Fetching platinum eggs for BCCI

Is it Indian Paise / Profit League (IPL T20)?........

When it comes to the Indian Premier League (IPL), the field stands divided. On one side are bar owners who really love it and on the other side are people who say there are too many things wrong with the IPL. The rest just watch. The biggest thing wrong, they say, is that it promotes greed; it’s cricket selling out. It’s made the gentleman’s game a pimp’s paradise. With the IPL, Lalit Modi has perfected the system of everyone getting a piece of the cake. Everyone’s happy. The people, because there is always something to watch. The government, because it is bringing in the money and keeping the population distracted. Brands, because there’s a chance to blow their trumpet every few seconds. Not an in..ch has been spared to generate revenue. The jerseys look like graffitis of greed; the trousers with a logo on each leg are no different. Helmets, caps, grounds, sightscreens, stumps, umpires, boundary ropes, dugouts, and the giant screen, there are logos everywhere. The ads are played not just between overs, but between deliveries. Every segment is sold. There is DLF Maximum. Karbon Kamal Catches. Citi Moment of Success. Whoever is jobless is welcome. Including businessmen’s wives who were so far content with being interior designers. Little wonder Saif and Kareena are trying for a team. IPL has given everyone an occupation, some through its indirect employment scheme, where Mandira Bedi has cashed in with her regular column in a newspaper. The list of beneficiaries extends all the way to the studios. Say hello to the experts —- Sidhu, Saba Karim, Ramiz Raja, Ranjit Fernando, to name a few. People like Saba Karim have hardly played for the Indian team and are experts passing profound remarks about strategy. If Saba Karim can be an expert, Rakhi Sawant can be a nun. The anchors are no different either. Nobody really remembered Gaurav Kapoor, ex-Channel [V] till he came back in a suit, but yet unshaven. Not to mention Angad Bedi who after failing to spin like his dad, failing to do a cookery show, continues the emotional atyachar, this time not at Hungama but Set Max. IPL is for failures and socialites, what Bollywood songs are for extras. It’s a gathering of the ‘have-beens’ and ‘never-could’ve-beens.’ Lalit Modi is not a merchant of greed but of gracious opportunity. He believes in giving. He has given a lease of life and lust for so many across the nation.

Long live the IPL!

References:



1. wikipedia


2. www.indianpremierleague.com


3. www.thehindubusinessline.com


4. www.dnaindia.com


5. personal insights

Thanks for patient readership.

Raghu / Sandy

Financial Leverages of IPL T20

Financial Leverages of the each Franchise Team


REVENUE SOURCES:                                                MAIN EXPENSES:

1. Broadcasting Rights (Franchise : IPL, 80:20)             1. Franchise fee to IPL

2. Sponsorship (Franchise : IPL, 60:40)                        2. Player acquisition costs

3. Team Sponsorship                                                    3. Stadium hire charges (Rs 50 lac per match)

4. Gate Receipts                                                           4. Marketing / Promotion Costs

5. In-stadia Advertising                                                5. Administration, Traveling & Stay

1. Broadcasting Rights: On 15 January 2008 it was announced that a consortium consisting of India's Sony Entertainment Television network and Singapore-based World Sport Group secured the global broadcasting rights of the Indian Premier League. Sony Entertainment Television renewed contract with BCCI with Sony Entertainment Television paying Rs. 8700 crores (87 billion) for 10 years. In first three years 20% of these proceeds would go to IPL/BCCI, 8% as prize money and 72% would be distributed to the franchisees. In later years, BCCI gets 30%, franchisees 70% and in subsequent years, BCCI gets 40%, franchisees 60%. Sony-WSG then re-sold parts of the broadcasting rights worldwide to other companies such as Sky Network TV of New Zealand, StarHub of Singapore, Super Sport of Central Africa, PCCW of Hong Kong, Arab Digital Distribution in Middle East nations, GEO Super of Pakistan, DirecTV of US, ATN of Canada, ITV of UK etc.

2. Sponsorships: India's biggest property developer DLF Group paid US$50 million to be the title sponsor of the tournament for 5 years from 2008 to 2013. Other five-year sponsorship agreements include a deal with motorcycle maker Hero Honda worth $22.5-million, one with PepsiCo worth $12.5-million, and a deal with beer and airline conglomerate Kingfisher at $26.5-million. The IPL signed up Kingfisher Airlines as the official umpire partner for the series in a Rs. 106 crore (approximately £15 million) deal. This deal sees the Kingfisher Airlines brand on all umpires' uniforms and also on the giant screens during third umpire decisions. Franchise team sponsorhip – for instance, Nokia is the team sponsor for Kolkata Knight Riders while Aircel sponsors Chennai Super Kings. This revenue will remain wholly with the franchisees. Some teams such as Mumbai Indians have multiple sponsors in MasterCard, Bajaj Allianz and Royal Challenge, all of which are endorsed on team jerseys.

3. Official IPL Mobile applications: DCI Mobile Studios (A division of Dot Com Infoway Limited), in conjunction with Sigma Ventures of Singapore, have jointly acquired the rights to be the exclusive Mobile Application partner and rights holder for the Indian Premier League cricket matches worldwide for the next 8 years (including the 2017 season). Recently, they have released the IPL T20 Mobile applications for iPhone, Nokia Smartphones and Blackberry devices.

4. Official Website: The IPL negotiated a contract with the Canadian company Live Current Media Inc. to run and operate its portals and the minimum guarantee has been negotiated at US $50 million over the next 10 years. The official website of the tournament is www.iplt20.com.

5. The Player Auction: The total spending cap for a franchisee in the first player auction was US $5m. Players under the age of 22 are to be remunerated with a minimum annual salary of US $20,000 while for others it is US $50,000.The batting all-rounder from Trinidad, Kieron Pollard has become the costliest player in the IPL history, as he was reportedly bought by Mumbai Indians for $2.75 million. However, Pollard will get only $750,000 (Rs. 3.41 crore) as per the IPL rules. The remaining money will go to the IPL. Nita Ambani successfully bought him after a tie-breaker secret bidding. The franchisee has to pay players who are available even if they are on the bench.

6. Franchise Fees: For instance, the Mumbai Indians franchise, which is the most valuable one in the IPL at $111.9 million, will have to pay $11.19 million every year to IPL.

Happy reading!!!!!
Raghu / Sandy

About IPL

Dear Sport spirits,

Introducing IPL for you.

Globalization has had a major impact on the mind of VP-BCCI & Commissioner IPL Mr Lalit Modi. Foreseeing a cut-throat competition in the supply (unending) of talents in cricket sport, his IQ clicked an idea for maximum utilization of the same globally. Hence ‘IPL’ been structured as a special purpose vehicle of the parent BCCI – purpose to generate whopping profits for the board on a regular basis. It is an excellent use of sharing rights & privilege of forming franchise teams under a League (Indian Premier League), inspired by football’s English Premier League and the National Basketball League of the US. The IPL works on a franchise-system based on the American style of hiring players and transfers. The IPL is a professional T20 cricket league created and promoted by the BCCI and headquartered at Mumbai. It presently includes 08 teams (franchises) consisting of 16 players each from different countries. The winning bidders for the eight franchises were announced on 24 January 2008. While the total base price for auction was US $400 million, the auction fetched US $723.59 million. The UK-based brand consultancy, Brand Finance, has valued the IPL at $4.13 billion (Rs.18000crores) in 2010. It was valued at U$2.01 billion in 2009 by the same consultancy. According to global sports salaries review, IPL is the second highest paid league, based on first-team salaries on a pro-rata basis, second only to the NBA league. It is calculated that the average salary of IPL over a year is 2.5 million pounds. The entire concept of IPL is based on the assumption that the public will take a fancy to supporting league teams, as opposed to national teams, and come out in large numbers to watch their favorite stars play, whatever their nationality.

IPL Teams:

1) Bangalore Royal Challengers: The Bangalore team was bought by Vijay Mallya’s UB Group for $111.6 million to own the team for 10 years. ‘Icon player’ Rahul Dravid is the captain of Bangalore Royal Challengers. Team India’s bowling coach, Venkatesh Prasad is the coach of the team.

2) Kings XI Punjab: The Mohali team was bought by Bollywood diva Preity Zinta, her industrialist beau Ness Wadia, along with renowned industrialists Karan Paul and Mohit Burman for $76 million for a period of 10 years. ‘Icon player’ Yuvraj Singh is the captain of Kings XI Punjab. Australia’s Tom Moddy is the coach of the team.

3) Chennai Super Kings: The Chennai team was bought by India Cements for $91 million to own the team for 10 years. Team India ODI and T20 skipper Mahendra Singh Dhoni is the captain of Chennai Super Kings. Former South Africa cricket team captain Kepler Wessels is the coach of the team.

4) Kolkata Knight Riders: The Kolkata team is owned by Bollywood actor Shah Rukh Khan, actress Juhi Chawla and her husband Jay Mehta for $75.09 million for a 10-year period. ‘Icon player’ Sourav Ganguly is the captain of Kolkata Knight Riders. Australia’s John Buchanan is the coach of the team.

5) Deccan Chargers: The Hyderabad team was bought by Deccan Chronicle, a media house, for $107 million for a 10-year period. Team India’s Test player VVS Laxman is the captain of Deccan Chargers. India’s fielding coach, Robin Singh is the coach of the team.

6) Mumbai Indians: The Mumbai team is owned by Mukesh Ambani’s Reliance Industries Limited for $111.9 million for a period of 10 years. ‘Icon player’ Sachin Tendulkar is the captain of Mumbai Indians. Former Team India manager, Lalchand Rajput is the coach of the team.

7) Delhi Daredevils: The Delhi team is owned by GMR Holdings for $84 million for a period of 10 years. ‘Icon player’ Virender Sehwag is the captain of Delhi Daredevils. Australia’s Greg Shipperd is the coach of the team.

8) Rajasthan Royals: The Jaipur team was bought by UK-based company Emerging Media for $67 million to own the team for a period of 10 years. Former Australian spin bowler Shane Warne is both the captain and coach of Rajasthan Royals.

The inaugural tournament started on 18 April 2008 and lasted for 46 days with 59 matches scheduled, out of which 58 took place and 1 was washed out due to rain. The final was played in DY Patil Stadium, Navi Mumbai.Rajasthan Royals emerged as the inaugural IPL champions beating Deccan Chargers Hyderabad. The 2009 season coincided with the general elections in India. Due to concerns regarding players' security, the venue was shifted to South Africa. The format of the tournament remained the same as the inaugural one. Deccan Chargers Hyderabad came out as eventual winners of the tournament. The third season opened in January 2010 with the auction for players. 66 players were on offer but only 11 players were sold. No player from Pakistan was selected. Mumbai Indians led by Sachin Tendulkar emerged as strongest contestant for Finals. On 21 March, 2010, Pune and Kochi were unveiled as the two new franchises for the fourth edition of the Indian Premier League. The base price was $225 million. While Pune was bought by Sahara Adventure Sports Group for $370 million, the Kochi franchise was bought by Rendezvous Sports World Limited for $333.3 million. This will increase the number of franchises from 8 to 10 and the number of matches from 60 to 94 if the same format is used.

Yours

Sandeep Raghvendra Singh

Jodhpur

Life in a Metro - review

Hi Film Lovers,

Shilpa Shetty, Kangna Ranaut & Sharman Joshi starring movie 'Life in a Metro' is an interesting movie - serious problems of a life in metro blended in a comic form. Highlighting personal life of three female characters. One may take a permanent use of a used thing (kanagna's character) if your heart allows, one may break formal commitments (irfan's character) if your heart allows and another one may break ethical code of conduct (shilpa' character) if situation allows. 'hai tujhe bhi ijaazat, kar le tu bhi mohabbat..........' are few of the messages of the film. Somehow expressing uncovered sentiments of a human. Nice movie and worth watch at least once.

Thanks for reading.
Sandeep Raghvendra Singh
Jodhpur