IPL - Sankalp

"IPL: The Birth of Cricketainment"
Submitted by
Sankalp Navghare
MMS - SEM IV Roll No.

129
Under the Guidance of
Prof. R. Subramanium
In Partial Fulfillment of
MMS course
University Of Mumbai
(2008‐2010)
IPL : The birth of Cricketainment
CERTIFICATE FROM GUIDE
This is to certify that the project entitled "IPL: The Birth of Cricketainment" is
successfully done by Shri. Sankalp Navghare during the Second year of his
course MMS in partial fulfillment of the Master Degree in MARKETING
MANAGEMENT under the University of Mumbai, through the N.L.Dalmia
Institute of Management Studies & Research, Mira Road.
Mumbai‐ 400 068.
This project represents the work done by Mr. Sankalp Navghare.
This project in general is done under my guidance.
Date: 31st March 2010
Name of the Guide: Shri. R.Subramanium
Signature of the Project Guide
MMS IV
Roll No. 129 Page | 2
ACKNOWLEDGEMENT
I take this opportunity to express my gratitude towards the management of N.L.Dalmia

Institute of Management Studies & Research for having given me the opportunity to
conduct a study in Marketing Research on the project titled "IPL: The
Birth of Cricketainment"
I express my sincere gratitude to Prof. R.Subramanium for his constant guidance,

encouragement and support throughout the project and giving me his valuable time.
Also I would like to thank my classmates who provided me with vital and valuable
information and helped me to complete the study.
MMS IV
IPL
The birth of
Cricketainment
Sankalp Navghare
The study explains the elements involved in Sports
Marketing. It analyzes the manner in which the shortest
form of Cricket is marketed by BCCI. The study also
explains the business behind it and how the corporate
companies can make money through sports.
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Table of Contents
Preface .................................................................................................................................................... 7
Cricket and India ..................................................................................................................................... 8
World Series Cricket: The First Commercial Revolution in Cricket ........................................................... 9
About IPL ............................................................................................................................................... 12
IPL Teams ................................................................................................................................................. 14
Team Composition ................................................................................................................................... 15
IPL Organisation and Working ........................................................................................................... 15
IPL: The Business Controversy ................................................................................................................. 16
Challenges Preparing for the First Season ............................................................................................... 16
Challenges During the First Season ..................................................................................................... 20
IPL as a Management Case Study: ..................................................................................................... 22
Blue Ocean Strategy: .......................................................................................................................... 26
SWOT Analysis ................................................................................................................................... 27
Why IPL is termed as one of the most successful sports league in the world? ...................................... 28
Financial Perspective ............................................................................................................................... 29
Balance Sheet ..................................................................................................................................... 30
P & L of a franchise ................................................................................................................................... 33
Research Analysis .................................................................................................................................... 34
IPL Season 1: Study from Media Perspective ........................................................................................... 37
IPL 1 Survey: ............................................................................................................................................. 40
Conclusion ............................................................................................................................................. 43
Impact on the Media and Entertainment Industry .................................................................................. 43
IPL 2: The Dream Continues .................................................................................................................... 46
Sports Outsourcing ................................................................................................................................... 48
Geography is history ................................................................................................................................. 48
'International' domestic tournament ............................................................................................................ 49
Evolution by revolution .......................................................................................................................... 49
Post IPL2 Study from Media Perspective .................................................................................................. 51
Future Opportunities for IPL Twenty20 Cricket ...................................................................................... 60
Potential Downsides of IPL ...................................................................................................................... 60
Risks to IPL ............................................................................................................................................... 61
Bibliography .......................................................................................................................................... 62
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India fulfilled a dream in an unbelievable manner and made the inaugural

event a reality. The people of India and the rest of the world embraced this
tournament with their hearts and I feel really proud that we have taken the
game of cricket...to a new level. It was difficult road for all of us involved in
this venture to walk, there were sceptics...the success is there for all to see.
‐ Lalit Modi, Commissioner and Tournament Director of the Indian Premier league
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Preface
On June 1, 2008, the Rajasthan Royals scored a dramatic last‐minute victory
over the Chennai Super Kings in the final match of the first season of the Indian
Premier League (IPL). The game was played before a sold‐out stadium of
55,000 fans in Mumbai, India. It took place in a festival atmosphere, preceded
by a spectacular show including Bollywood entertainers and fireworks. The IPL
had been announced by the Board of Control for Cricket in India (BCCI) just
nine months earlier. The league was made up of eight city‐based teams
throughout India, whose owners were not determined until January 24, 2008,
and whose players were not selected until February. Yet, the league raised
nearly $2 billion from the sale of media rights, sponsorships, and franchise
fees. It attracted star players from around the world. The first season, running
from April 18 until June 1, combined entertainment and sport played before
packed stadiums, dominated television ratings in India, and riveted the
country's attention. It also attracted a following among cricket fans worldwide.
The IPL changed the landscape of cricket around the world. It was driven by
commercial considerations, challenging the existing control of national cricket

boards. The IPL created a free market for players, who could make far more in
six weeks with their IPL teams than they could in a year (or more) playing for
their national teams.
The IPL had overcome many challenges during its first season, and now looked
forward. How could it best capitalize on its success?
However, the world looked very different in March 2009, as the second IPL
season was about to begin. In November 2008, terrorists had attacked
Mumbai, in a siege lasting several days, and killing more than 170 people. On
March 3, 2009, the Sri Lankan national cricket team was attacked by terrorists
as it travelled to a match in Pakistan. Five police officers were killed, and
several players wounded in the first major terror attack specifically directed at
cricket. Lalit Modi, commissioner of the IPL, considered the impact of these
events on the league, which was scheduled to start its second season on April
10. In light of the security situation and with India's potentially destabilizing
general election scheduled during the six‐week event, could the season
proceed as planned? If not, what should Modi do?
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Cricket and India

India does not have a strong sporting culture, which is evident from its sorry
record at the Olympic Games: just sixteen medals since Independence. But
Indians are passionate about cricket—the game evokes strong emotional
reactions to the national team's victory or defeat in international matches. In the
past, cricket matches in major tournaments such as the World Cup have
topped television viewership ratings. Huge cricket stadiums are packed to
capacity, with 100,000+ spectators, for major international matches.
Cricket is traditionally played as a five‐day game known as test cricket. A
shorter version is one‐day cricket, in which each game lasts for 9 hours or less.
In the 1970s, Australian billionaire Kerry Packer started a private inter‐country
league named World Series Cricket, where one day cricket was played under
artificial lighting at night, with players wearing coloured clothing. This was an
instant hit, and changed the face of cricket, making the one‐day format
predominant over the five‐day format. Cricket has been primarily played on an
inter‐country basis internationally, and inter‐province basis domestically.
T20 is a new format in cricket a 3 hour game of cricket played by the traditional
team size of 11 people, with new rules to make the game fast and exciting. T20
was introduced in England to revive the falling interest in domestic cricket, as the
longer versions of the game were unable to attract the youth, who were
increasingly moving towards Football. T20 has led to a strong revival in the
English domestic cricket circuit. The first T20 world cup held in 2007 was an
instant hit across the world. The finals of the same had a viewership of an
estimated 1 billion people, making it one of the most highly viewed events in
the world.
International Organisation and Governance

The international governing body of cricket is the International Cricket Council
(ICC). In 2008, it consisted of 10 full members, those countries that competed
in Test matches. The ICC also included 34 associate member countries, and 60
affiliate member countries. One of the important roles of the ICC was control
of the international cricket calendar. Each ICC member country had a national
governing body—in India, this was the Board of Control for Cricket in India
(BCCI).
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World Series Cricket: The First Commercial Revolution in Cricket

In 1976, Kerry Packer, head of a family‐owned media conglomerate in
Australia, attempted to gain the broadcast rights for Australian cricket, long
held by the government‐funded Australian Broadcasting Company (ABC).
Despite a much lower bid than Packer's, ABC was awarded the rights by Cricket
Australia, the Australian cricket board.
Packer responded by setting up his own competitions, outside the established

international schedule. At the time, professional cricket players were paid so
poorly that they could not support themselves solely from cricket. Packer
secretly signed lucrative contracts with a number of the world's top players,
and formed World Series Cricket (WSC), which operated from 1977 to 1979.
The WSC, though short‐lived, changed international cricket in a number of
important ways. First, top players became well‐paid, full‐time professionals,
funded largely through vastly increased media rights fees. The game also
became more commercial, with colourful uniforms replacing the traditional all‐
white attire, merchandising, and theme songs. The WSC popularized the one‐
day format for cricket, although the highest level of the sport was still viewed
as the five‐day Test.
Formation of the Indian Premier League

Over time, India became the most important economic power in the global
cricket world. In 2008, cricket was the sport generating the most passion in
India. SportBusiness International observed that "A significant part of Indian
life revolves around two things. Bollywood [the Indian movie industry] is one.
And cricket is the other." India's dedication to the game, combined with its
economic rise, made it the most important country for cricket. In 2007, India
had a population of about 1.2 billion, with an economy growing at 9 percent
annually. All income groups were avid cricket fans, but India's rapidly
increasing middle class of 250 million people was a particularly attractive
market for potential sponsors of cricket events.
Cricket and Television: Founding the Indian Cricket League

Cricket was particularly important for television in India, with 10 seconds of
advertising during major matches selling for about $5,000. "The success of TV
channels in India is predicted entirely on their access to cricket," according to
SportBusiness International.
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The importance of cricket to Indian television stations led to the founding of

the Indian Cricket League (ICL) in April 2007 by the ownership of Indian TV
network Zee TV. For years, Zee TV had tried to win the rights to televise Indian
cricket, but had been continually rebuffed. Now, they would create their own
cricket content, independent of the cricket establishment. The league would
initially consist of six teams, based in Indian cities, and would use the
Twenty20 format. The winner of the initial ICL tournament would receive $1
million in prize money. The league planned to eventually expand to a total of 16
teams. The ICL attracted strong resistance from national cricket boards,
some of which banned players that joined the ICL from participating even in
domestic matches. As a result, most of the initial players were stars that had
retired from international competition. However, within a few months, the ICL
had signed a number of cricket stars to lucrative contracts. The first ICL season
began November 30, and was completed on December 16, 2007.
The Indian Cricket Establishment Responds: Founding the Indian Premier

League
On September 13, 2007, the BCCI announced that it was forming a city‐based
twenty20 cricket league in India, called the Indian Premier League (IPL). This
league would have the approval of cricket authorities, and representatives of
the ICC as well as several leading Test playing nations, whose representatives
were present at the announcement. The league's first season would begin in
April 2008, with $3 million in prize money. At the same press conference, the
BCCI announced formation of a Champions Twenty20 League, in which top
clubs from India, Australia, South Africa, and England would compete.
The IPL would operate on a franchise basis, a common form of sporting

organization in the United States, but a novelty in India. Eight franchises would
be sold through an auction, to be held in January 2008. The league would sell
media rights and sponsorships, the revenue from which would be shared
between the league and the franchise owners.
The new league grabbed the attention of the cricket world. On October 10, the
ICL sued a top Pakistani player who had signed with the ICL, for breaking his
three‐year contract at $250,000 per season, in order to play for both the
Pakistani national team and the IPL at a higher salary.
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The announcement of the IPL also impacted the ICL's sponsorship, as several
companies pulled out of the unauthorized league. To open space in the
international cricket calendar, Pakistan agreed to delay the Asia Cup until June,
and India agreed to play in the event. (The Asia Cup was to be played between
India, Pakistan, and Bangladesh, but had been delayed or cancelled a number
of times due to political differences between the countries of India and
Pakistan.) However, a number of national teams had matches scheduled
during the IPL season. As a result, some international players were only
available for a portion of the IPL season; players on the English national team
would not be available at all.
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About IPL
The Board of Control for Cricket in India (BCCI), the apex governing body for
cricket in India launched the Indian Premier League after a bitter rivalry with
Zee's Indian Cricket League (ICL). IPL was launched on 14th September 2007.
This was the brainchild of Mr. Lalit Modi who made the format of IPL on the
lines of football's English Premier League (EPL) and basketball's National
Basketball League (NBA)
IPL is a professional Twenty20 cricket league created and promoted by the
BCCI and backed by the International Cricket Council (ICC), an international
governing body of cricket. The BCCI was instrumental in setting up a governing
council to run the IPL as a virtual company. The IPL governing council will have
five‐year term and will run, operate and manage the league independently of
the BCCI. The governing council of IPL comprises of former BCCI President I. S.
Bindra, Vice‐Presidents Rajiv Shukla, Chirayu Amin and Lalit Modi, Arun Jaitley,
and former cricketers Mansur Ali Khan Pataudi, Sunil Gavaskar and Ravi
Shastri. While the BCCI officials are honorary members, Pataudi, Gavaskar and
Shastri will be paid for their services.
Man Behind IPL

Lalit Modi is the scion of US$1.5bn (market cap) Modi
Enterprises. He is also the Executive Director of Godfrey Philips
India Ltd., a large cigarette company. Modi became the Vice‐
President of BCCI in 2005. The setting of rebel cricket league (ICL) by a
large group in January 2008 was a huge threat to BCCI. Modi was
charged with setting up BCCI's own league, for which he engaged IMG, one
of the world's
leading sports entertainment companies. Modi ensured that IPL's journey from
concept to execution was accomplished within four months. IPL's commercial
success is to a large extent due to Modi's business acumen.
IPL Franchises
The IPL teams were auctioned on 24th January 2008. BCCI had identified 12
cities: New Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Gwalior,
Kanpur, Mohali, Jaipur, Ahmedabad and Cuttack. It was decided that for the
first 3 seasons, the eight teams which attracted the highest bids will be
selected. About 90 firms, including leading private companies in India like
Bharti, Reliance ADAG, Kingfisher and Future Group, bought the franchise bid
documents. Few private equity firms and celebrities such as Russel Crowe and
MMS IV
Shah Rukh Khan also participated in the bid process. BCCI had kept a reserve
price of $50mn for an individual or corporate house to own an IPL Team.
The auction for the franchise took place with a total base price of $400mn but
the auction went on to fetch $723.59mn.
The IPL franchisees will be able to run their teams in their own styles bring
their own sponsors and were allowed to even name the team according to
their choice. They are even being free to list their teams on the stock
exchange.
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IPL Teams
City Team Name Logo Owner Price
Bangalore Bangalore UB Group $111.6mn
Royal (Vijay Malaya)
Challengers
Mohali Kings XI Preity Zinta, $76mn

Punjab Ness Wadia,
Karan Paul and
Mohit Burman
Chennai Chennai India Cements $91mn

Super Kings
Kolkata Kolkata Red Chillies $75.09mn

Knight Riders Entertainment
Hyderabad Deccan Deccan $107mn

Chargers Chronicle
Group
Mumbai Mumbai Reliance $111.9mn

Indians Industries Ltd.
Delhi Delhi GMR Holdings $84mn

Daredevils
Jaipur Rajasthan Emerging $67mn

Royals Media Group
and Shilpa
Shetty
(season 2)
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Team Composition
Each team of IPL has a minimum of 16 players of whom 8 can be international
(was raised to 10 players in season 2), 4 players need to be regional and also 4
players need to be under‐21. Also, in the playing XI maximum only 4
international players are allowed.
After selecting the captain and the coach, the Franchise participated in the
auction to select the players for their teams. The first ever auctioning of cricket
players was held in Mumbai on 20th February 2008. 77 cricketers went for
bidding in the player auction of IPL with cap of $5mn on buying of players by
each of the eight IPL franchise.
IPL Organisation and Working

IPL works on a franchisee based system. Under the model, a sponsor wanting
to have its team pays a stipulated fee to the BCCI to get ownership. The
franchisee also shares revenues with the cricket board. To start with, IPL has
franchised eight teams with two more to be added till 2013. The franchisee can
at a later stage list the team on stock exchange, trade players, etc.
Indian Premier League also introduced the concept of Icon player. An icon
player is a player who can only play for his home city in the competition. These
icon players don't have to go through bidding. These icon players have an
advantage that they are guaranteed to get paid at least 15% more than the
next top earner in their team.
MMS IV
IPL: The Business Controversy

The IPL is a miracle in the world of cricket. We have experienced the drastic
changes in cricket after the evolution of new concept, i.e. Twenty20 cricket.
Lalit Modi brought out this dream concept to reality.
Business Controversy is the situation where in new entrant in the market
covers up the entire field and establishes itself as a new brand in a very short
span of time affecting the existing ones directly or indirectly.
Controversy could be an amazingly low cost marketing tool that makes for the
phenomenal media coverage and can be very effective if managed well. It
reaches the minds of the masses and is of immense help in eliminating the odd
dose of adverse publicity in the short term.
The DLF IPL entered the market with huge amount of money and various
known celebrities. The attention of the people was grabbed by these two
factors and hence all the controversies surrounding it in the first league like
media boycott and various other cricket boards like ECB did not gain any
importance in the mindset of a viewer.
The First Season
The IPL faced a number of challenges as it hurried to stage its inaugural
tournament. With only four months from the auction of franchises to the first
match, schedules were tight. These challenges continued after the season
began.
Challenges Preparing for the First Season
Disputes Over Tickets

One of the challenges that confronted IPL franchises as they prepared for their
first season was to arrange for stadiums for their home matches. Many
stadiums were owned by local cricket associations. Some of these associations
had agreements with their members under which the membership fee
guaranteed tickets (at no additional cost) to all matches held in the association
owned stadium. This posed a problem for IPL franchises, since the IPL franchise
agreement stipulated that 20 percent of tickets were to be provided to the
hosting cricket association, with the balance to be sold to the public. Sale of
these tickets was an important revenue source for franchise owners.
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The first, and most contentious, of the disputes over ticket availability was in
Bengal, here the Kolkata Knight Riders, owned by Shah Rukh Kahn and his
company, Red Chillies Entertainment, Ltd., leased the Eden Gardens stadium
from the Cricket Association of Bengal (CAB). The CAB constitution guaranteed
free tickets for all 31,000 members to any match organized by BCCI and CAB,
except those that benefitted charity. This was far more than the 20 percent
allotment for IPL matches. A group of members, the Cricket Members' Forum
of Bengal, formed to demand free tickets, and filed suits against CAB and Red
Chillies Entertainment, demanding free tickets for all CAB members. Shortly
before the season began, the dispute was resolved in the team's favour and
the Knight Riders' home games were played in Eden Gardens.
In Mumbai, the venues for the Mumbai Indians home matches had not been
finalized with only two weeks until the start of the tournament. Mumbai would
also host the semi‐finals and finals, since the Mumbai owners had paid the
highest price for their franchise, so 10 matches needed to be planned. The
matches were originally planned for the Cricket Club of India (CCI) stadium, but
they refused to allow the stadium to be used because the IPL would not give
free tickets to all members. With the CCI stadium now unavailable, two other
stadiums were considered. One was located in South Mumbai, but was
substandard in several respects and planned renovation had been delayed. The
other, DY Patil, was a modern stadium, located about 90 minutes away.
The Mumbai Indians and IPL decided that five matches would be played at
each stadium. Neither the Reliance Group, owner of the Indians, or the IPL and
tournament manager IMG were happy about this arrangement, as using two
facilities increased costs. Reliance and IPL/IMG did not agree on who should
pay the increased costs. After the season started, the team decided that DY
Patil was too far away, and players complained about a lack of privacy in their
dressing room, so the final two regular season matches scheduled for the
venue were moved to the smaller stadium. The semi‐finals and finals were held
at DY Patil, however, due to its larger capacity.
Media Rights Problems

On April 3, the IPL released its media accreditation guidelines for journalists.
The rules were extremely restrictive, and drew immediate and harsh criticism
from new organizations. One of the rules was that photographers must upload
all images to the IPL website within 24 hours of a match, and give the IPL the
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unlimited right to use the images free of charge. If a photographer did not
upload all images, access to IPL venues would be revoked. Media organizations
were also restricted from using images on their own websites, except for those
images that had been previously published in their print versions. Many news
organizations objected to these terms. The bureau chief of the Agence France‐
Presse (AFP) wire service said, "We won't be covering the IPL under those
terms." The Editors Guild of India lodged a protest with the BCCI, calling these
restrictions "unprecedented and unacceptable to the Indian media, to say the
least." The Indian Newspaper Service threatened to boycott the tournament.
The IPL and print media negotiated until just before the season began.
Eventually, the IPL made concessions that the Indian media could accept.
However, the league insisted that news agencies could not provide images to
websites dedicated to cricket. The major international news agencies, such as
Associated Press, Reuters, and Agence France‐Presse did not agree to these
restrictions, which would prohibit them from providing images to some of their
subscribers, and they did not cover the IPL. As a result, in countries whose
papers did not send their own reporters to cover the IPL and thus relied on
agency coverage, the only information about the IPL came from the television
stations that owned local broadcast rights, and the Internet.
Specialty cricket websites were also banned from the matches, and could
obtain photographs only from the IPL‐sanctioned service, not their normal
news agencies.
Three days before the season started, Indian television stations threatened to
boycott IPL coverage due to restrictions on the availability of video clips that
they could use to report on the matches. This was resolved two days before
the first matches, and the IPL became a major subject of coverage on Indian
television.
Ticket Sales
The IPL generated tremendous media attention in India in the months between
the league's announcement and the start of the first season. The franchise
auction, player auction, participation of Bollywood stars and other celebrities
all served to build interest in the league.
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SET, which had the television rights for the league in India, began an intensive
advertising campaign on April 3, 2008. It promoted the league as "the father of
all entertainment." SET pointed out that most cricket tournaments consisted of
mismatches—poor teams playing strong teams. The IPL, however, would be
competitive. All teams had good players, and there should be no poor
matches.42
The IPL season was put together quickly, with little chance to work out details
such as ticket sales. Many teams had little success in publicizing how fans could
buy tickets. Ticket sales did not begin until days before the first matches. The
first team to sell tickets was the Deccan Chargers of Hyderabad, which began
sales on April 11 for the April 18 season opening match. Just five days before
the first matches, some franchises had not even announced when they would
sell tickets. Ticket prices varied, with some franchises selling tickets at very low
prices (Rs50, or about $1) in order to generate excitement and make the
games available to all fans.
First day sales were very slow for some matches—Shah Rukh Khan, the
Bollywood star who owned one of the highest‐profile teams, the Kolkata
Knight Riders, was distressed with the first day ticket sales, just one week
before the first match. A paltry 237 tickets had been sold. He said, "I am a bit
surprised as to why, despite keeping ticket prices low, people are not showing
any interest…. Involvement with the Knight Riders is giving me sleepless
nights." The next day, however, the situation looked entirely different. Long
lines formed at ticket counters, and the team sold about 55,000 tickets. It
expected to sell out within days. Even as late as April 14, at least one team had
not started selling tickets, and three others were reporting very slow sales.
Some teams did not sell tickets for one home match until the previous home
match had been played, in order to prevent confusion among fans. This meant
that there was a short time frame for purchasing tickets for any individual
match. Fans could purchase tickets in advance online, however. Despite the
initial problems with establishing the ticket sales process, once fans knew how
to purchase tickets, most teams had excellent sales, and most matches were
well attended.
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Security and Logistical Concerns

The intense interest in the league, and high attendance at IPL matches, caused
security and logistical problems. Additional security personnel were needed at
the matches, causing disputes over compensation in some cases.
Traffic, parking, and late‐night transportation after matches also needed to be
planned. The matches would be held in the afternoon and evening, so that
fans could attend, and to maximize the television audience. Large, night‐time
events were not common in India—availability of lighted stadiums had been
one of the criteria for cities to host IPL teams, and some stadiums installed
lighting just in time for the IPL season. The infrastructure around some
stadiums was not well suited to easy accessibility.
Poor infrastructure resulted in high costs of staging events. Outdoor events

generally cost about three times as much as indoor events, due to the lack of
infrastructure.45
Challenges During the First Season
Player Availability
The IPL had not existed when the international cricketing world prepared its
schedule for 2008. The league chose the April‐May timeframe for its season to
avoid most previously scheduled events, but some national associations had
conflicts with the IPL schedule. As previously noted, the English season started
at the same time as the IPL, and players with national contracts could not
participate. Many players from other countries that contracted with IPL teams
had to miss some games, however, due to national association conflicts.
A week before the start of the IPL season, the South African cricket board
announced that its domestic tournament would take precedence over the IPL.
The semi‐finals of that event were to take place on April 18 and 19, the
beginning of the IPL season. The finals were scheduled for April 25. With the
IPL season beginning on April 18, any South African player that was in the
semi‐finals would have to miss the first IPL games. Players on teams in the
South African finals would have to miss at least one week of IPL play.
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During the IPL season, there were also events involving the Pakistan, Australia,
Bangladesh, and West Indies teams, creating doubt as to which players would
be available for which IPL matches.
Cheerleader Controversy
The IPL wanted matches that created excitement beyond the competitive
event. Matches were extravaganzas of entertainment wrapped around a
cricket match. The Bangalore Royal Challengers planned to spend about $1.25
million for entertainment during home matches. Other teams planned to
spend at least $500,000.47 One part of the entertainment offering was
inspired by American football—the cheerleading squad. This was a novelty in
India. The Bangalore Royal Challengers led the way, hiring the Washington
Redskins cheerleaders to promote the team and perform at its first four
matches. They would also help recruit and train local cheerleaders, with the
squad's choreographer staying to work with the local squad when the Redskins
cheerleaders returned home. Each of the 14 Redskins cheerleaders was
reportedly paid $300 per hour. Other teams also hired cheerleaders, many
imported from Europe. The cheerleaders attracted a great deal of attention.
They were part of the entertainment before and during the matches. One
newspaper reported of the television coverage, "Their 'performance' and high‐
powered movements are as exciting as the shots of the players."
However, the revealing uniforms that were accepted in the United States and
Europe offended many in India. This led to outrage on the part of government
authorities, law enforcement, Hindu activists, and other leaders. In some cities,
local authorities asked for a ban on cheerleaders, and threatened to arrest
franchise owners if cheerleaders dressed in an indecent fashion, which would
violate their entertainment licenses.
Eventually, at least one team (Mumbai Indians) disbanded its cheerleading

squad. Other teams changed the attire of their squads to modest uniforms that
were acceptable to Indian sensibilities, and the controversy subsided.
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IPL as a Management Case Study:

We can study IPL as a management case with respect to the following
functional areas of management
1. Marketing Management
2. Finance Management 3.
Production Management
4. Human Resource Management
We will take the study of IPL as a marketing management study.
Marketing Management:
One can legitimately claim that an IPL is the best example to learn marketing as
it has not left a single mode of promoting and positioning the service product for
cricket fanatic India. Not only in India but world over the game is being
promoted.
We can see some Marketing Strategies that are involved to make this league a
case of business revolution is as follows:
1. Auctioning of Franchisees: This was the major crowd puller. IPL had not
started even and was a huge hit. The kind of money and people involved
made the league very popular. Giving franchisees to some big guns like
Mukesh Ambani, Vijay Malaya, Shah Rukh Khan, etc. fetched a huge
public attention and create a curiosity in their minds to follow this
league.
2. Auctioning of Players: Again, huge sums were involved and there was an
open auction for players held between all the franchises. The IPL
generated news for showing how the team was composed. Who were
the main players and the amount of money that IPL was offering to the
players made for an entirely new playground. Even, cricketers like Adam
Gilchrist, Glenn McGrath, etc. who had retired from world cricket joined
IPL.
3. Cheerleaders: This was the fun part of IPL. It was also one of the
most
important factor to influence the people.
4. Timing: As this format of cricket required only 3 hours as against 8 hours
required for ODI and 5 Days required for Test Matches, it was positioned
in the prime time category. This gave a tough fight to the daily soaps.
The conventional strategies focused on Differentiation OR Low Cost, whereas
the marketing strategies used by IPL were for Value Innovation.
MMS IV
Value Innovation can be explained as the region where the company's actions
favourably affect both its cost structure and its value proportion to the buyers.
This can be done by following methods:
• Saving the costs by
eliminating and reducing the
factors on which the industry
competes on.
• The buyer values are lifted by creating
and raising the values the industry has
never offered the buyers.
• And then, over a period, reduce the costs
further by bringing on economies of
scale.
Difference between Conventional and

IPL Strategy
Conventional Strategy IPL Strategy
Compete in existing market space Create a new market space
Beat the competition Make competition irrelevant
Exploit current demand Create and capture new demand
Make the value cost trade‐off Break the value cost trade‐off
Fight to win Win without fighting
MMS IV
IPL created a value curve by performing the following four actions:

• Eliminate -
The factors that the industry takes for granted should be
eliminated.
• Reduce -
These factors should also be reduced well below the level of
Industry's standards.
• Raise -
Identify the factors that need to be raised well above the
Industry's standards.
• Create -
Factors should be created which the industry has never offered.
For IPL, Lalit Modi and team followed the above strategy and made the
findings as below -
• Eliminate -
Patience for watching an 8 hour long ODI or a 5 day long Test
Match
• Reduce -
Spectator Time Invested Competes with Movie or a Football
Match
Emphasis on Classic Techniques T20 is generally a batsman's
game.
Emphasis on Perseverance
• Raise -
Emphasis of Athleticism Fast cricket for young crowd.
Pace of the Game Emphasis on how fast the game carries on
Entertainment Presence of Bollywood Starlets and Cheerleaders
Result Emphasis on the certainty of results.
• Create -
City Loyalty
Welcome to new entrants from different state and national
tournaments
MMS IV
The following chart gives us an idea of Cricket before and after IPL
Cricket before IPL
High
Test Cricket
One Day
Low
Spectator Time Classic Value of Team Emphasis on Entertainment Pacy Definite Result Athleticism
Technique Reputation Patience &
Perseverance
Cricket After IPL

High
Test Cricket
One Day
20‐20
Low
Spectator Classic Value of Team Emphasis on Entertainment Pacy Definite Result Athleticism City Loyalty Open to
Time Technique Reputation Patience & Dummies
Perseverance
MMS IV
Blue Ocean Strategy:

Definition
Blue Ocean Strategy was conceptualised in a book written by W. Chan Kim and
Renee Mauborgne of INSEAD, an international business school. Blue Ocean
Strategy promotes creating a new market space or "Blue Ocean" rather than
competing in an existing industry.
According to the authors, the metaphor of Red and Blue Oceans describe the
market universe.
Red Ocean are all the industries in existence today - the known market space.
In the red oceans, industry boundaries are defined and accepted, and the
competitive rules of the game are known. Here companies try to outperform
their rivals to grab a greater share of product or service demand. As the market
space gets crowded, prospects for profits and growth are reduced. Products
become commodities or niche, and cutthroat competition turns the ocean
bloody. Hence, the term Red Oceans.
Blue Oceans, in contrast, denote all the industries not in existence today - the
unknown market space, untainted by competition. In blue oceans, demand is
created rather than fought over. There is ample opportunity for growth that is
both profitable and rapid. In blue oceans, competition is irrelevant because the
rules of the game are waiting to be set. Blue Ocean is an analogy to describe
the wider, deeper potential of market space that is not yet explored.
Imperatives
• Globalisation
• Supply exceeding demand
• Accelerated product life cycles & obsolescence
• Comodification of products
• Learning curves getting saturated
• Branding becomes more and more difficult
• Increasing price wars
• Shrinking profit margins
• Efficiency and Effectiveness reaching a plateau
MMS IV
SWOT Analysis
Strengths Weaknesses Opportunities Threats
Money can replace Great Opportunity for Domestic tournaments

Based on T20 forma
t sportsmanship advertisers and sponsor can take a hit
s
Other boards can stop

Each franchisee will sending the players and
Can create internal rivalry
Only 2.5 hrs of playing perform as a seperate may impose a ban on I
between players
PL
time needed entity and will be able to to prevent overexhausti
create their own fanbas on
e of players
and source of revenue
Stakes are quite high and

The league is quite long
Can be marketed as Huge opportunity for
and thus may burnout the
a thus may affect the merchandising
prime time sporting action careers of people who
players
could not able to perfor
m
There may be imbalance

Franchisee have a sound in economies of scale an
Inclusion of big names
d
Players will be now taken
investment option thus might effect the
from corporate and as assets with a price ta
loyalty of the person
entertainment industry g
towards his own home
attached to them
team
Cricket has now become a

business
MMS IV
Why IPL is termed as one of the most successful sports league in the
world?
1. It has penetrated in the entertainment industry as Manoranjan Ka Baap.
Major films and TV programmes are not scheduled to coincide with the
IPL as it will bring huge losses.
2. Each and every associate of IPL has benefited from it.
3. Market share of sponsors have experienced good results. In the second
edition Zoozoos of Vodafone have created a whole new marketing
challenge for Vodafone's rivals.
4. There is a whole new genre created. First, it was the ODI world cup
which came once in 4 years. But, IPL is to be played every year and thus
the excitement has lived on.
5. Sony Entertainment Television has trebled their TRPs.
6. The media coverage of IPL has been phenomenal.
7. Mixture of Cricket and Entertainment, two of the most favourite past
times of Indian population.
MMS IV
Financial Perspective
Opening Doors to the next big media movement
IPL ushers in a new era of marketing in sports entertainment. IPL ‐ already a
US$2bn property, is essentially an attempt to sell cricket as a reality show.

Creation of club culture was its key to success. Also, it creates an entire
new
genre which cuts across classes. The franchises see it as a promotion vehicle as
well as an Asset in which they can invest. According to a study, the top 3 teams
could easily generate revenue of Rs. 3bn per year for the next three - four
years. Also, all the teams will turn profitable after three seasons which gives an
operating profit margin of 15 - 20 %.
Broadcasting Angle
The BCCI created history when it sold television rights of this yet untested
format to Sony-World Sports consortium for US$1.02bn. However, of this
US$1.02bn, US$108mn is to be spent by Sony on promoting the event over the
next 10 years. This brings down the actual cost to US$918mn. Of this
US$918mn, Sony has to pay US$316mn for rights of broadcasting for the first
five years, and then pay US$608mn - if this format has been remunerative in the
first five years. In the first year, payouts are not dependent on TRPs.
However, TRPs would drive payouts from the second year. The franchisee have
a share of 80% in the first year decreasing to 60% in the fifth year of
broadcasting rights and the balance would go to IPL. There is an overall cap of
US$918mn on the rights which can be shared with the franchisees.
MMS IV
Balance Sheet
IPL committee had devised the sources of revenues for franchises also the
expenses were chalked out. IPL had given a whole proposal to attract the
franchises.
Sources of Revenue
Broadcast rights: The broadcast rights have been sold by IPL to World Sports
Group (WSG) and Sony for $1.026 billion for 10 years in a contract that is
linked to the success of the League and to television rating points (TRPs).
In the first two years, 80 per cent of the money earned from the broadcast
rights will be shared by the franchisees equally with the rest going to IPL. The
latter's share will increase gradually and by the fifth year, IPL will get to share
40 per cent of the broadcast revenue.
Sponsorship: The title sponsorship fee of over $50 mn paid by DLF, a leading
real estate company in India, will be shared with the franchises. IPL will retain
40 per cent of this and the balance 60 per cent will be shared between the
franchisees equally. While these revenues accrue from the central pool to the
franchisees, they will generate team sponsorship at individual levels as well. In
addition to these, Hero Honda and Pepsi were associate sponsors worth
$22.5mn and $12.5mn for five years. Also, Kingfisher Airlines were IPL's umpire
partners worth $26.5mn. The incomes through these were equally shared
between the franchisees.
Ticket sales: The final revenue source is ticket sales at home stadiums. Each
franchise will get seven matches at home and the revenues from ticket sales
will be shared with IPL, which will get 20 per cent, with the rest going to the
franchisee.
Other sources: There are also other smaller revenue sources such as from in‐
stadia advertising a part of which will go to the franchisee.
MMS IV
Expenses
Franchisee fee: The two big expenses incurred by Franchise are player costs
and the franchise fee paid to IPL. The franchise fee will be payable in equal
sums over a 10 ‐ year period. For instance, if a franchise is to pay $100 million
to IPL, he will pay $10 million every year to IPL.
Player acquisition cost: The player costs were determined in the auction. The
franchisee has to pay players who are available even if they are on the bench.
Players have a three‐year contract with the franchise that bought them but
they can be traded at the end of the first year between the franchisees.
Stadium Hire Charges: The franchisees also have to pay for the use of the
stadiums for which they have to enter into contracts with the local association.
For instance, the Kolkata franchisee will have to pay the Cricket Association of
Bengal for the use of Eden Gardens.
Other Expenses: There are also other marketing costs such as events for
promotion of the team, star ambassadors, and so on, which the franchisees
have to bear.
MMS IV
MMS IV
P & L of a franchise
MMS IV
Research Analysis
I
P W
L
Q1 S
ur he Matches
v M
e H
y
ighligh
D ts Onl
Q2 i y
d
O
y
o D
I
u Yes No
f T
o
l
l A
Q3 o Crisp Tim
w
Bollywo
I
P E
O
L
m
a
t
Q4
c
h
e
s
o
n
T
V
?
MMS IV
Yes No
00
% %
% a 6
a g
e .0
g
e 0
o %
o f
f
R
e
%
R s R
e p 58.
s o
00
p n
o d %
n e 34.
d n
t 00
e
n s %
t 8
s
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4
0
4
8 %
.
3
0
.
0
0 %
% R
0 6
5.0
%
3
0%
8
3.0
.
0%
1
0
7
0
2
.
%
0
0
1
%
2
.
9
.
0
0
%
%age of
Q5 P 5
r
e P
f M
e )
r
r
e Prime T
d 8‐11PM)
T L
Q6
i a
m
t
e
e
S
l
N
Q7 o
t i
g
o
h
n
t
T
V
Q8 T
i
Morning Time m
7‐9AM) e
A
fte (
rn A
Q9 oo f
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Ti e
m r
MMS IV e
(2 1
‐ 1
) r d
N
o Prefe o I
rred Ti t P
me Slo h L
t e
r b
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D fa n
v
i o g
d ur
it a
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s c n
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n
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t h g
IP
L e
o Yes No
n i
n
y
o D t
u i h
e TV u e
v , a
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e l
w I i
i P t
n
g L y
h a S
a
b f h
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t
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c s
Yes No t
T e News
o an E d O
xtent t
t h
h e
e r
A s s
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c
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p
r
r
d o
i g W
a
r
n s
a
g m I
m P
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t
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t
t
y Family Soaps e
R r
o
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h 0
e
a %
n s
p 12.
I o 00
C n
L %
d
e
n
Yes No %
t
T ag
s
e
o an E of
xtent
5 R
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s
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% n
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. t
s
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% 24.
00
6 %
2 76.
. 00
0 %
0
% %
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of
1
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2
e
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0 p
o
n %
d o
e f 4
n .0
t 0
s R
e %
s
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0
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% s o
f
2
2 R
8 e
9 s
.
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8
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%age of
Q10 IPL for me is Respondents
45 Days of Masala Entertainment 26.00%
Futuristic Strategy 31.00%
Aggressive marketing vehicle 37.00%
Threat to TV and Cinema 6.00%
Conclusions
1 IPL is a winning formula, its marketing and crisp timing being its USP
It has a potential to beat the prime time TV shows as is evident from the views of
2 the people
3 But, IPL needs to keep up to its expectations
MMS IV
IPL Season 1: Study from Media Perspective

IPL gave a major boost to its broadcasting partner Sony Entertainment
Television. The ratings were so high that MAX increased the prices for their
television slots.
The first five matches itself delivered a rating of 5.6 a record in its own feat.
10
9 CS 4+ YRS M15+ ABC CS F15+ABC CS
8
7
6
5
4
3
2
1
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Not only the men were glued to IPL but also, IPL attracted many from the fairer
sex. One of the surveys found out that IPL was considered to be with more
entertainment than the daily soaps.
1 CS 4+ Y M15+ ABC C F 15+ ABC CS

0 RS S
9
8
7
6
5
4
3
2
1
0
26 27 28 29 30 31 32 33 34 35 36 37 38 39 40
MMS IV
IPL also broke the myth that Indian viewers watched cricket only if India was
winning.
Over the whole season, nevertheless it was long, IPL ruled the airwaves. Star
Plus and Zee TV followed neck to neck on the second and third place. Whereas
post IPL Star Plus regained its No.1 status.
MA Star Plus Max settles

down post-
9
X IPL
8 Zee TV
7
6
5
4
3
2
1
0
02-May
04-May
06-May
08-May
10-May
12-May
14-May
16-May
18-May
20-May
22-May
24-May
26-May
28-May
30-May
01-Jun
03-Jun
05-Jun
07-Jun
18-Apr
20-Apr
22-Apr
24-Apr
28-Apr
26-Apr
30-Apr
24 Apr
MMS IV
IPL was a favourite amongst all age groups of Men
Not only that, IPL was thrice more effective amongst Men than Star Plus or Zee
during Prime Time
MMS IV
Roll No. 129
Page | 39
IPL 1 Survey:
Q1. Are shorter formats the future of Cricket?
Tot Time/Match Avg Time Spent (Mins) Tot Time/Match Avg Time Spent (Mins)
600 540 70
500
480 60
58 50
400
300 40
300 240 30
38
200
20
100 18 17 10
0 0
24th Mar (Samsung Cup - 19th Feb (Hutch Cup - 2006) 20th Sep (ICC T20 Cup - 2007) 26th May (IPL DLF Cup -
2004) 2008)
Result:
Shorter formats hold more attention. Looking at the ratio of the Total Match
time and Average Time Spent on the matches, both ICC and IPL versions of
T20. Also, if we take any match from start to end the viewership only
increases.
MMS IV
Q2. Did IPL open up non‐cricket markets?

80
70
60
50
Reach @
40
5+
30
20
10
0
M ah Guj PHCHP Raj UP MP Orissa WB Ker TN Kar AP All India
IPL ICC T20
Result:
IPL worked better than any international World Cup. The low cricket viewing
markets like TN and Kerala also opened up because of regional factor put into
IPL.
MMS IV
Q3. Is Magic of Reality Shows matching up to IPL?
8 7
7
M 25+ ABC CS F 25+ ABC CS
6 5 5
5 4 4
4
4 3 3 3
3 3
3 2 2
2
2
1
0
Zee Star Plus:Nach Star Plus:Star Sony TV:Indian Sony TV:Jhalak Star Plus:Chote Max:IPL 08
TV:Saregamapa Baliye3 07 VOI 07 Idol3 07 Diklaga2 07 Ustad Star VOI
07 08
M 25+ ABC CS F 25+ ABC CS
1
15
8
1
6 10
1
4
1
2
10 8 8 7
8 6 6 6 6
6 45 3 4 4
4
2
0
Zee TV:Saregamapa07 Star Plus:Star VOI 07 Sony TV:Jhalak Max:IPL 08
Diklaga2 07
Result:
IPL was bigger than the biggest reality shows on Hindi GECs among males
whereas among females Zee Saregamapa was at par. Also, IPL final was the
most highly rated grand finale amongst all reality shows in Hindi GECs.
MMS IV
Conclusion
IPL proved that a good vision, well activated can create magic. To think that IPL
is a marketing success or that it succeeded because it mixed Bollywood and
cricket is sheer over simplification.
IPL was just waiting to happen. It gave viewers everything soaps should be
giving, plus it gave cricket. It broke the false barrier of patriotism and gave
viewers a reason to like the sport for itself. It celebrated the spirit of sports
when players who have fiercely competed against each other and who had
barely met each other until a few weeks before the start of the tournaments
were performing in the field as if they have forever been a team.
It had heroes who fell, under dogs who became heroes, shame faced icons,
glamorous fans, cheerleaders, scandalous ex‐stars fighting to redeem
themselves, doubts, suspense, a nail biting finish and victory of the underdog.
What more do you expect from entertainment? This was TV and sports at their
glorious best.
Impact on the Media and Entertainment Industry

The acquisition cost was then considered steep for domestic tournament.
According to the KPMG report, SET has to pay $ 316 million (Rs 12.6 billion) in
equal instalments over the initial five year and $ 608 million (Rs 24.3 billion) for
the next 5 years. That means SET had to pay about Rs 2.53 billion to BCCI
in
2008.
However, with the success and popularity of the tournament the investment
seems to have paid off for the broadcaster. The league, screened every
evening in a prime slot at 8 pm pulled in viewers in large volumes. As per TAM
ratings, the final of IPL on 1 June 2008 fetched Max an average of 4.7 over 57
matches on SET Max, showing that audience interest was sustained
throughout the long tournament, which was a concern at the beginning. These
ratings were unprecedented for domestic cricket tournament.
The report further states, the huge viewership that the matches gained pushed
up advertisement rates for 10‐second spots to Rs 500,000‐1 million, which was
marketed at Rs 200,000 per 10 seconds at the start of the tournament. ESPN
Star Sports had charged about Rs 750,000 ‐1 million for 10 second spots for the
India‐Pakistan T20 World Cup final in September 2007, which delivered a TRP
MMS IV
of 15.9. Max reaped in the benefits of the leap in viewership which pushed it to
the number 1 slot on channel viewership share bases during Q2 2008 during
the broadcast of IPL.
The report also states that IPL provided a good opportunity to marketers.
FMCG companies like ITC, Mother Dairy and Nestle, insurance companies,
Pizza Hut and Cipla were the leading advertisers during the first edition. Many
players like the suiting major S Kumar's Nationwide who were the apparel
sponsors of team Jaipur‐entered at the later part of the tournament, after
gauging its success and popularity. Franchisee owners also spend money on
marketing and promoting their respective teams, and in turn generated
revenue from team Sponsorships. Industry players are unanimous in their
views that IPL has acted as a big driver for advertising spends this year.
Future prefect in the immediate run

Gauging by the industry reaction, IPL is expected to continue as a prime driver
in the M&E industry for the coming year. Further, advertising rates for other
cricket telecasts are also expected to increase since the IPL rates are also
expected to be used as future reference points by the broadcasters.
Many retail majors plan to tie‐up with IPL franchisee, given the fact that the
business format of IPL is modelled on the EPL, which has built its properties
through retail tie‐ups and merchandise. Industry players also plan to capitalise
on celebrity brand ambassadors and merchandising. Celebrity endorsed
branded T‐shirts, sunglasses, wallets and travel bags are expected to be
promoted in a big way, says the report.
In the long run

The report also gave some speculation on how the IPL could sustain in the long
run. IPL's ability to sustain and grow its popularity in the long term depends on
the ability of individual franchisee to 'break out' and become large media
properties on their own. Franchisees may have to increase their marketing and
promotional spends to effectively monetise their fan base and build brands out
of their respective teams.
Franchisees also need to think about how to maintain fan's interest when
there are no matches to watch. Even though the success of the domestic
MMS IV
cricket league tournament has been unprecedented, rating show that it still
trailed the T20 world cup final in terms of viewership. In the future too more
teams sponsors, franchisees may try to increase the mix of premium seating in
their home stadiums, and generate revenues from Food and Beverages.
Further, the report states that the league itself is set to expand with the
addition of 4 new franchisees from 2009‐10. This is likely to take the total
number of teams to 12 and is expected to automatically increase the scale of
the tournament. In turn, it is also likely to provide more opportunities for
advertisers.
For the immediate future however, even as India waits for the next edition of
IPL, pure business logic makes the tournament pretty compelling for the
advertisers and media buyers in India, and in turn exciting prospects for the
M&E industry.
MMS IV
IPL 2: The Dream Continues
IPL T‐20 ‐ Two, was scheduled to commence from 10th April 2009 in India but
since the dates of the matches clashed with the Indian Elections it was decided
to move the tournament outside India. Lalit Modi the Chairman of IPL T‐20
flew to Johannesburg and it was announced there that the tournament will be
held from 18th Apr 2009 at various venues in South Africa comprising of fifty
six round robin matches , two semi‐finals and the final.
The world is enjoying this billion dollar extravaganza. The streets are half
empty just before 4.00 PM every evening in India and people are glued to their
TV sets impatiently waiting for the first ball to be bowled. I am sure the same
would be happening in other parts of the world. How is all this managed? How
did Lalit Modi achieve this?
Management has two main facets ‐ one ‐'Optimum utilization of all available
resources and manpower' ‐ and two ‐ 'depute the right man for the right job'.
Agreed, that South Africa is a cricket loving country ‐ they have the stadia ‐ the
basic infrastructure ‐ the lights for day‐ night matches ‐ then boxes for the VIPs
and the media and well laid pitches. But still there is a lot more to be done. Let
us first look at the tasks involved.
In all there are eight teams comprising of 16 players plus one physio and one
coach ‐ that makes it eighteen in all. Now they have to be provided
accommodation, food of their choice and transport from their hotel to the
stadium and back after the match. So there are total of 144 team members to
be looked after. If the match is in another city then proper flight arrangements
are to be made and then hotel accommodation for all members has to be done
also, before the team arrives there. And this occurrence arises every alternate
day as each team has to play all the seven other teams in a round robin ‐ two
phased schedule.
Similarly there are two umpires on the ground and one upstairs with a match
referee also who also have to be taken care of. These umpires have to be
selected from the ICC approved panel of umpires. They have also to be
changed in every game I wonder how many umpires are there to oversee the
whole tournament. . I believe some help must have been obtained from
WorldTel also, a consortium which has a number of approved commentators
to facilitate proper ball by ball description of all matches.
MMS IV
Then each team has to be provided with uniforms. I think 'Nike' would have
arranged to design the dresses of all the teams. And then there are logos
of
various sponsors on the shirts of the players. Monograms of sponsors are also
on the cricket bats. Also, which player is sponsoring which product needs to be
seen. Don't forget that dresses have to be provided to the umpires also.
Then we need at least eight to ten 'official scorers' to script the proceedings of
each match ball by ball. And one out of these has to give out a press release to
the media regarding the scores after the match is over. Then, gate passes have
to be issued to VIPs, officials, scorers, media personnel and owners of the
teams. No gate‐keeper dares to stop Vijay Malaya or Preity Zinta from entering
the stadium.
Apart from the above ‐ and beyond that also, Lalit Modi has to check all
the spouts from which the money is pouring in. Firstly the TV rights
allotted
globally, then the stadium tickets sales, the indoor hoardings, the car parking's,
the small stalls that sprout here and there outside the stadium during matches
selling ice creams, cold drinks and beer etc. So, one Lalit Modi cannot be
everywhere and he has to distribute the various tasks to the 'right man for the
right job'. The gate money and the resources generated from inside and
outside are perhaps, looked after by the stadium in charge himself.
Alongside the income there are expenses also. Guarantee money must have
been paid to Cricket Control Board of South Africa, then there are payments
for utilizing the stadia, payments to hotels, airlines, food, catering and prize
money to the winning team and the runner up as also the player who hit the
highest number of sixes as well as MOM in each match and not forgetting the
fair play awards constituted.. Then he has to pay the eight owners of their
respective teams as the owners have already spent millions of dollars in buying
the players and then he has to mint money for the BCCI.
Then, we have seen that Lalit Modi has also given donations to few schools to
the tune of a hundred thousand Rands each for their welfare. He has to have a
full fledged office and a team of management experts who ensure that the
tournament passes off without a glitch. Did you ever see any match with only
one umpire? Eh!
WOW! This is a job of gigantic proportions. Requires immense stamina,

management skills and a keen eye for every detail.
MMS IV
All this is definitely not a one man's job. His management team has to perform
under his guidance. Hats off to you Lalit Modi ‐ and I have to mention here that
Late Shri Raj Kapoor was very right when he said that "There is no
business greater than show business". I think that this quote is also
relevant to the
context.
Sports Outsourcing
Blink if you must. A domestic tournament of one country, involving teams
represented by players of 10 countries, is being staged in another country and
reaching viewers worldwide through television. The emigration to South Africa of
the second season of the Indian Premier League (IPL) — technically a
domestic event, the liberal sprinkling of international stardust notwithstanding
— is possibly without precedent in the history of sport.
In a sense there exists a parallel with golf's European Tour. Born in the
continent from which it derives its name, it has branched out to encompass
Asia, Australia and South America while continuing to be called the European
Tour. And yet, while the experiment of staging domestic matches at offshore
venues is not entirely novel (American sports having taken steps in this
direction), and cricket itself has occasionally been forced by necessity into
staging bilateral series at neutral sites, the instance of an entire domestic
tournament organised by one country being hosted by another is unique, a
defining moment, and a pointer to the possible future of sport.
Geography is history
While the cosmopolitan composition of the competing teams in the IPL has
revolutionised cricket by challenging conventional notions of nationality — the
basic differentiator of international sport — the change in address (read: c/o
South Africa) of the most lucrative tournament in the game proves that the
portability of sport has power enough to make geography history. It is rare for
an event driven by the publicity and anticipation attendant upon the IPL to be
an unknown quantity to the non‐TV spectators who will keep it afloat. But such
is the case with the made‐in‐India IPL having been shifted to South Africa.
Considering that the catchment area of the IPL spans all major cricket‐playing
countries, it was perhaps inevitable that the tournament would move to
foreign shores at some stage; few though would have expected it to happen as
early as it has.
MMS IV
With terrorism‐related threats and political imperatives lurking in the

background, the decision to relocate the tournament found official justification
in the clash of IPL II dates with the general elections in India. If the show goes
on, as it must, it is because of the fact that it is not so much the popularity of a
sport, but market forces, that dictate its reach and scope.
'International' domestic tournament
Even as argumentative Indians debate the loss of national pride accompanying

the outsourcing of the IPL, it must necessarily be accepted that the reshaping
of the tournament by circumstances is a development with a silver lining. The
relocation of the IPL has created a give‐and‐take case study that the rest of the
cricketing world will study with interest.
What the Board of Control for Cricket in India (BCCI), the organiser of the IPL,
proposed — play surrogate mother for a tournament it has fathered — Cricket
South Africa (CSA) agreed to dispose. By agreeing to bail out the BCCI and thus
allow the IPL to proceed on schedule, CSA has not only strengthened cricketing
ties between the two nations, but also earned for itself an opportunity to earn
revenue in a manner hitherto unexplored.
There now exists in world sport a business model worthy of replication — that
of the 'international' domestic tournament. A bunch of wise‐heads, cricketers,
business magnates and millions of ever‐ready eyeballs have combined to make
this possible.
As with any business arrangement, the books will bear scrutiny only when the
dust has settled; nonetheless, even as territorial expansion of the game plays a
supporting role as a continuing process, the economic globalisation of the
game — represented by the outsourcing of the IPL, by default if not design —
has become an actuality. And with no greenbacks demanded in exchange for
the IPL II blueprint, the cult of 'free' market economy is as exciting as it sounds.
Evolution by revolution
Followers of Indian cricket have seen far too many brave new dusks to
dispense with cynicism just yet but those who appreciate the potential of the
IPL will be less guarded with their optimism. That the audience for the IPL has
MMS IV
expanded because of its shift to South Africa is obvious. Moreover, with the
creation of a satellite India on South African soil for the tournament, the
Indianness of the IPL is now more pronounced. Simultaneously, if the IPL were
to be defined by the direction of its audience growth, then the tournament's
organisers would be tempted to rechristen it as the International Premier
League. And IPL II — in which Indian players are not 'natives' but 'foreigners'
because of where the tournament is being staged — can only further reduce
the nationalism and narrowness that often threatens to reduce the sport to
political football.
The second season of the IPL promises to generate money, a cultural imprint
and goodwill for India in South Africa. And possibly vice versa. In that context,
cricket@outsourcing is an evolutionary step, an idea whose time had come.
MMS IV
Post IPL2 Study from Media Perspective
Research Methodology
1. Consumer Research to understand involvement in IPL 2
a. The viewing patterns
b. Team and player preferences
c. Brand Associations
2. Online Survey across the nation
3. All TAM ratings in 15years+, SEC ABC, All India, CS homes
IPL 1 vs. 2 - From a viewer perspective
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Which brands were most noticed in IPL 2?
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MMS IV
Is there a shift in Team Support?
Summary
• Consumers feel they have watched more of IPL in season 2 and will
continue watching. Elections did not affect 70% of people's IPL viewing
• However, the ratings have dipped with more people watching for lesser
time. Overall 16% drop in ratings.
• More Off Prime matches with a 19% rating drop also contributed to
pulling down the ratings
• DLF and Vodafone Top of Mind on association with IPL
• KKR‐Nokia, CSK‐Aircel, and MI‐Idea were the strongest Team‐Brand
associations
• Execution of branding is more important than the position of the logo.
MMS IV
Future Opportunities for IPL Twenty20 Cricket
Title sponsorship: DLF paid around $50 million to secure the title sponsorship
for the first five years and this is renegotiable after the third year. If IPL Cricket
gains momentum, it can be much higher.
Player trading: In the IPL trade window, players can be sold for many times the
cost at which they were acquired.
Gate fees: Beyond the third year, gate fees can increase significantly if the IPL
takes off in a big way.
Franchise sale: After the third year, a franchisee has the option to sell out. This
could lead to a windfall.
Franchise forever: The franchise fee is for the first 10 years, after which
franchisees continue to own the teams for perpetuity.
Potential Downsides of IPL
Not enough eyeballs: Sony‐WSG and the franchises could suffer losses if IPL
fails to wins over spectators and viewers, and draws a critical mass.
Not enough star players: Constant availability of top overseas players may not
be possible due to growing number of international Cricket tournaments.
Other tournaments: Potential viewership threat if the ICC decides to hold an

annual international Twenty20 cricket championship.
Ad blues: Recession and change of venue could affect plans of potential

advertisers.
Game pull: Business prospects may be affected if the franchisees fail to create
a loyal fan following in their turf.
MMS IV
Risks to IPL
Though IPL seems to be going from strength to strength, it does face some
risks:
1. Success of any league depends on it remaining competitive. The cap on
the amount of money that can be spent on the players can be raised or
removed, making it easy for the teams with deep pockets to corner the
best players.
2. Any reduction in the maximum number of international players will
adversely affect the IPL.
3. Success of IPL may prompt other countries like Australia to organise
similar events, whose schedules could conflict with IPL. This would pose
a risk to the participation of top international players.
4. Lack of co‐ordination with ICC may lead to conflict between IPL's
schedule and other international matches.
MMS IV
Bibliography
‐ www.iplt20.com
‐ www.wikipedia.com
‐ Stanford University Case Studies
‐ Sport Business International
‐ Press Trust of India Limited ‐
Financial Express
‐ Indian Express
‐ Mint
‐ The Times of India
‐ The Economic Times
‐ The Hindu Business Line
‐ www.cricinfo.com
‐ Business Line
‐ Business Today
‐ Daily News and Analysis (DNA)
‐ Business Standard
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"IPL: The Birth of Cricketainment"

MMS - SEM IV Roll No.

Under the Guidance of

CERTIFICATE FROM GUIDE

This project represents the work done by Mr. Sankalp Navghare.

This project in general is done under my guidance.

Date: 31st March 2010

Name of the Guide: Shri. R.Subramanium

Signature of the Project Guide

I take this opportunity to express my gratitude towards the management of N.L.Dalmia

I express my sincere gratitude to Prof. R.Subramanium for his constant guidance,

India fulfilled a dream in an unbelievable manner and made the inaugural

commercial considerations, challenging the existing control of national cricket

Cricket and India

International Organisation and Governance

World Series Cricket: The First Commercial Revolution in Cricket

Packer responded by setting up his own competitions, outside the established

Formation of the Indian Premier League

Cricket and Television: Founding the Indian Cricket League

The importance of cricket to Indian television stations led to the founding of

The Indian Cricket Establishment Responds: Founding the Indian Premier

The IPL would operate on a franchise basis, a common form of sporting

Man Behind IPL

Mohali Kings XI Preity Zinta, $76mn

Chennai Chennai India Cements $91mn

Kolkata Kolkata Red Chillies $75.09mn

Hyderabad Deccan Deccan $107mn

Mumbai Mumbai Reliance $111.9mn

Delhi Delhi GMR Holdings $84mn

Jaipur Rajasthan Emerging $67mn

IPL Organisation and Working

IPL: The Business Controversy

Challenges Preparing for the First Season

Disputes Over Tickets

these tickets was an important revenue source for franchise owners.

Media Rights Problems

Security and Logistical Concerns

Poor infrastructure resulted in high costs of staging events. Outdoor events

Challenges During the First Season

Eventually, at least one team (Mumbai Indians) disbanded its cheerleading

IPL as a Management Case Study:

Difference between Conventional and

Compete in existing market space Create a new market space

Beat the competition Make competition irrelevant

Exploit current demand Create and capture new demand

Fight to win Win without fighting

IPL created a value curve by performing the following four actions:

Cricket After IPL

Blue Ocean Strategy:

Strengths Weaknesses Opportunities Threats

Money can replace Great Opportunity for Domestic tournaments

Other boards can stop

Stakes are quite high and

There may be imbalance

Cricket has now become a

US$2bn property, is essentially an attempt to sell cricket as a reality show.

IPL Season 1: Study from Media Perspective

entertainment than the daily soaps.

1 CS 4+ Y M15+ ABC C F 15+ ABC CS

MA Star Plus Max settles

IPL was a favourite amongst all age groups of Men

Q2. Did IPL open up non‐cricket markets?

IPL ICC T20