THE IPL ERA

Flow of Presentation

 Introduction
 Business Model
 Governing Council
 SWOT Analysis
 PEST Analysis
 Porter’s Five Forces
 Issues
 Controversies
 Challenges and Way Ahead
INTRODUCTION

 The Indian Premier League (IPL) is a professional Twenty20 cricket league in

India contested annually by franchise teams representing Indian cities and
states.
 IPL became popular in the beginning due to the new format of 20-over
cricket that had been introduced.
 It’s inception is credited to Lalit Modi, and it was born after ICL, a similar
tournament had been discontinued due to the restrictions and sanctions
placed on the participating players.
 Cricket and Bollywood, both of which are popular in India, helped IPL to
rake up awe inspiring TRPs during the first few seasons.
INTRODUCTION

 The highest bid player in the first season was MS Dhoni at 1.5 million USD.
 Till 2012, DLF had paid Rs. 200 cr as sponsorship fees. In 2012, PepsiCo
bought the rights for Rs. 396.8 crore.
 This was terminated in 2015. Vivo bought the rights for the next two years
for 190 crore and retained it till 2022 for 2199 crore.
 IPL’s brand value in 2010 was 4.13 billion USD, which was 5.3 billion USD
after the 10th edition (2017).
Business Model

 Sponsorships and advertisements.

 Media rights.
 Franchise fees.
 Sale of tickets.
 A share of IPL revenue is shared with the teams and the teams also earn
through sponsorships.
 Prize money is offered to winners and runners up teams.
Governing Council

The IPL Governing Council is responsible for all the functions of the
tournament.
 Rajeev Shukla
 Ajay Shirke
 Sourav Ganguly
 Anurag Thakur
 Anirudh Chaudhary
 SWOT Analysis
Strengths:
• Top International Players
• Popularity of T20 format due to its short length.
• Broadcast during the period of April and May,
which are mostly vacations.
• Popularity of Bollywood celebrities.
• Individual marketing strategies followed by
the franchisees.
Weaknesses:
• It often occurs just after Cricket World Cup, so
there could be an overdose of cricket for
viewers.
• Huge investment by some franchisees who
may not be able to stand short-term failures.
• Controversies surrounding IPL may reduce the
interest of some people.
Opportunities:
• Opportunity for merchandising items like shirts,
caps, etc.
• Opportunity to tap youngsters as long term
followers.
• The franchisee fees is fixed till 2018, so it would
help investment to remain safe from inflation.
Threats:
• High investment in players may not yield
returns if they fail to perform.
• Some cricket boards may not allow their
players to play in IPL. For example, England
Cricket Board.
PESTEL Analysis

 Political Factors:
 More and more politicians are getting involved in the game, so there is a constant
instability in the management.
 Elections during a particular year, may affect the organisation of the tournament.
(For example, in 2009 it was shifted to South Africa, in 2014 in UAE)
 Economic Factors:
 With the rise in disposable income, the revenue generated due to ticket sales will
increase.
 Socio-Cultural Factors:
 Players playing all round the year are prone to injuries.
 Cultural differences among players of different countries may also affect the team.
 Technological Factors:
 The rise in media streaming apps such as Netflix, Prime Video, Hotstar, etc. has
affected IPL. Hotstar currently owns the streaming rights for IPL.
 The broadcasting rights provide a huge revenue. Currently Star Sports has the
rights which was purchased for 16,347.5 crore INR, for 2018 to 2023.
 Environmental Factors:
 It brought good business to hotel and tourism industry of India.
 Legal Factors:
 Proper laws to be in place against match fixing
Porter’s Five Forces

Threat from • Although many other similar leagues have been launched,
competition (Low) none have had success similar to IPL.
Threat of New • Almost every other country has launched their own league
entrants (High) similar to IPL. For example, Pakistan Super League (PSL),
Caribbean Premier League (CPL)
Threat of Substitutes • Other cricket tournaments during the same period.
(Moderate to High) • Other sports tournaments during the period.
• Easy for viewers to switch between different tournaments.
• Threat from Bollywood movies released during the period.
Bargaining Power of • Buyers here mean the bidders.
Buyers (High) • The fate of the team depends a lot on the players they buy.
Bargaining Power of • Suppliers here mean the players.
Suppliers (High) • They have high bargaining power based on what skills they
have to offer.
Issues

 2013
 Sreesanth, Ajit Chandila and Ankeet Chavan arrested on charges of corruption.
 Decreasing popularity due to Bollywood movies released during these period
like 2 States, Heropanti.
 Impact over quality of cricket, as T20 is a short format and does not
prepare the players for the longer form, Test Cricket.
 Impact of sudden popularity and income on players due to IPL.
 Domestic tournaments like Ranji Trophy and Duleep Trophy got sidelined
greatly.
Controversies

 International tours overlapping with the IPL. IPL did not get a slot in the
Future Tours Program of the ICC.
 England Cricket Board refused to issue NOCs to its players (which is a
prerequisite to play in IPL).
 In 2010, BCCI suspended Lalit Modi, the then chairman for alleged
ownership in the Kochi IPL team. By September 2010, he was sacked from
the board.
 In 2012, a sting operation conducted by India TV accused 5 players of spot
fixing. One of the players, Mohnish Mishra of Pune Warriors was caught on
tape saying that he had received 15 million INR from franchisees out of
which 12 million was black money.
 In 2013, 3 players of Rajasthan Royals were arrested on charges of spot
fixing.
 Following this the Supreme Court ordered N. Srinivasan to step down from
his position as BCCI president.
 In 2013, Pune Warriors India announced its withdrawal from IPL due to
failure of paying franchise fee for the year 2013.
Recommendations

 No conflict of interest- the governing body must be different and

independent. N. Srinivasan, Secretary of BCCI owned a team in IPL. That
should not be the case.

 Strict action and corrective measures must be taken against corruption,

spot fixing and match fixing.