Ipl as a business model
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Transcript of Ipl as a business model
IPL AS A BUSINESS MODEL
By Presented
Dharmveer Thakur
Brief intro….. It was initiated by Lalit Modi, who served as the league's first
Chairman and Commissioner and Board of Control for Cricket in India (BCCI) in the year 2008.
In 2010, IPL became the first sporting event ever to be broadcast live on YouTube.
Its brand value is estimated to be more than US $ 5 billion in fifth season.
It became the biggest competitor of multiplex in India.
IPL TEAMS LOGO
TEAM BIDDING
Announcement of tender
inviting bids
Potential franchises
submit bids
Bids for more than 1 city
Awarding of franchises
Auction of players
Bid amount need to be specified
Each squad minimum 16 players with
max 4 international
4 Players under 22 from BCCI
pool
TEAM CITY OWNERS PRICE(US $)
CSK Chennai N. Srinivasan (India Cements) 91 million
DD Delhi GMR Group 84 million
KXIP Mohali Preity Zinta,Ness Wadia (Bombay Dyeing),Mohit Burman (Dabur)Karan Paul (Apeejay Surendera Group),The Oberoi Group
76 million
KKR Kolkata Shahrukh Khan (Red Chillies Entertainment),Juhi Chawla, Jay Mehta(Mehta Group)
75.9 million
MI Mumbai Mukesh Ambani (Reliance Group) 111.9 million
PW Pune Subrata Roy (Sahara India Pariwar) 370 million
RR Jaipur Lachlan Murdoch (Emerging Media),Shilpa Shetty, Raj Kundra(UK Trade corp Ltd)
67 million
RCB Bangalore Vijay Mallya (UB Group) 111.6 million
SH Hyderabad Sun TV Network 159 million
REVENUE COMES FROM…
Auction of broadcasting right
Title sponsorship and corporate sponsorship
Auction of franchises rights
Sale of tickets
REVENUE MODEL OF IPL
Broadcasting revenue distribution
1 to 3 4 to 5 6 to 100%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
teams getsBCI gets
years
broa
dcas
ting
Reve
nue
in %
FRANCHISEE REVENUES
Media rights-to be shared among the franchisee after removing IPL’s shares.
Sponsorship rights- 60 % amount collected to be distributed equally amongst the franchisee
Local sponsorship-team sponsorship revenues Gate receipts- major source of revenue ,20% are
allocated for IPL.
PLAYERS REVENUE
basic agreement
Prize money
Bonuses at which team finishes
Salaries
Daily allowance
BCCI REVENUE (Rs. in billion)
2010-11 2011-12
5.81
8.49
3.82
2.65
1.02 1.18
3.924.67
turnover profitincome from media rights total expenditure
HOW IS THE IPL INCOME DISTRIBUTED ?
Share of broadcasting money with franchisees.
Share of sponsorship money with franchisees.
Share of ticket money with franchisees.
Prize money: $5 million ($3 million for winner; $2 million divided among others).
THANK YOU