Masterminded by Lalit Modi, chairman of the marketing sub-committee of the BCCI, the Indian Premier League was launched on 14th September 2007 on the lines of English Premier League (Football) and National Basketball Association. Studded with the starry glitz of Bollywood and backed by the money-power of Indian business tycoons, the IPL has changed the face of international Cricket in 21st century.
Bidding of Team Franchise
Redefining the current face of Indian cricket on Wednesday, 20th February 2008, it rained millions of dollars within ten hours in Mumbai's Oberoi Hilton's auction room, as 77 cricketers went for bidding in the player auction of Indian Premier League. Bollywood superstar Shah Rukh Khan, biggest & one of the richest Indian corporates Mukesh Ambani and Vijay Mallya were among the franchise owners, of the eight IPL teams, to bid from the world's best cricketers who were put on the show.
The Economics of the Indian Premier League
Money really matters and the IPL is no exception to it. The IPL or the richest cricket league so far would fetch big bucks for the BCCI, IPL and all the eight franchisees. There are four major sources of income for the IPL :- • The sale of media rights for broadcasting of the IPL matches brought in Rs. 4,000 crs. Sony Entertainment Television (SET) and Singapore based World Sports Group got the global TV broadcasting rights of the Indian Premier League for the next 10 years. • The title sponsorship rights for the Indian Premier League has been secured by the DLF Universal, Indian real estate developer. Hero Honda group would be the associate sponsor. Pepsico and Kingfisher Airlines are the IPL's partners for tournament official beverage and advertising on Umpire's clothes respectively. The revenue from the all above sponsorship rights have been described as Central Revenues with a proportion of 40% to IPL, 54% to franchisees and 6% to prize money. • The franchisees, apart from the share in central revenues, can earn money by franchisees rights like by selling advertising space in stadiums, by licensing products for their teams like T-shirts, advertising on tickets and gate money. The 20% of the amount earned in this head would go to the IPL.
From celebrities, Industrialists and politicians to a common man, every one loves cricket and there is no doubt that it is the most popular sports in world’s second most populous country. Indian Premier League changed the way cricketers thought of glory, fame and money.
Cricket had a reputation of being a gentleman’s game. With the end of colonialization, new cricketing nations appeared on the cricket horizons. At that time it was considered as a threat to the decency and seriousness of Cricket as a sport. But new nations only brought fame, glory and money to Cricket.
In response to Zee network’s desire to create their own sporting content by organizing Indian Cricket League, BCCI decided to organize their own Indian Premier League.
Big names like Mukesh Ambani bought the Mumbai team. Filmstars like Shahrukh Khan decided to sponsor Kolkatta’s team which has resulted into termendous media response for Indian Premier League. Soon Priety Zinta and Ness Wadia joined the league as sponsor of Mohali. Shilpa Shetty bought into Rajasthan Royals.
This was quite enough for creating magnificent market buzz and spark interest among cricket crazy Indians. But then there was a bidding by sponsors to select players for their teams. Chennai made a bid of 1,500,000 US Dollars for India’s star cricketer Mahinder Singh Dhoni. Australia’s Andrew Symonds is part of Hyderabad’s team with the bidding amount of 1,350,000 US Dollars.
Indian Premier League (IPL) - Changing the paradigm of Advertising
|March 22, 2010 04:04:31 PM IST | | |Enkayaar, Bollywood Trade News Network...