1. IPL : BIRTH OF
CRICKETAINMENT
Presented by-
Nimish Pant
Saurabh Srivastava
Rahul Raj
Pratyush Mani Tripathi
Ravi Shekhar

2. FROM
“MANORANJAN
KA BAAP” TO
VIRAL
MARKETING.

3. INTRODUCTION
 The Board of Control for Cricket in India (BCCI), the
apex governing body launched the Indian Premier
League (IPL)
 On the lines of football’s English Premier League and the
National Basketball League(NBA) of the U.S.A.
 Backed by the International Cricket Council (ICC), an
international governing body of cricket.
 A virtual company.
 The IPL governing council is having five-year term and
will run, operate and manage the league independently
of the BCCI.
 Valued at approximately $4 billion (about Rs 18,000
crore).

4. BUSINESS MODEL
 works on a franchise-system based on the American
style of hiring players and transfers.
 a sponsor wanting to have its team pays a stipulated fee
to the BCCI to get ownership.
 franchisee also shares revenues with the cricket board.
 The franchises will own the team for perpetuity for a
period of ten years.
 The franchisee, can, at a later stage list the team on the
stock exchange and trade.
 main revenue streams for the franchisees are from the
sale of broadcast rights, sponsorship, gate receipts in
matches at their home grounds and team sponsorship

5. IPL FRANCHISEES
 Bangalore Royal Challengers :
 The Bangalore team was bought
by Vijay Mallya's UB Group
for$111.6 million.
 Deccan Chargers :
 The Hyderabad team was
bought by Deccan Chronicle, a
media house,for $107 million.
 Chennai Super Kings :
 The Chennai team was bought
by India Cements for $91 million

6.  Kolkata Knight Riders  The Mumbai team is
 The Kolkata team is owned by Mukesh
owned by Bollywood Ambani's Reliance
actor Shah Rukh Industries Limited for
Khan, actress Juhi $111.9 million
Chawla and her husband
Jay Mehta for $75.09
million.
 Mumbai Indians :

8. FRANCHISEE EARNINGS & EXPENSES
Revenue Sources o Expenses
 Broadcast rights: The broadcast  Franchisee fee : The two big
rights have been sold by IPL to World expenses incurred by Franchise are
Sports Group player costs and the
 Sponsorship: The title sponsorship  Player acquisition cost : The
fee of over $50 mn paid by DLF, a player costs was determined in the
leading real auction. The
 Ticket sales: The final revenue  Stadium Hire Charges : The
source is ticket sales at home stadiums. franchisees also have to pay for the use
Each of the stadiums
 Other sources : There are also other  Other Expenses : There are also
smaller revenue sources such as from in- other marketing costs such as events for
stadium advertising a part of which will promotion
go to the franchisee

9. PROFIT & LOSS ACCOUNT OF FRANCHISEE
 Kolkata Knight Riders REVENUES: 74
FRANCHISE FEE: Rs 300 Cr
BCCI, SET MAX: 35
REVENUES: 89 TEAM SPONSORS: 25
BCCI, SET MAX: 35 GATE RECEIPTS: 14
TEAM SPONSORS: 34
GATE RECEIPTS: 20 EXPENSES: 80
FRANCHISE FEE: 36
EXPENSES: 81 TEAM: 25
FRANCHISE FEE: 31 AD, ADMIN: 18
TEAM: 25
AD, ADMIN: 25 NET LOSS: Rs 4 Cr
NET PROFIT: Rs 8 Cr
Chennai Super Kings
FRANCHISE FEE: Rs 364 Cr

10. Deccan Chronicle FRANCHISE FEE: Rs 446 Cr
FRANCHISE FEE: Rs 428 Cr
REVENUES: 50
REVENUES : 64 BCCI, SET MAX: 35
BCCI, SET MAX: 35 TEAM SPONSORS: 0*
TEAM SPONSORS: 19 GATE RECEIPTS: 15
GATE RECEIPTS: 10
EXPENSES: 95
EXPENSES: 84 FRANCHISE FEE: 48
FRANCHISE FEE: 45 TEAM: 22
TEAM: 24 AD, ADMIN: 25
AD, ADMIN: 15
NET LOSS: Rs 45 Cr
NET LOSS: Rs 20 Cr
 Royal Challengers

11.  Mumbai Indians
FRANCHISE FEE: Rs 448 Cr
REVENUES: 70
BCCI, SET MAX: 35
TEAM SPONSORS: 18
GATE RECEIPTS: 17
EXPENSES: 91
FRANCHISE FEE: 45
TEAM: 20
AD, ADMIN: 26
NET LOSS: Rs 21 Cr

12. REVENUE
Revenue MUMBAI KOLKATA CHENNAI ROYAL DECCAN
(MILLION INDIANS KNIGHT SUPER CHALLEN CHARGER
$) RIDERS KINGS GERS S
BANGLOR
E
BROADCA 67.5 67.5 67.5 67.5 67.5
STING
SPONSOR 24 24 24 24 24
SHIP
OTHER 14 18.9 18.5 13.5 13.5
INCOME
PRIZE 0.5 0.4 1.2 2.25 4.5
MONEY
TOTAL 106 110.8 110.8 107.25 109.5

13. FRANCHISER EARNINGS & REVENUE MODEL

16. GOVT. REVENUE
 IPL 1- Rs. 91 Cr.
 IPL 2 – MAJOR LOSS
 IPL 3 – Rs. 200 Cr.
DIRECT TAX-
Rs. 100 Cr.
SERVICE TAX –
Rs. 100 Cr.

17. THANK U