ipl-business_model final

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

ipl-business_model final

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