CRICKET FROM SPORTS TO CORPORATE BUSINESS

BY

SHUBHAM GOEL

LALIT MODI

CONTENTS BACKGROUND ENTRY INTO CRICKRT MONEY MAKER INDIAN PREMIRE LEAGUE IT’S CONCEPT KEY FEATURES OF IPL IPL FROM PLAYERS,SPECTATORS,FRANCHISES, BCCI POINT OF VIEW DEALS OF IPL FOR BCCI LALIT MODI VISION HIS AWARDS & RECOGNITIONS CONCLUSION

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LALIT MODI

Born in 1963 in Delhi, India, Lalit Kumar Modi studied at the prestigious St.Joseph's College, Nainital. He attended Duke University in the United States, graduating in 1986 with a degree in marketing. He is the scion of Modi Enterprises, a multi Billion Dollar group, the industrial conglomerate founded in 1933, it has interests in agro-chemicals, tobacco, tea and beverages, education, entertainment and Real estate. He also sits on the board of Godfrey Philips, one of India's tobacco companies.

BACKGROUND

He Joined BCCI in 2004 as a Marketing Director. Modi was in the side of Jagmohan Dalmiya in the power struggle between Jagmohan Dalmiya and Sharad Pawar. But after the defeat of Dalmiya he came in the side of Sharad Pawar. Then he said "no one in cricket wants to be in wrong side".

ENTRY INTO CRICKET

TEAM SPONSORSHIP DEAL FOR TEAM INDIA WITH SAHARA GROUP FOR 4 YEARS - 103 MILLION DOLLARS (415 CRORES) ON 20.12.05

TEAM APPAREL SPONSOR DEAL FOR TEAM INDIA WITH NIKE FOR 4 YEAR - 53 MILLION DOLLARS (215 CRORES) ON 24.12.05

MEDIA RIGHTS DEAL WITH NIMBUS FOR 4 YEARS- 612 MILLION DOLLARS ON 18.2.06

MEDIA RIGHTS FOR OVERSEAS MATCHES WITH ZEE FOR 4 YEARS - 219 MILLION DOLLARS 0N 7.4.06

BCCI SPONSORSHIP DEAL WITH WSG - 46 MILLION DOLLARS (173 CRORES) ON 27.8.07  

MONEY MAKER FOR BCCI

“The Indian Premier League is the greatest sport and entertainment venture ever undertaken in this country,” – Lalit Modi, chairman of the IPL.

The Indian Premier League or IPL is a 20-20 format cricket tournament. This league was formed by the Board of Cricket Control of India (BCCI) and sanctioned by the International Cricket Committee (ICC).

INDIAN PREMIER LEAGUE

The BCCI launched the Indian Premier League (IPL) on the lines of football’s English Premier League and the National Basketball League (NBA) of the US. The IPL is a professional Twenty20 cricket league created and promoted by the BCCI and backed by the ICC.

CONCEPT OF INDIAN PREMIER LEAGUE

KEY FEATURES OF IPL

IPL has been conceived on the lines of the English premier league, where local football teams with a defined fan base(supporters) play against each other.

The idea behind IPL is to sell cricket as a high involvement reality show that would appeal to all audiences.

IPL has eight teams sold to franchises for perpetuity. These franchises can run the league in their individual styles and can raise resources from the primary market.

OPENING DOORS TO THE NEXT BIG MEDIA MOVEMENT

IPL- already a US$ 2bn property, is essentially an attempt to sell cricket as a reality show.

Some of the franchisee would look at IPL as a means to promote their brand (UB group) while the others would look it as a financial investment e.g. (India Cements).

Our belief is that the three successful teams could easily do revenues of Rs 3bn per year in the next three-four years

FRANCHISES OF IPL

Teams Owners Franchises Amount

Mumbai RIL $111.9 m

Delhi GMR Group $84 m

Kolkata Red Chillies Entertainment

$75.09 m

Chennai India Cements $91 m

Jaipur Emerging Media $67 m

Hyderabad Deccan Chronical $107 m

Bangalore UB Group $111.6 m

Mohali Preity Zinta, Ness Wadia $76 m

Top players are earning minimum 1-2 crores per season. (with highest being Mahendra Singh Dhoni how is paid 6 crores per season). Lalit Modi rightly points out, “It benefits world cricket because it benefits all their players - they are able to supplement their income by coming to us,"

IPL – Honey its all about money!!! (Players prospective)

IPL is an opportunity to take cricket to new audiences, new frontiers. The emphasis on innovation and the fan-friendly format have already proven wildly popular at domestic level in England, South Africa and Australia.

“If all the development programmes are put in place, it could usher in a new chapter. I sincerely believe that the IPL is history in the making” [….] “For me, the most fascinating aspect of Indian cricket is the passion the crowds have for the sport. It is amazing and it is no wonder [...] - Adam Gilchrist

IPL – ‘Manoranjan ka baap‘ (Spectators prospective)

IPL team owners have two channels of revenue, central and local.· Central - Includes Media, sponsorship and suppliers, which BCCI will sells and shares with the teams.· Local - Includes things like stadium ticket sales, local sponsorship. Concessions, merchandise et al,which franchisees will be responsible for selling.

IPL – Are we going to make money? (Franchise prospective)

IPL – We have nothing to lose!!! (BCCI’s prospective)

Only Money Matter

DEALS OF IPL FOR BCCI IPL Media Rights Deal with Sony - 1.26 Billion

Dollars 0n 15.1.08

IPL Teams Sale with various parties -723.6 million Dollars on 25.01.08

Web Media Rights to Live current Media - 50 million dollars on 18.4.08

IPL Title sponsorship and Ground sponsors - 220 million dollars - mar-apr 2008

IMPACT OF IPL ON OTHER MEDIA

Channel Genre Average TRP

SONY & SET MAX IPL 10-11ZEE Soaps + Rock and

Roll family5 - 5.5

STAR Soaps + Paachvi Pass (SRK)

4 - 5

9X Chak De Bacche+ Reality

0.7 - 1.35

NDTV Mythological + Drama 1.25 - 2.12

Champions League &

BCCI own TV Channel

LALIT MODI VISION

LALIT MODI AWARDS AND RECOGNITIONS "The Business Standard Award" for making BCCI the

Most Innovative Company "Brand Builder of the Year" by Asia Brand Conference CNBC Awaaz "The Consumer Award for Transforming

Cricket in India“ NDTV Profit "The Most Innovative Business Leader in

India". Frost & Sullivan Growth Excellence Awards For

"Excellence in Innovation“ CNBC Business Leader" award He was listed among India's 20 most powerful people by

India Today magazine. Lalit Modi was voted no 19 in the list of 25 most powerful

Global Sports figures.

Cricinfo says “ Lalit Modi will be known as the man who changed the landscape of cricket.

“If there is no Lalit Modi IPL can run better.”

REACTIONS & CRITICISM

Lalit Modi will be remember as the person who change the face of Indian and the world cricket forever & bring cricket to cricket business.

CONCLUSION

END OF DISCUSSION Reference & Source:

Ipl.com wikipedia.org godfreyphillips.com modi.com Business Today Outlook

THANK YOU