Twenty20 Vision the Commercial Future of Cricket
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Twenty20 Vision The Commercial Future Of Cricket A Management Report published and distributed by International Marketing Reports Ltd Suite 7 33 Chapel Street Buckfastleigh TQ11 0AB United Kingdom Tel: +44 (0) 1364 642224 www.imrsponsorship.com [email protected] Cover Design by Karen Painter ISBN 9781905685103 eISBN 9781905685233 Copyright ©2009 by International Marketing Reports Ltd All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, photocopying or otherwise, without the prior permission of the publisher and copyright owner. While every effort has been made to ensure accuracy of the information, advice and comment in this publication, the publisher cannot accept responsibility for any errors. The views expressed in this report are not necessarily those of the publisher. 2 The Author David Smith is a journalist whose specialist areas are business reporting and cricket. He was chief writer on cricket websites produced by both Channel 4 and Channel 5, and writes on cricket and rugby for The Times. He will be covering the 2009 Ashes for Channel 5's website. His writing on business-related subjects has appeared in several UK national papers, including the Daily Telegraph, The Guardian and The Times. Acknowledgements The author and publishers would like to thank the following for their invaluable help in the preparation of this report: James Buttler, Will Collinson, Nigel Currie, Michael Fordham, Mark Foster, Michael Goldman, Gideon Haigh, Steven Hirst, Nick Hoult, Christopher Hyde, Esau Isaac, Peter Jackson, Kate Johns, Richard Kay, Glenn Lovett, James Matheson, Paul Mitchell, Tim Percival, Adrian Pritchard, Will Reynolds, Stuart Robertson, Katie Wood. 3 Table Of Contents EXECUTIVE SUMMARY .................................................................................... 13 TV Rights Growth ............................................................................................ 13 Sponsorship .................................................................................................... 14 Cricket Attendance .......................................................................................... 15 The Development Of Twenty20 ....................................................................... 15 The Indian Premier League ............................................................................. 16 Twenty20 And The ECB .................................................................................. 16 Case Studies ................................................................................................... 17 The Future ....................................................................................................... 17 1. SPONSORSHIP RIGHTS IN CRICKET .......................................................... 18 Governing Body Sponsorship Deals ................................................................ 18 Domestic Cricket Club Sponsorship Deals ...................................................... 26 Australia ....................................................................................................... 26 England ....................................................................................................... 30 India ............................................................................................................. 38 South Africa ................................................................................................. 42 New Zealand ................................................................................................ 42 Pakistan ....................................................................................................... 43 West Indies .................................................................................................. 44 Cricket Sponsorship Analysis .......................................................................... 45 Global Cricket Sponsorship ......................................................................... 45 Twenty20 Cricket Sponsorship .................................................................... 46 Australian Cricket Sponsorship .................................................................... 47 English Cricket Sponsorship ........................................................................ 48 Indian Cricket Sponsorship .......................................................................... 49 2. CRICKET ATTENDANCE ............................................................................... 51 Cricket World Cup ........................................................................................... 51 Australia .......................................................................................................... 52 England ........................................................................................................... 56 India ................................................................................................................ 63 South Africa ..................................................................................................... 64 3. CRICKET TV RIGHTS .................................................................................... 67 International..................................................................................................... 69 Australia .......................................................................................................... 70 England ........................................................................................................... 71 India ................................................................................................................ 72 New Zealand ................................................................................................... 73 Pakistan .......................................................................................................... 74 Sri Lanka ......................................................................................................... 74 South Africa ..................................................................................................... 75 West Indies...................................................................................................... 75 United States ................................................................................................... 76 4 4. TWENTY20 – THE HISTORY ......................................................................... 77 The Indian Premier League And Indian Cricket League .................................. 80 The IMG Formula For Success .................................................................... 81 The IPL‟s Financial Results ......................................................................... 83 Franchisees ................................................................................................. 84 Sponsor Reaction ........................................................................................ 86 Television Audiences ................................................................................... 87 Public Reaction ............................................................................................ 90 Conclusion ................................................................................................... 92 Valuations To Rise ....................................................................................... 95 Terrorism ..................................................................................................... 95 IPL Moves To South Africa .......................................................................... 96 Indian Cricket League .................................................................................. 97 Allen Stanford‟s Twenty20 tournaments .................................................... 101 5. THE CHAMPIONS LEAGUE AND THE ENGLISH PREMIER LEAGUE ...... 106 Sponsors‟ Responses To The Twenty20 Cup ............................................... 106 County Responses To The Twenty20 Cup .................................................... 109 Timing ........................................................................................................ 109 Weather ..................................................................................................... 110 Critical Success Factors ............................................................................ 110 Future Critical Success Factors ................................................................. 110 Finances .................................................................................................... 111 New Audience ............................................................................................ 111 ECB Research ............................................................................................... 111 Differentiation ................................................................................................ 112 The Recession .............................................................................................. 115 The Question Of Overkill ............................................................................... 116 The Champions League ................................................................................ 118 Schedule .................................................................................................... 118 Sponsors...................................................................................................