A Project Report on Ipl

8/11/2019 A Project Report on Ipl

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A

Project Report

On

INDIAN PREMIER LEAGUE (IPL)

Submitted By

B AR!I SIDD AR!B"! #rd $EAR (%&&' %& &)

Ro** No +

IN PAR!IAL "UL"ILLMEN! O"

BA, ELOR O" "OREIGN !RADE

UNI-ERSI!$ O" PUNE. MI!SOM ,OLLEGE PUNE/ 0

1


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CERTIFICATE

This is to certify that Mr2 B AR!I SIDD AR! of MAEERs MITSOM College

has successfully completed the project wor titled I!"IA! #REMIER $EA%&E

i' partial ful(llme't of re)uireme't for the award of *achelor of *usi'ess

Admi'istratio' prescri+ed +y the &'i,ersity of #u'e

This project is the record of authe'tic wor carried out duri'g the academic

year -../0-.1.

-


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DECLARATION

I, Mr. _BHARTI SIDDHARTH hereby declare that this project is the record of authentic

or! carried out by "e durin# the acade"ic year $%%& ' $%(% and has not been

sub"itted to any other )ni*ersity or Institute to ards the a ard of any de#ree.

BHARTI SIDDHARTH

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A,3NO4LEDGEMEN!S

I would si'cerely li e to tha' all my teachers a'd faculty mem+ers whodirectly a'd i'directly helped me to ma e this project

The successful completio' of this project would 'ot ha,e +ee' possi+le

without the

%uida'ce of our su+ject teacher Mr2-5ib657 8o96i a'd support of the sta3

mem+ers of *achelor of 4oreig' Trade 5*4T6 departme't of MITSOM College

I am also grateful to Bri:2 Dr2 R23 B65ti5 5pri'ciple MITSOM College6 for

arra'gi'g all academic schedules I would lo,e to tha' all my frie'ds who

ha,e +ee' e7tremely supporti,e a'd e'couragi'g a'd last +ut 'ot the least

my pare'ts

T h a ' y o u 8

B A R! I S I D D A R!

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INDEX

SR NO. CONTENT PAGE1. AIM 62. HISTORICAL

BACKGROUND

7-8

3. IPL TEAMS 9-134. IPL BUSINESS

CONTRO ERS!

14

". IPL # THE CASE FOR

MANAGEMENT

STUDIES

1"-19

6. S$OT ANAL!SIS 2%-227. FINANCIAL

PERSPECTI E

23-26

8. IPL- 1 &S IPL-2

'()*+*, *, */0)(*

27-33

9. FUTURE 341%. RISKS TO IPL 3"11. CONCLUSION 3612. BIBLIOGRAPH! 37

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HISTORICAL BACKGROUND

The Board of ontrol for ric!et in India -B I , the ape/ #o*ernin# body for cric!et inIndia launched the Indian 0re"ier 1ea#ue after a bitter ri*alry ith 2ee3s Indian ric!et1ea#ue -I 1 . I01 as launched on (4th Septe"ber $%%5. This as the brainchild of Mr.1alit Modi ho "ade the for"at of I01 on the lines of football3s 6n#lish 0re"ier 1ea#ue-601 and bas!etball3s 7ational Bas!etball 1ea#ue -7BA .

I01 is a professional T enty$% cric!et lea#ue created and pro"oted by the B I and bac!ed by the International ric!et ouncil -I , an international #o*ernin# body ofcric!et. The B I as instru"ental in settin# up a #o*ernin# council to run the I01 as a*irtual co"pany. The I01 #o*ernin# council ill ha*e fi*e


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MAN BEHIND IPL

1alit Modi is the scion of )S8(.9bn -"ar!et cap Modi 6nterprises. He is also the6/ecuti*e Director of :odfrey 0hilips India 1td., a lar#e ci#arette co"pany. Mr. 1alitModi beca"e the ;ice


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B 5 ,* Ban#aloreRoyalhallen#ers

)B :roup-;ijay Malaya

111.6

M 5) ?in#s C(0unjab

0reity 2inta, 7ess adia,?aran 0aul andMohit Bur"an

76

C * ) hennai Super?in#s

India e"ents 91

K 5: 0 ?ol!ata ?ni#htRiders

Red hillies6ntertain"ent

7".%9

H; = ) Mu"baiIndians

RelianceIndustries 1i"ited

111.9

D*5 ) DelhiDarede*ils

:MR Holdin#s 84


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1 B 5 ,* R ; 5 C 55* *, - The Ban#alore tea" as bou#ht by ;ijayMallya3s )B :roup for 8(((.E "illion to o n the tea" for (% years. FIcon player3Rahul Dra*id is the captain of Ban#alore Royal hallen#ers. Tea" India3s

bo lin# coach, ;en!atesh 0rasad is the coach of the tea".

2 K) X1 P> ? = - The Mohali tea" as bou#ht by Bolly ood di*a 0reity 2inta,her industrialist beau 7ess adia, alon# ith reno ned industrialists ?aran 0aul andMohit Bur"an for 85E "illion for a period of (% years. FIcon player3 Gu*raj Sin#h isthe captain of ?in#s CI 0unjab. Australia3s To" Moddy is the coach of the tea".

3 C * ) S> *, K) - The hennai tea" as bou#ht by India e"ents for 8&("illion to o n the tea" for (% years. Tea" India DI and T$%s!ipper MahendraSin#h Dhoni is the captain of hennai Super ?in#s. or"er South Africa cric!ettea" captain ?epler essels is the coach of the tea".

4 K 5: 0 K ) 0 R)


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TEAM COMPOSITION

6ach tea" of I01 has a "ini"u" of (E players of ho" = can be international - as

raised to (% players in season $ , 4 players need to be re#ional and also 4 players need to be under


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MORE ON IPL

T)05* S , ) R) 0 - n ebruary (@ $%%=, Indian real estate de*eloperD1 )ni*ersal secured e/clusi*e ri#hts to the I01 titlesponsorship orth Rs $%%crore -o*er 89% "illion for fi*e years.

T*5*() ) R) 0 - n


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IPL # THE BUSINESS CONTRO ERS!

The I01 is a "iracle in the orld of cric!et. e ha*e e/perienced the drastic chan#es in

cric!et after the e*olution of ne concept, i.e. T enty$% cric!et. 1alit Modi brou#ht outthis drea" concept to reality. Business ontro*ersy is the situation here in ne entrantin the "ar!et co*ers up the entire field and establishes itself as a ne brand in a *eryshort span of ti"e affectin# the e/istin# ones directly or indirectly. ontro*ersy could bean a"a+in#ly lo cost "ar!etin# tool that "a!es for the pheno"enal "edia co*era#e andcan be *ery effecti*e if "ana#ed ell. It reaches the "inds of the "asses and is ofi""ense help in eli"inatin# the odd dose of ad*erse publicity in the short ter". The D1I01 entered the "ar!et ith hu#e a"ount of "oney and *arious !no n celebrities. Theattention of the people as #rabbed by these t o factors and hence all the contro*ersiessurroundin# it in the first lea#ue li!e "edia boycott and *arious other cric!et boards li!e

6 B did not #ain any i"portance in the "indset of a *ie er. 1et us see ho I01 is thecase for "ar!etin# contro*ersy.

Mar!etin# contro*ersy either ay, the end result is unparalleled co*era#eK residual

a areness of your product, hich later "ost definitely translates into brand recall, and

e*en sales. Business contro*ersy is the situation here in ne entrant in the "ar!etco*ers up the entire field and establishes itself as a ne brand in a *ery short span of ti"e

affectin# the e/istin# ones directly or indirectly. ontro*ersy could be an a"a+in#ly lo

cost "ar!etin# tool that "a!es for the pheno"enal "edia co*era#e and can be *eryeffecti*e if "ana#ed ell it reaches the "inds of the "asses and ill be of i""ense help

in eli"inatin# the odd dose of ad*erse publicity in the short ter".

I01> the D1 Indian pre"ier lea#ue is a bi# dra"a hich has in*ol*ed hu#e a"ount of"oney and intellectual capital. In the first ee! of April$%%=, , Indians o!e up toheadlines screa"in# that the ne ly launched Indian 0re"ier 1ea#ue could, ell, face atotal "edia boycott ' an unthin!able situation in a country here cric!et is not a sport buta reli#ion.

The I01 has entered the cric!etin# business throu#h *arious contro*ersies>

The contro*ersies ith "edia about the photo#raphs L ith other cric!et boards li!eAustralia, 7e 2ealand and 6n#land for si#nin# their players and county cric!et. Thishelped I01 to #et the "edia co*era#e and people3s thou#ht.

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IPL # THE CASE FOR MANAGEMENT STUDIES

1et us ta!e a loo! at I01 as the "ana#e"ent case. This ould be discussed ith reference

to the functional areas of "ana#e"ent *i+.

M ,:*0) * * 0

F) /* * * 0

P, /0) * * 0

H> ,* >,/* * * 0

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MARKETING MANAGEMENT

A>/0) ) 0 * @, / ) ** > the first step of #i*in# franchisees to so"e bi##uns in India li!e Mu!esh A"bani, Shahru!h ?han, ;ijay Mallya and the

li!es, hich fetched hu#e public attention and helped creatin# curiosity intheir "inds.

A>/0) ) 0 * 5 ;*, ,0)/) 0) ) 0 * IPL 0 >, * 0 > B I has notlet any "ar!etin# strate#y #o do n they announced the a"ounts for players

by as!in# a bid by so"e sponsors, players li!e Mahendra Sin#hDhoni,S.Shrisanth, R.0.Sin#h, Sachin Tendul!ar, Soura* :an#uli, RahulDra*id called for a hu#e a"ount, that e*entually #a*e the I01 a publicitystunt.

C **,5* one can3t deny the fact that cheerleaders are one of the "ost

i"portant factors influencin# the people to co"e atch the #a"e.

$ ,5


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FINANCIAL MANAGEMENT

The in*est"ent decision in I01 by The Board of ontrol for ric!et in India-B I is a darin# financial decision hich re uired da"n financial plannin#.

The return on in*est"ent calculation ould ha*e #i*en the proper idea of thefinancial plannin#

I01 has collected the hu#e "oney thorou#h sponsorships to tea"s and players,telecastin# ri#hts, ad*ertise"ent banners and hoardin#s, and other allied acti*ities.6*en s"all aspect related to the I01 has beco"e the product for I01 and fetchedthe "oney. This re uires the "ana#e"ent of funds co"in# in and #oin# out,analysis of rise and fall in actual re*enue and e/pected re*enue. urther plannin#for funds and bud#etin#. Allocation of the funds to franchisees L players,

pay"ent of a#es, etc. are the financial acti*ities. These re*enues #enerated fro"sponsorships and other acti*ities fall under the entral 0ool, 4%J of hich ill#o to I01, 94J distributed to franchisees and EJ to pri+e "oney. The "oney ill

be distributed in these proportions till $%(5, after hich the share of I01 ill be9%J, franchisees 49J and pri+e "oney 9J.

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HUMAN RESOURCE MANAGEMENT

ne can i"a#ine ho "uch hu"an capital is re uired to "a!e this e*ent ahappenin#.

B I has been efficient and effecti*e or#ani+ation for "ana#in# the hu"anresource. 1abors li!e #rounds "en, security #uards, Mana#ers and other hu"anfactors e*eryone has been #i*en the special attention and has been "ana#edeffecti*ely by B I.

ne can3t deny the relationship "ana#e"ent is the i"portant aspect in today3s business scenario, there is no need to #i*e any e/planation on B I3s relationsith all parties in*ol*ed in the I01.

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S$OT ANAL!SIS

STRENGTHS

The Indian 0re"ier 1ea#ue -I01 is based upon the T enty$% cric!et #a"e hichshould be co"pleted in $ hours. That "eans that is fast paced and e/citin#, and"oreo*er it can be played on a ee!day e*enin# or ee!end afternoon. That"a!es it *ery appealin# as a "ass sport, just li!e A"erican ootball, Bas!etballand Soccer. It is appealin# as a spectator sport, as ell to T; audiences.

The I01 has e"ployed econo"ists to structure its lead so that re*enue is

"a/i"i+ed. The "ore unified the sport, the "ore successful it is.

$EAKNESSES

T enty$% has been so popular that it could replace other for"s of cric!et i.e.da"a#e the #a"e that #enerated it.

So"e fans ill also ha*e to pay for tra*el to the #round. There "ay be lar#eueues for the "ost popular #a"es. There "ay be so"e distance bet een herethe fan li*es and the cric!et #round.

Sta!es are *ery hi#hN So"e tea"s "ay not eather short ter" failures and "ay be too uic! to #et rid of !ey "ana#ers and players if thin#s donOt #o ell uic!ly.a"ously, Royal hallen#ers Ban#alore -R B sac!ed their 6 haru Shar"afor atchin# his tea" lose E fro" their first = #a"es.

So"e tea"s ha*e o*erpriced their ad*ertisin#Psponsorship in order to #ain so"eshort ter" returns -e.#. Royal hallen#ers , and so"e sponsors and are "o*in#their in*est"ent the "ore reasonably priced tea"s.

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$H! IPL IS TERMED AS ONE OF THE MOST SUCCESSFUL SPORTSLEAGUE IN THE $ORLD

It has penetrated in the entertain"ent industry as Manoranjan ?a Baap. Major fil"s and T; pro#ra""es are not scheduled to coincide ith the I01 as it ill

brin# hu#e losses. 6ach and e*ery associate of I01 has benefited fro" it.

Mar!et share of sponsors ha*e e/perienced #ood results. In the second edition2oo+oos of ;odafone ha*e created a hole ne "ar!etin# challen#e for ;odafone3s ri*als.

There is a hole ne #enre created. irst, it as the DI orld cup hich ca"eonce in 4 years. But, I01 is to be played e*ery year and thus the e/cite"ent hasli*ed on.

Sony 6ntertain"ent Tele*ision has trebled their TR0s.

The "edia co*era#e of I01 has been pheno"enal.

Mi/ture of ric!et and 6ntertain"ent, t o of the "ost fa*ourite past ti"es of Indian population.

--


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FINANCIAL PERSPECTI E

OPENING DOORS TO NEXT BIG MEDIA MO EMENT

Indian 0re"ier 1ea#ue ushers in a ne era of "ar!etin# of sports in India. e ta!e thisopportunity to analy+e I01 and co"pare it ith lea#ues li!e 601 and I 1 -Indian ric!et1ea#ue .

I01 already a )S8$bn property, is essentially an atte"pt to sell cric!et as a reality sho .reation of club culture ' ould be !ey to its success. 7e*ertheless I01 pro*ides a neentertain"ent #enre hich cuts across classes.

So"e of the franchisee ould loo! at I01 as a "eans to pro"ote their brand -)B #rouphile the others ould loo! it as a financial in*est"ent e.#. -India e"ents .

The concept is yet to e*ol*e and re*enues strea"s thou#h difficult to predict ould be

nu"erous. ur belief is that the three successful tea"s could easily do re*enues of Rs@bn per year in the ne/t three four years and all the tea"s are li!ely to turn profitable aftert o three years. Their 0Ms could ran#e fro" (9 $%J.

BROADCASTING ANGLE

The B I created history hen it sold tele*ision ri#hts of this yet untestedfor"at to Sony' orld Sports consortiu" for )S8(.%$bn. Ho e*er, of this)S8(.%$bn, )S8(%="n is to be spent by Sony on pro"otin# the e*ent o*er the ne/t (%

years. This brin#s do n the actual cost to )S8&(="n. f this )S8&(="n, Sony has to pay )S8@(E"n for ri#hts of broadcastin# for the first fi*e years, and then pay )S8E%="n ' if this for"at has been re"unerati*e in the first fi*e years. In the first year, payouts arenot dependent on TR0s. Ho e*er, TR0s ould dri*e payouts fro" the second year. Thefranchisee ha*e a share of =%J in the first year decreasin# to E%J in the fifth year of

broadcastin# ri#hts and the balance ould #o to I01. There is an o*erall cap of )S8&(="n on the ri#hts hich can be shared ith the franchisees.

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BALANCE SHEET

I01 co""ittee had de*ised the sources of re*enues for franchises also the 6/penses erechal!ed out. I01 had #i*en a hole proposal to attract the ranchises.

S >,/* @ R*(* >*

BROADCAST RIGHTS The broadcast ri#hts ha*e been sold by I01 to orld Sports:roup - S: and Sony for 8(.%$E billion for (% years in a contract that is lin!ed to thesuccess of the 1ea#ue and to tele*ision ratin# points -TR0s . In the first t o years, =% per cent of the "oney earned fro" the broadcast ri#hts ill be shared by the franchiseese ually ith the rest #oin# to I01. The latter3s share ill increase #radually and by thefifth year, I01 ill #et to share 4% per cent of the broadcast re*enue.

SPONSORSHIP The title sponsorship fee of o*er 89% "n paid by D1 , a leadin# realestate co"pany in India, ill be shared ith the franchises. I01 ill retain 4% per cent ofthis and the balance E% per cent ill be shared bet een the franchisees e ually. hilethese re*enues accrue fro" the central pool to the franchisees, they ill #enerate tea"sponsorship at indi*idual le*els as ell. In addition to these, Hero Honda and 0epsi ereassociate sponsors orth 8$$.9"n and 8($.9"n for fi*e years. Also, ?in#fisher Airlinesere I013s u"pire partners orth 8$E.9"n. The inco"es throu#h these ere e uallyshared bet een the franchisees.

TICKET SALES The final re*enue source is tic!et sales at ho"e stadiu"s. 6achfranchise ill #et se*en "atches at ho"e and the re*enues fro" tic!et sales ill beshared ith I01, hich ill #et $% per cent, ith the rest #oin# to the franchisee.

OTHER SOURCES There are also other s"aller re*enue sources such as fro" instadiaad*ertisin# a part of hich ill #o to the franchisee.

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E * *

FRANCHISEE FEE The t o bi# e/penses incurred by ranchise are player costs andthe franchise fee paid to I01. The franchise fee ill be payable in e ual su"s o*er a (% <

year period. or instance, if a franchise is to pay 8(%% "illion to I01, he ill pay 8(%"illion e*ery year to I01.

PLA!ER AC UISITION COST The player costs ere deter"ined in the auction. Thefranchisee has to pay players ho are a*ailable e*en if they are on the bench. 0layersha*e a three


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T * IPL ,*(* >* @5 + 'A > 5

In ard arro s are re*enue inflo s, hile out ard arro s are re*enue outflo s.

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-=


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IPL-1 S IPL-2 FROM IE$ER PERSPECTI E

->


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-/


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2.


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21


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2-


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$ )/ B, < +*,* 0 0)/*< IPL-2

22


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S> ,;

onsu"ers feel they ha*e atched "ore of I01 in season $ and ill continue

atchin#. 6lections did not affect 5%J of people3s I01 *ie in# Ho e*er, the ratin#s ha*e dipped ith "ore people atchin# for lesser ti"e.

*erall (EJ drop in ratin#s.

More ff 0ri"e "atches ith a (&J ratin# drop also contributed to pullin# do nthe ratin#s

D1 and ;odafone Top of Mind on association ith I01

??R < 7o!ia, S?


36/39

P 0* 0) 5 D + ) *;*= 55 Sony, * 0 > 0otential *ie ership threat if the I decides to hold an annualinternational T enty$% cric!et cha"pionship.

A< =5>* Recession and chan#e of *enue could affect plans of potential ad*ertisers.

G * >55 Business prospects "ay be affected if the franchisees fail to create a loyalfan follo in# in their turf.

RISKS TO IPL

Thou#h I01 see"s to be #oin# fro" stren#th to stren#th, it does face so"eris!s>

Success of any lea#ue depends on it re"ainin# co"petiti*e. The cap on thea"ount of "oney that can be spent on the players can be raised or re"o*ed,"a!in# it easy for the tea"s ith deep poc!ets to corner the best players.

Any reduction in the "a/i"u" nu"ber of international players ill ad*erselyaffect the I01.

Success of I01 "ay pro"pt other countries li!e Australia to or#ani+e si"ilare*ents, hose schedules could conflict ith I01. This ould pose a ris! to the

participation of top international players.

1ac! of co


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CONCLUSION

I01 pro*ed that a #ood *ision, ell acti*ated can create "a#ic. To thin! that I01is a "ar!etin# success or that it succeeded because it "i/ed Bolly ood andcric!et is sheer o*er si"plification.

I01 as just aitin# to happen. It #a*e *ie ers e*erythin# soaps should be#i*in#, plus it #a*e cric!et. It bro!e the false barrier of patriotis" and #a*e*ie ers a reason to li!e the sport for itself. It celebrated the spirit of sports hen

players ho ha*e fiercely co"peted a#ainst each other and ho had barely "eteach other until a fe ee!s before the start of the tourna"ents ere perfor"in#in the field as if they ha*e fore*er been a tea".

It had heroes ho fell, under do#s ho beca"e heroes, sha"e faced icons,#la"orous fans, cheerleaders, scandalous e/


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It has a potential to beat the pri"e ti"e T; sho s as is e*ident fro" the *ie s ofthe people.

I01 has the potential of creatin# *alue for the Indian econo"y.

THIS IS $HAT $E CALL CRICKETAINMENT

BIBLIOGRAPH!

+++.) 502%./

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T * T) * @ I ) * T < ;

D )5; N*+ A < A 5; ) ' DNA

A Project Report on Ipl

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