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  • ‘We plan to list at the US stock exchange to raise funds for the league’ : EFLI CEO Richard Whelan

    ‘We plan to list at the US stock exchange to raise funds for the league’ : EFLI CEO Richard Whelan

    There is a rush among sporting bodies to follow the Indian Premier League (IPL) way to build their sport. The latest to follow this route is American football.

    The Elite Football League of India (EFLI) is making an entry with its first edition ready to kick off in November 2012 in Pune. The franchise model starts with eight teams, building up to a total of 52 by 2022 representing all Indian cities with a population in excess of one million.

    EFLI will work with the Indian government to develop the first ever governing body for the game, similar to that of the BCCI and its governance of cricket.

    Ten Sports has the rights to televise 33 games in the first season including Saturday and Sunday games as well as 13 Monday Night Football games. The league will commence its first nationally televised game beginning November 2012 and the inaugural season will run through February 2013.

    EFLI plans to list in the US stock exchange to raise funds for the league.

    In an interview with Indiantelevision.com‘s Ashwin Pinto, EFLI CEO Richard Whelan talks about the growing sports market in India.

    Excerpts:

    You have a scene where different sporting bodies are looking at leagues in India. What is the reason for this sudden push?

    India is today one of the fastest growing economies in the world. Its vast middle class population acts as the backbone of its economy. They want more than just cricket; they are today watching F1, EPL, Wimbledon and various other sporting activities. This has encouraged people to explore opportunities in the dynamic Indian sports landscape.

    When you look at the Indian sporting landscape, what is your vision for EFLI?

    Looking at the sporting scene in India today, the future for EFLI looks very bright. Games like rugby, basketball and lawn tennis have gained a strong ground in this country. Moreover, F1 and other motorsports events too are getting off the ground. The environment for sports in India is very conducive.

    Have you done any research to find out how American football is perceived in India?

    Clearly we‘ve started from scratch, and the slate couldn‘t have been any clearer for us. This has been terrific. From the early responses to our training and orientation camps, we can tell that India has a great sporting culture hitherto unknown.

    The message about the advent of American football coming to India spread virally at the ground level purely through word-of-mouth and we‘ve had a massive response with hundreds of candidates turning up for player and coach trainings. We are overwhelmed with this kind of response, and whilst we understand that we need to educate people about the sport in its entirety, the desire to want to learn is very strong.

    Indians don‘t watch much of other sports except for cricket. A few major events like the soccer World Cup get some traction primarily among males. Do you see things changing in this regard?

    We have seen some radical changes in Indian sports scenario in these recent years. As recent as two months ago, there was a report in one of the leading English Indian dailies that audience and advertising revenue are bound to multiply in the coming years and that Indians love to see American sports on television.

    It‘s fast, furious and fun to watch. They further reported that according to Tam, Indian viewers are now watching sports other than cricket. There is no doubt in our minds that the EFLI has picked the right time for its Indian touchdown. Even women are keen on watching sports!

     ‘EFLI will create legal bylaws, working with the Indian government to develop the first ever governing body for the game, similar to that of the BCCI and its governance of cricket‘

    You start with eight franchises. How will this be scaled up?

    Economically, EFLI will have an astoundingly unmatched impact on India. The league will incorporate sponsorship from around the world and provide a platform for multinational companies to reach India‘s burgeoning retail market.

    EFLI will auction eight teams internationally. An opportunity will be created within the Indian investment banking arena to offer franchise, league and team ownership to the public marketplace. India offers enormous room for growth within the industry of sport. The US sports industry is currently valued at a half trillion dollars leading the layperson to easily recognise India‘s potential to reach beyond the scope of the American precedent.

    In order to achieve this standard, India must embrace and become a country of many sports. Football will lay the foundation and open the pathway for an explosive sports and media marketplace with reverberating impact into memorabilia and second and tertiary product sales. There is no question that, on behalf of India, football will elicit interest and participation from a broad spectrum of sporting enterprises once the door has been opened.

    What are the different revenue streams available to franchises and have you spoken to any parties for feedback?

    We are still working out these details.

    On the broadcast front, have you signed a deal with anybody?

    EFLI has signed letter of intent with Ten Sports to televise 33 games in its first season including Saturday and Sunday games as well as 13 Monday Night Football games.

    The league will commence its first nationally televised game beginning November 2012 and the inaugural season will run through February 2013.

    Could you talk about how you will partner the sports ministry to set up a governing body like the BCCI?

    We have set up EFLI, the first ever American-style Football Federation in India. This allows for the non-profit entity to work directly with the central government of India for the benefit of Indian society.

    EFLI will distribute 15 per cent of its revenue to the Sports Ministry of India to help maintain many of its ongoing programmes and facilities.

    Also, the league will forge strategic alliances by offering ownership opportunities to all Indian entities; business, military, political, municipalities, private and public partnerships. The EFLI will create legal bylaws, working with the Indian government to develop the first ever governing body for the game, similar to that of the BCCI and its governance of cricket.

    Could you give us an idea of the investments being made and by when you expect the venture to be profitable?

    We plan to list EFLI at the US stock exchange to raise funds for the league. We are planning to raise around $10-12 million through this route. Americans know the growth story of India and want to invest in India.

    The sports business industry is untapped and they are very familiar with the power behind American football. Besides tapping the US stock market, we are also looking at the option of raising funds from private investors but at this point we have quite a few options. We also have private investors and potential debt investors for equity down the line.

    Is the initiative being done under the aegis of the NFL and do you have similar leagues in other markets?

    No, EFLI has no affiliation with NFL. It‘s a completely independent entity which was formed by people sharing a similar thought process.

    There are various other leagues which are present in the US today like the United Football League (UFL), or the Stars Football League which will begin from August 2011. Even Canada has its own football league called the Canadian Football League (CFL). Apart from these professional leagues, there are other various semi-pro and amateur leagues which are held in various parts of United States.

    Could you talk about the team and support staff behind the EFLI?

    EFLI‘s management is in the hands of a very dynamic and experienced team. We have Sunday Zeller, who is the founder of this exciting new initiative. She has worked as a marketing consultant in branding and positioning startup enterprises to help attract capital and attention for the past 22 years.

    Then we have Alex Emmanuel who is the co-chairman. He was the Tata group global VP for Human resources. He has also worked with MNCs like ABB / Boehringer Mannheim. I am the CEO of EFLI. I come from a stock broking background. I had a firm called Moveable Cubicle. I have been involved in many start-up or early stage private companies, many of which went on to become publicly traded.

    Mohan Bangera is our COO. Previously he was Videocon VP marketing and sales. He has been closely associated with sports since a long time. He is the Technical Council of Judo Federation of India Chairman. Bangera comes with 30 years of experience in this field as a player, coach and administrator.

    We also have a robust executive management team with specialists from various backgrounds coming on board with their expertise in specific roles such as corporate alliances, production, events, marketing and choreography among other important job functions.

    What are the different facets of the EFLI?

    EFLI will create an exclusively Indian product packaged perfectly and specifically to advantage television and media support ultimately to become the most valuable sports franchise in the world.

    Thousands of jobs will be created as a result of the immense need for coaches, athletes, trainers, referees, and support staff as well as the even greater demand for employees in the legal, maintenance, media, marketing and retail sectors.

    EFLI will strive to eventually support the highest paid athletes in all of India. Founding athletes and coaches will have an opportunity to become owners of the league. The league will recruit and train a team that will physically and strategically compete at the level of the current US teams, one day defeating the US in competitive play.

    EFLI will establish a grassroots educational project to incorporate the game of football in schools beginning at grade school level extending to universities which will feed the professional recruitment efforts. By introducing and supplying footballs and equipment along with the programme, the league will provide a much needed physical and intellectual stimulus through competitive game play to the male youth of India.

    What are logistical challenges you will face and what is the strategy to tackle this?

    Educating people about the game, providing them with the right kind of exercise and nutrition to be able to play the game in its true form will be our biggest challenge. And we are fully aware of this, and will do everything possible to make this best in sports entertainment.

    What is American football‘s USP from a viewer‘s perspective compared to other sports that Indians follow like cricket and soccer?

    Indian viewers have opened up to newer sporting events in recent years. Sports like rugby and badminton have gained momentum in the Indian sporting culture.

    The introduction of American football will be a new robust sport that Indian viewers can look forward to. It‘s a game which needs speed, strength and strategy. These traits will keep the viewers to their seats. It‘s a total entertainment for the viewers.

    In the US, American football has maintained its pinnacle in a competitive and fragmented market with the Super Bowl being the most watched event in the year. What are the learnings from this success that you would look to apply in India?

    When football took off in America in 1960, there was a population of 180 million people; India has 1.2 billion.

    America had 45 million TV households; India currently has 130 million and this is increasing exponentially.

    The economic strength of the United States was $520 billion; the economic strength of India is currently more than double at $1.2 trillion and growing at a blistering pace! India is without doubt an exceptionally fertile market for the immediate and overnight success of the game of football.

    Having said that, you have the disadvantage of a relative lack of awareness for American football compared to other sports in India. How will you work around this?

    We agree that there is lack of awareness towards American football in the county but people are willing to know about this game. There is a huge Indian population in America which follows American football. This trend has passed on to the Indian audience as well.

    EFLI believes that it will easily be able to capture the interest of the enormous population under the age of 30 which has shown proven interest in American form of sports. The EFLI will be branded as the “New and Cool” intelligent ultimate athlete gladiator sport and form of entertainment.

    We also believe that the top US companies with an international presence or those looking to grow their international presence in this enormous 1.21 billion population market will have a keen interest in attaching their brands to the “proven power” of this game. The EFLI will capitalise from the unbelievable discrepancy between the number of unpaid athletes in the country and the enormous potential of gross revenue football has proven to capture through television and electronic media broadcasting, merchandising and licensing revenue, ticket sales, and local and corporate sponsorship as well as future team franchise sales.

    We plan to establish EFLI as an educational project at the grassroots level to incorporate the game of football in schools beginning at school level extending to universities which will feed the professional recruitment efforts. By introducing and supplying footballs and equipment along with the programme, the league will provide a much needed physical and intellectual stimulus through competitive game play to the male youth of India.

    What new technologies have come in to enhance the viewing experience of American football?

    These aspects will be worked upon in close cooperation with our broadcaster partner. Needless to say we will offer our viewers a cutting-edge and technologically advanced viewing experience.

    In terms of global television viewership, how does American football compare to the NBA, soccer and tennis?

    American football has gained strong ground outside US. It‘s now a very popular sport in countries like Israel, Australia, Belgium, Brazil, Germany, England, Ireland, Italy, Japan, Mexico, New Zealand, Hungary, Norway and Spain. Ironically, these are the nations where soccer and rugby are a religion. In terms of viewership, the Super Bowl has a global audience of over two million – this is an impressive number.

    What role do new media like mobile and social networks play for American football in building brand equity?

    Mobile and social networks play a huge role in building a brand name for American football. These are the new platforms through which we can spread the word amongst the new generation.

    They are connected through Facebook and Twitter for news and information, which I guess is apt to promote the game. Besides, new media tools like electronic and fantasy gaming have already proven their ability to attract consumers and also rake in huge profitability.

  • ICL will wait for more disclosures from Modi before acting

    ICL will wait for more disclosures from Modi before acting

    MUMBAI: Lalit Modi’s tweets have brought life into the Indian Cricket League (ICL), the original but defunct T20 format league floated by Subhash Chandra.

    Post Modi’s revelations on how the BCCI pressurised to kill the ICL, the Essel Group has said that it will wait for further disclosures from the former IPL commissioner on how they tried to sabotage the ICL, before announcing their next move.

    “Essel Sports, promoter of ICL, has received lot of queries on the recent disclosures made by a former member of the BCCI, openly admitting to having initiated various actions against the ICL operations,” Essel Group head, group finance and strategy Himanshu Mody said in a statement.

    “These revelations justify our position that the Twenty20 format was conceptualised and formulated for the betterment of Indian and World cricket by ICL and the Essel Group,” Mody added.

    “We await the entire details to be made public as stated by the former BCCI official and will determine the next steps accordingly,” he further added.

    Meanwhile, Lalit Modi, who was also part of the BCCI at that time, wrote on his microblogging site that when he was at BCCI, the mandate given then was to scuttle ICL.

    “BCCI arm twisted every cricket board and ICC to change there constitution. The constitution of every board was changed and ICC made ICL redundant by its act – by making it unauthorised cricket. Worldwide anti competition laws were studied and finally though against most Laws – the ICC changed there constitution to protect its members,” Modi said.

    He clarified his stance, saying that when you work for an organisation – and it gives you a mandate to do something then – its one‘s job to do that to the best of his ability.

    “Yes I was part of the BCCI when we scuttled ICL. That was the mandate of the organisation. It was not my personal agenda. I have no personal issues with ICL. I am of the personal opinion that more competition in the game is good for the game and its players. I have always done what‘s required by any organization I have worked with. Well I guess I do my job well. That‘s why I give results,” Modi wrote.

    He added that BCCI was afraid of Subhash Chandra‘s clout in media and ability to take over the world of cricket. “Internally we knew he would do a better job,” Modi added.

    On the steps BCCI had taken, Modi wrote: “All correspondence related to scuttling ICL and any unauthorised league – will be made available on my website www.lalitmodi.com soon.”

    Finally, he added that it was a “mistake to have systematically used everything in BCCI‘s arsenal to finish ICL”.

    “Yes, we as BCCI called all and sundry to oppose ICL. Cricket associations were told not to give there grounds or fear loosing matches. Players were told do not play for ICL or we will black list you. This then BCCI had to implement through change of constitution. BCCI even terminated Zee Sports contract unfairly as they had launched ICL and BCCI wanted window for IPL., Which I am told is in court now. The final straw was to offer ICL players an amnesty scheme so that they would desert ICL and join IPL. Commentators were called and told do not associate with ICL or BCCI will ensure we will not take you. Umpires were told the same. It was systematically done.

    BCCI than called every member of ICC to ensure that they all help in changing the ICC Constitution to outlaw ICL. ICC set up a three member committee with me, Giles Clarke president ECB and Norman Arendse president CSA to draft the new constitution. We drafted the same and then BCCI ensured it was approved and implemented with lightening speed. Result – Demise of ICL. BCCI even went to the extent of black listing suppliers like TV Production Cos, event managers who worked with ICL. ICC used Bird and Bird a UK based law firm to ensure regulations to stop ICL was made consistent globally. The three member team worked with them,” Modi explained.

    However, BCCI chief Shashank Manohar refused to react on Modi’s allegations. “I don‘t want to react at all to Mr Modi. Modi seems to fascinate the media. He does not fascinate me,” Manohar said.

  • ‘We share cordial relations with the BCCI’ : Kings XI Punjab co-owner Mohit Burman

    ‘We share cordial relations with the BCCI’ : Kings XI Punjab co-owner Mohit Burman

    Amid controversies surrounding shareholding issues and a termination notice from the BCCI, the spirit of Kings XI Punjab hasn‘t dampened. The Indian Premier League franchise expects to break-even this year as it targets a 15–20 per cent increase from all revenue channels.

     

    Though the drama off the field and the court proceedings caused damage to the brand, Kings XI Punjab has fought back and managed to retain four of its existing sponsors.

     

    In an interview with Indiantelevision.com’s Ashwin Pinto, Kings XI Punjab co-owner Mohit Burman talks about the hard times the franchise had to go through while staying on course to turn profitable.

     

    Excerpts:

    The BCCI had terminated its IPL contract with Kings XI Punjab and now the team is back. What is the current relationship with the BCCI?
    We share cordial relations with the BCCI. After all, it is in both our interests to run the league smoothly.

    What was the argument that you made in court over the BCCI‘s abrupt termination?
    The BCCI had a certain opinion about the shareholding structure of the company, which was factually incorrect. The court in its interim order has accepted our position on the issue.

    Amid all the controversies including the one for overseas broadcast rights, are you concerned that the IPL‘s brand value might take a hit?
    Brand IPL has only been growing these past three years. We believe that this will further grow with each passing season.

    Does the BCCI need to adopt a more inclusive approach and involve franchises when it takes big decisions?
    The BCCI and franchisees form the IPL. Hence, it is only right that both engage with each other in the best interests of the league.

    There are now 74 matches as opposed to 94 envisioned earlier. What impact will this have on your revenue?
    Each franchise shall still play 14 games at the league stage. I do not, therefore, see any great impact on revenues. We are confident of breaking even this year.
    ‘Though there are 74 matches as opposed to 94 envisioned earlier, there will not be any great impact on revenues. Each franchise shall still play 14 games at the league stage. We are confident of breaking even this year‘

    Some feel that the BCCI should not have added two new franchises. Do you agree?
    I don‘t see 10 teams as problem. It was always known that two new teams would be added in 2010.

     

    Yuvraj and Mahela are match winners in their own right and we did try to bring both of them back into our team. But after a point, the costs for individual players affect the composition of the team. At the end of the day, one has to formulate a team vis a vis spending the bulk of our purse on individual players. We have added 12 uncapped players including Nitin Saini, Sunny Singh, Siddharth Chitnis and Paul Valthaty.

    How would you describe the progress that Kings XI Punjab has made over the past three seasons of the IPL?
    We have come a long way since the first auction when nobody was sure if this format would work at all. Over the past three years, we have seen a number of ups and downs.
    The first season was a good season for us from a cricketing perspective as we reached the semifinal, but then we slipped and our performance has been below par in the last two seasons. But with the learning’s from the previous seasons, we have now worked out a very balanced cricket team under an IPL winning captain – Adam Gilchrist. We strongly believe that our new team has the potential to win the IPL and make all our fans and supporters very proud of us. With three seasons behind us, we have only learnt more and understood how the business of sport and entertainment works. We are now in a better position to plan and execute effectively with clear objectives.

    What have the key learnings been?
    The IPL is a very interesting product as its gets cricketers from across cultures who have always played against each other but are now playing in the same team. Hence, we have realised that the success of the team depends on how well the team gels together and plays as one unit while understanding each other’s limitations and strengths.

     

    From a brand perspective, IPL team fans were initially excited about the cricket stars in each team. However with our efforts over the last few years and even going forward, we are trying to position Kings XI Punjab as the prime product and have the fans support the team rather than the stars in it.

     

    Over the last three seasons, we have had partners who have stood by us and believed in brand Kings XI Punjab. For the coming season, we have renewed four of our partners (Emirates is the Title sponsor while Reebok is the Official Apparel Partner, USL is Official Games for Challenge Partner and Wrigley is the Official Chewing Gum) as we believe that long term associations is where the value in sport sponsorship lies.

    How hard has it been to get the sponsors on board after all the controversies Kings XI Punjab went through?
    It is fair to say that the happenings off the field initially had an effect on the perception of the sponsors to a certain extent.

     

    However, the fact that four of our existing sponsors have signed again with us should indicate the trust and faith that sponsors have in us as a franchise and the value that they see in associating with us. You shall soon hear of many more sponsors coming on board with us for the coming seasons.

    Is it just money that you are looking for or are there other parameters?
    We are a group of friends who invested in this venture as all of us are passionate about sport in general and cricket in particular. We also saw value in this model as a business proposition.

    What revenue growth are you eyeing this year?
    We are looking at a 15–20 per cent increase on all revenue channels across the board.

    Two new franchises means more clutter for advertisers. How do you see things playing out in terms of brand recall?
    All the teams are assigned Catchment Areas and Bases. This should take care of the brand recall to an extent. We have invested time, effort and money into building brand loyalty,
    which is the hallmark of our franchise. We value our association with our fans and are grateful to them for standing solidly behind the franchise at all times.

     

    It is also very important to realise that sponsors come into the IPL market with their own set of objectives and plans. Some brands use this platform just as a branding exercise while others rely on activities around the team and players.

     

    The TRPs of the IPL in the past three years have been more than impressive as it is the biggest sporting property in the country.

    What initiatives are you planning for to build fan connect this year?
    We are looking at increasing our fan base by conducting activities for the Lion‘s Den, which is our Fan Club. These would be online through our website and on ground activities in our catchment areas of Punjab, Haryana, HP and J&K.

     

    Fans can win tickets, merchandise and also get to meet and train with the team. You will see all this happening in the lead time to the season and even during the off season.
    In the past you have been careful about marketing expenses due to the economic climate. Will these expenses be reduced further this year?
    We have budgeted for what is required to meet our marketing objectives.

    What strategy are you looking at to build the licensing and merchandising side of the business?
    The licensing and merchandising market is still at a nascent stage in India. Unlike a traditional and regular licensing and merchandising programme, we have had to create a plan according to the market needs.

     

    While we have licensed our team kit to Reebok, we have also identified other partners for sole merchandising. We have signed up a specialist partner who shall represent us in the licensing space. We shall be making announcements about the same in the days to come.
    Is Kings XI Punjab looking for a CEO?
    We are not looking for a CEO. Arvinder Singh heads the management team as the COO.

    Are you interested in being involved in other sports?
    The IPL has changed the way sport is successfully run in India and as part of the IPL, we are in a good position to help develop other sports.

     

    We have always said that we are a community-driven team and one of our core objectives is to give back to sports. Hence, as and when feasible and excitable projects come along, we shall take a call at that time.
  • Cricket has no losers in 2009

    Cricket has no losers in 2009

    MUMBAI: The Indian Premier League (IPL) emerged as a clear winner in 2009, but fortunately for sports broadcasters cricket had no losers. The three formats – Twenty20, ODIs and Tests – continued to have their relevance, particularly when the game engaged India.

    In a year hit by severe slowdown, sports broadcasters posted growth and raked in an advertising revenue of Rs 11 billion. The heavy load of sporting events in 2010, including T20 World Cup, the soccer World Cup and the Commonwealth Games, holds out more hope for sports broadcasters in India.

    Multi Screen Media (formerly Sony Entertainment Television) collected close to Rs 4.5 billion from the IPL telecast, setting the ball rolling for the tourney to emerge bigger. The company is already targeting an advertising revenue of Rs 7 billion this year, an almost 50 per cent jump from the second edition of the IPL.

    The IPL saga, in tune with the BCCI‘s (Board of Control for Cricket in India) propensity to extract the maximum value from its properties, had many twists and turns during the course of the year. MSM had to get back the broadcast rights from the cricket board after settling to pay more. The deal, running through till 2017, was signed for $1.6 billion and includes World Sport Group‘s global and other media rights.

    The IPL also had to seek temporary shelter in South Africa as the tournament window coincided with the general elections in India. Though this involved more costs, the brand got an international exposure. TV ratings stayed high with Max, the telecasting channel, enjoying a TVR of 4.2 from the event.

    Says Lintas Media Group Planning Sciences director Atrayuee Chakraborthy, “IPL2 in the first 20 days had captured a significant 82 million viewers as compared to 85 million in the year-ago period. TVRs had dropped because of reduced time spent as quite a few matches were scheduled on weekdays and in off-prime time. But, as per our estimates, a significant 26 per cent watched IPL2 matches out of home, which can‘t get reflected in TV household panel ratings of Tam.”

    The IPL will get more exposure in 2010 with Dubai-based Dar Capital picking up the theatrical rights. The third edition of the tournament will be screened in cinema theatres across the country.

    While the IPL has done well, the Twenty20 format does not always work. A case in point is the Champions Twenty20 League. ESPN Star Sports, which had paid $975 million for the rights, would not be happy with the ratings that the first edition got. Luckily for ESS, the Twenty20 World Cup did better with a rating of 3 although India exited early. Even the Champions Trophy did not do too badly with a rating of 1.6.

    Essel Group‘s Indian Cricket League (ICL), IPL’s poor rival, disappeared from the act. In 2009, the ICC denied the ICL official recognition. The ICC said the Board went through the application carefully, including assessing it against the criteria within the ICC regulations for approving such events. It also maintained that the event did not meet its criteria for approving as ‘unofficial cricket’.

    The BCCI, which had been waiting all along for this decision, then allowed ICL players back into its fold if they severed ties with the rebel league. Several months later, ICL responded by sending a legal notice to the ICC, BCCI and the English Cricket Board. If the ICC is toeing the BCCI‘s line, then one cannot put too much blame on them as over 80 per cent of the game‘s revenue comes from India. Financial reasons were behind the English Cricket Board’s decision to scrap plans for P20. Australia, New Zealand and South Africa are, however, looking at a joint league from 2011.

    Meanwhile the ODI and Test Cricket formats are holding their ground, at least when it comes to bilateral series featuring India.

    As far as television rights are concerned, Nimbus protected its turf by renewing its deal with the BCCI for another four years. The new deal is said to be worth Rs 20 billion but the rights do not include mobile and the Internet. The broadcaster also has to submit a bond by January 2010.

    ESS, meanwhile, renewed its rights for the English Premier League. Also, Ten Sports extended its deal for the Uefa Champions League for three more years.

    New channel launches

    On the back of the IPL, MSM is planning to launch a sports channel. With major cricket properties being locked up for the long term, it remains to be seen how MSM can build a channel with the IPL and New Zealand cricket rights.

    The sports broadcasting genre could get at least a couple of new entrants in 2010. ESPN Star Sports is waiting for permission to launch a sports news channel. Taj Television, meanwhile, has sought permission for three more channels including a Golf channel.

    Overdose of cricket can have negative impact

    Cricket’s organising bodies like the BCCI will have to decide on how much cricket is healthy and where to draw the line. An overdose can kill the golden goose.

    Advertisers are preferring bilateral rather than tri-series as the ratings are more consistent in such tournaments. Says Chakraborthy, “Test cricket is still effective in building brand saliency among the hard core cricket fans. However, the Twenty20 format allows you to target a far wider audience including the family. As the IPL gets bigger, it will suck out more money from sports advertising. Companies who spend the most on cricket come on the IPL. So while the number of categories that invest in cricket has grown over the past couple of years, other tournaments could find it hard to get in similar big outlays from other companies who do not spend as much on cricket.”

    A case in point is what happened with the BCCI team sponsorship rights. The board was forced to extend its deal with Sahara for another six months after the tender that it floated failed to get a single bid. The BCCI was looking at a price of Rs 30 million per match while Sahara is currently shelling out Rs 20 million a match.

    Some analysts say that the board went overboard in the price it was asking for. But with so much cricket happening, sponsors‘ budgets are getting cleaned out quickly and there is small space to make substantial investments in other properties.

    So what are the challenges that the bat-and-ball game faces in its aim to get in more ad revenues? Chakraborthy says that simple FCT consumption and logo exposures in cricket may not help in the long run. “Brand message integration and audience engagement are the other aspects that the game needs to crack to garner ad revenue as they move forward,” she adds.

    And what about other sports? The biggest beneficiary seems to be soccer as the appeal is spreading beyond just Goa, Kerala and West Bengal. Viewership of this sport in the metros is on the rise and it is becoming an effective medium to reach the upper class male particularly for events like the English Premier League and the Uefa Champions League. However sports like tennis and Golf are still niche in nature.

    The Piracy Menace

    Another issue that is concerning stakeholders is that of piracy. The BCCI, along with the other boards, has set up a consortium to fight against it. The areas that need to be addressed are trade mark infringement, Internet piracy and footage violation.

    Sports broadcasters, in particular, have a grouse against news channels who they feel repackage footage beyond what should be allowed. The cricket boards are also looking to work with the Sports Rights Owners Coalition (SROC) to form a legal framework for the different boards.

    2010 will see the unveiling of cricket‘s next six-year plan of fixtures, crucial to the survival of formats like Test cricket.
     

  • ‘The ICC will continue to manage its economics on a global basis with India as a key market’ : ICC CEO Haroon Lorgat

    ‘The ICC will continue to manage its economics on a global basis with India as a key market’ : ICC CEO Haroon Lorgat

    Wearing the International Cricket Council (ICC) hat isn‘t an easy job these days. With the Indian Premier League (IPL) becoming the new economic powerhouse, scheduling international cricket can be a tough task.

     

    The challenge of the ICC is to ensure that a balance is maintained between the three formats – Test cricket, one-dayers and T20 – of the game as each has its own attraction and value proposition.

     

    The other task is to take the game to new markets including the US and China. The ICC has set aside $300 million for the development of the game.

     

    With the BCCI (Board of Control for Cricket in India) gaining superpower status in world cricket, the role of the ICC is to manage its economics on a global basis with India as a key market.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, ICC CEO Haroon Lorgat talks about cricket continuing to be in a healthy state as it has three viable formats of the game running at the international level.

     

    Excerpts:
     
     
    How would you describe the health and state of cricket at this point of time?

    Cricket is in a very healthy state at present. We are fortunate to have three viable formats of the game at the international level – Tests, ODIs and T20Is. Having these three formats is a huge opportunity that offers our fans, sponsors and broadcasters different options. No other sport can boast three viable formats of the game at international level.
     
     

    What is the ICC‘s strategy going to be to ensure that all formats of the game co-exist?

    Depending on how all of us collectively manage the game, we believe that all three formats can survive because each has its own attraction and value proposition: Test cricket has its endurance, cut and thrust, and its tradition of more than 130 years and, importantly, it is regarded by the players as the ultimate format. It is the benchmark by which they will be measured.

     

    ODIs have a history of their own with nine ICC Cricket World Cups stretching back to 1975. This format offers a chance for sides to recover from difficult situations while still affording a result in a single day.

     

    It boasts the biggest attractions in the World Cup and largest team prize in the game.

     

    Twenty20 is a great new attraction and vehicle to develop the game at domestic level. This short and sharp format draws new interest and allows tournaments to take place over a short period of time.

     

    It is important that the ICC and our members get the balance right, particularly in terms of scheduling.
     
     

    What measures are being taken to protect Test cricket‘s status as the pinnacle of the game?

    There are three important factors – competitive matches, context and the spectator experience. Improvements can be made in all of these areas and we are working with our members to achieve this.

     

    Some current examples of this are the current investigation into developing greater context for Test cricket, the possibility of staging day/night Test cricket in territories that would benefit from that, and more effective and consistent marketing and promotion of Test match cricket.
     
     

    Could we see the day night concept being introduced post 2012 for Test cricket?

    We need to make sure that Test cricket is accessible to the supporters that want to watch it. The indications are that in some markets supporters may be more interested in watching Test cricket, at the venues and on television, if it is played in the evening.

     

    Day/night Test cricket is one of several options under consideration. It is dependent on successfully developing a cricket ball that can be used in night conditions and this would need to be trialled at the domestic level first.
     

     
    While you maintain that the ODI format is fine, the fact is that the Champions Trophy will now be held once in four years and not every two years. The Twenty20 World Cup will take place every two years. Doesn‘t this indicate that to some extent the balance of power in terms of viewership and revenue is shifting from the ODI towards Twenty20?

    Don‘t forget that the ICC cricket World Cup is also held every four years and between this and the Champions Trophy, there will be a 50-over tournament every two years until 2015. In other words, the World Twenty20 will alternate with a 50-over format every year.

     

    Not surprisingly the 50-over format at international level remains very popular with players, spectators, TV viewers and sponsors. The highly successful ICC Champions Trophy event in South Africa demonstrated that yet again as have other recent bilateral series.
     
     

    ‘Our major events are televised into more than 200 countries with hundreds of millions of viewers. Cricket receives the second highest amount of TV viewers of any team sport after soccer‘
     

     
    Are you satisfied at the progress that has been made in terms of the preparations for the 2011 World Cup?

    Yes, we have done extremely well with preparations during the course of this year.

     
     
    How much revenue will the ICC and the boards make from cricket‘s showpiece event?

    In terms of commercial and broadcast interests, the World Cup 2011 is bundled with all the other major ICC events over an eight-year period. The current deal will run from 2007 to 2015 but the details, as you would appreciate, are confidential.

     

    We will, though, be investing $300 million into the development of the game in our associate and affiliate members over the course of this cycle.
     

    Do you see the IPL posing a threat to international cricket? Already last year Sri Lanka withdrew from their tour of England so that their players could take part in the IPL which offers much more money?

    On balance, the IPL has been very positive for the sport overall. It must be remembered that it is a domestic tournament under the auspices of the BCCI and does not take precedence over international cricket. This is something that the IPL itself and the BCCI has made clear to the players and public.
     

     
    Is the ICC examining the possibility of creating a window for the IPL?
    Being a domestic event, there is no consideration for a window at present and there is also no request for one.
     
     

    Australia, New Zealand and South Africa are also planning a league. Would this pose a challenge to the ICC in terms of formulating the FTP post 2012?

    I am not aware of such a league being planned. In any case, it would not impact the FTP post 2012 as this has already been agreed subject to a few provisos.
     

     
    India dominates the game economically in that 80 per cent of the revenue generated comes from here. Does the ICC have a gameplan to reduce this imbalance which cannot be healthy for any sport?

    We are always pleased when our members are able to generate funds and optimise their revenues domestically. On the other hand, we have always been fortunate to attract local and global sponsors that are not purely driven by the Indian market.

     

    However, given the huge market in India, it is not a surprise that this is the revenue generating powerhouse for world cricket. We will, therefore, continue to manage our economics on a global basis with India as a key market.

     

     
    Does more need to be done in terms of how the game is covered on television or are you satisfied?

    I think that the coverage the game receives worldwide is excellent. Our major events are televised into more than 200 countries with hundreds of millions of viewers. Cricket receives the second highest amount of TV viewers of any team sport after soccer.
     

     
    New media is growing through mobile and the Internet. How is the ICC taking advantage of this to spread the reach of the game?

    We have an excellent partnership with Yahoo! in relation to our website and other internet platforms. We also work with our commercial partners to make the most of the mobile platforms.

     
    The BCCI recently formed a consortium to fight piracy. Is this a serious threat from your point of view?

    ICC supported the BCCI in this regard and is also working seriously to handle this issue. We are working with our stakeholders to form a coalition to actively address and counteract online piracy.
     

    Could you shed light on the strategy that the ICC follows when it comes to doing local sponsorships for its events?

    The strategy we adopt depends on the event and the market in which it is taking place.
    In truth, it was not really difficult to get in sponsorships for this year. We managed to secure some excellent local sponsors despite the global recession and we were very pleased with the overall outcome. That is a reflection of the good health of the game and the value we are able to offer our commercial partners.

     

    For instance, we got Standard Bank to sponsor the World Twenty20 cricket championship. Local partners are an important feature of all ICC events because they tend to have a vested interest in the markets in which our events are staged. The ticketing component of the local partner packages offers an excellent platform for targeted sales promotions by sponsors.

     

    Our marketing research suggests that the dollar value of the televised brand exposure that local partners receive far exceeds their level of investment, primarily because our events are uncluttered in terms of the number of branding messages.
     

     
    What are the steps taken by the ICC to avoid ambush marketing?

    We implement sensible and practical measures during our events to ensure that orchestrated ambush marketing does not occur. I don‘t want to go into too much detail. But it is suffice to say that we are vigilant in our efforts to preserve our commercial partners‘ rights and make sure they receive value for their investment. 

     
    Is it easy to spread the reach of cricket to emerging and new markets?

    We invest more in developing the game than any other sport, apart from soccer. The Pepsi ICC Development Programme is spending around $300 million over the next cycle to develop and promote cricket below Full Member level.

    The Development Programme has made huge strides over recent years and we have seen teams like Ireland, Kenya, Scotland and the Netherlands come through that programme and put in competitive performances against the top sides. Ireland made it through to the Super Eight stage of Cricket World Cup 2007 and the World Twenty20 2009 beating a number of Full Members along the way. We recently saw the Netherlands beating England at Lord‘s in the World Twenty20. Participation has doubled over the last five years with the biggest growth areas being junior and female players.

     
     
    Finally, do China and the US play an important role in the ICC‘s growth plan?

    We have identified the US and China as two obvious areas for potential growth and, through our regional structures, we are involved in developing the game there. They are two very distinct and different markets for cricket and so cannot really be compared.

    However, there is no doubt that both offer a wonderful opportunity for cricket to continue to spread the sport and we intend to do just that.
     

  • ‘We are seeing the beginnings of a global iconic brand in the IPL’ : Unni Krishnan – Brand Finance India Managing Director

    ‘We are seeing the beginnings of a global iconic brand in the IPL’ : Unni Krishnan – Brand Finance India Managing Director

    The Indian Premier League (IPL) is set to revolutionise the cricketing economy, draw in a new bunch of younger audiences with the T20 format, reinforce India’s superpower status, create club cultures, and build market values that are in line with the English Premier League (EPL).

     

    Just two years into birth, the IPL is enjoying a brand value of $311.44 million (IPL brand value of $240.72 million and IPL brand value to BCCI of $71.22 million) and an eye-popping enterprise value of $2.01 billion, according to UK-based brand valuation consultancy Brand Finance.

     

    There is no stopping Shah Rukh Khan. Not even a dismal performance at the IPL. Kolkata Knight Riders, the team that the Bollywood star owns, leads the pack of eight with a valuation of $42.1 million. Mukesh Ambani’s Mumbai Indians walks into the crease at the second spot with a brand valuation of $41.6 million, followed by Rajasthan Royals with $39.5 million. The others in the pecking order are Chennai Super Kings ($39.4 million), Delhi Daredevils ($39.2 million), Bangalore Royal Challengers ($37.4 million), Kings XI Punjab ($36.3 million) and Deccan Chargers ($34.8 million).

     

    The IPL and the team franchises will have to prepare for a long slog if they are to reach anywhere near the value of the EPL and its member clubs. They will have to induct professional management teams, introduce rigorous corporate structures, and chalk out strong commercial streams including merchandising and licensing.

    In an interview with Indiantelevision.com’s Sibabrata Das, Brand Finance India managing director Unni Krishnan talks about the wonderful start the IPL has made, the potential it has in creating a global fan base and the things that need to be done to stretch the value of the brand and its market capitalisation.

     

    Excerpts:

    Sceptics have questioned the rationale for valuing Kolkata Knight Riders at $42.1 million. Does the performance of the team get a low weightage in comparison to the high-profile value of Shah Rukh Khan as the team owner?
    The valuation process was on 2-3 months before the second edition of the IPL and, in many ways, you can’t predict the future. Having said that, enough data is available to prove that KKR has customer loyalty, a high degree of fan following, and amount of viewing for the matches that they play. Shah Rukh is able to generate an identity for the team. KKR is also able to tie in high-profile sponsors and sources of licensing and merchandising (L&M). Brand value is nothing but an ability to create fan base and convert that into cash.

    Even in the inaugural edition of the IPL, KKR didn’t fare too well. And in the second season, its performance has actually skid. So is there scope for a re-rating of the team franchise’s brand value?
    Unlike the EPL clubs which have created a track record, the IPL is new. When we went into the exercise, the performances were just a year old. Which is why we can’t yet form a strong view of a clear winner. The valuation of the eight team franchises falls within a tight range of $42.1 million and $34.8 million.

    KKR is one of the clubs which has made money from the first year itself. But valuations are not chipped in stone. When we carry out our second exercise after a few months, we will weigh in certain factors like KKR’s performance, captaincy and blogger issues that could have had an impact on the commercial revenue streams and the value of the brand.
    Brand Finance has valued the IPL brand at $311.44 million while fixing the enterprise value at $2.01 billion. Is there a ratio between the value of the brand and its market capitalisation?
    Since the IPL is at its infant stage, the ratio between the brand and the market value is low and not clear yet. We can arrive at a benchmark after 3-4 years as the value of the brand grows. In a typical matured stage, the range varies between the 40-50 per cent ratio. The brand-to-the market value ratio in case of the EPL, for instance, should fall within this region. The brand contributes to the market value in a significant way.

    How come a recent study by UK-based Intangible Business and MTI Consulting has almost halved the team valuations that you have arrived at?
    Valuations are based on opinions and the quality and strength of assumptions. We have conducted a rigorous exercise.

    Has IPL’s shift in home to South Africa for the second season created a disruption in the fan build-up process and hence a dip in valuation?
    The IPL property is not under-rated because it has gone to South Africa. We are, in fact, seeing the beginnings of a global iconic brand. In the cricket-following countries like England, South Africa and Australia, it is creating a new interest among the youth, who had moved away to other sports. A whole new set of fans and audiences are being created,breaching ethnicity and race. Led by a blend of Indian and foreign players, it will take the next 4-5 years to build a global fan base for the teams, cutting across the identification of countries. We are going to see a global brand coming out of India much like the Tatas. That is the potential of the property that IPL is.

     

    But the IPL will not have a clear run in this T20 form of cricket. There are other countries like South Africa and England who are going to have their own form of IPL. Serious competition is going to come. But having said that, the foundations and start of the IPL have been a huge success. The value is just not in marketing but also with a lot of economic substance embedded into it.
    ‘EPL clubs have a heritage of 100 years and have moved towards corporatisation. Some of the values of these clubs are in the wide range of $100-600 million. The IPL does not have that kind of legacy or magnitude. But it has a lot of headspace for value creation‘

    Do the IPL teams have the potential of becoming as big as the EPL clubs?
    The EPL clubs have a heritage of 100 years and have moved towards corporatisation and rigorous structures. Some of the values of these clubs are in the wide range of $100-600 million. The IPL does not have that kind of legacy or magnitude built into it yet. But it has a lot of headspace for value creation, though much depends on how an organised management process and system is being set up. We may have the teams being listed and huge value being created going forward.

    When do you see listing of these teams happening?
    There is a lot of money and Bollywood thrown into the system called IPL. Listings can happen in the next 3-5 years after revenue streams, cost drivers and the need for professional management teams are clearly understood. Sustainable value needs to be built. Some teams may even opt for private equity.

    How IPL is going to impact the business of sports marketing in India?
    It will be a game changing moment for sports marketing and merchandising in India. The global L&M market is $108 billion and is a significant industry on its own. Manchester United and Real Madrid have a vey strong licensing and merchandising model. India is taking its first baby steps. IPL is the medium under which these processes will come into the country. Bangalore Royal Challengers has already started focusing on sports marketing. L&M has a strong commercial role that needs to be developed, going forward. The IPL teams have appointed top legal firms to protect their IPRs. The leakages inside the system have to be plugged or you will have a case of lost opportunities.

    What are the steps IPL needs to take to scale up?
    More teams and seasons need to be introduced. But IPL can’t consider the T20 format as its personal fiefdom because competition is already starting. We are yet to see the teams take to the professional management skills that the EPL clubs have imbibed. But the teams are on the right track.

    Will Test cricket be severely impacted because of the T20 format?
    The Test format will be in crisis unless there is a reinvention in its game architecture. It is especially dying out among the youth in the developed countries. The T20 game has given a new lease of life to cricket. Whichever format is innovative will succeed. But T20 certainly has an edge.
  • ‘We will get an opportunity to build our brand in the international arena of cricket’ : Amrit Mathur – GMR Sports CEO

    ‘We will get an opportunity to build our brand in the international arena of cricket’ : Amrit Mathur – GMR Sports CEO

    The drama over, it is back to business. As the Indian Premier League (IPL) takes refuge in South Africa to play out its second edition, the team owners are readying their new plans to size up their revenues.

     

    GMR Sports, the owner of Delhi Daredevils, is trying to figure out how to make up for the revenue loss from ticketing sales. The spotlight is on sponsorship revenues.

     

    In an interview with Indiantelevision.com’s Anushree Bhattacharyya, GMR Sports CEO Amrit Mathur talks about the opportunity that South Africa throws up in establishing the Delhi team franchise as a brand in the international arena of cricket.

     

    Excerpts:

    GMR Sports was aiming at a 20 per cent revenue growth from sponsorship and ticketing. Now with IPL being shifted to South Africa, will that be achievable?
    No, very unlikely. With ticketing revenues under pressure, it will be difficult to reach the target. Sponsorship will be the only avenue open for us to actually earn. Also, with the tournament moving out of the country, the business model in terms of cost and revenue sharing changes.

    How does the revenue pattern shift dramatically?
    Till last year, IPL was a tournament organised by the eight franchises. Out of the total 59 matches, 56 matches were run by the franchises while IPL organised the two semi-finals and the final. But for this year, all the matches will be organised by IPL and the BCCI. So unlike last year where each franchise was clear about the cost model, (for example, the franchise knew it was to organise seven matches and could size up the costs of organising them), it is all uncertain now of how much we as franchises have to bear.

     

    We also don’t know how the revenue will be shared this time. Till last year, we knew that the central pool contributes revenues of about Rs 320 million. Now it is possible that the IPL may add the ticket revenue to the central pool to share it with the franchises. So the revenue from central pool might increase this time. It will, thus, depend on the revenue share model the IPL finally decides upon.

    Which are the areas where you feel the costs will increase for the franchises?
    Since the franchises have been told that it would be a centrally managed tournament, the IPL is expected to bear all the costs. But the main cost will depend on the financial structure of the facilities being made available – including the ground, the infrastructure, availability of ground for practice, etc. Now IPL will have to discuss these arrangements with the South Africa cricket board and figure out the expenses. As owners of teams, we have an idea of what the games would have cost in India. But we have no idea of what it would be like outside. The cost of travel and the hotels will be relatively minor.

    What if the IPL asks the franchises to bear a certain portion of the costs?
    We will go by the consensus approach. We understand that it’s an extraordinary situation. So if there is a cost attached to the tournament, I am sure everybody will sit together and find out a way.

    On the sponsorship front, GMR Sports has roped in Coca-Cola, UB, Hero Honda, Religare, adidas and Kingfisher. What has been the progress on the two slots that are still lying vacant?
    We are trying to close the last two sponsorship deals as soon as possible. However, the last couple of weeks had been uncertain and there were doubts about the tournament being played. Due to this, we had put on hold our talks with the sponsors. Now that the dates and venue have been announced, we are hoping that the interest for the property will revive.
    ‘We are unlikely to reach our target of 20 per cent revenue growth this year. Ticketing revenues will be under pressure‘

    With the game shifting outside India, are sponsors looking at renegotiating their old deals?
    No, not so far. We had signed sponsors for three years and there is further scope for extension. But at the same time, we are supposed to give them certain benefits. We are in constant negotiations with our sponsors and are open for any sort of dialogue.

    With the broadcast partner yet to be finalised, how much of damage will that do to the business?
    The audience is not really bothered about who the broadcast partner is. The main concern is whether the tournament is on or out. Now that we all know that it is in, things would start moving again.

    Now that the IPL will be played in foreign land, does your marketing strategy go through a complete overhaul?
    Well, it will change to a large extent. What we could do in terms of promoting our team in Delhi, we can definitely not carry out those activities outside India. So our marketing plans will change. We will now try to build our fan base even stronger with ticketing being handled by IPL. Moreover, we will promote our team through our media partners which include BigAdda.com, SMS GupShup, Hindustan Times, Times of India and CNN-IBN.

    Do you think the IPL will manage to gather enough loyalty in South Africa?
    This year it is true that the character of the tournament has changed because it’s no more a domestic league. The nature of loyalty will change. For example, Delhi Daredevils will miss its loyal Delhi fans. The team will play in venues like Durham or Johannesburg which might see an inflow of neutral crowd only interested in cricket as a sport. But then this is only for this year, as the schedule clashed with the Lok Sabha polls.

    What would have been a better decision – no IPL or IPL in South Africa?
    The most important thing is to have the IPL running. About hosting it in South Africa, the benefit is that the tournament and teams will get an international exposure. As team owners, we would get an opportunity to build our brand in the international arena of cricket.
  • ‘The mad race to get cricket rights has created a bubble’ : Venu Nair – WSG South Asia CEO

    ‘The mad race to get cricket rights has created a bubble’ : Venu Nair – WSG South Asia CEO

    With the Indian Premier League (IPL) in its catch, the World Sport Group (WSG) is sitting pretty. Even as it plans to cash in on the new T20 format that is set to change the cricket economy, the sports marketing company has also set its sights on the growing popularity of soccer and golf.

    In an interview with Indiantelevision.com’s Ashwin Pinto, WSG South Asia CEO Venu Nair unveils the dynamics of the sports business.

    Excerpts:

    How far has World Sport Group progressed in India?
    When we set up our office in India two years back, we had a plan to establish a credible business over a three-year period. We looked at cricket, soccer and golf. We decided to develop each of them independently. Cricket and golf has grown phenomenally. However, with soccer it is still an uphill task.

    We changed our football outlook to a five-year plan. We own all the rights and work closely with the Asian Football Confederation (AFC), with whom we have been working since 1992. Our current contract runs till 2011. The fact that we have worked with them for so long to promote soccer across Asia speaks of the fact that we are long term players.

    How have you grown the cricket business?
    We have brought in professionalism into the management of the title and central sponsorship rights. We tell clients what they can avail of over a year. From a brand perspective it works, as they are able to plan forward. This gave us an entry into cricket at the highest level.

    During 2006, the BCCI’s sponsorship rights were available. We paid Rs 1.8 billion for it. Prior to us, these rights were vested with corporates and not with a proper sports marketing company.

    How is this deal with the BCCI working out?
    We work on a margin of 15-20 per cent. When we acquired the rights, we bought it at a premium. Two years down the line we have managed to stay at par with our revenue targets.

    Where are the opportunities for WSG in cricket other than the BCCI and IPL?
    There are opportunities to represent other boards. People are looking inward into India and they see the job we have done for the BCCI. As far as IPL is concerned, we have aggregated the media rights and sold it outward.

    But aren’t sports bodies working directly with broadcasters?
    Broadcasters are limited by the region that they want to serve. They often tend to sell the rights outside their interests to other parties. This puts the broadcaster into an agency position, which is not often a comfortable area to be in as it is not their core expertise. So, to say that sports bodies increasingly work with broadcasters is an anomaly.

    Fifa, for instance, works very closely with sports marketing agency Infront.
    ‘You will have to put higher monies on the T20 format and put the squeeze on Tests and ODIs‘

    WSG managed a coup with the IPL rights. What targets have you set?
    We expect to start making money by the end of the third year. We have sold rights it to many territories including the US and Canada. We have let some territories sample the product like Sky in Italy. We sold IPL to the Southeast Asian countries including Singapore, Malaysia and Thailand.

    Are these deals long term?
    We have sold everything with the ability to re-look at periodic intervals at the contract. We will see how it is working. It had to be a partnership model. The format was something new.

    How does the IPL build in club loyalty and sustain viewership interest?
    Teams will have to build more local heroes. Catchment areas have to expand. If the IPL franchise owners treat it just as a balance sheet-led proposition, then it may not survive in the long run.

    The IPL will face competition from other boards. England wants to start a league in 2010. Australia, South Africa and New Zealand want to start a joint league in 2011. How does this affect the IPL?
    In soccer different leagues like the EPL, Spanish league, and German Bundesliga are played at the same time. But the EPL is most watched. The IPL is a home grown product and has the first mover advantage. More home grown talent will take centre stage. Foreign players might want to play the IPL to shore up their revenues. They will then reach a stage where they might want to play in another league to enhance their skill. The player migration seen in soccer will happen here as well.

    But when other leagues come up, won’t some monies shift from IPL to them?
    No! 100 per cent of the IPL revenues come from home grown clients. They want the local audience and so they will not invest in an Australian or an English league.

    In India sponsorship revenue is higher than ticketing revenue. In England it’s the reverse. However, a time will come in India where ticketing revenue will grow. Hospitality is another area which, if developed properly, can be a solid, successful revenue stream. Soccer clubs in Spain and England make a huge line of revenue from this area.

    If the revenue potential is so strong, then why are owners already selling stakes so soon?
    They are looking to sell a stake at a premium. They are not looking at funding their working capital needs.

    Will Test cricket and ODIs lose some of their lustre as T20 comes up?
    That is the market reality. Next year there are around 120 games, which include IPL, T20 World Cup, Champions T20 League. And one would not have known about it two years back.

    You will have to put allocated monies on this new format and squeeze monies on the other two formats. Even from a viewer’s experience how many takers are there for a Test Match! The purists are in a minority. Cricket is now more about entertainment. T20 has taken that window; you can watch a game in three hours.

     

    The PCB got $140 million for its rights. So isn’t there still value in the traditional formats?
    In bilateral events, the icon series will get money. If it is India versus Pakistan, then advertisers and viewers will chip in. The whole value of the deal with the PCB comes from these two series that are present in the contract. At the same time, there is no guarantee that they will get the same value. They will probably get the same monies as in 2004 when India toured Pakistan after a long time.

    However, the acquisition costs have shot up. In advertising you may not see a corresponding incremental value as it could get diverted to T20. The escalation may not happen.

     

    Is there a danger of some broadcasters going bust due to a huge escalation in rights fees?
    Yes! Ideally, ad rates should double which probably is not going to be the case. The rights fee has gone up disproportionately due to the need for content in a calendar year. The challenge for broadcasters is to figure out where the business is going. You also need to take care of distribution. In India sports channels have to have a certain number of events in a year. Otherwise the cable operator may stop beaming you. Cricket is reaching a saturation level and there will be a tapering down of values.

    The mad race to get cricket rights has created a bubble that will eventually burst. For example, tennis went through this huge bubble a few years back. It also happened with soccer.

    Broadcasters who have bought rights at high rates will have to sit down with their books at the end of next year and strike out the red. Market forces will pull prices down as the high price cannot be sustained. As a sports marketing company, I can bid a certain amount but if it is not in touch with the reality, then I stand to lose.

    Sports bodies, however, have to realise that the value that sponsors attach to the older formats of the game will increasingly be less. A sports body, though, will not lose money as it will get transferred from one format of the game to the other.

     

    Even the 2010 soccer World Cup rights went for a five-fold rise. Why?
    You cannot underestimate the fact that soccer is catching up. This is especially the case in urban India which has been fed a diet of quality football from world leagues.

    The awareness of global soccer icons due to the media coverage is also high. This is why premier tournaments are time bound. It has the carnival atmosphere. People follow certain teams. Once people watch it, advertisers also want to be in on the action.

     

    You wanted to do a league around soccer with AIFF and use the franchise model. What happened to that?
    We worked on a plan around a year ago. We did not go anywhere because of a combination of reasons. Firstly there already exists a certain kind of league. The soccer development process in India is not as robust as it should be.

    If the AIFF actually chalks out a 20-year plan to grow soccer at the grassroots level and has a realistic target, it can work. It is not about sending the team to the next World Cup.

    Cricket has been managed well at the administrative level. Cricket has also had periodic highs like winning the 1983 World Cup. This ensures that interest stays. After the 1950s, there has not been a high in soccer. Even followers of the sport do not have role models to look up to. If the AIFF comes up with a proper plan, then I am sure that there are enough corporates out there who are willing to invest.

    Bharti Airtel has committed Rs 100 crore. If it is spent in the right manner, it will give you results in 10-15 years. But thinking about reaching the 2010 World Cup final is a folly when you cannot reach a South Asian tournament.
     
    How has your work with the AFC been progressing?
    It has done well. The Asia Cup is held every four years. The AFC Champions League happens every two years. Everybody plays it. Australia has come through. We work with the Australian Football Association also on their leagues. Australia reaching the soccer World Cup was a culmination of many years of work. The sport has been revived as the body had a long term plan.

     

    What activities does WSG do in Golf?
    We acquired the rights for the Indian Open which is the most prestigious event. The deal is for six years and slowly we have been able to increase the prize money. The Indian Open is now a million dollar product. Next year we will add $250,000 more to the event.

    Our aim is to take the prize money to $5 million given the fact that Golf is slowly growing in appeal in India. Our goal is to develop another multi-million dollar golf property in the first half of the year. We want to have two Indian Golf events that occupy a prominent position on the Asian Tour calendar.

    What is working in our favour is the fact that marketing managers today want to invest to reach different levels of the strata.

     

    What are the plans in the player representation business?
    In India cricket is intricately linked to player management. You cannot stay away from this. We figured that small entrepreneurs were running this business. There was no professional marketing company running athletes in India. To a large extent this is still the case.

    We manage Sachin Tendulkar. We have a five-year deal with him so that we can monetise his brand. Since Sachin has aged, we have moved away from brands that he was endorsing in the past. He is a family man; his core values are honesty, integrity and long-term commitment. That is why you have brands like Aviva, Royal Bank of Scotland and Canon. We are looking at brands that can go past his playing days.
     
    Are you looking at more stars?
    Yes, but a decision will only be taken after the second season of the IPL gets over. Player management is a tricky business. We have to be convinced that the player wants a long-term partnership rather than a short term money-making venture.

     

    What impact will the economic downturn have on the business of sports marketing?
    There will certainly be an impact. What the extent will be is early to say. Numbers will get reduced by 15-20 per cent. It will depend on the extent that the global economic crisis has on India.

    We may have to look at our cost basis. We have to re-look at future acquisitions; we will have to work with experts to get a fix on what the economy might look like three or five years down the line before making another acquisition. Our buys will be made on the basis of market realities.

  • IPL lived up to the hype

     
    IPL lived up to the hype
     

    Still hung over. That is what many of those directly involved in putting together the greatest pop cricket spectacle ever staged are still feeling even a week after the first edition of the Indian Premier League (IPL) championship came to its heady climax.

    The biggest cricket show on earth more than lived up to the expectations of those who invested in it. The public took to it, the corporates were sold on it, telecaster Sony hit pay dirt and the key individual behind it all – IPL chairman and commissioner Lalit Modi -won the grudging admiration of even his worst detractors. The fact that the event created a $2 billion market without a ball being bowled has been simply amazing.

    Realms have already been written on how the perfectly packaged blend of highly competitive sport, merged with heady doses of ‘celebrity and entertainment masala‘, had the cinema, television and retail industries collectively reeling.

    And the hype that was emanating out of India had its ripple effect across the globe. One could argue that it is linked to the fact that the Indian economy is increasingly being written and spoken about in the global press, but it is no small matter that virtually every big international publication did in-depth stories on the IPL speaks for itself. In Australia a million people watched the first match although it was past midnight there. UK‘s Setanta declared that its subscriber base has risen between 17-20 per cent on the back of the IPL. These are just some of the heady stats that the IPL has thrown up.

    Read on for a reality check on the IPL from the point of view of the four key constituents – Sony, team owners, BCCI and the public.

    Sony home safe and dry:

    Ratings were what Sony was tracking and they held up throughout, delivering above expectations more often than not.


    Click for complete data

    Before the IPL started there was scepticism about how the event would fare. Even when the event initially delivered strong numbers there were doubts on whether the momentum could be sustained. Naysayers carped that the novelty might wear off, Australian players leaving would prove to be a dampener, etc.

    This data though should silence them. Tam data c&s 4+ all India shows that the IPL managed to achieve an average of 4.7 over 57 matches on Max. This shows that viewer interest did not flag. The opening match between Kolkata and Bangalore got the highest rating of 7.19. Next came a crucial match between Chennai and Mumbai which managed a rating of 6.58. A match between Kolkata and Delhi as the race for the semi final spots hot up managed a rating of 6.27. Both the semi finals also got ratings of over 6.

    This though, is less than half of the ratings that the semi final and final of the T20 World Cup got. India‘s semi final against Australia managed to get a rating of 13.4 while the dream final against Pakistan managed an astronomical 15.9. What this shows therefore, is that there is still plenty of room for improvement as far as the IPL is concerned.

    An average of 31 million people tuned in for each of the IPL semi finals. The figure is the same as that for the 2007 World Cup final that was played between Australia and Sri Lanka. One must keep in mind though that the World Cup also aired on DD. For the T20 World Cup final on ESPN, the reach figure was 48 million. IPL reached 99 million viewers throughout its duration.

    It is also pertinent to note that the importance of matches also played a role in the IPL ratings. For instance Mumbai‘s last match against Bangalore only got a rating of 2.13. This was because the Reliance owned franchise was out of semi final contention by then.

    The kind of ratings numbers that the IPL has delivered for Sony also means that it is ahead of the curve on its revenue targets as well.

    Of the first year payout commitment of the $ 59 million to the BCCI for telecast rights, Sony‘s share was $ 55 million. Sony had built in a $ 4 million shortfall in the first year into its calculations. That seems to have changed with Sony president network sales, licensing and telephony Rohit Gupta expressing confidence that the network will at least be on break-even point once final calculations have been done. This is largely on the back of the huge response the event got from the viewing public. After its main inventory was sold out, the channel was able to jack up rates for the 200 seconds that it had in the bank for each match. “For the semi finals and final we sold at Rs 8-10 lakhs per 10 seconds. We have set a benchmark pricing for the second season,” asserts Gupta.

    That assertion only reinforces the confidence Set India CEO Kunal Dasgupta essayed in an interaction with Indiantelevision.com before the IPL kicked off when he stated, “In the first five years we will make $100 million in profit. In the next five we will make half a billion. My ad sales will treble after five years.”

    Team owners ahead of delivery curve:

    For this year, the average expenditure per franchisee, according to Indian television.com calculations, was $ 17.5 million (the least being Jaipur‘s Rajasthan Royals at $ 15 million and the most being liquor tycoon Vijay Mallya‘s Bangalore Royal Challengers at $ 20 million). Considering that most team owners began this exercise factoring in the possibility of having to take a hit of anywhere between $ 3-7.5 million hit in Year 1, all of them (bar one) would be more than satisfied with what they have managed and the response the IPL has garnered thus far.

    As of now, and depending on who you talk to, it is either Kolkata or Chennai that have likely hit break-even.

    Kolkata was far and away the best managed as far as brand associations and merchandise sales were concerned but it was Chennai that was the most successful in terms of gate receipts.

    Breaking down the numbers, GroupM ESP (consultants for Hyderabad‘s Deccan Chargers) managing partner Hiren Pandit states: “The franchises have received around $ 7.5 million from central revenues. In terms of local revenues (prize money, local sponsorship, gate receipts) Kolkata would have earned the most at $ 11 million while Punjab would have got the least at $ 5 million. Where Kolkata did really well was in sponsorship where it got $ 7 million.

    “Bangalore would not have made much here as the UB Group was using it to push their own brands. In terms of losses I estimate that Bangalore lost around $ 10 million.” This loss, Pandit, is quick to point out, needs to be weighed against the kind of brand activation opportunities that will be available to the UB Group, going forward.

    As for the smaller teams like Punjab and Jaipur, they would have struggled the most on both brand associations as well as gate receipts (as their grounds are small).

    Public are loving it:

    The response in the stadia was what no one was sure about, but by all accounts it has proved a big hit all across, even in the smaller centres.

    Interestingly, it was Mumbai that had to go the furthest in its efforts to attract crowds. Why is that? Because Mumbaiites are the most spoilt for choice, in terms of avenues for entertainment. Additionally, commute times are the longest in Mumbai so for potential ticket buyers, logistics also plays a big part.

    A stadium like Hyderabad on the other hand, gets to host a One Day International once in two years, if it is lucky. The IPL more than anything else is offering access to a whole new form of entertainment and the public is lapping it up.

    What will clearly not work for any team though, is the traveling fan concept. Home games means just that – home games. India‘s geography simply does not allow for fans to travel with their teams.

    The Future:

    So what next for the IPL? Where does it go from here? At this stage it is all more talk than concrete plans but the intention is clearly to take the IPL global.

    IPL governing council member IS Bindra, has been quoted as saying that the IPL is just the first step of a “grand vision” that will eventually lead to the birth of a network of similar franchise-based models across the major cricket-playing nations. That is something that WSG South Asia CEO Venu Nair endorses wholeheartedly. Going forward, Nair is in favour of cricket going the soccer route. In soccer, leagues are more important than countries. “Cricket should follow the same route to survive. At the moment you have some events like the Champions Trophy, which are useless.”

    “You could (instead) have a World Cup preferably in the T20 format once in four years. The rest of the time league cricket could be played in different countries. What this would mean though is that other countries would have to set up strong leagues of their own. This would ensure that all the boards make money, which could then be used for the development of the game.. At the same time players would benefit, as financially there would be no need for most of them to play for more than five years. The current theory that one needs a 15 year career is outmoded. The ICC‘s role would still be to govern the game. Nobody loses out.”

    An issue that franchisees will have to look at is to build loyalty among fans for a set of players. Another key thing for franchisees is gate receipts. Nair feels that more attention has to be paid to premium seating. “Abroad premium seating accounts for 40 per cent of gate revenue. At the moment though, only Chennai, Jaipur and Punjab have adequate facilities for premium seating. The rest of the franchisees will have to invest in this along with the state associations. The lack of adequate facilities and a high quality experience for those in the premium seating area is why Reliance reduced prices for the semi finals in Mumbai.”

    In conclusion, whatever may be the postmortems different agencies engage in now that the event is done and dusted, it would be difficult to argue that any of the parties that chose to be associated with the event did not get more than their money‘s worth.

    Team owners ahead of delivery curve:

    For this year, the average expenditure per franchisee, according to Indian television.com calculations, was $ 17.5 million (the least being Jaipur’s Rajasthan Royals at $ 15 million and the most being liquor tycoon Vijay Mallya’s Bangalore Royal Challengers at $ 20 million). Considering that most team owners began this exercise factoring in the possibility of having to take a hit of anywhere between $ 3-7.5 million hit in Year 1, all of them (bar one) would be more than satisfied with what they have managed and the response the IPL has garnered thus far.

    As of now, and depending on who you talk to, it is either Kolkata or Chennai that have likely hit break-even.

    Kolkata was far and away the best managed as far as brand associations and merchandise sales were concerned but it was Chennai that was the most successful in terms of gate receipts.

    Breaking down the numbers, GroupM ESP (consultants for Hyderabad’s Deccan Chargers) managing partner Hiren Pandit states: “The franchises have received around $ 7.5 million from central revenues. In terms of local revenues (prize money, local sponsorship, gate receipts) Kolkata would have earned the most at $ 11 million while Punjab would have got the least at $ 5 million. Where Kolkata did really well was in sponsorship where it got $ 7 million.

    “Bangalore would not have made much here as the UB Group was using it to push their own brands. In terms of losses I estimate that Bangalore lost around $ 10 million.” This loss, Pandit, is quick to point out, needs to be weighed against the kind of brand activation opportunities that will be available to the UB Group, going forward.

    As for the smaller teams like Punjab and Jaipur, they would have struggled the most on both brand associations as well as gate receipts (as their grounds are small).

    Public are loving it:

    The response in the stadia was what no one was sure about, but by all accounts it has proved a big hit all across, even in the smaller centres. 

    Interestingly, it was Mumbai that had to go the furthest in its efforts to attract crowds. Why is that? Because Mumbaiites are the most spoilt for choice, in terms of avenues for entertainment. Additionally, commute times are the longest in Mumbai so for potential ticket buyers, logistics also plays a big part.

    A stadium like Hyderabad on the other hand, gets to host a One Day International once in two years, if it is lucky. The IPL more than anything else is offering access to a whole new form of entertainment and the public is lapping it up.

    What will clearly not work for any team though, is the traveling fan concept. Home games means just that – home games. India’s geography simply does not allow for fans to travel with their teams.

    The Future:

    So what next for the IPL? Where does it go from here? At this stage it is all more talk than concrete plans but the intention is clearly to take the IPL global.

    IPL governing council member IS Bindra, has been quoted as saying that the IPL is just the first step of a “grand vision” that will eventually lead to the birth of a network of similar franchise-based models across the major cricket-playing nations. That is something that WSG South Asia CEO Venu Nair endorses wholeheartedly. Going forward, Nair is in favour of cricket going the soccer route. In soccer, leagues are more important than countries. “Cricket should follow the same route to survive. At the moment you have some events like the Champions Trophy, which are useless.”

    “You could (instead) have a World Cup preferably in the T20 format once in four years. The rest of the time league cricket could be played in different countries. What this would mean though is that other countries would have to set up strong leagues of their own. This would ensure that all the boards make money, which could then be used for the development of the game.. At the same time players would benefit, as financially there would be no need for most of them to play for more than five years. The current theory that one needs a 15 year career is outmoded. The ICC’s role would still be to govern the game. Nobody loses out.”

    An issue that franchisees will have to look at is to build loyalty among fans for a set of players. Another key thing for franchisees is gate receipts. Nair feels that more attention has to be paid to premium seating. “Abroad premium seating accounts for 40 per cent of gate revenue. At the moment though, only Chennai, Jaipur and Punjab have adequate facilities for premium seating. The rest of the franchisees will have to invest in this along with the state associations. The lack of adequate facilities and a high quality experience for those in the premium seating area is why Reliance reduced prices for the semi finals in Mumbai.”

    In conclusion, whatever may be the postmortems different agencies engage in now that the event is done and dusted, it would be difficult to argue that any of the parties that chose to be associated with the event did not get more than their money’s worth.

    (Graphics and design by Kavita Sangoi)

    Also Read:

    Sony reaps IPL rewards for innovation, concerted effort

    Indiantelevision.com’s interview with GroupM ESP managing partner Hiren Pandit

  • Hindi GECs take a beating from IPL

    The Indian Premier League onslaught is beginning to hurt Hindi general entertainment channels.  With an average TVR of 5 (Tam data for week ended 26 April, All India, C&S 4 +), the heat is now on for the GECs to retain its prime time viewership.

    Star Plus and Sony have lost a chunk of their audiences, while Zee TV has made up with a focus on afternoon programming. NDTV Imagine is looking more battered at this stage while 9X has marched ahead to occupy the third spot.

    Sample this: Kyunki … which was enjoying a TVR of 5.3 in week 15 (week ended 12 April) fell to 4.18 TRP on week ended 26 April (when IPL was on for the whole week).

    Kahani… slipped from 4.36 TVR (week 15) to below 3 in week 17. And when Star Plus launched its high voltage Shah Rukh Khan show Kya Aap Paanchvi Pass Se Tez Hain? on 25 April, it fetched a TVR 4.61 which could, perhaps, have soared higher.

    Star‘s Bidaai, one of the top five shows in the Hindi GEC, has lost considerable TVRs to fall on 4.41 (week 17) from a high of 5.5 (week 15).

    Zee‘s Saath Phere fell from 4.76 (week 15) to 3.96 (week 17) while Kasam Se touched 3.3 (week 17) from 3.92 (week 15).

    Zee TV business head Tarun Mehra says, “All the GECs have lost viewers to the IPL matches. However, all the channels were prepared for a general beating on the score card”.

    Market leader Star Plus with 345 GRPs in week 15, fell to 297 GRPs in week 16. In week 17, Star Plus managed 300 GRPs (even after the launch of Panchvi…).

    Star Plus VP marketing and communication Prem Kamath says, “Definitely IPL has had its effect on GECs. However, the space is very unpredictable. So you might see a different story next week. A week or two‘s data does not give the full picture.”

    Despite IPL matches, Zee TV has grown in terms of GRPs. From 212 GRPs in week 15, it has increased to 218 GRPs (week 16). And in week 17, it finished with a high of 220 GRPs, standing second to Star Plus.

    HSM GRPs
    Channel WK 15 Wk 16 Wk 17
    Star Plus 345 297 300
    Zee TV 212 218 220
    9X 77 72 80
    NDTV Imagine 88 92 79
    Sony Entertainment TV 84 79 68
    Sahara One 68 63 63
    Star One 66 54 60
    DD1 40 34 34
    Star Utsav 36 35 32
    SAB 35 32 31
    Zee Next 10 9 10
    Source: TAM Peoplemeter System TG: CS 4+

    So how has Zee TV managed to weather the storm? Says Mehra, “No doubt IPL has eaten GECs viewers in the prime time slot. But instead of concentrating on the prime time, we are focusing on the afternoon programming and movies.”

    To combat IPL match ratings, Zee TV has pumped up its weekends with a special attention on the afternoon programming. During the week ended 26 April, Zee TV has shown the movie Vivaah which fetched a TVR of 3.29. It has also launched a TV series Vivaah at 7 pm and 11 pm (week days), besides an hour-long episode of Nagiin… and a special episode of Banoo Main Tere Dulhann.

    Zee TV is also planning to strengthen its line up. The channel will launch a new crime series Hadsaa on weekends. Besides it is pumping up the weekends with special events like Zee Cine Awards and Idea Rocks.

    A few rungs down the line, NDTV Imagine (79 GRPs) lost its third spot to 9X with 80 GRPs.

    While sibling channel Max has hogged all the limelight with the telecast of the IPL matches, Sony has plunged from 84 GRPs in week 15 to only 68 GRPs in week 17.

    “We have got affected marginally but as a network we have grown phenomenally,” says Sony Entertainment television creative head Sanjay Upadhyay.

    Sony, in fact, is trying to use the IPL hype to promote its new show launches. Reality shows like Waar Pariwaar, Naye Roop Nayi Zindagi and Yeh Shaam Mastaani were unveiled during the IPL time.

    Explains Upadhyay, “We are building up these shows around IPL. One should also not forget that IPL is a short term event and after it is over we expect our shows to pick up. Apart from that a lot of cross channel promotions are happening on both Max and Sony.”

    Soon after IPL gets over, Sony will place its big ticket reality show Dus Ka Dum with Salman Khan as host at prime time to mop up audiences that have deserted the channel.

    A similar tale follows the other GECs. From 68 GRPs (week 15), Sahara One fell to 63 GRPs (week17) while Star One dipped from 66 GRPs (week 15) to 60 GRPs (week17).

    A micro look into the IPL ratings on weekdays

    The IPL is holding firm in terms of viewership even on weekdays.

    Tam data C&S 4+ shows that matches played from Sunday 20 April to Saturday 26 April have managed an average TVR of 5.

    In fact the match between Chennai Super Kings and Mumbai Indians which took place on 23 April and went down to the wire nearly touched a TVR of 6.

    The contest between Chennai Super Kings and Kolkata Knight Riders on 26 April fetched the lowest ratings during the week with a TVR of 3.6.

    Not surprisingly the crucial match between Mumbai and Bangalore on 20 April touched a TVR of 5.9. The match between Rajasthan Royals and Deccan Chargers that took place on Thursday had a TVR of 5.5.

    In Gujarat where IPL has fared the best, the matches averaged a TVR of 7.14 while in Andhra Pradesh where IPL has not done well the matches managed a TVR of 2.77.

    Tam also did an analysis on the visibility that the teams got through their TV promos in the month before the IPL kicked off.

    From 18 March to 17 April the Kolkata Knight Riders had 46 per cent of promo time and got 41 per cent of GRPs. The Mumbai Indians had 33 per cent of promo time but their GRP contribution was only 19 per cent.

    The Decan Chargers, on the other hand, had only 10 per cent of promo time but GRPs delivered were 22 per cent.

    Women continue to be interested in big cricket but their share has come down slightly. During the 2003 World Cup women contributed 41 per cent of viewership. This came down to 38 per cent for last year‘s World Cup. For IPL, women contribute 36 per cent of viewership.

    The audience age profile has been consistent over the years. For the 2003 World Cup, the 35+ age group contributed 39 per cent to viewership. For the IPL it has contributed 38 per cent.

    Growth, however, has come for the 15-24-year-olds. Their share in viewership has grown from 21 per cent for the 2003 World Cup to 27 per cent for the IPL. Observers attribute this to the fast-paced nature of T20.

    Tam data also shows that city loyalty has already set in. During the first match, Kolkata viewers increased their interest in the match right till the end of the contest despite knowing in the early stages that their team was going to win.

    Bangalore, on the other hand, started losing interest as the match proceeded towards the finish line. The other four metros, more or less, maintained the same amount of interest in the match right till the end.

    Tam also explains that matches that feature top quality sides will always draw the most viewership. Fans will watch their side more when they play a top side.