The Launch of the Indian Premier League
ID#092301 PUBLISHED ON MARCH 20, 2009 THE JEROME CHAZEN CASE SERIES The Launch of the Indian Premier League BY RAJEEV KOHLI* ABSTRACT CONTENTS In September 2007 Lalit Modi was handed a $25 million check from the Introduction........................................ 1 Lalit Modi............................................ 3 Board of Control for Cricket in India—formalizing Modi’s long- New Cricket Forms Evolve................ 5 awaited opportunity to launch a new cricket league. Modi’s challenge Modi Partners with IMG..................... 7 League Models to Consider .............. 9 was to build a sustainable business model which would create the IPL Concept Announced ................. 10 proper incentives to motivate players, broadcasters, franchise owners, Competitive Landscape................... 11 and the various cricket boards to join his effort. And he had seven 2007 World Cup: A Time to Woo Players.............................................. 13 months to accomplish it all. 2007 World Cup: Seizing an Unexpected Opportunity................. 14 Shaping the IPL Model .................... 15 India and the History of Cricket...... 21 Snapshot of India’s Modernization. 22 * Professor of Marketing, Columbia Acknowledgements Copyright information Business School We thank Lalit Modi, Peter Griffiths, © 2009 by The Trustees of Columbia University in and Andrew Wildblood for their the City of New York. All rights reserved. guidance and Radhika Moolraj and This case was prepared as a basis for class Sonali Chandler for their support. discussion rather than to illustrate either effective Alan Cordova, MBA’08, Atul Misra, or ineffective handling of a business situation. EMBA’09, Valeriy Elbert, MBA’10, Jonathan Auerbach, and Nate Nickerson provided research and writing support. Introduction On September 10, 2007, Lalit Modi stepped out of the office of Sharad Pawar, the chairman of the Board of Control for Cricket in India (BCCI), holding a check for $25 million.
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