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The (often abbreviated as IPL), is a competition created by the Board of Control for Cricket in (BCCI) and chaired by the Chairman & Commissioner IPL, BCCI Vice President . The first season of the Indian Premier League commenced on 18 April 2008, and ended on 30 June 2008 with the victory of the Royals against Super Kings in the final at the DY Patil Stadium, Navi . As the second season of the IPL coincided with multi- phase 2009 Indian general elections, the Indian Central Government refused to release the Indian paramilitary forces to provide security, saying the forces would be stretched too thinly if they were to safeguard both the IPL and the elections. As a result, the BCCI decided to host the second season of the league outside India.[3] On 24 March 2009, the BCCI officially announced that the second season of the IPL will be held in South Africa.Though India did not host the second season, the format of the tournament remained unchanged from the 2008 season format.

The third season of IPL is scheduled to be held in India from 12 March 2010 over a period of 45 days[4] Four new venues, , Vishakhapatnam, and Dharamsala, have been added[5][6]. Other changes include removal of icon players [7] and granting permission to players who were involved in the to play in the tournament

Existing Original Eight

The winning bidders for the eight franchises were announced on 24 January 2008.[12] While the total base price for auction was US $400 million, the auction fetched US $723.59 million.[13] The official list of franchise owners announced and the winning bids were as follows.

Price Price Franchise Owner(s) (USD) (Rupees) $ 111.9 Rs. 503.55 Mukesh Ambani(Reliance Industries) m Cr Royal Mallya (UB Group) $ Rs. 502.20 Challengers 111.6 m Cr Deccan Chronicle(Venkat Ram Reddy) $ 107.0 Rs. 481.50 m Cr Chennai Super (N.Srinivasan) $ 91.90 Rs. 413.55 Kings m Cr Daredevils GMR Holdings (Grandhi Mallikarjuna $ 84.0 m Rs. 378.00 Rao) Cr Kings XI Punjab Ness Wadia (Bombay Dyeing), Priety $ 76.0 m Rs. 342.00 Zinta, Mohit Burman (Dabur) and Karan Cr Paul (Apeejay Surendera Group) Knight Red Chillies Entertainment (Shahrukh $ 75.1 m Rs. 337.95 Riders Khan, Gauri Khan, Juhi Chawla and J Cr Mehta) Emerging Media (Lachlan Murdoch, A.R $ 67.0 m Rs. 301.50 Jha and Suresh Chellaram), Shilpa Shetty, Cr Raj Kundra [edit] Player signings

Main articles: Royal Challengers Bangalore, , Delhi Daredevils, Deccan Chargers, , Kings XI Punjab, Mumbai Indians, and Rajasthan Royals

The first players' auctions were held on 20 February 2008. The IPL placed icon status on a select few marquee Indian players. These players were , Saurav Ganguly, , , and . VVS Laxman initially named an , later voluntarily opted out of his icon status to give his team (Deccan Chargers) more money to bid for players.[14] For the second season, auctions were also held, but free signings taking place in the off-season by franchises led to calls for a draft- like system where the lowest ranked teams would be given a first opportunity to sign players. [edit] Television rights and sponsorships

The IPL is predicted to bring the BCCI income of approximately US$1.6 billion, over a period of five to ten years. All of these revenues are directed to a central pool, 40% of which will go to IPL itself, 54% to franchisees and 6% as prize money. The money will be distributed in these proportions until 2017, after which the share of IPL will be 50%, franchisees 45% and prize money 5%. The IPL signed up Kingfisher Airlines as the official umpire partner for the series in a Rs. 106 crore (1.06 billion) deal. This deal sees the Kingfisher Airlines brand on all umpires' uniforms and also on the giant screens during third umpire decisions.[15]

[edit] Television rights

On 15 January 2008 it was announced that a consortium consisting of India's Sony Entertainment Television network and -based World Sport Group secured the global broadcasting rights of the Indian Premier League.[16] The record deal has a duration of ten years at a cost of US $1.026 billion. As part of the deal, the consortium will pay the BCCI US $918 million for the television broadcast rights and US $108 million for the promotion of the tournament.[17] This deal was challenged in the by IPL, and got the ruling on its side. After losing the battle in court, Sony Entertainment Television signed a new contract with BCCI with Sony Entertainment Television paying a staggering Rs. 8700 crores (87 billion) for 10 years. One of the reasons for payment of this huge amount is seen as the money required to subsidize IPL's move to South Africa which will be substantially more than the previous IPL. IPL had agreed to subsidize the difference in operating cost between India and South Africa as it decided to move to the African nation after the security concerns raised because of its coincidence with India's general elections.

20% of these proceeds would go to IPL, 8% as prize money and 72% would be distributed to the franchisees. The money would be distributed in these proportions until 2012, after which the IPL would go public and list its shares.[18]

Sony-WSG then re-sold parts of the broadcasting rights geographically to other companies. Below is a summary of the broadcasting rights around the world.

On 4 March 2010 ITV announced it had secured the United Kingdom television rights for the 2010 Indian Premier League. ITV will televise 59 of the 60 IPL matches on its ITV4 free to air channel.[19]

Winning Bidder Regional Broadcast Rights Terms of Deal 10 years at Rs Sony/World Global Rights, India 8700 crores Sport Group (revised)[16] Free-to-air HD and SD television in Australia. 5 years at AUD ONE HD Owned by Network TEN. 10-15 Million.[20] Sky Network Terms not New Zealand broadcast rights Television released Middle East broadcast rights on ADD's ART Prime Sport channel. Will broadcast to United Arab Arab Digital , Bahrain, Iran, Iraq, Jordan, Kuwait, 10 Years, terms Distribution Lebanon, Oman, Qatar, Palestine, Saudi Arabia, not released.[21] Syria, Turkey, Algeria, Morocco, Tunisia, Egypt, Sudan, Libya and . Rights to distribute on television, radio, broadband 5 years, terms Willow TV and Internet, for the IPL in North America. not released.[22] Terms not SuperSport South Africa and Nigeria broadcast rights released Terms not GEO Super broadcast rights released Canadian broadcast rights. Aired on Pay-per-view Asian Television 5 years, terms channel.Aired on XM Radio's ATN-Asian Radio as Network not released.[23] well. Terms not ITV United Kingdom broadcast rights released

[edit] Sponsorships

India's biggest property developer DLF Group has paid US $50 million to be the title sponsor of the tournament for 5 years.[2] [edit] Revenue

The UK-based brand consultancy has valued the IPL at $4.1 billion. [3] [edit] Global following

In India, the IPL has become one of the most popular events of the year[24]. Around the world, reception has varied. In Pakistan the reception was described by Pakistani cricinfo editor Osman Samiuddin as "massive", suggesting that it attracted even non-regular cricket followers and that the popularity of the Kolkata Knight Riders was great.[25] GEO Super telecasted the matches and also included a popular show called Inside IPL. However, reception for the second edition was lukewarm. A similar positive reaction was seen in , with interest in the Mumbai Indians being large due to the presence of cricket hero . has also positively reacted despite only one Bangladeshi player being involved. The Knight Riders were the most popular team. These subcontinental countries were also helped in that the time-slot of the matches fitted in with prime time in these nations.

South Africa has seen moderate viewership of the IPL, however, many were unable to relate to any of the teams, although a large number simply supported Mumbai Indians because of the presence of Shaun Pollock.

The IPL did not overcome the power of Premier League in , plus the country's governing body did not allow many English players to take part. The IPL was very popular with the Asian Population.

In the West Indies, the IPL became so popular that it, according to Vaneisa Baksh, threatened to overtake completely in 'certain sections of West Indian fans'. While free-to-air coverage has not been complete and it has not ignited passions, it has remained a popular watch.

The IPL was less popular in Australia and New Zealand, mainly due to the time zone differences. Nevertheless, the IPL consistently won its free-to-air timeslot of 8:30 P.M. and 12:30 A.M. Australian Eastern Time, and 10:30 P.M. and 2:30 A.M. New Zealand Time for subscription TV.

Snap polls indicate that more than 24 million people watched the telecast of the IPL 2008 finals (Rajasthan Royals v Chennai Super Kings),more than 20 million people saw the Rajasthan Royals vs Delhi Daredevils match, whereas the second semi-final between Chennai Super Kings and Kings XI Punjab attracted an audience of 19 million.[26] [edit]

The BCCI had found itself in the middle of many conflicts with various cricket boards around the world as a result of the IPL. The main point of contention was that signed players should always be available to their country for international tours, even if it overlaps with the IPL season. To address this, the BCCI officially requested that the ICC institute a time period in the International Future Tours Program solely for the IPL season. This request was not granted at a subsequent meeting held by the ICC.[31]

[edit] Conflicts with the England and Wales Cricket Board

Because the inaugural IPL season coincided with the County Championship season as well as New Zealand's tour of England, the ECB and county cricket clubs raised their concerns to the BCCI over players. The ECB made it abundantly clear that they would not sign No Objection Certificates for players—a prerequisite for playing in the IPL. Chairmen of the county clubs also made it clear that players contracted to them were required to fulfill their commitment to their county. As a result of this, was the only English player to have signed with the IPL for the 2008 season.[32]

A result of the ECB’s concerns about players joining the IPL, was a proposed radical response of creating their own Twenty20 tournament that would be similar in structure to the IPL. The league — titled the English Premier League — would feature 21 teams in three groups of seven and would occur towards the end of the summer season.[33] The ECB enlisted the aid of Texas billionaire Allen Stanford to launch the proposed league.[34] Stanford was the brains behind the successful Stanford 20/20, a tournament that has twice in the West Indies. On 17 February 2009, when news of the fraud investigation against Stanford became public, the ECB and WICB withdrew from talks with Stanford on sponsorship.[35][36] On February 20 the ECB announced it has severed its ties with Stanford and cancelled all contracts with him.[37]

[edit] Conflicts with Cricket Australia

The BCCI also experienced run-ins with Cricket Australia (CA) over player availability for Australia’s tour of the West Indies and CA’s desire for global protection of their sponsors. CA had feared that sponsors of the IPL (and its teams) that directly competed with their sponsors would jeopardize already existing arrangements. This issue was eventually resolved [38] and it was also agreed upon that Australian players would be fully available for the West Indies tour.

[edit] Conflicts with the

Many players from the Pakistan Cricket Team who were not offered renewed central contracts (or decided to reject new contracts) decided to join the rival Indian Cricket League (ICL). Two such players—Naved-ul-Hasan and Mushtaq Ahmed also held contracts with English Counties. The PCB decided to issue No Objection Certificates for these players to play with their county teams on the basis that since they were no longer contracted to the PCB, there was no point in not granting them their NOCs. The latter did not sit well with the BCCI, as it went against the hard line stance they had taken on players who joined the ICL. After the , the Pakistan government deemed it unsafe for its players to travel to India for the IPL. However, when the IPL was shifted to South Africa, the Pakistani players requested the IPL organizers and Lalit Modi to allow them to play but they refused by reasoning that the squads had already been decided and there was no room for Pakistani players. Recently in the IPL auction no one bid on any of the Pakistani cricket player given the reason that Pakistani players were less than professional and ultimately mediocre players, when in fact, the Pakistani team had been deemed the 2009 T-20 World Cup Champions. After questioning, the IPL board members said that the reasoning behind none of the Pakistani players being selected was simply natural and unaffected by any outside influences. However, two of the IPL team owners and Actresses, Preity Zinta and Shilpa Shetty, openly admitted to being threatened by Shiv Sena. Shiv Sena also recently threatened Australian team to play in the IPL. Many celebrities and well-known figures such as, Shah Rukh Khan, , and former Indian cricket team , , made comments about this situation and how bad relations between India and Pakistan should not be brought into the sport of cricket.

[edit] Conflicts with other Boards

Smaller boards like the WICB and NZCB have raised concerns over the impact the IPL will have on their player development and already fragile financial situation. Since players from smaller cricketing nations are not compensated as much, they have more motivation to join the IPL.

[edit] Media restrictions

Initially the IPL enforced strict guidelines to media covering Premier League matches, consistent with their desire to use the same model sports leagues in North America use in regards to media coverage. Notable guidelines imposed included the restriction to use images taken during the event unless purchased from cricket.com, owned by Live Current Media Inc (who won the rights to such images) and the prohibition of live coverage from the cricket grounds. Media agencies also had to agree to upload all images taken at IPL matches to the official website. This was deemed unacceptable by print media around the world. Upon the threat of boycott, the IPL eased up on several of the restrictions.[39] On 15 April 2008 a revised set of guidelines offering major concessions to the print media and agencies was issued by the IPL and accepted by the Indian Newspaper Society.[40]

Even with the amended restrictions, specialist cricket websites such as cricinfo and cricket365 continued to be banned from providing live coverage from the grounds and from purchasing match images from press agencies. As a result, on 18 April several major international agencies including and AFP announced their decision to provide no coverage of the IPL.[41]

[edit] Conflict with Cricket Club of India

As per IPL rules, the winner of the previous competition decides the venue for the finals. [42] In 2009, the reigning Champions, Deccan Chargers chose the in Mumbai.[43] However, a dispute regarding use of the pavilion meant that no IPL matches could be held there. The members of the Cricket Club of India that owns the stadium have the sole right to the pavilion on match days, whereas the IPL required the pavilion for its sponsors.[44] The members were offered free seats in the stands, however the club rejected the offer, stating that members could not be moved out of the pavilion.[42][45][46] [edit]

Governing Council

MR LALIT MODI Chairman and Commissioner, IPL Lalit Kumar Modi is one of the most accomplished cricket administrators in the world. The scion of a leading Indian business family, he was the youngest Vice-President of the BCCI in 2005. He is one of the driving forces behind the board's commercial activities and has been instrumental in pushing its revenues over the USD 4 billion mark. But for future generations, his biggest legacy would be the Indian Premier League. He is the man behind the spectacularly successful franchise-based cricket league that has captivated audiences globally. He has been acknowledged by the international cricketing, business and media fraternities for revolutionising cricket and winning it more supporters and fans than ever before. He has received 'The Award' in 2008 for making BCCI the Most Innovative Company in India. Time Magazine placed him 16th in their list of Best Sports Executives in the World (2008), while in 2010 he was placed second on Sports Illustrated's list of most influential Indians in sport. MR President, BCCI Shashank Manohar, President of the Board of Control for , is a prominent practicing lawyer from Nagpur. His father, VR Manohar, has served as the Advocate General of the state. An efficient administrator, he is responsible for taking some epochal decisions in BCCI's history. It is under his leadership that BCCI decided to have paid National selectors. This move, along with the increased payments for domestic players and an exclusive sports medicine centre, have helped Indian domestic cricket. His suggestion of performance-related remunerations and contracts for the players is geared towards making Indian cricket a more professional set-up. Manohar has also been the President of the Vidarbha Cricket Association from 1996 to 2009.

MR N SRINIVASAN BCCI SECRETARY N Srinivasan, the BCCI Secretary, is a pioneer industrialist of . He is the Vice Chairman & Managing Director of India Cements Ltd. Srinivasan was the Sheriff of Chennai for two terms. He was an active member of the Prime Minister's high profile Council of Trade and Industry between 1996 and 2001. An ardent advocate for education, he is in involved with various trusts that run educational institutes. An avid golfer, Srinivasan was captain of the Kodaikanal Golf Club from 1995-97 and is currently the President of the Tamil Nadu Golf Federation. His love for cricket has seen him don many roles, including the President of the Tamil Nadu Cricket Association. Srinivasan is also the President of the All India Chess Federation.

MR NIRANJAN SHAH IPL VICE-CHAIRMAN Niranjan Shah, the Vice-Chairman of Indian Premier League, has always been keenly interested and involved in cricket. He represented Saurashtra for a short duration, after which he turned to the administration of the game. He was first elected as Honorary Secretary of Saurashtra Cricket Association (SCA) in 1972-73 and has since been re- elected continuously for the same office. Since that time, he has been representing SCA and serving Indian cricket in some form or other. He has held various offices in BCCI at different times. With four decades of experience in managing cricket activities, exposure to regional, national and international sports bodies and an ability to plan, execute and manage important sports events, Shah has been an admirable force for the promotion of cricket.

MR INDERJIT SINGH BINDRA PRESIDENT, PUNJAB CRICKET ASSOCIATION Inderjit Singh Bindra has played a pivotal role in changing the face of Indian cricket. He was one of the masterminds who charted the BCCI's progress, especially during his tenure as its President during the 1993 to 96 period. He was also instrumental in bagging the rights to stage the World Cup in South Asia in 1987 and 1996. As ICC principal advisor, he is actively involved in formulating new policies and ideas to take the game forward and to new territories. Bindra's contributions as Punjab Cricket Association President are innumerable but the one that stands out is the world class Mohali stadium. He has also served as the President of the Table Tennis Federation of India and as one of the Asian representatives on the International Table Tennis Federation Council.

MR MP PANDOVE HONORARY TREASURER, BCCI MP Pandove is the Board of Control for Cricket in India (BCCI) Treasurer. He was part of the Punjab Ranji team for over two decades and skipper of the team for five years. His unbeaten knock of 507 in 1962 in an inter-university tournament still remains unconquered. He was appointed the honorary joint-secretary of the BCCI in 2005. Pandove has grand plans to improve cricket at the grassroots by infusing funds into rural area school grounds and as well as improving infrastructure in the rural sectors.

MR CHIRAYU AMIN BCCI VICE-PRESIDENT BCCI Vice-President Chirayu Amin is the Chairman and Managing Director of Alembic Pharmaceuticals. The same passion and drive that made his company a leader in the pharmaceutical industry has shown results in his role as a cricket administrator. His effort to streamline and professionalise cricket administration has paid rich dividends for Indian cricket. His contribution to BCCI's marketing committee cannot be stressed enough. It is in his role as the President of Baroda Cricket Association that one can see the most dramatic impact on Indian cricket. Under Amin's leadership, Baroda has emerged as one of the most successful Ranji teams in recent times.

MR BCCI VICE-PRESIDENT AND PRESIDENT, DELHI AND DISTRICT CRICKET ASSOCIATION Arun Jaitley is the Vice-President of the BCCI and one of the new-age politicians in India. He is dynamic and finds favour with the media because of his oratory prowess. Jaitley has been in-charge of several central government ministries during his political tenure. A practicing lawyer, he served as the Additional Solicitor General of India for a while. As the President of Delhi District Cricket Association (DDCA), he has been responsible for the rise of many talented players like Virender Sehwag and Ishant Sharma who have made it to the national team.

MR BCCI JOINT-SECRETARY Sanjay Jagdale, the former all-rounder, is BCCI Joint-Secretary. After retiring from domestic cricket in 1983, he returned to the game as a cricket administrator. He soon followed in the footsteps of his father, Madhavsinh Jagdale, when he became a national selector. Sanjay and Madhavsinh Jagdale represent one of the rare father-son pairs of Indian cricket selectors. He is also the junior selection committee convenor, and as part of his role is responsible for helping spot and guide upcoming talent. From leggie to VVS Laxman and Murali Karthik, this right-arm off-break bowler has been responsible for giving young talent the international platform it needs to grow.

MR RAJEEV SHUKLA CHAIRMAN, MEDIA AND FINANCE COMMITTEE, BCCI Rajeev Shukla is a multi-faceted personality fulfilling his duties as a Member of Parliament, BCCI Vice-President, journalist, political commentator and television host with equal levels of efficacy. Shukla started off his career as a reporter with a leading publication in Uttar Pradesh and has since gone on to write for eminent publications including Northern India Patrika, Jansatta and Dainik Jaagran. H has written for the influential Sunday magazine and even was its political editor for eight years. He also was the political editor of Sunday Observer for a while. He is a renowned political analyst and has used his keen sense of insight in his role as a television host. He is known for his leadership skills and his calm demeanour. He has also effectively played the role of administrative manager of the Indian team on various foreign tours.

MR FAROOQ ABDULLAH PRESIDENT, J&K CRICKET ASSOCIATION The Union Minister for New and Renewable Energy, Mr Farooq Abdullah, is a respected political leader of Jammu and Kashmir. He has been the Chief Minister of J&K several times since the '80s. A superb orator, he has been at the forefront of developing cricket in the northern state as the Jammu and Kashmir Cricket Association chief. As the Union Minister for New and Renewable Energy, he is always working towards finding and developing sustainable and environment-friendly sources of energy.

MR FORMER INDIA CAPTAIN Ravi Shastri is one of the best all-rounders India has produced. He served India for 12 years as a player and is admired widely in his new role as a commentator. A left-arm orthodox spinner, he moved from being a lower-order batsman to opening the innings for India. The high point of his career was when he was elected the Champion of Champions in the World Championship of Cricket in Australia in 1985. It was in the same season of 1984-85 that he also equalled West Indies legend Sir Garry Sobers' record of hitting six sixes in an over in first-class cricket. He is now a well-loved commentator, eloquent and engaging behind the mic.

MR FORMER INDIA CAPTAIN Sunil Manohar Gavaskar is one of the greatest opening batsmen in the . The 'Little Master' set many records that remained unbroken for years after his retirement from the game. His attention to detail, powers of concentration and perfect technique are still guidelines for budding cricketers. He was the first player to score more than 10,000 runs in Tests and only one of two players to score centuries in each innings, thrice. This Padma Bhushan awardee's record of 34 Test centuries stood for 20 years before being broken by Sachin Tendulkar in 2005. After retiring, this former Indian captain took to commentating on the game he loves with the same aplomb. He is also a respected columnist. He has continued to serve cricket in various positions with the BCCI and ICC. He is one of the first inductees in the International Cricket Council's (ICC) Hall of Fame.

MR MANSOOR ALI KHAN FORMER INDIA CAPTAIN Mansoor Ali Khan Pataudi, popularly called Tiger, is one of the most inspirational Indian captains ever. Just when he was about to start his international career, he lost vision in his right eye, but that didn't stop him from excelling as a cricketer and a leader. A bold and adventurous batsman, he played with élan. One of the youngest captains of the Indian team, this Arjuna award recipient is remembered for instilling self-belief in the team. He was an exceptional captain -- India won nine of the 40 Tests he captained. He has the distinction of having led the team which won India's first overseas match against New Zealand in 1967. He was the one who realigned Indian strategy to lay emphasis on spin . He also served as an ICC Match Referee for 3 years between 1993 and 1996.

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ROYAL CHALLENGERS BANGALORE Owners: United Spirits Ltd Team captain: (first six matches), (for the remaining) Franchisee fee: $111.6 mn Brand value: $14 mn Brand score: 50% Sponsorships/brand associations: Wrigley’s and mostly in-house brands such as Kingfisher Income from central pool: 2008: Rs35 crore 2009: approx. Rs76.5 crore Income from team sponsorships: 2008: Not applicable, as all were in-house brands 2009: Rs10 crore Total: 2008: Rs35 crore 2009: Rs86.5 crore Restructuring shows results From being a laggard in the first season to runner-up this year, Royal Challengers Bangalore was a spectacular success story in IPL 2. And if there was one star the team owed its success to, it was its flamboyant owner, liquor baron Vijay Mallya. After the team’s poor show in the first season, Mallya restructured his team and redefined its key result areas. His personal charisma added to the team’s brand appeal, says the MTI study. “RCB had a lot of glamour associated with it as it had cheerleaders from the Washington Redskins as its own cheerleaders, and the glamour quotient was furthered by the presence of (actor) Katrina Kaif as the brand ambassador,” it says. The study pegged the brand value of Mallya’s team at $14 million (around Rs66.08 crore), but this is sure to pick up after this year’s comeback. The team has not had too many sponsors but the owners say that was a conscious strategy. ********************** RAJASTHAN ROYALS Owners: IPL Cricket Pvt. Ltd Team captain: Franchisee fee: $67 mn Brand value: $10 mn Brand score: 47% Sponsorships/brand associations: At least nine; UltraTech Cement, Kingfisher, Royal Challenge, HDFC Standard Life, Puma, 7Up, TCS, Boost, Wrigley’s, fashion designer Kunal Rawal Income from central pool: 2008:Rs35 crore 2009: approx. Rs76.5 crore Income from sponsorships: 2008: Rs15 crore 2009: Rs100-110 crore Total*: 2008: Rs50 crore 2009: Rs176.5-186.5 crore Defending champions lose steam, gain ground in getting sponsorships Rajasthan Royals surprised everyone when it stole the show in 2008. It was the least expensive team and its owners Jaipur IPL Cricket Pvt. Ltd did little to change the frugal image, with no marketing buzz and no celebrity endorser. Winning the tournament in 2008 helped Rajasthan Royals attract bigger sponsors this year. The absence of star players, lesser-known owners and no brand ambassador last year combined to prevent it from creating a differentiated brand identity, but all that changed after the win. This year, the team’s glamour quotient went up when Bollywood actor Shilpa Shetty, with partner Raj Kundra, bought a 12% stake for $16.8 million, pushing the team’s total valuation to $140 million, against the $67 million the team owners had spent to buy it. All this helped the team attract new sponsors, nine against four last year. The MTI study pegged Rajasthan Royals’ brand value at $10 million (around Rs47.2 crore), the lowest among all teams. Things may be worse next year given the team’s lacklustre performance this time. ********************** MUMBAI INDIANS Owners: Reliance Industries Ltd Team captain: Sachin Tendulkar Franchisee fee: $111.9 mn Brand value: $17 mn Brand score: 51% Sponsorships/brand associations: At least 13, including MasterCard, Idea Cellular, Royal Stag, Kingfisher, Pepsi, Adidas, Zandu Balm, Red FM, Wrigley’s and Luminous Technology Income from central pool: 2008: Rs35 crore 2009: approx. Rs76.5 crore Income from team sponsorships: 2008: Rs15 crore 2009: Rs80-90 crore Total*: 2008: Rs50 crore 2009: Rs156.5-166.5 crore An average showing, loyalty factor driven by icon Tendulkar The most expensive team, Mumbai Indians, bought by Reliance Industries Ltd, had an average run in IPL, both in terms of performance and valuation. Stuck in the middle of the grid, Mumbai Indians was eliminated at the quarter-final stage in both seasons. The team, however, managed to attract an impressive number of sponsors this year. The MTI study put its brand value at $17 million (around Rs80.24 crore), the fourth highest in the league. Although Bollywood actor Hrithik Roshan did lend himself to marketing initiatives through music videos and advertisements in 2008, it was icon player Sachin Tendulkar who really drove the loyalty factor for the team and brought in brands such as MasterCard, Pepsi and Adidas, among others. The team’s biggest strength, according to the MTI study, was its huge fan following among cricket lovers. ********************** KINGS XI PUNJAB Owners: Preity Zinta, Ness Wadia and Mohit Burman Team captain: Yuvraj Singh Franchisee fee: $76 mn Brand value: $15 mn Brand score: 54% Sponsorships/brand associations: At least nine; Emirates, Gulf Oil, , Springbok International, Nimbooz, Netlinkblue, Royal Challenge, Dabur Glucose-D, Orbit Income from central pool: 2008: Rs35 crore 2009: approx. Rs76.5 crore Income from team sponsorships: 2008: Rs15-18 crore 2009: Rs50-55 crore Total*: 2008: Rs50-53 crore 2009: Rs126.5-129.5 crore Zinta brought in advertisers; consistency won loyalty More than its performance on the pitch, Mohali’s Kings XI Punjab is known for its perky co-owner, Bollywood actor Preity Zinta. The team’s performance in both seasons was average. Although the team made it to the semi-finals in 2008, this year it was eliminated at an earlier stage. The MTI report valued the team at $15 million (around Rs70.8 crore), fifth from the top in the list of franchisees. “With consistent performance throughout the season, the team was able to attract consistent audience numbers and developed a loyal viewership,” the report says. Zinta’s association with several brands as their ambassador helped the team get several sponsors and it is likely to have earned about Rs55 crore in sponsorships this year. Popular cricketers such as Brett Lee and Yuvraj Singh also upped the ante of the team. ********************** KOLKATA KNIGHT RIDERS Owners: Red Chillies Entertainment Pvt. Ltd Team captain: Brendon McCullum Franchisee fee: $75.09 mn Brand value: $22 mn Brand score: 52% Sponsorships/brand associations: At least 12; Nokia, Belmonte, Star Plus, Gitanjali Jewellers, Sprite, Boomer, Reebok, Bilt, Tag Heuer, PlanetM, Next Income from central pool: 2008: Rs35 crore 2009: approx. Rs76.5 crore Income from sponsorships: 2008: Rs30 crore 2009: Rs90-100 crore Total: 2008: Rs65 crore 2009: Rs166.5-176.5 crore Brand value upped by Khan, likely to be most profitable this time too It did not have a good run on the field last year and this year, Kolkata Knight Riders, or KKR, was the first team to be ousted from the IPL. Yet the team with Bollywood superstar Shah Rukh Khan, or SRK, as its owner topped the league in terms of brand value. The MTI study pegged the team’s brand value at $22 million (Rs103.84 crore), 16% more than the second highest team with a brand value of $19 million. “The Shah Rukh Khan brand and the in-stadium marketing strategies of the teams have influenced the team’s brand value, resulting in higher income from gate receipts, merchandising revenues and attracting new team sponsors,” says the study. The team’s below-average performance on the ground notwithstanding, KKR had the maximum buzz mainly because of SRK’s personal charisma and partly because of team member Saurav Ganguly. This year, an anonymous blogger, Fakeiplplayer, who wrote about KKR’s “inside story”, also kept the brand name bustling. The result: It was reported to be the most profitable team last year, and is likely to have repeated the feat this time as well. ********************** CHENNAI SUPER KINGS Owners: India Cements Ltd Team captain: M.S. Dhoni Franchisee fee: $91 mn Brand value: $18 mn Brand score: 53% Sponsorships/brand associations: At least 15; , Cloud 9, Nivaran 90, Reebok, 7Up, Band-Aid, Peter England, Nivea, Lays, Orbit, Boomer, Star Vijay, Hello, Big Bazaar, Coromandel King Income from central pool: 2008: Rs35 crore 2009: approx. Rs76.5 crore Income from team sponsorships: 2008: Rs20 crore 2009: Rs100-110 crore Total*: 2008: Rs55 crore 2009: Rs176.5-186.5 crore Dhoni key in creating a strong brand Last year’s runner-up and this year’s semi-finalist, Chennai Super Kings successfully delivered what its owners, India Cements Ltd, expected it to—creating brand awareness for the holding company. “IPL has given us a pan-India presence and strengthened our brand name in southern India,” Rakesh Singh, chief marketing officer of the team, had said earlier. The brand, according to the MTI study, enjoyed a strong valuation at $18 million (around Rs85 crore), the third highest among the eight teams. With Mahendra Singh Dhoni as the captain and icon player, the brand benefited from his associations with brands such as Aircel, Reebok, Big Bazaar and 7Up. “The purchase of M.S. Dhoni, under whose captaincy India won the world T20 championship, was the key factor in creating a large awareness, a stronger perception and gave great mileage for creating a strong brand for Chennai Super Kings,” says the study. ********************** DELHI DAREDEVILS Owners: GMR Holdings Pvt. Ltd Team captain: Virender Sehwag Franchisee fee: $84 mn Brand value: $19 mn Brand score: 55% Sponsorships/brand associations: At least 13; Hero Honda, Kingfisher, Royal Challenge, Coca-Cola, Adidas, Fever 104 FM, Orbit, IBN7, CNN IBN, Cricketnext.com, designer Karan Nasir, Buzzintown.com Income from central pool: 2008: Rs35 crore 2009: approx. Rs76.5 crore Income from sponsorships: 2008: Rs15 crore 2009: Rs60 crore Total*: 2008: Rs50 crore 2009: Rs136.5 crore A balanced team, Sehwag’s popularity generated advertiser interest The MTI study valued the Delhi Daredevils brand at $19 million (around Rs89.68 crore), the second highest among the eight teams. The reason: A strong squad, a popular brand ambassador (in 2008) and a well-known owner helped Delhi Daredevils create a good awareness and perception about the team, it says.

Even cricket experts hailed Delhi Daredevils as one of the most balanced teams on the field. [picapp src="a/4/2/3/PicImg_Indian_Cricketers_Unveil_e9e6.JPG? adImageId=5052460&imageId=4514590" width="234" height="161" /]Owned by Bangalore-based infrastructure and construction group GMR Holdings Pvt. Ltd, the team established itself as a serious player with strong performances in both the first and second seasons of IPL. The popularity of captain Virender Sehwag, along with Bollywood actor Akshay Kumar as the face of the team in 2008, helped it build a loyal fan base and generated interest among advertisers. According to industry estimates, the team generated Rs15 crore in sponsorships in 2008, and this was likely to have increased to Rs60 crore this year, thanks to the deals signed with brands such as Coca-Cola, Fever 104 FM and Kingfisher Airlines. ********************** DECCAN CHARGERS Owners: Deccan Chronicle Holdings Ltd Team captain: Adam Gilchrist Franchisee fee: $107.01 mn Current brand value: $11 mn Current brand score: 44% Sponsorships/brand associations: At least nine, including Odyssey, Puma, Kingfisher, McDowell’s, Big 92.7 FM, Boomer, Pepsi, Serendipity Tours Income from central pool: 2008: Rs35 crore 2009: approx. Rs76.5 crore Income from team sponsorships: 2008: Rs20 crore 2009: Rs50 crore Total*: 2008: Rs55 crore 2009: Rs126.5 crore Valuations remained low but win may change things The team was, indeed, all charged up this year. Beating Royal Challengers by six runs in the final, the Deccan Chargers team not only scored in terms of popularity, but also made its team owners, -based media company, Deccan Chronicle Holdings Ltd richer by the Rs4.8 crore that it won in prize money. The team’s valuation at $11 million (around Rs52 crore) was, however, not too impressive. The absence of a popular brand ambassador, lower awareness about its owners and fewer marketing and branding efforts prevented Deccan Chargers from building a popular brand, says the MTI study. However, there was enough advertiser interest in the team this year, with the number of brand associations jumping from five to nine. The team owners have been keen to sell a strategic stake in the team, but had not found any takers at the price they were quoting. This may now change. * The total income does not include gate receipts, revenue from merchandising and prize money. zyakaira notes: this being an official study, we will be using this to work on all things IPL here and at http://twitterone.mobi

All IPL brands have earned 150-200 crores in 2009 edition with 110 million viewers ratifying the IPL’s tag of 8200 crores ($1.3 bllion) for media rights. Now apart from their going public, i feel the potential is such that at least a couple of these franchises like the Daredevils will start earning closer to 300 crores from edition 3 Shah Rukh Khan's Kolkata Knight Riders may have shown a poor performance in the second season of Indian Premier League, but in terms of brand value it is the richest team of the Twenty20 tournament, with a brand valuation of USD 22 million.

KKR has emerged as the strongest brand in terms of valuation measured vis-a-vis the strengths of the eight IPL teams, according to the valuation done by an UK-based international brand valuation firm Intangible Business, in collaboration with MTI Consulting.

IPL 2009 and the Bollywood factor

"Winning games is not enough to build a successful sports brand. Teams need to engage the local community, attract star players, who inspire a audience, and develop a strong marketing communications programme," Intangible Business International Director Richard Yoxon said.

While the playing squads will change and the success of each team will fluctuate over time, the brand is the constant that unites supporters and is ultimately responsible for driving the long-term commercial sustainability and success of the IPL franchises, MTI Consulting said in a statement.

"Brand values are a reflection of a brand's ability to generate future income. It is a forward looking study that uses historic performance and future trends to predict future activity," MTI Consulting CEO Hilmy Cader said.

Meanwhile, last year's winner Rajasthan Royals, partly owned by another Bollywood star Shilpa Shetty, has been ranked at the bottom with a brand value of USD 10 million.

Full Coverage: IPL 2009

In the ongoing tournament, KKR has shown up the worst performance with just three wins in 14 matches, while Delhi Dare Devils and Chennai Super Kings leading the tally.

Among the eight teams, KKR has been ranked as the most valued with a brand value of USD 22 million, followed by Delhi Daredevils (USD 19 million), Chennai Super Kings (USD 39.4 million), Mumbai Indians (USD 17 million), Kings XI Punjab (USD 15 million), Royal Challengers Bangalore (USD 14 million), Hyderabad Deccan Chargers (USD 11 million) and Rajasthan Royals (USD 10 million).

If you follow the brand valuations for the IPL here, you would note the vertical cliff between revenues after season 1 and season 2. Also, the same is likely to repeat again in season 3. However, most of us would find the pricing for outdoor/theatrical rights for IPL coverage which in fact may not cover public radio and is unclear about use of team logos etc, seems to have been a cheap affair for ESD. OR, if Lalit Modi has done his job right, then there is as of now a very minimal revenue share for the TV network, the teams and the On ground sponsors are also getting away scotfree..it probably would be a very tightly monitored roll out as all the stakeholders would want to be visible and / or paid for the game in action and the real brand value would probably factor in this roll out of IPL at even 10 times the bid of INR 3300 crores at the very least.

Apart from this, team revenues would also need to rise vertically again for season 3 as time for rebidding is close at hand and some voices will already be contemplating new team mates in the pits. If not, trading is likely to get very ham handed despite the adding teams in during seasons 3 and 4

Here are the few tweets about the rights being granted and what has been happening:

What are the revenue share arrangements for ESD? and ESD with Mall/Theatre operators? MSM pays 80% to IPL till season 5, 60% till season 10

As per GoI broadcast Ministry rules all DTH providers have to get the channels from MSM, now if ESD uses at theater?

Big TV had earlier pulled out of a on ground sponsorship whn Airtel earned on-air DTH rights from MSM, Coke has on-air rights, Pepsi on grnd

MSM had earlier paid $1.79 billion to IPL for telecast rights for 10 years and the 160 cr settlement later for season 2

ESD would thus control IPl coverage in cinema, stadia and other public places for 10 years..they should pay the TV ntwrk used for broadcast?

Entertainment Sports Direct wins IPL ‘theatrical’ rights for $71.7mln till 2019 from Season 3 on, That means TV networks would now bid again

Lakers shining the Suns! At least NBA fans in India are happier with the new ESPN India imports

SRK’s Kolkata Knight Riders is top IPL brand at $22 mn: Study

Indiantelevision.com Team

(21 May 2009 10:00 pm)

MUMBAI: There is no stopping Shah Rukh Khan. Not even a dismal performance at the Indian Premier League (IPL). Kolkata Knight Riders (KKR), the team that the Bollywood star owns, has been rated as the strongest IPL brand with a valuation of $22 million.

Delhi Daredevils, owned by GMR Group, walks into the crease at the second spot with a brand valuation of $19 million, according to an evaluation by UK-based valuation company Intangible Business and MTI Consulting, an international strategy consultancy.

The "IPL Brand Value Scoreboard 2009" study, aimed at measuring the strengths of the eight IPL franchises, puts Chennai Super Kings (owned by India Cements) at the third place with $18 million, followed by Mukesh Ambani's Mumbai Indians at $17 million.

Surprisingly, Rajasthan Royals, the champions of the inaugural edition and now out of IPL 2, is at the bottom of the heap with a brand value of $10 million.

Says Intangible Business international director Richard Yoxon, "Winning games is not enough to build a successful sports brand. Teams need to engage the local community, attract star players who inspire a wide audience and develop a strong marketing communications programme."

The latest released study has pulled down the brand valuation of the IPL teams by almost half from a earlier report by UK-based brand valuation consultancy Brand Finance Plc. Though the KKR team was the most valuable showpiece, its brand value was put at $42.1 million by Brand Finance. This was followed by Mumbai Indians and Rajasthan Royals (See table for comparison).

Brand Finance had valued the IPL brand at $2 billion. The study was based on various revenue lines such as broadcasting, IPL sponsorship, team sponsorship, merchandising and gate receipts, the effect of performance, the catchment population of the city, the capacity of the stadium and the presence of iconic players.

So what was the methodology used by Intangible Business and MTI Consulting?

Explains MTI Consulting CEO Hilmy Cader, "Brand values are a reflection of a brand's ability to generate future income. It is a forward looking study that uses historic performance and future trends to predict future activity. 2008 publicly available sales data was gathered for each franchise. To determine the strength of the brands, each brand was scored on a series of attributes that underpin the power and reach of the each brand. These attributes are a mixture of hard measures and soft measures of brand strength sourced from publically available information and from a qualitative panel of cricket fans from each test playing nation. Using this data, each brand was then valued using the relief-from-royalty methodology."

IPL has all ingredients to make a Hollywood pot – boiler, with both its on – field and off – field activities. With exactly around one month to go, franchise of IPL has sprung into life through various innovative activities like fan base, cheerleaders’ contests and merchandising to generate money as well as branding.

Concept of fan base is literally not present in last year IPL. This year Rajasthan Royals have come up with concept of fan base, where their premium membership by name Maharaja Club cost around more than 2.5 lakhs , which is offered for not more than 200 people and also Young Royals club which cost the modest around 2500 rupees.

Rajasthan Royals have also commenced several reality shows, where they get to select from the available Rajasthan Royals fans for ball boys (12 – 16 years) around the rope and also a girl to lead their cheer leaders in ground.

Other franchise which have comes up with some marketing programs is Kings XI Punjab, Chennai Super Kings, Delhi Dare Devils and Deccan Chargers. Deccan chargers have come up with a innovative consumer connect with fans on Mobile phone and Internet, where fans get access to fans favourite stars wall papers, can chat with their stars and their merchandise etc.

Membership to Kings Club is around 500 for school children and Rs 1000 to rest of the people. Chennai super kings is also said to be reaching to target audience through online as well select cafe coffee day and Reebok outlets. They are also counting on options to conduct shows like CSK Junior and CSK cheerleaders, so that they can market their teams as well as players.

Last year, merchandising was one of the chief ways franchise promoted their team and brand. This time through augmenting it with concept of fan base, they have made it into a revenue generating model and success will be known by end of this edition of IPL.

Members of fan club are said to have special consideration and discounts for tickets they buy. They will be getting their preferences and core benefits.

Experts in Marketing and Advertising field have second thoughts about the success of these programs and fan base. Chief of Starcomm was quoted saying that it took exactly 150 years for a football team like Manchester united to launch their fan club. So it’s too early to go for these types of marketing and promotional activities.

Franchises are very clear of the fact that branding and loyal fans will be pivotal for their long term success and to The IPL plans to augment its revenue three fold by entering into several new prospective proposals. First, the IPL clinched a telecasting deal with ITV Brittan. Now, IPL has entered into a merchandising arrangement with a swish watch company Bandelier. More such proposals of merchandising deals are in the pipeline.

The Auction for the two teams to be added next year is over. The result of the winners who will be awarded the franchisees will be known to day. The base price of the auction for a team is fixed at $225 million. The IPL is very confident that the ultimate price for one team may reach $300.This time, every participating bidder was asked to furnish a bank guarantee of $100 million to become eligible for bidding. The higher amount of base price and also a huge amount of bank guarantee has not limited the competition. It is reliably learnt that many big industrial giants like VIDEOCON, ICICI and others are on the fray. Initially, the MCC England had shown interest in participation for the bid. Now, the MCC confirmed that they have decided not to bid for a team. In fact, the representatives of MCC visited India to study about the IPL bidding. The recommendation submitted by the members was discussed and analyzed in depth. It was decided by MCC that they will not bid for a team considering the huge amount that they have to invest. However, considering the popularity of IPL, through out the world, they are looking forward for new avenues to associate with DLF IPL. The MCC is deputing its president and head of There will be more number of competitors now due to reduction of the bank guarantee amount.

The MCC is deputing bits office bearers to Mumbai next week to attend the inauguration of IPL.This step by MCC reflects the support and solidarity extended by MCC to IPL

The tactical and innovative business proposals of IPL are going to definitely pay rich dividends in terms of revenue.

Breaking News- The IPL management has taken a surprising decision in cancelling the tender and proposes to recall the tender with less guarantee bid amount. There were many requests to reduce the minimum guarantee amount of $100 million that is to be furnished along with the bid. The DLF IPL management accepted the Font Size -A +A request and revised

IPL revenue up by Rs 1,725 cr, set to earn Rs 10,790 cr Agencies

Posted: Mar 10, 2009 at 1518 hrs IST

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Mumbai The Indian Premier League will take full responsibility for a centrally-managed security set-up for the second edition of its high-profile Twenty20 league which will cost 10 times more than last year.

IPL chairman Lalit Modi said on Tuesday that the security of players, officials and fans will no longer be left to the individual franchises as was the case last year.

"Security is paramount for us. Players, officials and fans are all very important. Players' security was the responsibility of the teams last year but this time we have gone venue by venue managing the security centrally. Of course we will coordinate with the teams," Modi said at a function to unveil the new logo for IPL second season that starts April 10.

Ahmedabad and Visakhapatnam are the two new venues added to the second season and Modi said talks were also on to get Nagpur and on the the roster. But he didn't give out the much-awaited schedule, saying it was still being fine-tuned.

"We are talking to Dharamshala and Nagpur is also in fray. Schedule is still being fine- tuned as I speak," he said.

Elaborating on the security plan, Modi said, "From the minute a (foreign) player lands here to the minute he leaves India. From the minute an Indian player enters the hotel to the minute he leaves, we will be managing the security."

"It's a cumbersome template that was used during the India-England Test series last year. That was a rigorous plan put in place, shared with the government and the international board, in that case the England and Wales Cricket Board," Modi added.

"Security (budget) will be 10 times more than last year," he said without divulging the exact figure.

IPL's security has become a major issue after the terror attack on the Sri Lankan cricketers, six of whom were injured, and last year's Mumbai carnage.

Asked about the reported apprehensions of foreign players and the host state governments, Modi said, "Three state governments (of the eight involved) have already given us their clearance in writing. The other five are expected to give it in a day or so. One state government had asked for a change of date and we are working it out." "No foreign player has so far contacted the IPL to say that he is apprehensive. They have never been uncomfortable about coming here. India is not Pakistan, we are a safe country," he said.

Modi also rejected the Federation of International Cricketers Association's demands for a say in the security arrangements for IPL.

"The IPL is conducted by BCCI and the BCCI talks directly to the Boards. We have never been in touch with FICA. But of course they will talk to the other Boards and coordinate with them," he said.

The opening and closing ceremonies as well as the inaugural and summit ties of the April 10-May 24 event would be held at the D Y Patil Stadium in Nerul, .

Modi revealed that Chennai, home to last year's semi-finalists Chennai Super Kings, will not get to host all seven of its planned games.

"There are a few blackout dates involved because of the elections. So they will not be hosting all seven of their matches," he said.

Modi said tenders have been floated for multiplexes vying to show live telecast of the IPL matches but with a clause. "If Mumbai is hosting a match, then the multiplexes there cannot show that match on that day, they will have to show the match going on in some other city," he said.

Modi also made it clear that the IPL Governing Council had decided not to allow the Twenty20 League to be used for political campaigns by any party for the Lok Sabha polls.

Modi said the confirmed contracted revenue for the second edition of the IPL has gone up by Rs 1,725 crore. "Now it's Rs 10,790 crore. Two official partner slots are still open. We are in talks and are close to signing up one of them", he said.

The Indian Premier League [ Images ] (IPL), the Board of Control for Cricket in India's (BCCI) Twenty20 [ Images ] tournament, is estimated to generate an advertising revenue of over Rs 600 crore in its first season.

In the first year, each of the eight team owners will spend around Rs 25 crore on marketing and promotion, which include below-the-line activities, city-based club activations and so on, say sources.

"We will spend in the range of Rs 20 crore on team promotions," said P K Iyer, managing director, Deccan Chronicle, which owns the Hyderabad team. Delhi team owner GMR Holdings and Jaipur [ Images ] team executives too confirmed that they would spend around Rs 20 crore each in the first year.

"We will spend over Rs 16 crore on promotions as we will concentrate on brand building," said Fraser Castellino, the CEO of Emerging Media, who along with Lachlan Murdoch owns the Jaipur team.

Industry estimates put the total advertising pie for the country, including below-the-line activities, at around Rs 22,000 crore a year.

Advertising for IPL will be generated through four major avenues, namely, air time sold by Sony Entertainment Television, BCCI's own marketing plan, promotional activities of the eight teams and from brands associated with the league.

An industry source said BCCI had allocated roughly Rs 100 crore as its advertising budget, while Sony is estimated to earn nearly Rs 300 crore from ad slots. In addition, close to Rs 200 crore will be spent on the teams for promotion and marketing.

"While the brands associated with the league may not necessarily increase their marketing and promotional budget, they will cut their spends on a particular medium. So their overall contribution may not be very high. However, for the first round, Rs 300 crore will be added to the total advertising pie. IPL will be a new contributor to the ad industry," said R Gowthaman, managing director, south-west India, Mindshare. However, experts believe the same may not hold true later.

"IPL will have a salient launch and the advertising spends will be substantial. But as the league gains popularity, the ad spends will come down," said Vikram Sakhuja, COO, South Asia, Group M.

Team selections
Meanwhile, cricketing action in IPL is about to get under way as team owners make a wish-list of the players they will aggressively bid for at the players' auction to be held on Wednesday.

While Reliance Industries [ Get Quote ], which was the highest bidder in the team auction and won the Mumbai [ Images ] team for $111.9 million, already has Sachin Tendulkar [ Images ] on board, it is believed to be in talks with ICC [ Images ] representative Jamie Stewart for the position of advisor.

"The upcoming player auction will help decide the final composition of the team. We will obviously aim for a winning combination and cannot divulge competitive strategy at this stage," an RIL spokesperson said.

Vijay Mallya's [ Images ] Bangalore team, which was won for $111.6 million, will be RIL's closest competitor, according to sources. "We will be aggressive in our bids. Our team motto is 'playing to win' and this will be reflected in everything we do," said Vijay Rekhi, president and managing director, UB Group.

The Bangalore team would have Rahul Dravid [ Images ] as captain.

Rekhi added that they would also work towards building a loyal fan base for the Bangalore team.

"Since the first match will be played between Shah Rukh Khan's [ Images ] Kolkata [ Images ] team and our team, we will dedicate a space in the stadium for fans to cheer," he said.

With BCCI deciding that each team owner will have to bid between $3.3 million and $5 million a year to rope in players from the 80 the board has listed, which does not include catchment area players, it will be a close call.

For instance, the Delhi franchisee owner, GMR Holdings, will spend around $4 million, say sources. GMR has roped in T A Sekar (chief coach of the MRF Pace Foundation) as the team advisory and has partnered event management and entertainment agency, Wizcraft International.

Virender Sehwag [ Images ] was today announced as the tentative team captain with Greg Shepherd as the coach. GMR has decided to name the team Delhi Daredevils [ Images ].

For the Jaipur team, the former managing director of IMG South Asia, Ravi Krishnan, has been appointed vice-chairman. He will advise the team on commercial, operational and on-field activities. Ogilvy is on board as the creative agency.

Emerging Media is keen on M S Dhoni [ Images ] as captain for the Jaipur team and will bid for cricketers from South Africa [ Images ], Pakistan and Sri Lanka [ Images ]. Sources added that [ Images ] would be the team's coach.

When West Indies T20 specialist Keiron Pollard was snapped up by Mumbai Indians during the January 19 auction for the third season of the Indian Premier League, or IPL 3, team boss Mukesh Ambani reportedly coughed up $1.8 million (Rs 8.3 crore) for the batsman after three rival teams exhausted their original bid amount of $750,000 (Rs 3.4 crore).

Under IPL rules, the bid amount was not disclosed but, if the number is true, it would make Pollard the most expensive IPL player to date. Much more than the $1.55 million (Rs 7.1 crore) each that Chennai Super Kings paid for and Bangalore Royal Challengers for Kevin Pietersen, who were paid top dollar, in 2009.

If this is an indication of the success of IPL 3 even before the season has begun, then things can only go one way: up. "In Season-III, IPL's earnings could cross Rs 700 crore- over Rs 200 crore more than what it earned in Season II. And though it's early days, IPL 4 will see a big jump in revenues as well," says an official of the Board of Control for Cricket in India (BCCI), the mover behind IPL, on condition of anonymity.

UK-based Brand Finance had valued the IPL enterprise at $2.01 billion (Rs 9,200 crore at current rates) for Season-II; sources indicate this valuation could increase by 50 per cent. With two new teams, a base price of $225 million for the teams ($113 million higher than the most expensive team at present) and over 300 players set to go under the hammer in October 2010, IPL 4 is sure to get bigger.

It's All About the Money

The cash-spewing innovations have already started: Apart from TV rights, IPL will also rake in the moolah from theatrical rights. This year, IPL Chairman and Commissioner Lalit Modi has raked in almost $70 million (Rs 330 crore) by selling theatre-screening rights of the tournament to Entertainment Sports Direct, which, in turn, has partnered with UFO Moviez to screen IPL matches in HD quality in 800 screens across the country. Sanjay Gaikwad, CEO, UFO Moviez, expects box office collections from the IPL matches to touch Rs 30 crore in season-III. Says Gaikwad: "This is probably the first time that any sports league is leveraging this aspect of the business." The semi-finals and finals will be screened in 3D, a first for sporting events.

IPL will also have an awards ceremony from this year, based on 56 League games, Colors, the general entertainment channel, will telecast the awards night, after-match parties, events, fashion shows and related events. Says Modi: "We will give every type of viewer something to watch. Fashion, Bollywood and cricket will all be merged. Our with Colors takes the IPL "cricketainment" quotient into a new orbit." The revenue of the tie-up will go to the franchises, he says. Then there is the online streaming of matches on YouTube in a deal with Google (see Marketing Machine).

Rohit Gupta, President, Network Sales, Licensing and Telephony, Multi Screen Media, the holding company of broadcaster SET Max, says, "With IPL back in India, we started sales in mid-2009 so that marketers have enough time to create and plan extensive creative or marketing communication." SET Max is commanding a premium of 20 per cent on advertisements over last year's edition. The broadcaster is commanding Rs 5 lakh for a 10-second ad spot for the matches. Last year, the average cost of a 10-second ad spot was about Rs 3.75 lakh. While 80 per cent inventory has been sold, the balance has been kept aside to be sold at a premium when the tournament is at its peak.

Vedam Jaishankar, Bangalorebased cricket analyst and author of Rahul Dravid's biography, says Modi has played a masterstroke this year. "The tickets for hospitality boxes will be sold at a minimum of Rs 50,000 each. Besides getting hospitality during the match, these people will be invited to the after-match parties," says he. The financial success of IPL 3 even before the matches start in February is luring new business into the league. Signs of IPL's growing net worth were evident as early as February 2009 when Rajasthan Royals, the IPL champions in Season-I, sold a 12 per cent stake in their franchise for around Rs 70 crore, valuing the franchise at a shade less than Rs 600 crore , or nearly double the $67.5 million paid a year ago to acquire the franchise.

For Season-IV, the auctions for two new teams will be held by the end of February (eight months before the October auction for 300 players) with a base price of $225 million (Rs 1,035 crore) each. This is more than double the value of the costliest team currently- Mumbai Indians at $111.9 million (Rs 514 crore). All eight franchises will be given the choice of retaining any six players (four Indians and two foreigners) they want. IPL boss Modi, however, remains tightlipped when asked if a base price had been fixed for the players. "Nothing has been decided yet. The modalities for Season-IV auction are still being worked out," he says.

Long-term Play

Guarded though Modi is, it hasn't stopped speculation on some big names who are said to be interested in buying new teams. The names of Hero Honda's Pawan Munjal, Sahara's Subroto Roy and ADAG's Anil Ambani are already doing the rounds. In a recent interview with Business Today, Munjal, the Managing Director of Hero Honda, had said he wasn't interested in the outright purchase of an IPL team for the time being. "We are associated with cricket at many levels. In the IPL we are the main sponsors of the Delhi Daredevils (with whom Hero Honda signed a threeyear contract worth Rs 55 crore in 2008) as well as being a partner with IPL. We are also associated with the International Cricket Council (ICC) as one of their global partners," says Munjal, adding that buying a team is something the company hasn't thought about.

That may change as October nears and if IPL 3 lives up to its promise of a money spinner. Sources suggest that Munjal is interested in owning a team in his personal capacity. Others too are unwilling to commit themselves. Sahara sources said they were weighing various options and would "decide about buying a team at an appropriate time". Still, over 30 companies and individuals have shown interest in buying the teams so far. What is luring them to IPL? Says Vivek Gupta, M and A Partner at BMR Advisors: "IPL has turned out to be a huge media property.... It is not to feel good or boost their egos that they want to own a team. It is a for-profit venture that is drawing them.

It's a long-term play."Adds Mahesh Ranka, General Manager of sports marketing firm Relay Worldwide India: "Companies are encouraged by what IPL has delivered. What the very high base price will do, though, is keep out people who are not serious... whose funding is not strong. Also, IPL has shown how a sport, if marketed well, can be profitable over time." Brand Finance had valued the teams after Season-II, taking into account various revenue lines. Among the eight teams, Kolkata Knight Riders (KKR) was ranked at the top with a brand value of $42.1 million (Rs 193.6 crore), followed by Mumbai Indians ($41.6 million or Rs191.3 crore), Rajasthan Royals ($39.5 million or Rs 181.7 crore), Chennai Super Kings ($39.4 million or Rs 181.2 crore), Delhi Daredevils ($39.2 million or Rs 180.3 crore), Royal Challengers Bangalore ($37.4 million or Rs 174 crore), Kings XI Punjab ($36.3 million or Rs 167 crore) and Hyderabad Deccan Chargers ($34.8 million or Rs 160 crore).

The Super 8: Bigger and Bigger

Whatever doubts remained after some teams did not make a profit in Season-I were laid to rest at the end of Season-II, when almost all teams were in the black. Rajasthan Royals, despite having lost in the semi-finals, clocked profits of Rs 35 crore in Season-II. This season, the Royals have set aside a budget of over $1 million (Rs 4.6 crore) for just marketing and promotions, says Manoj Badale, co-owner with Bollywood actress Shilpa Shetty's family, Rajasthan Royals.

Similarly, KKR, despite ending last in 2009, clocked profits of Rs 25.8 crore. The team, owned by superstar Shah Rukh Khan, expects to do well this season, although KKR officials are reticent. "Our main ambition this year is to make it to the semis. So you can say onfield performance will be target #1," says Team Director Joy Bhattacharya. Delhi Daredevils and Kings XI Punjab have tied up with bookmyshow. com for sale of tickets online. "The stadium is a key source for revenue and we have had to put technology and systems in place to ensure minimal erosion through pilfering," says Mohit Burman, co- owner, Kings XI, and a director at Dabur India. The team is spending around Rs 4 crore this season on marketing.

After having clocked profits of Rs 23.3 crore, Delhi Daredevils is expecting to improve matters in Season-III. The team's GM Marketing P. Phaneendra expects 90 per cent of tickets for its matches to be sold through bookmyshow.com. Ditto, Chennai Super Kings. With the share of central sponsorship remaining unchanged, a team's profits depend on sponsorship and ticket sales. "On both these accounts we plan to do better so our profits should be a lot higher than the first two editions of IPL," says Rakesh Singh, GM, India Cements and spokesman for the Chennai team, the runners-up in Season-I. Some owners, however, do not agree with an India Infoline Research report that suggests all teams are profitable. Burman says while teams did make money in Season-II, becoming "a profitable company" is still some distance away for all franchises. Kings XI hopes to reach operational break even in 2011 and then look forward to profits.

PE Deals on the Horizon

The question now being asked is: do these valuations and the profitability mean fertile ground for equity deals? "The valuations look attractive," says Rajesh Jain, KPMG India's National Industry Director for Information, Communications and Entertainment (See IPL: How Big Can It Get). According to Jain, some private equity (PE) firms have already shown interest in the teams though others such as Gupta of BMR Advisors says such firms take a long term, 5-7 year view.

Many teams are evaluating options to unlock value. Some PE funds like New Silk Route, Actis and TPG have shown interest in KKR and Kings XI Punjab. According to analysts, Deccan Chargers, Royal Challengers and Chennai Super Kings, which are part of listed companies Deccan Chronicle, UB Spirits and India Cements respectively, have been valued at $150 million (Rs 690 crore) each. Ahead of IPL 3 and 4, that could climb to $250 million (Rs 1,150 crore). India Cements is also not willing to hive off its IPL property from the listed company.

Singh says, "Chennai Super Kings is a property of India Cements. It will remain so. Whatever value it generates will remain within India Cements." On stake sales, Kings XI's Burman and KKR CEO Shah Rukh told BT they were not considering such options. "There may be a need for a rethink if the team's performance does not improve in season 3 and 4," he added. But there are risks and challenges in terms of maintaining the heightened interest to keep the IPL alive all through the year, explains M. Unni Krishnan, Country Head of Brand Finance in India. "...There are other T20 brands from other cricketing nations emerging and so will face competition in the coming years," he says.

For the franchises, Relay Worldwide's Ranka says the challenges lie in how they take advantage of the tournament. "The brands associated with IPL have not understood how to leverage the scope and scale of IPL" in a cricket-crazed nation, he says. If the current interest in IPL is anything to go by, that may soon be a thing of the past and IPL may be talked about in the same breath as the Super Bowl and English Premier League.

Marketing Machine

He is shrewd, super confident and has no qualms about making us wait for over five hours before he decides to meet us. He is none other than Lalit Modi, the man behind the unprecedented success of the Indian Premier League. He is busy running in and out of meetings amidst hosting two press conferences-one to announce IPL's tie up with Google for online streaming of IPL Season 3 matches live on YouTube and the other with the International Hockey Federation (FIH) to advance the timing of their first match on March 13 to avoid a clash with the final of the Hero Honda FIH Hockey World Cup in .

More than anything, Modi is happy that IPL is back in India this year. He says, "This year our theme is Back in India. And we want to make the most of it." When you speak to Modi you realise he is well aware of what he has created. He knows he has an incredibly successful product in the IPL. "Anything we do is all about marketing. My job clearly is do things that are extraordinary and think out of the box," says Modi. The Google partnership for online streaming of IPL on YouTube is one of his most significant victories.

"I have never done anything like this before. It's a paradigm shift. Imagine, Google could have approached any sporting event, the NBA or the EPL (English Premier League) but they chose IPL for their first live sports broadcast on YouTube," Modi adds. Another first to his credit is the selling of global theatre-screeing rights of IPL for 10 years to Entertainment Sports Direct for Rs 330 crore and screening of the semi-finals and final matches in 3D format. Modi does not shy away from controversy either. Take, for instance, the recent flap over leaving out Pakistan players during the Season-III IPL auction. "At times when we do things they are considered to be controversial. Again we don't do things to create controversies. Controversies are part of our business but our job is clearly to be in your face and be there all the time," he explains. Then, he is also seen as very competitive and a fast decision maker.

When the Indian government could not guarantee security for players in Season-II due to the general elections, he took a decision almost overnight to take IPL to South Africa . This ability to pull out off difficult situations is rooted in his wide networks; important people are just a phone call away. Kunal Dasgupta, former CEO, SET India, who is currently consulting him on broadcasting, says: "I am there whenever he needs me."

Sony expects Rs700 crore advertising revenue from IPL 3 The network has managed to sell close to 90% of its advertising inventory a full six weeks ahead of the tournament’s launch date of 12 March despite a steep increase in spot advertising rates and sponsorship fees

Priyanka Mehra Dayal

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New Delhi: Broadcaster Multi Screen Media Pvt. Ltd (MSMPL), which operates Sony Entertainment Television, is set to reap a bonanza from the third edition of the Indian Premier League (IPL), which is expected to deliver Rs700 crore in advertising revenue for the network.

That’s up more than half from the Rs450 crore it earned last year when the 20-overs-a- side cricket tournament, the country’s most valuable sports property, was shifted to South Africa to skirt security issues and avoid dates clashing with the Indian general election.

Clean : Multi Screen Media has sold close to 90% of its inventory a full six weeks ahead of the tournament’s launch date of 12 March. Reuters

The network has managed to sell close to 90% of its advertising inventory a full six weeks ahead of the tournament’s launch date of 12 March despite a steep increase in spot advertising rates and sponsorship fees.

MSMPL and World Sport Group Pte Ltd (WSG), a sports marketing company, paid Rs8,200 crore for the broadcasting rights to IPL until 2017.

According to a senior executive from the WPP Group-owned Mindshare, a media buying agency, the network began selling its 10-second advertising spots at Rs4.5 lakh, which is 200% more than the initial ad rates in the IPL season 1 at Rs1.5 lakh per 10 seconds and 80% higher than the initial rate of Rs2.5 lakh in the second season.

The executive did not wish to be identified because Mindshare manages the media buying business for IPL. In the past one week, the rates increased further to Rs5.25 lakh for 10 seconds.

“We are all sold out in spite of the spiralling advertising rates,” said Rohit Gupta, MSMPL’s president of network sales, confirming the advertising rates.

The broadcaster is now holding back 10% of the inventory to sell it at a premium during the final and semi-final matches. “These should be substantially higher than the Rs10 lakh per 10-second level of last year,” Gupta added.

Mobile phone firm Vodafone Group Plc and electronic goods maker Videocon Industries Ltd have signed on as presenting sponsors on MSMPL’s SET Max channel, which will telecast the matches, for Rs50 crore each, a 66% increase from last year’s Rs30 crore sponsorship rate.

Among the advertisers who have picked the associate sponsorship rights are Pepsico India Holdings Pvt. Ltd, LG Electronics India Pvt. Ltd, Hyundai Motor India Ltd, Samsung Electronics India Pvt. Ltd, Hindustan Unilever Ltd, Godrej and Boyce Manufacturing Co. Ltd and Tata Photon of Tata Teleservices Ltd.

They paid Rs35 crore each, a 25% increase from the Rs28 crore that associate sponsors paid last year.

A host of other brands such as Max New York Life Insurance Co., Tata DoCoMo, Havells India Ltd, Coca-Cola India Inc., Wipro Ltd, Sony India and ITC Ltd may have given the sponsorship rights a miss this year, but have booked large deals with the network, said Gupta.

“If you notice, most of the brands that have signed on with us this year have been present on season 1 and 2 even though there’s been a tremendous increase in advertising rates. Clearly, IPL delivers more than just good ratings for advertisers,” Gupta said.

Advertisers on board IPL agree with Gupta.

“The IPL mileage has been tremendous for the brand, which is why we are putting in a lot of money into the tournament this year as well,” said George Menezes, chief operating officer of Godrej’s appliances division.

Still, electrical goods manufacturer Havells, a prominent sponsor during IPL Season 1 and 2, has been content with spot purchases this year because of the steep rise in cost.

“We are participating in IPL this year but the cost to be a sponsor has gone up substantially,” said Vijay Narayanan, vice-president for marketing at Havells. “Since the advertising budget is limited, one cannot put all the money in one property spread across just over a month.”

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PL revenue up by Rs 1,725 cr, set to earn Rs 10,790 cr

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Larger | Smaller     Agencies Tags : cricket, lalit modi, new logo, players security, ipl revenue Posted: Tuesday , Mar 10, 2009 at 1518 hrs Mumbai:

The security will not be a responsibility of teams as the IPL has taken control of the arrangements centrally. Compare Insurance Quotes Flower & Cake Pop Corn Maker Baby Blanket

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The Indian Premier League will take full responsibility for a centrally- managed security set-up for the second edition of its high-profile Twenty20 league which will cost 10 times more than last year.

IPL chairman Lalit Modi said on Tuesday that the security of players, officials and fans will no longer be left to the individual franchises as was the case last year.

"Security is paramount for us. Players, officials and fans are all very important. Players' security was the responsibility of the teams last year but this time we have gone venue by venue managing the security centrally. Of course we will coordinate with the teams," Modi said at a function to unveil the new logo for IPL second season that starts April 10.

Ahmedabad and Visakhapatnam are the two new venues added to the second season and Modi said talks were also on to get Nagpur and Dharamshala on the the roster. But he didn't give out the much-awaited schedule, saying it was still being fine-tuned.

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IPL's new revenue streams | Hotshots at Advantage zyaada

If you follow the brand valuations for the IPL here, you would note the vertical cliff between revenues after season 1 and season 2. Also, the same is likely to repeat again in season 3. However, most of us would find the pricing for outdoor/theatrical rights for IPL coverage which in fact may not cover public radio and is unclear about use of team logos etc, seems to have been a cheap affair for ESD. OR, if Lalit Modi has done his job right, then there is as of now a very minimal revenue share for the TV network, the teams and the On ground sponsors are also getting away scotfree..it probably would be a very tightly monitored roll out as all the stakeholders would want to be visible and / or paid for the game in action and the real brand value would probably factor in this roll out of IPL at even 10 times the bid of INR 3300 crores at the very least.

Apart from this, team revenues would also need to rise vertically again for season 3 as time for rebidding is close at hand and some voices will already be contemplating new team mates in the pits. If not, trading is likely to get very ham handed despite the adding teams in during seasons 3 and 4

Here are the few tweets about the rights being granted and what has been happening:

What are the revenue share arrangements for ESD? and ESD with Mall/Theatre operators? MSM pays 80% to IPL till season 5, 60% till season 10

As per GoI broadcast Ministry rules all DTH providers have to get the channels from MSM, now if ESD uses at theater?

Big TV had earlier pulled out of a on ground sponsorship whn Airtel earned on-air DTH rights from MSM, Coke has on-air rights, Pepsi on grnd

MSM had earlier paid $1.79 billion to IPL for telecast rights for 10 years and the 160 cr settlement later for season 2

ESD would thus control IPl coverage in cinema, stadia and other public places for 10 years..they should pay the TV ntwrk used for broadcast?

Entertainment Sports Direct wins IPL ‘theatrical’ rights for $71.7mln till 2019 from Season 3 on, That means TV networks would now bid again

Lakers shining the Suns! At least NBA fans in India are happier with t

The Income Tax department is minutely studying the revenue-sharing agreements between BCCI, Indian Premier League (IPL) franchisees and hosts South Africa as the department believes it will be a major loser with the extravaganza set to get rolling in South Africa next month. IPL-2 is expected to generate around Rs 700 crore revenue through broadcasting rights, ground sponsorships, badges, ticket sales and endorsements. However, IPL officials are fearing that thefranchisees and BCCI could suffer losses worth Rs 200 crore due to the shift in venue.

Last year, the government had received over Rs 90 crore through tax deducted at source (TDS) from payments made in the IPL. BCCI and the IPLfranchisees’ liability this time will only be known once returns are filed and scrutiny is made, a senior income tax official said.

The loss to the exchequer is on account of India and South Africa having a double taxation avoidance agreement under which anyone taxed in South Africa will be exempted from being taxed again in India.

Thus, any player making an endorsement over television or on any other platform in the host country and getting paid there would have no tax obligation on that count in India.

Recently, Bollywood actress Aishwarya Rai managed to get tax relief on earning through her performances in the UK and US. The I-T Appelate Tribunal (ITAT), Mumbai had allowed her to take credit for the tax already paid in UK and US.

The I-T department had earlier wanted to tax the actress on income of Rs 16 crore through her performances abroad. Sources said that the net tax flow fromcricket may increase after a proper scrutiny of BCCI and its franchisees’ receipts and payments is done.

The IPL team franchisees get the lion’s share of the earning on broadcasting fees earned by the BCCI. This time around, with a new deal being worked out for broadcasting, it is expected that teams will have additional revenue of around Rs 90 crore to share among themselves.