How They Stack up IPL Juggernaut Rolls on Sans Modi
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4 Business of Brands IPL THE ECONOMIC TIMES | MUMBAI | FRIDAY | 8 APRIL 2011 Bharat Bandh From Today Focused ownership, marketing innovation and a commitment to superior fan experience help Mumbai Indians, Chennai Super Kings and Bangalore Royal Challengers improve their brand value, says an exclusive ET-Brand Finance study Mumbai Indians Tops the Charts, Rajasthan Royals Languish at Bottom How They Stack Up IPL’s pecking order is three tiered—both latest ET-Brand Finance study also on the field, and when it comes to clearly highlights what separates IPL’s business. There are the runaway leaders men from the boys:focused ownership, of the pack in Mumbai Indians, Chennai marketing innovation and a commitment Super Kings and Bangalore Royal to superior fan experience translates into Challengers, who are setting the pace and better performance on the field as well. raising the bar. The bloated middle-order Owners with a better understanding of has teams struggling to find the X-factor the game tend to choose the right player and a way out of mediocrity, and then resources, manage cultural differences there are laggards such as Rajasthan better and in general extract the best out Royals and Kings XI Punjab, beset by of both superstars and rookies. Here’s ownership and selection issues. The more on the 10 IPL franchises: RAJASTHAN ROYALS Star Players: Shane Warne, Brand Value of IPL Franchisees New Brand Value Order Shane Watson MUMBAI INDIANS 2011 2010 Franchisee Rank Star Players: Sachin Umpire’s verdict: 60 2011 2010 “IPL owners can Tendulkar, Andrew Symonds According to some, the either reform the biggest beneficiaries of 50 Mumbai Indians 2 Umpire’s verdict: May 1 Lalit Modi’s benevolence, 57.13 55.37 system inside out not be the best in cricket 40 Chennai Super Kings 2 1 and hence the legal trou- 46 48.4 or face a meltdown and marketing, but has an 47.58 46.05 45.16 Royal Challengers Bangalore 6 bles it faces. Winners of 41.9 3 30 in the not-so- edge on the gover- 40.55 40.85 40.80 IPL 1, but how long can it 38.76 Kolkata Knight Riders 3 distant future. It 36.05 4 nance front. Has married 35.75 34.44 33.78 ride on captain Shane 20 might be tempting social business with cricket by Delhi Daredevils 5 5 Warne’s magic. Also to go back to the partnering with five NGOs to 10 Hyderabad Deccan Chargers 6 8 Jaipur isn’t the most comfort of business educate underprivileged chil- Kings XI Punjab 7 7 cosmopolitan of 0 as usual, but that is dren. That rubs off on the All Figures in Million $ cities to house a Mumbai Super Royal Knight Delhi Deccan Kings XI Rajasthan Rajasthan Royals 8 4 brand. As does the deep simply not an high-profile sport- Indians Kings Challengers Riders Daredevils Chargers Punjab Royals pockets of Reliance Indus- option for IPL’s ing franchise. tries. The presence of Sachin sustainability” also adds lustre to the Combined Trademark Value of Teams Brand Value Added by IPL to BCCI M UNNI KRISHNAN brand. MI is an initiative of 2011 2010 2011 2010 MD, BrandFinance the Reliance Foundation. $355.22 $333.35 $3.67 $4.13 India Million Million Billion Billion ROYAL CHALLENGERS SOURCE: ET-Brand Finance Study BANGALORE Star Players: Virat Kohli, KOLKATA KNIGHT RIDERS AB De Villiers Star Players: Gautam Gambhir, Jacques Kallis Umpire’s verdict: Made an impact by Umpire’s verdict: Shah Rukh Khan’s team IPL Juggernaut Rolls on Sans Modi innovating in fan engagement, merchan- was tipped before the first ball was dising and ticketing. Has made substantial bowled to be the most profitable. Sadly league to potential franchise owners, and investments in developing corporate the team’s performances haven’t lived up TEAM ET sponsors without even a promotional video. stands to create a world-class experience. to its owner’s passion and energy levels. If n his pomp, Lalit Modi the cricket im- After all, smack in the middle of a global Tickets to Cost More As a result, margins on gate receipts were it is still at No 4, it may have a lot to do presario was more powerful than the recession, Modi not only sustained lucra- Meenakshi Verma Ambwani higher than any other franchisee. The with the owner’s charisma. It may not last masterpieces he was marketing. Soon tive revenue streams for IPL but also I NEW DELHI Whyte & Mackay Corporate Lounge and too long, however, if the team keeps after the successful launch of IPL, shipped out the six-week tournament to As the Indian Premier underperforming. Businessweek named him 19th on the South Africa at less than two-weeks’ notice. League’s fourth season begins, fran- Royal Challenge Stands fetched some of list of the most powerful people in When pressure mounted last year on chisees expect to rake in higher ticket the highest ticket prices. Has heavily sport, four place higher than Sachin Modi to quit, franchise owners such as revenue as they have increased some invested in digital outreach. Tendulkar. Now, of course, Modi Vijay Mallya stood by him, albeit briefly. “I of the top-end prices by 20-35% while leads a life in exile, having been think Modi must be given some opportu- trying to keep the lower-end tickets hounded out of a multi-billion dollar nity at some point of time to explain him- cricketing enterprise he helped create. self," he had said at the time. affordable for cricket buffs. PB Vanchi, This is the first season of IPL with- But now, those in the establishment say director of GMR Sports, which owns DELHI DAREDEVILS out the presence of the chain-smok- the show will go on unhin- Delhi Daredevil, said that overall a ing, Armani-clad Lalit Modi in dered. “There is no differ- 15-20% increase in ticket prices has Star Players: Virender the stands. This is the ence to the IPL as a product. Sehwag, Irfan Pathan happened. "One cannot increase the And the show will go on. He first season The strong cricketing ac- knows that. of IPL tion at the heart of its suc- prices drastically as it is meant for the Umpire’s verdict: Has “The show must go on. IPL is a without the cess is as exciting as ever, team’s supporters and fans and needs always been a formida- world class tournament. It’s for presence of and we are building on the to be affordable," he said. Match ble team on paper, what the fans globally. Each game will the chain- back of the success of the tickets start from `220-300 for the 10 with Virender Sehwag be riveting,” tweeted Modi, now smoking, first three seasons,” IPL teams, with most of them available at leading the attack, but living in London and being chased Armani-clad CEO Sunder Raman says. the ticket sale points at the stadiums. by Indian authorities for alleged Lalit Modi Raman himself was hired success seems to con- irregularities during the first by Modi and once beamed stantly elude the GMR three seasons of the popular about being the first “professional” em- Group’s team. Fares twenty20 tournament. ployee in a bureaucratic cricket board. been good for IPL. But if he's not here, then poorly in marketing Yet, there’s no dearth of Some BCCI officials say IPL is more de- also IPL continues to be the institutional and in engagement those who miss, in hushed centralised under the new regime. platform for cricket that it has been,” says tones, his ruthless can-do Earlier, IPL used to make many logistics PB Vanchi, director, GMR Sports, which with fans. spirit. “He was a marketing arrangements for the teams including ar- owns the Delhi Daredevils. DECCAN CHARGERS genius whose primary com- ranging the cheer girls and deduct the cost Shamsher Singh, a former cricketing Star Players: Sangakarra, Dale Steyn mitment was to his investors from the franchisee fee, one official said. manager at Rajasthan Royals and one-time CHENNAI SUPER KINGS and stakeholders. If anybody “Now all decisions and arrangements are Modi associate, says the euphoria over Umpire’s verdict: Wildly varying gave him a `100, he’ll do whatever made by the franchisees who enjoy greater India’s World Cup win may help IPL tem- Star Players: M S Dhoni, performances on the field. Laggards one it took to give back at least `150,” flexibility,” he says. porarily tide over Modi’s loss. But in the Suresh Raina says an advertising honcho who An ET-Brand Finance study has reported long term, Modi will be missed. year, champions the next. Owners Deccan worked alongside Modi in the nas- a 11% drop in IPL’s value and attributed it “He created IPL, whereas those at the Herald have been unable to unlock the cent days of IPL. to governance issues. Could it also be due helm have merely inherited a going con- true potential. Umpire’s verdict: The champions A former IMG executive points to the missing Modi enterprise? cern. In Modi’s absence, the real test will of IPL 3 are the most consistent. out that Modi marketed the entire "If Modi had been here, it would have come when the car has a flat tyre,” he says. Captained by MS Dhoni, who a few days ago led India to a World Cup title. Team composition has also been consistent with mini- mal changes, which will go a long way in creating a loyal fan base.