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 IT WON'T BE WRONG TO
say that cricket today has
become the new religion
of a billion people across the
country. The Indian Premier
League (IPL) is a celebration
of talent and a perfect marriage
of Bollywood and cricket,
both popular forms of
entertainment in the country.
Cricket indeed is one of
the best levelers of our times.
In terms of sheer stature,
openness and magnitude it has created an impression in the
minds of emerging India, what perhaps Bollywood had created
in the 60s and 70s in the minds of entertainment
starved middle-class Indians.
Yes indeed, this rise of a new breed of media owners is
raising the game to a new crest. Big business houses and
Bollywood stars bid in the auction, and the event has generated
a lot of hype. The eight franchisees - Reliance
Industries Limited (Mumbai), Shah Rukh Khan's Red
Chillies Entertainment (Kolkata), India Cement
(Chennai), Vijay Mallya of UB Group (Bangalore), GMR
Holdings (Delhi), Deccan Chronicle (Hyderabad) Preity
Zinta and Ness Wadia of Bombay Dyeing (Mohali) and
Emerging Media (Jaipur) are a mix of corporate ventures
and celebrity entertainers. They each come with a brand
quotient of their own. The challenge for them will be to
promote and develop their individual teams. The average
crore, including the cost of acquiring the franchise for ten
years and signing on players for five years. These will be
primarily serviced by revenues from television rights
(80% in the first year, tapering off in later years), which are
expected to fetch Rs. 20 crore in year one.
The IPL has shown the world how to sell a product at huge
premium, creating big buzz around this revolutionary cricket concept, and got the franchisees to pay enormous sums of
money. In the bargain, the BCCI earned Rs. 4,124 crore from
media rights, Rs. 2,909 crore from team sales and some
smoke money of $50 million from DLF, the title sponsors.
World Sport Group (India), part of the Singapore based WSG,
a global sports management company, has committed
$41.026 billion spread over 10 years.Hero Honda, IPL's cocosponsor,
has committed $22 million. As for the players,
Mysore Sandal Soap might have found M.S. Dhoni a slippery
customer because he is alleged to have reneged on his contract;
but the Chennai Franchisee, India Cements Ltd., paid
Rs. 6.03 crore for him.
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The Hyderabad Franchisee, Deccan
Chronicle, bought the explosive Andrew Symonds for Rs.
5.43 crore and floored him; hope he will be better behaved in
future. To get an idea of these outlandish prices, just consider:
Ishant Sharma, aged 19, our latest bowling sensation, will
earn a lakh for every ball he bowls in IPL, as millions like
poor you and me will cheer him on.
With huge money and personal reputation of various
franchisees at stake, I hope the IPL will turn out a real extravaganza,
attracting consumer eyeballs. This in turn will serve
as a conduit for lucrative sponsorship deals, through revenue
and merchandising. The IPL is modelled along the
lines of UKs’ English Premier League (EPL) and the National
Football League (NFL) in the USA. There's evidence that club
loyalties and passions in those countries have been exploited
by the marketers. Given the average Indian's passion for
cricket, the model may prove to be quite a number.
Since the IPL tournament involves several established
Indian cricket stars and Bollywood actors, one can bet that
the brands these celebrities endorse will get associated with
the IPL. For the advertisers, incremental reach will ultimately
become primary as the IPL tournament progresses (This
may take one to five years depending on the individual franchisee).
Indeed today, Glory and Wealth are the twin drivers
of youngsters. So cricket retail factories will mushroom,
offering crash courses, and pan-Indian sport and headgear
companies will sprout far and wide to catch the youths.
Whether or not the format will be popular for a sustainable
period remains to be seen. The real challenge for the IPL
and the team franchisee would be to drum up loyalty and
create a dedicated fan base. What the club membership benefits
will be also remains to be seen. The positioning of IPL
will be a major factor. Big brands like Coca Cola and
Samsung are looking at the IPL only as an advertising platform,
not pitching for sponsorship.
The players will have to nurture the pride and local passions
for theirs clubs. For instance, the Bengalooru versus
Jaipur match, perhaps every Sunday, may take time to take
off. The media hype around the contest, local pride and star
attractions will then have to work in tandem if the IPL is to
become a success in attracting multitudes of eyeballs.
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