the cricket board.
The franchises will own the team for perpetuity for a period of ten years.
The franchisee, can, at a later stage list the team on the stock exchange and trade.
main revenue streams for the franchisees are from the sale of broadcast rights, sponsorship, gate receipts in matches at their home grounds and team sponsorship
IPL FRANCHISEES Bangalore Royal
Challengers : The Bangalore team was
bought by Vijay Mallya's UB Group for$111.6 million.
Deccan Chargers : The Hyderabad team was
bought by Deccan Chronicle, a media house,for $107 million.
Chennai Super Kings : The Chennai team was
bought by India Cements for $91 million
Kolkata Knight Riders
The Kolkata team is owned by Bollywood actor Shah Rukh Khan, actress Juhi Chawla and her husband Jay Mehta for $75.09 million.
Mumbai Indians : The Mumbai team is
owned by Mukesh Ambani's Reliance Industries Limited for $111.9 million
FRANCHISEE EARNINGS & EXPENSES
Revenue Sources Broadcast rights: The broadcast
rights have been sold by IPL to World Sports Group
Sponsorship: The title sponsorship fee of over $50 mn paid by DLF, a leading real
Ticket sales: The final revenue source is ticket sales at home stadiums. Each
Other sources : There are also other smaller revenue sources such as from in-stadium advertising a part of which will go to the franchisee
o Expenses Franchisee fee : The two big
expenses incurred by Franchise are player costs and the
Player acquisition cost : The player costs was determined in the auction. The
Stadium Hire Charges : The franchisees also have to pay for the use of the stadiums
Other Expenses : There are also other marketing costs such as events for promotion
PROFIT & LOSS ACCOUNT OF FRANCHISEE
Kolkata Knight Riders FRANCHISE FEE: Rs 300 Cr
REVENUES: 89BCCI, SET MAX: 35TEAM SPONSORS: 34GATE RECEIPTS: 20
EXPENSES: 81FRANCHISE FEE: 31TEAM: 25AD, ADMIN: 25
NET PROFIT: Rs 8 Cr
Chennai Super KingsFRANCHISE FEE: Rs 364 Cr
REVENUES: 74BCCI, SET MAX: 35TEAM SPONSORS: 25GATE RECEIPTS: 14
EXPENSES: 80FRANCHISE FEE: 36TEAM: 25AD, ADMIN: 18
NET LOSS: Rs 4 Cr
Deccan ChronicleFRANCHISE FEE: Rs 428 Cr
REVENUES : 64BCCI, SET MAX: 35TEAM SPONSORS: 19GATE RECEIPTS: 10
EXPENSES: 84FRANCHISE FEE: 45TEAM: 24AD, ADMIN: 15
NET LOSS: Rs 20 Cr
Royal ChallengersFRANCHISE FEE: Rs 446 Cr
REVENUES: 50BCCI, SET MAX: 35TEAM SPONSORS: 0*GATE RECEIPTS: 15
EXPENSES: 95FRANCHISE FEE: 48TEAM: 22AD, ADMIN: 25
NET LOSS: Rs 45 Cr
Mumbai IndiansFRANCHISE FEE: Rs 448 Cr
REVENUES: 70BCCI, SET MAX: 35TEAM SPONSORS: 18GATE RECEIPTS: 17
EXPENSES: 91FRANCHISE FEE: 45TEAM: 20AD, ADMIN: 26
NET LOSS: Rs 21 Cr
REVENUE
Revenue(MILLION $)
MUMBAI INDIANS
KOLKATA KNIGHT RIDERS
CHENNAI SUPER KINGS
ROYAL CHALLENGERS BANGLORE
DECCAN CHARGERS
BROADCASTING
67.5 67.5 67.5 67.5 67.5
SPONSORSHIP
24 24 24 24 24
OTHER INCOME
14 18.9 18.5 13.5 13.5
PRIZE MONEY
0.5 0.4 1.2 2.25 4.5
TOTAL 106 110.8 110.8 107.25 109.5
FRANCHISER EARNINGS & REVENUE MODEL
GOVT. REVENUE
IPL 1- Rs. 91 Cr. IPL 2 – MAJOR LOSS IPL 3 – Rs. 200 Cr.
DIRECT TAX-Rs. 100 Cr.
SERVICE TAX –Rs. 100 Cr.
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