TEAM- IIBM INDIANS

Mushkurul

Kishor

Rohit

Praful

Sachin

Pratik

Sandip

Deepak

Yashwant

Akshay
 INTRODUCTION
• Indian Premier League or IPL a total package containing
cricket and entertainment organized by BCCI.
• Brainchild of Mr. Lalit Modi, Former President IPL.
• Launched on 14th September 2007 by BCCI on the line
of Footballs English Premier league (EPL).
• DLF secured exclusive rights for IPL title sponsorship at
Rs. 200 Cr. For 5 years.
• Professional twenty20 cricket league created and
promoted by BCCI and backed by ICC
• Ranked 22nd as the most innovative product
launched(FORBES)
 About Teams
• The IPL teams were auctioned on 24th January
2008.
• Eight teams were build up according to the regions
of India.
 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 Crores
Lalit Modi and IPL Financial Scandal
 BCCI charges Modi with 5 scams
SCAM 1:-
Its relates to Timeouts introduced by Modi in
IPL2. In IPL 2, 600 seconds of extra time were
introduced as strategic timeouts. Strangely for rest
of world rights, contract did not include these 600
secs. BCCI alleges Modi caused loss of revenue
worth Rs 29 crores to Board.
SCAM 2:-
The 2nd scam is the Advertisements within
Balls scam. Lalit Modi introduced the idea of 150
seconds of ads within balls. Modi handed this
without tender to Pioneer Digagsis run by former
Sony chief Kunal Dasgupta. BCCI alleges Modi
indulged in favouritism hurting Board's interests.
SCAM 3:-
Media Rights Worth Rs. 425 crores
Multi Screen Media (MSM), holds the telecast rights for the IPL which it
bagged for $1.02 billion for 10 years in 2008. The deal was later scrapped by
the BCCI, which renegotiated with MSM for a nine-year deal for $1.63
billion. Tax sleuths are focusing on a “facilitation fee” of $80 million (about
Rs 356 crore) which MSM paid the Mauritius arm of World Sports Group,
the marketing agency of the IPL. MSM says the fee was paid to WSG to give
up its broadcast rights for the Indian subcontinent, thus paving the way for
the BCCI and MSM to enter into a direct deal. The suspicion is that the
money was routed back to India to be paid as kickbacks to top people
associated with the IPL
 Unanswered Financial Irregularities

• Why should a Mauritius based company hold Rs

5000 crores of TV value without paying a single
penny in advance?
• Why was the bank guarantee of Rs 350 crores that
was supposed to be given by WSG on March 23rd,
2009, never paid?
• How did Mauritian company walk away with Rs 425
crores?
• SCAM 4 :-
The fourth scam is being called the
Security van scam. IPL awards contract to Visual
Impact headed by Ajay Verma. Contract is to
supply 3 vans at Rs 5 crores. Contract further said
4 more vans to be provided over next 7 years.
BCCI alleges Modi did not follow due process
while awarding contract. BCCI alleges Modi hired
IPL security vans at 3 times their market value.
SCAM 5:-
An amount of Rs 76 crore and 22 lakh through
sale of hospitality tickets for the final (on April 25), the
third place tie (held on April 24) and the two semifinals
(all held in Mumbai) is unaccounted for.
Only 30,000 tickets for the final have been accounted
for while the stadium (D Y Patil Stadium) was packed to
capacity as everyone had seen and it can hold 52,000
people. Over 20,000 tickets are unaccounted for.
 Other Financial irregularities
• The Income Tax department has received financial
details of more than Rs 150 crore in overseas
accounts from some tax haven countries of "non-
residents" who invested in the IPL. 
• There is an intricate share holding and investments
pattern in the various franchises which have routed
the money in the IPL through tax havens and
sending money in companies there.
• The bid documents reveal huge funding by NRIs in
various IPL franchises. But the documents do not
reflect the entire financial details of these
individuals.
 Conclusion

• Business scams clearly violate business ethics.

• Scams exploit typical human qualities such as
greed, dishonesty, vanity, honesty,
compassion, credulity & irresponsibility.
• “Honesty Is The Best Policy”