PROJECT MANAGEMENT
Indian Premier League
BY ANAND RAGHAVAN DINESH M SRIRAM MUKUND SATISH ADDALA
Introduction
Indian Premier League or IPL a total package containing cricket and entertainment organized by BCCI. Brainchild of Mr. Lalit Modi, President IPL. Launched on 14th September 2007 by BCCI on the line of Footballs English Premier league. DLF secured exclusive rights for IPL title sponsorship at Rs. 200 Cr. For 5 years. The IPL signed up Kingfisher Airlines as the official umpire partner for the series in a Rs.106 crore deal. Professional twenty20 cricket league created and promoted by BCCI and backed by ICC.
Objectives of IPL
To further propagate the popularity of the sport in the country To nurture and build local talent. To turn IPL into a global phenomenon, and help take cricket to the next level. Will help BCCI to be a superpower in world cricket. To develop the infrastructure of India cricket.
Teams
The IPL teams were auctioned on 24th January 2008. Eight teams were build up according to the regions of India.
Revenue Distribution
The IPL is predicted to bring the BCCI income of approximately US$1.6 billion, over a period of five to ten years. Revenues Distribution till 2017 IPL= 40% Franchisee= 54% Prize Money= 6% After 2017 Revenues Distribution IPL= 50% Franchisee= 45% Prize Money= 5%
Revenue Distribution
Competitors
ICL (Indian Cricket League).
ECC (English County) Domestic T20. Stanford T20 CUP (Caribbean). Australian Domestic T20.
Team Information
DELHI DAREDEVILS Owned by GMR Group (Mr. Sandeep Reddy). Total price of the team $ 84 Million. KOLKATA KNIGHT RIDERS Owner Red Chilies entertainment (Mr. Shahrukh Khan, Ms. Juhi Chawla). Price of the Team - $ 75.1 Million.
DECCAN CHARGERS Owner Deccan Chronicle ([Link] Ram Reddy). Price of the team - $ 107 Million. CHENNAI SUPER KINGS Owner India Cements (Mr. N. Srinivasan) Price $ 91.90 Million ROYAL CHALLENGERS BANGALORE Owner UB group (Dr. Vijay Mallya) Price $ 111.6 Million
MUMBAI INDIANS Owner Reliance Industries (Mr. Mukesh Ambani) Price - $ 111.9 Million. RAJASTHAN ROYALS Owner Emerging Media (Mr. Manoj Badale, Mr. Raj Kundra, Ms. Shilpa Shetty) Price - $ 67 million KINGS XI PUNJAB Owner Bombay Dyeing (Ness Wadia), (Preity Zinta) ; Dabur (Mr. Mohit Burman) & Apeejay Surendra Group (Mr. Karan Paul) Price - $ 76 Million
Team Composition
Each team of IPL has a minimum of 16 players of whom 8 can be international. Composition of final 11 players International- 4 National- 4 Ranji- 2 Under 19- 1
IPL in first 3 years.
Television Broadcasters
Title Sponsorship Rights
India's biggest property developer DLF Group paid US$50 million (Rs.200Crore) to be the title sponsor of the tournament for 5 years from 2008 to 2012. Other year sponsorship agreements include a deal with motorcycle maker Hero Honda worth $22.5-million, one with PepsiCo worth $12.5-million, and a deal with beer and airline conglomerate Kingfisher at $26.5-million.
Promotion
Advertisements across various media platforms. Pitch the tournament as entertainment option rather than just a sport. Sell the cricket as a high involvement reality show that would appeal to all audience. SONY has bagged broadcasting right for 10 years. Advertisement Blue Ocean Strategy- W. Chan Kim Fan Clubs Youngistan Cheer Leaders
Marketing Strategy
The DLF Indian premier league is a concept to sell. It is clearly observed that IPL is a perfect example of controversy marketing
Strategies: Auctioning the franchisees Auctioning the players participating in the IPL tournament. Advertisements on various TV and radio channels. Cheerleaders were one of the most important thing that is talked about, foreign girls attracted huge crowd Worldwide telecast.
Marketing Strategy
Locations: the venue chosen for the cricket matches was a strategic choice of places which are named after franchisees, which helped in attracting people. Conflicts with some media partners and some other cricket boards again demanded the attention of people. Timing: IPL has shown its strategic application of intellect by choosing the evening time for the matches, which made people watch game comfortably. Opening and closing ceremony.
Effect on Indian Economy
Milestones
2007 The Indian Premiere League established by BCCI 2008: IPL SEASON 1 January: The first ever franchise auction fetched $US$723.59 million. Each franchise was auctioned for: Mumbai Indians for $111.9 million, Bangalore Royal Challengers for $111.6 million, Hyderabad Deccan Chargers for $107 million, Chennai Super Kings for $91 million, Delhi DareDevils for $84 million, Kings XI Punjab for $76 million, Kolkata Knight Riders for $75.09 million and Rajasthan Royals for $67 million. A consortium consisting of Indias Sony Entertainment Television network and Singapore-based World Sport Group secured the global broadcasting rights of the Indian Premier League. The record deal has duration of ten years at a cost of US$1.026 billion. Later, the deal was revised in the second season because of a controversy. February DLF bags the title sponsorship rights for IPL for five years at a cost of Rs 40 crore per annum, making the deal worth Rs 200 crore. And Hero Honda bagged the co-sponsor deal for 5 years for Rs 90 lakh.
Milestones
April IPL Season 1 kicks off creating the best marketing cocktail with two key ingredients that Indians are most passionate about: cricket and movies. June During season 1, IPL reached out to 10.24 crore viewers. Kolkata KnightRiders (KKR) and Rajasthan Royals (RR) were the only franchise to make profits. KKR made a profit of Rs 8 crore and RR of Rs 5 crore. BCCI emerged as the most successful marketer with a profit of Rs 350 crore from IPL 1 alone while in 2007 its overall profits were Rs 235 crore. The first season of the great Indian marketing cocktail has been estimated to add Rs 300 crore to the TV advertising pie in 2008. Overall, 482 hours of advertising (in stadia, n screen and commercial breaks) was there in IPL 1. Aircel, a well known telecom brand first started advertising at IPL Season 1. It sponsored Chennai SuperKings. The IPL eyeballs made the brand a household name.
Milestones
2009: IPL SEASON 2 February IPL season 2 began with controversy. SET MAX, the official broadcaster signed on-air deal with Airtel Digital TV as a presenting sponsor for DTH broadcast. Big TV, which paid Rs 137 core as the ground sponsor for IPL, protested the SonyBharti deal and called off its own deal with the broadcaster. The controversy aggravated so much that Multi Screen Media, CEO Kunal Dasgupta resigned and later Sony had to revise its $1.026 billion deal to $1.6 billion in order to keep the broadcast rights. April Another round of controversies were brewing surrounding elections and securities, and thus at the last moment IPL commissioner Lalit Modi decides to take the league to South Africa.
Milestones
Fake IPL Player blog started the same day the IPL 2 tournament. Then written anonymously, the blog became a rage within a few days. According to digital agency Pinstorm, the fake IPL player blog had at its peak, on 26 April with 1.5 crore visitors which is quite good considering that celebrity blogs like Amir Khan was at its peak garnering 1.7 crore visits. The blogger remained anonymous for this season. This was also the season where once again marketing won over the game and thus strategy breaks were introduced after 10 overs of game in each inning to incorporate more advertisers who were keen to get associated with the event. One of the most popular mascot and campaign was launched in IPL season2 which became a huge success in taking the brand further that was the Vodafone ZooZoo campaign.
Milestones
June IPL season 2 has been estimated to add Rs 500 crore to the TV advertising pie in 2009. Overall, 625 hours of advertising (in stadia, screen and commercial breaks) were there in IPL 2. Season 2, reached out to about 12.27 crore TV Viewers. 2010: IPL SEASON 3 March The Fake IPL Player released a book The Gamechangers which was loosely based on the contents of his blogs. The book marketed as a work of fiction and written anonymously. The June 7, 2010 issue of India Today put The Gamechangers at ninth position in the list of Top 10 national bestsellers.
Milestones
Vodafone ZooZoo which became a rage in IPL 2 returned for a new innings in IPL 3. The game crossed another milestone when leading tyre brand MRF paid Rs 15 crore to become blimp sponsor of the tournament. It was the first time in India that a blimp was deployed in a sports event. The brand value of IPL reaches $4.13 billion, according to Brand Finance Report. April IPL 3 saw the daddy of controversies with IPL Chief Lalit Modis suspension.
Milestones
June Despite the controversies, IPL 3 has been estimated to add Rs 700 crore to the TV advertising pie in 2010. In absolute viewer terms, IPL season 3, viewership reach was 14.37 crore. August The Fake IPL Player identity was revealed. He was a marketing professional named Anupam Mukerji based in Bangalore.
Milestones
2011: IPL SEASON 4 January IPL Players auction goes live on TV. For the first time a sports auction is shown live on TV. Marketers pay Rs 50,000 for a 10 second slot, which is five time more than the usual rate for a day time slot. April The IPL Season 3 controversies about transparency and match fixing in the league and suspension of IPL commissioner Lalit Modi, led to a fall in brand IPL and its value stood at $3.67 billion (Source: Brand Finance Report). Top 3 franchise with highest brand values were Mumbai Indians with a brand value of $57.13 million, followed by Chennai Super Kings with $55.37 million and Royal Challengers Bangalore, with a brand value of of $47.58 million
Milestones
June There are about 70 sponsors on board for IPL Season 4 which is a good number considering that many marketers spent a huge chunk on the World Cup which was won by India. Vodafone, Pepsi and Coca-Cola were the most recalled brands on IPL 4 as revealed by a study by Ormax Media. IPL Season4 added about Rs 1000 crore to the TV advertising pie in 2011. For the first time IPL matches streamed live on Internet by Times Internet Limited (TIL), in partnership with YouTube, which resulted taking online viewership of sports to a record 72 million in India.
Major Problems
Controversy about tax exemption A controversy was triggered when the Centre gave away potential revenue of Rs. 45 Crore by granting exemption to International Cricket Council (ICC) on the revenue generated from the recently concluded World Cup Cricket Tournament. Conflicts with the England and Wales Cricket Board Because the inaugural IPL season coincided with the County Championship season as well as New Zealand's tour of England, the ECB and county cricket clubs raised their concerns to the BCCI over players. The ECB made it abundantly clear that they would not sign No Objection Certificates for playersa prerequisite for playing in the IPL.
Major Problems
Conflicts with Cricket Australia The BCCI also experienced run-ins with Cricket Australia (CA) over player availability for Australia's 2008 tour of the West Indies and CA's desire for global protection of their sponsors. Media restrictions Initially the IPL enforced strict guidelines to media covering matches, consistent with their desire to use the same model sports leagues in North America use in regards to media coverage. Notable guidelines imposed included the restriction to use images taken during the event unless purchased from [Link], owned by Live Current Media Inc (who won the rights to such images) and the prohibition of live coverage from the cricket grounds. Media agencies also had to agree to upload all images taken at IPL matches to the official website. This was deemed unacceptable by print media around the world. Upon the threat of boycott, the IPL eased up on several of the restrictions. On 15 April 2008 a revised set of guidelines offering major concessions to the print media and agencies was issued by the IPL and accepted by the Indian Newspaper Society.
Major Problems
Conflict with Cricket Club of India As per IPL rules, the winner of the previous competition decides the venue for the finals. In 2009, the reigning Champions, Deccan Chargers chose the Brabourne Stadium in Mumbai. However, a dispute regarding use of the pavilion meant that no IPL matches could be held there. The members of the Cricket Club of India that owns the stadium have the sole right to the pavilion on match days, whereas the IPL required the pavilion for its sponsors. The members were offered free seats in the stands, however the club rejected the offer, stating that members could not be moved out of the pavilion. Suspension of Lalit Modi On 25 April 2010, the BCCI suspended Lalit Modi, the IPL chairman, for "alleged acts of individual misdemeanors". Chirayu Amin, an industrialist and head of the Baroda Cricket Association, was named interim chairman of the IPL by the BCCI, following Lalit Modi's suspension.
Major Problems
Termination of the Kochi franchise On September 19, 2011, the newly elected BCCI president N Srinivasan, after the annual general meeting in Mumbai, announced that the Kochi Tuskers Kerala IPL franchise was terminated by the BCCI for breaching its terms of agreement. Under the terms of the agreement, each franchise has to submit a bank guarantee every year that covers the fee payable to the BCCI. The consortium that owns Kochi is reported to have defaulted on an annual payment of 156 crores as a bank guarantee. 2012 spot fixing case On 14 May 2012, an Indian news channel India TV aired a sting operation which accused 5 players involved in spot fixing. Reacting to the news, BCCI president Rajiv Shukla immediately suspended the 5 uncapped players.
Why IPL was a success ?
1. Shorter duration 2. Prime time 3. International players 4. Celebrity endorsement 5. Cricket as an entertainment package 6. City loyalties 7. BCCIs baby
Remarkable Achievements
Emergence of Brand India. Emergence of a business within cricket, thus generating more scope for business. Better opportunity for Indian players to showcase themselves, which was earlier limited to only 11 players. Boost for Advertising industry by IPL alone Rs.300 Cr.
Opportunities
1. More involvement of players from England and Australia in the next edition will add to the excitement. 2. Increasing the limit on the maximum number of overseas players in every team should further raise the tournaments standard. 3. Marketing of the first edition was primarily India-centric; from the next edition onwards, better international marketing should increase overseas viewership. 4. New IPL teams, sale or equity participation of existing teams, will add to the excitement. 5. Player trading will be allowed from the next year; this would add a new dimension to the tournament. 6. Better coordination with other countries cricket boards will ensure that other international tournaments do not clash with IPL.
Conclusion
The whopping success of IPL has ensured that most of the teams reached the break in the first year itself. In all, IPL will bring revenue of Rs 1,200 crore a year into cricket, more than double the governments entire sports budget of Rs 490 crore. Ad rates for 10-second spots, which were at Rs 2 lakh per 10 seconds at the start of the tournament are set to rise further to Rs 10 lakh for the final. From this we can conclude that IPL is now a global event and it has taken cricket to the next level. Some criticize by saying that players are playing only for money and they dont feel that they should play for the country. In spite of having some negative point of IPL, there are many advantages. So looking at positive side we can say that IPL is becoming a global event. Now Indian economy is growing at a rapid pace, so much that people from all over the world are now looking towards India.
Thank you