Presented by: TOPIC :

TO PIC
Pawan Kumar IPL is a
MBA-1st Business or
Roll No.5721 Game
 INTRODUCTION
The Indian Premiere League is a Twenty20
cricket competition initiated by Board of Control
for Cricket in India (BCCI) and supervised by Lalit
Modi,former Chairman and Commissioner for IPL.

India's biggest property developer DLF Group paid US$50

million to be the title sponsor of the tournament for 5
years from 2008 to 2013.

It Include 8 teams or “franchises”, consisting of

player of different countries. On March 21st 2010 it
was announced that 2 new teams from Pune and
Kochi will be added to the IPL from next season.

The three season have already played in 2008, 2009 and 2010.
 BIRTH OF AN IDEA

Inventive mind of Lalit Modi

Initiative and promoted by
BCCI and backed by ICC
On the line of EPL and NBA
 LEAGUE ORGANISATION
 Franchises
 Teams
 Rules
 Auction of Players
 FRANCHISES
The winning bidder for the eight franchises were
announced on 24 January 2008. While the total base price
for auction was US $400 million, the auction fetched US
$723.59 million.

On 21 March 2010, Pune and Kochi were unveiled as the

two new franchises for the fourth edition of the Indian
Premier League. The base price was $225 million. While
Pune was bought by Sahara Adventure Sports Group for
$370 million, the Kochi franchise was bought by
Rendezvous Sports World Limited for $333.3 million
 Kolkata Knight Riders
OWNER : - Red Chillies Entertainment Pvt. Ltd :55.8 %
The Sea Island Investment Ltd. (owned
by Jai Mehta) :25.1 %
Juhi Chawla : 20.1 %
CAPTAIN : Gautam Gambhir
COACH – John Buchanan (Australia)
SPONSORS – HDIL, Nokia, Tag Heauer, Belmonte, The Telegraph, Sprite
BRAND AMBASSADORS – SRK, Juhi, Arjun Rampal, Sajid Khan, Farah Khan
HIGHEST PAID PLAYER : - Gautam Gambhir - ($2.4 m)
BRAND VALUE : $ 46 million

Owner:
Shahrukh Kahan Captain:
Gautam Gambhir
 RAJASTHAN ROYALS

Owners : Tresco International Ltd (Suresh Chellaram Family) - 44.1 %

Emerging Media Ltd (Manoj Badale )- 32.4 %
Blue Water Estate Ltd (Lachlan Murdoch )- 11.75%
Kuki Investments Ltd (Raj Kundra & Family) - 11.75 %
CAPTAIN : Shane Warne
COACH – Shane Warne (Australia)
SPONSORS – Kingfisher, Boost, Puma, Ultratech Cement
BRAND AMBASSADORS – Shilpa Shetty, Ila Arun ,Raj kundra
BRAND VALUE is : 41.9 million

Owner:
Captain:
Suresh Chellaran,
Shane Warne
Raj Kundra
 Deccan Chargers
OWNER : - Deccan Chronicle Holdings Ltd (100 %)
CAPTAIN : Kevin Pitersan
COACH – Darren Lehman (Australia)
SPONSORS – Deccan Chronicle, Odyssey, Puma, Kingfisher Airlines, Mc
Dowells, Big 92.7FM, Pepsi, Wrigley’s Boomer
BRAND AMBASSADORS – Hansika Motwani
HIGHEST PAID PLAYER : - Dale Steyn - ($1.2 Million)
BRAND VALUE : $34.4 million

Owner: Captain:
Gayatri Reddy Kevin Pitersan
 Delhi Daredevils
OWNER : - GMR Sports Private Ltd - 51 %
G M Rao- 13 %
Srinivas Bommidala - 12 %
G B S Raju - 12 %
G Kiran Kumar - 12
CAPTAIN : Virendar Sehwag
COACH – Greg Shipperd (Australia)
SPONSORS – Hero Honda, Kinfisher Airlines, Royal Challenge, Coca Cola, Adidas,
104FM, Wrigley’s Orbit
BRAND AMBASSADORS – Akshay Kumar
HIGHEST PAID PLAYER : - Irfan Pathan - ($1.9 Million)
BRAND VALUE : $ 40.5 million

Owner:
Captain:
G.M. Rao
Virendar Sehwag
 Chennai Super Kings
OWNERS : - India Cements (100 %)
CAPTAIN : MS Dhoni
COACH – Stephen Fleming (New Zealand)
SPONSORS – India Cements, Coromandel, Aircel, Reebok, Peter England,
Nivea, 7UP, Big Bazaar, 9 Cloud
BRAND AMBASSADORS – Vijay, Kris Srikkanth, Nayantara
BRAND VALUE : $48.4 million
HIGHEST PAID PLAYER : - MS Dhoni($1.8 Million)

Owner: Captain:
N.Shriniwasan MS.Dhoni
 Royal Challengers Bangalore
OWNER : - UB Group (Vijay Mallya)
CAPTAIN : Virat Kohali
HIGHEST PAID PLAYER : - Viral Kohli ($ 1.8 million)
COACH – Ray Jennings (South Africa)
SPONSERS – Royal Challenge and other UB brands like McDowells and
Bagpiper.
BRAND AMBASSADORS – Katrina Kaif, Deepika Padukone, Ramya and
Upendra.
BRAND VALUE : $ 41.9 million

Owner: Captain:
Vijay Mallaya Virat
Kohali
 Mumbai Indians
OWNER : - Reliance Industrial Investments and Holdings Ltd (98.3
%)
Teesta Retail (1.7 %)
CAPTAIN : Sachin Tendulakr
COACH – Shaun Pollock (South Africa)
SPONSORS – Idea Cellular, Pepsi,
BRAND AMBASSADORS – Hrithik Roshan, Saif Ali Khan, Kareena
Kapoor, Anil Kapoor
HIGHEST PAID PLAYER : - Rohit Sharma - ($2 Million)
BRAND VALUE : $ 40.1 million
Captain:
Owner: Sachin Tendulakr
Nita Ambani
 Kings XI Punjab
OWNER : - Preity Zinta (23 %)
Ness Wadia (Joint Managing Director, Bombay Dyeing) (23
%)
Colway Investments Ltd (23 %)
Windy Investments Pvt. Ltd (11.5 %)
MB Finmart (new name of Dabur Inv Corp) (11.5 %)
Karan Paul (Chairman, Apeejay Surendra) (4 %)
Root Investment Pvt. Ltd (4 %)
CAPTAIN : Adam Gilchrist
SPONSERS – Spice Telecom, 9X, Provogue, Kotak, Foster’s, Coca Cola
BRAND AMBASSADORS – Daler Mehndi
HIGHEST PAID PLAYER : - David Hussey - ($1.4 Million)
BRAND VALUE : $31.6 million
Owner: Captain:
Pritty Zinta Adam Gilchrist
 Kochi Bruisers

OWNERS : Rendezvous Sports World (26%)

Parinee Developers (26%)
Anchor Earth (27%)
Film Waves (12%)
Anand Shyam (8%)
Vivek Venugopal (1%)
CAPTAIN AND COACH : Not decided
SPONSERS : Italian sportswear brand Lotto
HIGHEST PAID PLAYER : Mahela Jayawardene ( $ 1.5 m)
 Sahara Pune Warriors

OWNER : Sahara Sports Adventure Ltd.

CAPTAIN : Yuvraj Singh
SPONSERS : Addidas
HIGHEST PAID PLAYER: Robin Uthappa( $2.1 m)
 RULES
Minimum squad strength of 16 players plus one
physio and a coach.
No more than 10 foreign players in the squad and at
most 4 in the playing XI.
As this is domestic cricket so minimum of 8 local
players must be included in each squad.
A minimum of 2 players from the BCCI under-22 pool
in each squad.
 Auction of Players
The players of each IPL team are chosen
through an open auction with individual
player being put up for bidding by the
franchises and the highest bidder
becomes the buyer. Each player in the
auction pool has a bidding base price
under which franchise owners could not
bid
 Selling Price of Players In 2011
Player Name Country IPL Team Price(In $)
Gautam Gambhir India Kolkata Knight 2400000
Riders
Yusuf Pathan India Kolkata Knight 2100000
Riders
Robin Uthappa India Pune Warriors 2100000
Rohit Sharma India Mumbai Indians 2000000
Irfan Pathan India Delhi Daredevils 1900000
Yuvraj Singh India Pune Warriors 1800000
Virender Sehwag (retained) India Delhi Daredevils 1800000
Virat Kohli (retained) India Royal Challengers 1800000
Bangalore
Shane Warne (retained) Australia Rajasthan Royals 1800000
Sachin Tendulkar (retained) India Mumbai Indians 1800000
 How does IPL make money?
Auction of broadcasting rights
Title sponsorship and corporate
sponsorship
Sale of tickets (20% of tickets allocated to
IPL)
Auction of franchisees rights
Sponsorship Umpire Uniform By
Kingfisher
Cloud 9 Official Energy Drink Partner Of
IPL
 Sources of Income for an IPL Franchisee

Share in revenue from broadcast rights.

Share in sponsorship money (60% of the
amount distributed equally)
Share in revenue from sale of tickets
Revenue from in-stadium advertising
Sale of players to other franchisee
Revenue from own sponsorship and
corporate sponsorship
How is the Franchisee income distributed?

Franchisee fees – 10% of total franchisee

costs every year to IPL
Players’ cost
Match fees and Inauguration expenses
Rent of stadium
Marketing and promotional cost
Fee for coaches, physiotherapists and other
members.
Administrative cost
REVENUE FLOW
 All Teams Make Profit
• The second season that concluded on 24
May 2009 was hugely profitable for the IPL
compared to the previous edition. In the
2009 season all the franchises made a
profit.
Franchise Revenues (Rs. Crores)
Mumbai a. Broadcasting Rights - 67.5
Indians b. Team Sponsors - 24
c. other income - 14
d. prize money - 0.5
Total Revenues - 106
Royal a. Broadcasting Rights - 67.5
Challengers b. Team Sponsors - 24
Bangalore c. other income - 13.5
d. prize money - 2.25
Total Revenues - 107.25
Deccan a. Broadcasting Rights - 67.5
Chargers b. Team Sponsors - 24
c. other income - 13.5
d. prize money - 4.5
Total Revenues) - 109.5
Chennai a. Broadcasting Rights - 67.5
Super Kings b. Team Sponsors - 24
c. other income - 18.5
d. prize money - 1.2
Total Revenues - 111.2
Expenses (Rs, Crores) Profit/Loss
(Rupees Crores)
a. Franchise Fees - 51.5 Net profit -
b. Team Expenses - 20 7
c. other expenses - 27.5
Total Expenses(a+b+c) -99
a. Franchise Fees - 51.6 Net profit -
b. Team Expenses - 20 8.15
c. other expenses - 27.5
Total Expenses(a+b+c) - 99.1
a. Franchise Fees - 49.2 Net profit -
b. Team Expenses - 20 14.8
c. other expenses - 25.5
Total Expenses(a+b+c) - 94.7
a. Franchise Fees - 41.9 Net profit -
b. Team Expenses - 20 21.8
c. other expenses - 27.5
Total Expenses(a+b+c) - 89.4
 Delhi a. Broadcasting Rights - 67.5
Daredevils b. Team Sponsors - 24
c. other income - 14.7
d. prize money - 1.2
Total Revenues - 107.4
Kings XI a. Broadcasting Rights - 67.5
Punjab b. Team Sponsors - 24
c. other income - 14.3
d. prize money - 0.8
Total Revenues - 106.6
Kolkata a. Broadcasting Rights - 67.5
Knight b. Team Sponsors - 24
Riders c. other income - 18.9
d. prize money - 0.4
Total Revenues - 110.8
Rajasthan a. Broadcasting Rights - 67.5
Royals b. Team Sponsors - 24
c. other income - 14.2
d. prize money - 0.7
Total Revenues - 106.4
Other incomes include gate receipts, in-stadia advertising, merchandise sales, and media tie-ups
Other expenses include stadia fees, travel, stay cost and team promotion
Source: IIFL Research
a. Franchise Fees - 38.6 Net profit -
b. Team Expenses - 20 23.3
c. other expenses - 25.5
Total Expenses(a+b+c) - 84.1
a. Franchise Fees - 35 Net profit -
b. Team Expenses - 20 26.1
c. other expenses - 25.5
Total Expenses(a+b+c) - 80.5
a. Franchise Fees - 34.5 Net profit -
b. Team Expenses - 20 25.8
c. other expenses - 30.5
Total Expenses(a+b+c) - 85
a. Franchise Fees - 30.8 Net profit -
b. Team Expenses - 20 35.1
c. other expenses - 20.5
Total Expenses(a+b+c) - 71.3
 Effects of IPL
The rising popularity of 2010 IPL merchandise,
makes the event all the more special. Do opt to shop
online for 2010 IPL merchandise and buy a wide
range of IPL jersey, IPL T-shirts, team specific Caps,
Bags, Bottle Chiller, gym bags, horns, bandana and
others from brands such as Adidas, Reebok, Puma
Ocean bed and Genesis.

According to the internet reports of media research by Television Audience

Measurement (TAM), 38% of all IPL viewers this time around are from female
category, which stands at around 6.68 million. This lot of female viewers was a
tad lower at 34% during the IPL Season 2, during previous year.
 Effects of IPL
More recently, to add buzz to the IPL Season
3, many fashion shows, IPL-based shows and
post-match parties have been organized in
T20 format matches scheduled after the
match event.

It was the first sporting event ever to be broadcast live on the popular
video sharing website Youtube.
 Reasons to Succeed
The IPL matches will be played on a Twenty20 cricket format
and is by far, the shortest form of the game.
Huge amounts of money are involved.
The best of the best players participate in the IPL tournament.
Impressive team colors.
Retired players can play.
Enemies become friends and friends become Enemies
Luck matters a lot
Involvements of different popular actor and actress.
 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
 IPL as a Game
It is a business for investors but game
for every cricket lover. It is an Platform
for young Indian cricket talent.
CONCLUSION
Th
ank
Yo
u