ipl-business_model final
TRANSCRIPT
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8/7/2019 IPL-Business_Model FINAL
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By
Jeeta Master - 19Mahesh Balasubramanium - 24
Nipun Doshi - 28
Rupali Karhadkar - 38
Sneha Kolambkar - 42
Sreejish Nair - 43
Reviewing Business of
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Agenda
Business Objective
Features of IPL
Business Model International Perspective
EPL Case Study
Financials
Future business
Business Risk
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Value Proposition
Talent Development
Sports Entertainment
Business Objectives
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Features of IPL
- BCCIs property Approved by ICC
- IPL A Commercial blockbuster
- Building glitzy leagues
- Setting up a Cameo
- Asset creation of approx US$ 4bn
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Business Model - IPL
- Building Team Fidelity
- Privatisation of the Game
- No early elimination. Less marketing risk
- Auction/Bidding
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International
Perspective
Analyzed the business models of various clubs from the
English Premier League.
Owns the stadiums and heavy investment.
High community involvement and offer training facilities.
Growth in revenues is largely dependant on the on field
performance.
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Case Study EPL
- Total 20 teams. Top five teams qualify for the Europeancup.
- As per analyzing few teams:
35% revenues are from gate receipts
30% from media
25% from sponsorships
- The revenue break-up is similar yet depends on the
popularity of the club .
- Concept of trading players exist.
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Broadcasting
Angle- TV rights sold at US $ 1.02 bn to SONY- WSG
- Strong TRPs inflating Ad rates
- Limited Capital Expenditure
- Increasing Subscription Revenues
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Impact of IPL on
MEDIATV GEC Telecast at prime time slot of 8-11 pm.
IPL to cause a dent in the ratings & revenues of GEC
Box Office Negative rub off on the revenues of movies at the box
office.
Multiplex operators telecast the semi-finals and finals
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FranchiseCash Flows The Business of Sport
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Revenues and Expenses IPL
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Analysing Champions of the
Champions
Revenues Stadium for 7 matches :
20% of the tickets offered to the local cricket associations.
Of the total 72 in-stadia boards: 6 are for local franchises
6 is for main team sponsor
Remaining boards generate approx Rs 0.8mn/board
Aircel is the lead sponsor (approx US $150mn).
Players make appearances for the franchises for 10 days (8
hours/day)
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Future of the Business - Growth in International Leagues
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Business risks
- Money laundering
-Transparency in ownership
-Rift within the national team
-Betting & match fixing
-Loss of fitness & focus of players
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BCCI
Huge Revenues
frombroadcasters,
sponsors and
franchisees
Strengthened
position in ICC