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  • IPL 7: Ready, steady, Po!

    IPL 7: Ready, steady, Po!

    Just a day to go for that spectacle called the Indian Premiere League and already, the season has seen more than its fair share of twists and turns!

     

    Apart from the fact that the upcoming tournament coincides with the 16th general elections – bringing back the ghost of IPL season two that had to be organised on South African shores because it collided with the polls here – there have been other changes as well. Right from the omission of Pune Warriors India as a franchise (earlier, Deccan Chargers and Kochi Tuskers Kerala faced termination as well) to N Srinivasan losing his chair to cricketing legend Sunil Gavaskar being appointed as the BCCI-IPL interim president on the order passed by the Supreme Court.

     

    Also, IPL is down to eight teams just like it was when it first kicked off, with the number of matches down to 60, of which, the first 20 will be played in the UAE and the remaining ones back home beginning 2 May.

     

    So before the action begins, here’s looking at some of the things the franchises need to make note of before they forge ahead:

     

    Maintaining momentum

     

    Back in 2009, when IPL had to shift to South Africa due to general elections, there were a lot of logistical issues that caused trouble for the franchises. While shifting to UAE this time round may look simpler because of the similarity in conditions, the teams will have to do some adjusting when they shift back to India in early May.

     

    The return to India could be more a psychological blow for the teams because while there will be bigger crowds and greater support back home, migrating back to India from the UAE with wins under their belts may prove a daunting task for the teams.

     

    They will have to make the psychological adjustment and rework their strategy to better suit Indian conditions. If any side gains momentum in the UAE, it is crucial that they win the first few games during the Indian leg to keep wheel of fortune turning. As far as the conditions go, it may become easier for the teams in India as the heat wouldn’t be as intense as that of the UAE. The pitches too would be a lot more familiar.

     

    Thus, it would all boil down to how well a franchise returns and gets moving in India. It may be a challenge for the teams that are winning, but those who struggle in the UAE may welcome the return to home conditions and that could work in their favour. So buckle up for some high adrenaline action in the first week of May.

     

    Sponsors fighting shy of IPL?

     

    What began as a fledgling franchise in 2008 is today a world-renowned property with brand value pegged at $3.03 billion in 2013 and the highest at $4.13 billion in 2010.

     

    But, 2014 seems to be a troubling year for IPL franchisees, what with the recent controversies, uncertainty about the fate of the tournament (this season), and the decision to take the first half to UAE having made sponsors put on their guard.

     

    According to an American Appraisal India report of 2013, Chennai Super Kings and Mumbai Indians emerged as the most powerful brands valued at $72 million each; followed by Kolkata Knight Riders ($69 million) and Royal Challengers Bangalore ($51 million). Rajasthan Royals ($45 million) and Delhi Daredevils ($40 million) were somewhere in the middle, while Kings XI Punjab ($32 million) and Sunrisers Hyderabad ($25 million) sat at the bottom of the pile.

     

    Each team is trying to claw its way back with operational improvements however, trust flows with stakeholders will eventually determine the health of IPL’s long-term liquidity and profitability. For the current eight teams to sustain, their short-term operational movements need to be aligned with their strategic plans for the tourney.

     

    For example, Kings XI Punjab has had its number of sponsors come down to just two from 15 in 2013. Till last season, the franchise had NVD Solar as its title sponsor for three years, along with Arise Inverters and Batteries, Raindrops Basmati, Lux Cozi, ACC, USL and McDowell’s No. 1 as official team partners. But this season, it has only USL and TK Sports on board as sponsors with the tourney at the doorstep.

     

    GMR group owned-Delhi Daredevils seems to have undergone a makeover this season with a new-look squad, new logo and new sponsor – Quikr. Till last year, the Muthoot Group was its title sponsor, but it did not wish to renew its contract and thus, it opened the doors for the e-commerce portal to step-in as the title sponsor for a period of three years. Apart from Muthoot, other premiere sponsors including Bajaj Allianz, Coca-Cola India, Matrix and consumer goods company Panasonic have also opted out of sponsorship deals this season.

     

    Other franchisees such as Chennai Super Kings, Rajasthan Royals and Kolkata Knight Riders are facing a different challenge. While these teams have managed to get some sponsors on board, the sponsorship rates have taken a pounding. Delay in the announcement of the venue and the controversies surrounding the tourney have impacted business this year, according to most trade pundits.

     

    So how are the teams facing up to these challenges?

     

    With the playing field down to just eight teams, it will lead to intense battles on the field that will hopefully lead to great last over finishes, creating an enthralling experience for the fans.

     

    Last season winners and maiden title holder Mumbai Indians, will square off with 2012 winners Kolkata Knight Riders on April 16 to kick-off the tourney at Sheikh Zayed Stadium, Abu Dhabi.

     

    The league is scheduled to culminate on 1 June 2014, to crown the champions for season seven of the Pepsi Indian Premiere League. Here is a brief description of the teams competing for the coveted title this time around.

     

    Chennai Super Kings (CSK)

     

    Team (from): MS Dhoni (Captain), Suresh Raina, R Ashwin, Ravindra Jadeja, Dwayne Bravo, Faf du Plessis, Brendon McCullum, Dwayne Smith, Ashish Nehra, Mohit Sharma, Samuel Badree, Ben Hilfenhaus, Matt Henry, B Aparajith, Mithun Manhas, Ishwar Pandey, Pawan Negi, Vijay Shankar, Ronit More, John Hastings.

     

    One of the most successful franchises in the league, having won the title twice (2010 and 2011) under the leadership of M S Dhoni (also captain of Team India); one of the major reasons for the success of CSK is the stability and collective effort in the team. They always have a chance to win the cup and this year is no different.

     

    Royal Challengers Bangalore (RCB)

     

    Team (from): Virat Kohli (Captain), Chris Gayle, AB de Villiers, Yuvraj Singh, Parthiv Patel, Albie Morkel, Mitchell Starc, Ashok Dinda, Ravi Rampaul, Muttiah Muralitharan, Nic Maddinson, Varun Aaron, Vijay, Sachin Rana, Yogesh Takawale, Abu Nechim Ahmed, Yuzvendra Chahal, Shadab Jakati, Sandeep Warrier, Harshal Patel, Tanmay Mishra.

     

    The most flamboyant team among all, with the likes of Virat Kohli and Chris Gayle, but it hasn’t really used its resources well to conquer the league. The best result for the team was in 2011, when they came second to CSK. With some real match winners, and Kohli currently in top form, the Challengers need to really put the pedal to the metal (bat to the ball) from the word go this season.

     

    Delhi Daredevils (DD)

     

    Team (from): Kevin Pietersen (Captain), M Vijay, Dinesh Karthik, JP Duminy, Manoj Tiwary, Quinton de Kock, Mohammed Shami, Rahul Sharma, Saurabh Tiwary, Laxmi Ratan Shukla, Nathan Coulter-Nile, Shahbaz Nadeem, Ross Taylor, Milind Kumar, Wayne Parnell, HS Sharath, Jayant Yadav, Jaydev Unadkat, James Neesham, Kedar Jadhav, Mayank Agarwal, Rahul Shukla, Siddharth Kaul.

     

    This is one team that has just drifted away after beginning strongly in the first two seasons. The team really needs to play to its strengths and take each match as it comes. The strategy needs to be very clear; first to reach the play-offs and then the semi-final and if the team plays to its strength, play the final. With the temperamental Pietersen at the helm of things, it will be interesting to see the approach of the team this season.

     

    Kolkata Knight Riders (KKR)

     

    Team (from): Gautam Gambhir (Captain), Sunil Narine, Jacques Kallis, Robin Uthappa, Yusuf Pathan, Shakib Al Hasan, Umesh Yadav, Vinay Kumar, Morne Morkel, Piyush Chawla, Manish Pandey, Veer Pratap Singh, Chris Lynn, Andre Russell, SS Mandal, Pat Cummins, Debabrata Das, Suryakumar Yadav, Manvinder Bisla, Ryan ten Doeschate, Kuldeep Yadav.

     

    The Shah Rukh Khan-owned franchise, was lost till it found a leader in Gautam Gambhir and have stood by him. Under Gambhir, KKR lifted the cup in 2012 and can certainly be a strong contender for this season as well. The team banks on a good mix of youth and experience, with Kallis and Gambhir giving stability to the batting. If Sunil Narine can spin his web yet again and Yusuf Pathan along with new entrant Robin Uthappa create some magic, the Knight Riders may stand to repeat its 2012 feat yet again.

     

    Rajasthan Royals (RR)

     

    Team (from): Shane Watson (Captain), Ajinkya Rahane, James Faulkner, Stuart Binny, Sanju Samson, Brad Hodge, Steven Smith, Abhishek Nayar, Ben Cutting, Kane Richardson, Tim Southee, Unmukt Chand, Ankush Bains, Vikramjeet Malik, Rahul Tewatia, Ankit Sharma, Amit Mishra, Deepak Hooda, Rajat Bhatia, Kevon Cooper, Iqbal Abdulla, Dhawal Kulkarni, Pravin Tambe, Karun Nair, Dishant Yagnik.

     

    The maiden champions will always be remembered for their 2008 tournament; from being the dark horse to really nudging every one out of the league to lift the cup. But since then, the team has not really done much to be noticed. Having been consistent and qualifying for the play-offs last season helps in keeping the team together, but it lacks the killer instinct which may be made up with the appointment of Shane Watson as captain. The team looks very balanced on paper and can give any team a run for its money any given day.

     

    Sunrisers Hyderabad (SRH)

     

    Team (from): Shikhar Dhawan (Captain), Dale Steyn, David Warner, Darren Sammy, Amit Mishra, Aaron Finch, Irfan Pathan, Ishant Sharma, Bhuvneshwar Kumar, Brendan Taylor, Moises Henriques, Venugopala Rao, Jason Holder, S Aniruddha, Manprit Juneja, KL Rahul, Amit Paunikar, Naman Ojha, Ricky Bhui, Ashish Reddy, Chama Milind, Parveez Rasool, Prashanth Parameshwaran, Karn Sharma.

     

    Having the advantage of being the youngest franchise in the league, the Sunrisers Hyderabad, proved its mettle by qualifying to the play-offs in the 2013 season. The team really battled in some of the memorable matches of the season. Under the leadership of Shikhar Dhawan, the team looks poised to maintain its performance and do exceedingly well in season seven as well. With match winners like Dhawan, Warner, Steyn, Mishra and Sammy, this looks like the most balanced team among the lot.

     

    Kings XI Punjab (KXIP)

     

    Team (from): George Bailey (Captain), David Miller, Manan Vohra, Virender Sehwag, Mitchell Johnson, Cheteshwar Pujara, Shaun Marsh, Wriddhaman Saha, Thisara Perera, Glenn Maxwell, Rishi Dhawan, Anureet Singh, Sandeep Sharma, Akshar Patel, Beuran Hendricks, Karanveer Singh, Murali Kartik, Shivam Sharma, Shardul Thakur, L Balaji, Parvinder Awana, Gurkeerat Singh Mann, Mandeep Singh.

     

    This team has never really proved its mettle right from season one down to season six; there have been constant changes in leadership and that has been detrimental to its performance as well. With George Bailey at the helm and support from ‘old hands’ like Sehwag, Johnson, Saha and Balaji, it’s yet to be seen if this season brings a change in fortunes for KXIP.

     

    Mumbai Indians (MI)

     

    Team (from): Rohit Sharma (Captain), Lasith Malinga, Kieron Pollard, Harbhajan Singh, Ambati Rayudu, Michael Hussey, Zaheer Khan, Pragyan Ojha, Corey Anderson, Josh Hazlewood, CM Gautam, Aditya Tare, Apoorv Wankhade, Marchant de Lange, Krishmar Santokie, Ben Dunk, Pawan Suyal, Sushant Marathe, Jasprit Bumrah, Shreyas Gopal, Jalaj Saxena.

     

    The reigning champions of season six IPL 2013, have seen it all. The first two years having struggled to not even qualify for the play-offs; followed by standing runners-up in 2010 and then finally completing the journey last year. But this year the one big change will be, Sachin Tendulkar not figuring in the squad, having retired from all forms of cricket. The team looks good and well balanced to retain its title, only time will tell if it really can.

  • ‘Sun will breake ven from the first year of IPL operations’ : Sun TV Network CFO V.C. Unnikrishnan

    ‘Sun will breake ven from the first year of IPL operations’ : Sun TV Network CFO V.C. Unnikrishnan

    Kalanithi Maran-owned media conglomerate Sun TV Network has won the Hyderabad Indian Premier League (IPL) franchise putting in the highest bid that was 23 per cent more than the second bid for the same team.

     

    Sun bid Rs 850.5 million a year while the next bid was for Rs 690.3 million from PVP Ventures.

     

    Sun will get to own the franchise for a period of five years till 2017 paying Rs 4.25 billion as franchise fee to the Board of Control for Cricket in India (BCCI).

     

    Sun plans to invest in the region of Rs 1.3-1.4 billion in a year and bets on leveraging its popular television and FM radio stations to make a success of the newly acquired IPL property.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, Sun TV Network chief financial officer V. C. Unnikrishnan talks about what led the company to bid for the IPL team and how it plans to profitably run this new line of business.

     

    Excerpts:

     

    Q. Sun TV Network‘s bid at Rs 850.5 million was 23 per cent higher than the other bidder PVP Ventures. In hindsight, do you think you bid a bit higher?
    We are comfortable with the price that we bid. Our strength is in the south market. Our ability to leverage the property on TV and radio is much higher. We are confident that we will be able to make money.

     

    Q. How much does Sun plan to invest annually in the IPL property?
    A. We know our franchisee fee amount but other expenses like the IPL players are not frozen yet. Our early estimate is that our spends would be in the region of Rs 1.3-1.4 billion a year. Even given that broad number, I don‘t think that making ends meet would be an issue for us at all.

     

    Q. Does that mean that you will breakeven right from the start?
    We expect to breakeven from the first year itself. The profits may be small but will grow as we go along. We have proven our track record when we have entered into other lines of business like movie production. The major difference between us and the other players is that we have stepped into different domains quite successfully. We have strength in other areas of entertainment. IPL is just another major area of entertainment that we have stepped into.

     

    Q. For an IPL team franchise, there isn‘t much scope to drastically up the turnover. Will Sun stand to gain in valuation rise of this property say within the next three years?
    Sun has a market cap of Rs 140 billion and ended on a consolidated revenue of Rs 18.47 billion for the fiscal ended 31 March 2012. We won‘t depend on the IPL to add sizeably to our top line growth. The big growth driver will be digitisation. For every broadcaster, digitisation will trigger big growth.

    ‘We won‘t depend on the IPL to add sizeably to our top line growth. The big growth driver for us will be digitisation‘

    Q. The IPL franchisee purchase will also lead to a confidence among the investment community that Sun is going to be aggressive in its media business despite all the recent controversies. Do you see the share prices getting corrected because of the new IPL team purchase?
    The stock price getting affected is something of a market sentiment and perception. We were always very focused about our business. The IPL is a new line of business and we will draw in a lot of synergies. We are in the entertainment and media business. And cricket is entertainment.

     

    Q. Why didn‘t Sun bid for the Deccan Chargers when it came up for auction under the aegis of the BCCI? Was Sun waiting for a clean IPL francise?
    The BCCI came out with a tender. And we decided to participate in a direct offer.

     

    Q. Will Sun‘s team consist of players from the Deccan Chargers?
    We will take some players from that team. There are also some players that were not sold during the earlier auction but who have potential. We will look at them as well.

     

    Q. How will this process of getting players work?
    The BCCI has to decide on the modalities for the process and we will follow it. After the next season, the players go back for an auction.

     

    Q. In terms of revenue many franchises still heavily depend on the central pool. How do you plan to grow the local revenue pool?
    We have a clear business plan. It is too early to reveal details. But the business lines have been drawn.

     

    Q. Only two parties including you bid. Was this a surprise?
    It was a surprise. In the market the names of Videocon, Jaypee Group and Adani were floating.

     

    Q. Is Sun TV looking at making a play in the sports broadcasting business?
    We have no interest in entering the sports broadcasting genre. Sports channels are not profitable. That is why while we are present in a variety of genres, sports is an area that we have stayed away from. We are not interested in getting the telecast rights for any sports property. In any business decision, the aim is to make money.

  • ‘We have no intentions of selling Deccan Chargers currently’ : Deccan Chargers COO Venkat Reddy

    ‘We have no intentions of selling Deccan Chargers currently’ : Deccan Chargers COO Venkat Reddy

    For IPL franchise Deccan Chargers, it has been a story of ups and downs. The team had a miserable run in the inaugural season but bounced back strongly in the second edition to walk away with the title.

     

    Even off the field, Deccan Chargers had to deal with uncertainty what with the main shirt sponsor changing hands every year. However in the fifth edition of the IPL, the franchisee has finally found its true calling striking a multi-million dollar three year sponsorship deal with Emirates besides roping in a host of other national and local sponsors.

     

    The franchise has also been in the news frequently that it is on the blocks. Deccan Chronicle Holdings had mandated KPMG Corporate Finance to find a buyer and was looking at a valuation of $250 million in 2008.

     

    In an interview with Indiantelevision.com‘s Ashwin Pinto, Deccan Chargers COO Venkat Reddy clears the air about the team’s sale reports by asserting that it is committed to the team and is not planning to presently sell the team. Reddy, a man of few words, also said that the franchise has broken even and is looking at good revenue growth this year.

     

    Excerpts:

    Will Deccan Chronicle sell IPL franchise if the valuation is attractive or will you wait for it to mature further?
    Presently, we have no intentions of selling the team. Deccan Chargers is very much owned fully by Deccan Chronicle Holdings Limited.

    Deccan Chargers posted revenues of Rs 1.15 billion in 2010. What has the growth been since then and have you operationally broken even?
    We have achieved break even and expect the growth to be good this year. It is an exciting season for us and we have got good response from sponsors.

    How did the deal with Emirates come about? Which are the other new sponsors who have joined?
    IPL 2012 is a huge opportunity to leverage revenues with the Deccan Chargers being a well known and growing brand. Strategic trading in auction without compromising on the team balance has brought in sizeable revenue in its kitty. We are privileged to have Emirates as our team sponsor. And our other main sponsors are Jaypee Cement, TVS Motors, United Spirits, Kingfisher, Xenoh and Puma. We were associated with Jaypee for the inaugural IPL season and are pleased to have them back. We are reaching out to our fan base, taking the matches to the catchment areas of Vizag and Odisha.

    Is the Telangana issue going to affect your ticketing revenues once again?
    This year we have three confirmed cities as Deccan Chargers home grounds – Vizag, Cuttack and Hyderabad. Our matches are well distributed in these three cities, which will see a considerable growth in gate revenues. Added is the special hospitality seating areas created for the spectators to enjoy the matches and have a great experience. The match entertainment is also very carefully planned, keeping the local flavour in view.
    ‘We have achieved break even and expect the growth to be good this year. Emirates is our team sponsor. Our other main sponsors are Jaypee Cement, TVS Motors, United Spirits, Kingfisher, Xenoh and Puma‘

    Given that it has been four years since IPL started, has licensing and merchandising become a serious revenue stream or is there still a long way to go?
    Yes, it is and there are challenges yet to be faced.

    Has Deccan Chronicle got what it aimed at when it decided to be involved with the IPL franchise?
    Deccan Chronicle has always supported sports and has nurtured the Deccan Chronicle cricket team for years. IPL was a great opportunity to get into big league and cricket is religion for us Indians. We are now a well known sports brand globally and want to extend further. T20 cricket is challenging. We have emerged as winners in 2009 after suffering a major setback in the inaugural season. We believe in working hard and motivating our team to perform well without putting any pressure. We have seen a tremendous growth trend in our fans base, which continues. As per the latest study on Top Ten Social Media Influencers by DataQuest, Deccan Chargers has been in the Top Ten Indian Brands.

    How do fans perceive the Deccan Chargers and how do you maintain a relationship with them across the year even after the IPL season gets over?
    Deccan Chargers is always full of surprises. We have a loyal fan base that supports us thick and thin. We maintain interaction through the social media sites like Facebook and Twitter.

    What marketing activities are being done to create excitement?
    Our local campaigns have already started. We recently organised events in Hyderabad and Vizag like the See U in Blue event, Buildings lit in blue, Cycle rally, Beach Corporate Cricket etc. A separate fans blog, selecting some active fans on social media sites and giving away DC goodies and many other fan engagement activities are lined up. unstoppabulls.deccanchargers.com/ featured a contest to find “Super Blogger, Photographer & Videographer” who‘ll be part of DC Crew to follow & cover team DC.

    Could you talk about your deal with My Rewards International?
    We have agreed to market membership based programmes under a co-branding arrangement. This will give our members and their family access to the My Rewards benefits which are available throughout India and the world. Similarly, over one million My Rewards members throughout India, Australia, Hong Kong, New Zealand and the Philippines will have the opportunity to join the Deccan Chargers and enjoy all the benefits of being a member of one of the premier IPL teams. I am sure our fans will enjoy the plethora of rewards.
  • Deccan Chargers in sponsorship deal with Jaypee Cements, TVS Motor

    Deccan Chargers in sponsorship deal with Jaypee Cements, TVS Motor

    MUMBAI: IPL franchise Deccan Chargers has added two more sponsors to their roster. While Jaypee Cements has come on board as principal sponsor, TVS has joined as co-sponsor.

    Jaypee incidentally was the team sponsor of the team in the inaugural edition of the IPL, but backed out following the teams miserable performance in the tournament.

    TVS, on the other hand, is also associated with Pune Warriors India as the team sponsor. As co-sponsor of Deccan Chargers, TVS Motor company’s logo will feature on the non-leading arm.

    Jaiprakash Associates Ltd. Director & CFO Rahul Kumar said, “Our Group’s flagship brand “Jaypee Cement” has always been known for its solidity and credibility – qualities that are present in the Deccan Chargers as well. We are very happy to forge this solid partnership and wish the Deccan Chargers team the very best in IPL-5.”

    Announcing the association, TVS Motor Company President Marketing H S Goindi said, “Cricket has become a sport with global appeal that promotes hard work, commitment, competition and excellence, values which we also share. We are proud to support a team that is dedicated to cultivating the next generation cricketers and look forward to a great relationship with one of IPL’s top squads.”

    Earlier, Chargers had inked a three-year multi-million dollar deal with global airline company Emirates for a period of three years.

    Additionally, McDowell‘s No 1 is Fan Friendzy sponsor while other partners include Kingfisher Premium as Good Times partner, Puma as apparel sponsor, Xenoh as deodrant partner, Muffins Innovations as tablet pc partner, Apollo Hospitals as medical partner, and Oakley as eyewear partner.

    The media partners include Deccan Chronicle as print media partner, TV5 News as electronic media partner, Ad Age as outdoor partner and Big FM as radio partner.

  • Deccan Chargers ink multi-million dollar deal with Emirates

    Deccan Chargers ink multi-million dollar deal with Emirates

    MUMBAI: Global airline company Emirates has shifted its sponsorship alliance from Kings XI Punjab to Deccan Chargers, signing a three-year multi-million dollar deal with the Hyderabad franchise as it makes the Southern region part of its focus area.

    Being a team sponsor of Deccan Chargers, Emirates will have ‘Fly Emirates’ branding on the player jersey, pitch-side branding at each of the matches, player appearances, and hospitality among others.

    Globally, Emirates is associated with sporting events like Fifa World Cup, Rugby World Cup, and ICC World Cup besides a whole host of other sporting events. It invests one per cent of its global revenues into sports sponsorship.

    Emirates was earlier associated with Kings XI Punjab for three years since 2009 as a team sponsor. It, however, decided not to renew its deal with the Mohali franchise once it ended last year.

    The Chargers on the other hand had Ultratech as their team sponsor last year, which has partnered Rajasthan Royals for the season 5 of the IPL.

    Emirates Airline Vice President India & Nepal Orhan Abbas said, “Emirates had a three-year agreement with Kings XI Punjab beginning 2009 and the contract ended in 2011. We were looking at various options which have synergies with our brand. Our association with Deccan Chargers was the best fit and hence we entered into an agreement with them for the next three years.”

    While refusing to give the specific value of the deal, Abbas said the multi-million dollar deal will allow the airline to connect with its consumers across India.

    “Emirates has made a multi-million dollar commitment to the Deccan Chargers over the next three years starting March 2012. This three-year sponsorship commitment will allow Emirates to come closer to our customer base in one of the most important regions on our network, and share our cricketing passion with our customers.”

    Abbas also asserted that sports is an important advertising vehicle for the company to raise brand awareness and build a close relationship with consumers.

    The Deccan Chargers, starting their title challenge against the Chennai Super Kings in Vizag, will feature a host of household names, including Sri Lanka’s Kumar Sangakkara, who will captain the side, South African stars JP Duminy and Dale Steyn, as well as Indian wicket Keeper Batsman Parthiv Patel.

    “We are proud to have a leading global brand like Emirates as our Team Sponsor for the next three seasons of the IPL. We are confident this association with Emirates will be fruitful. With an exciting new squad and sponsor, we look forward to the tournament and repeating our winning performance in DLF IPL 2012,” said Deccan Chargers co-owner Gayatri Reddy.

    Additionally, McDowell‘s No 1 is Fan Friendzy sponsor while other partners include Kingfisher Premium as Good Times partner, Puma as apparel sponsor, Xenoh as deodrant partner, Muffins Innovations as tablet pc partner, Apollo Hospitals as medical partner, and Oakley as eyewear partner.

    The media partners include Deccan Chronicle as print media partner, TV5 News as electronic media partner, Ad Age as outdoor partner and Big FM as radio partner.

  • ‘All IPL teams should be able to break even by 2011’ : Hiren Pandit – GroupM ESP managing partner

    ‘All IPL teams should be able to break even by 2011’ : Hiren Pandit – GroupM ESP managing partner

    The Indian Premier League (IPL) promises huge space for revenue growth. The team franchises will have to focus on building the brand consistently, project a healthy personality and take the sponsorship value to a different level.

     

    It is not wise to draw sponsors just on the back of winning and losing. Performance is a factor, but it is not the only thing.

     

    In an interview with Indiantelevision.com’s Ashwin Pinto, GroupM ESP managing partner Hiren Pandit says there is value in T20, but warns that it should not be at the cost of the other formats.

     

    Excerpts:

    How have the franchises fared financially in the second edition of the IPL?
    Our assumption is that there are two who have not made a profit – Deccan Chargers (Hyderabad) and Royal Challengers (Bangalore). They had their own brands on their T-shirts, which could be looked at as an investment rather than a loss. The others have broken even at the operational level. This was due to the rise in television rights fees. The question is whether they have wiped out the losses of last year. I expect everybody to break even by 2011.

     

    In terms of sponsorship revenues between the team and central revenues, the IPL got Rs 3 billion. Last year it would not have been more than Rs 2.5 billion. Kolkata Knight Riders (KKR), Chennai Super Kings (CSK) and Delhi Daredevils have got the most in terms of local sponsorships, followed by Mumbai Indians, Kings XI Punjab Rajasthan Royals (RR).

    And what about sponsorships?
    CSK and KKR did a particularly good job. But you would have a team like Royal Challengers (RC) which is not interested in outside sponsorships. That franchisee put its own brands on display.

    How about defending champions Rajasthan Royals?

    RR has broken even because their payout to the BCCI is much less as compared to the others. They only shell out $6.5 million each year. Having said that, I am not so sure that finishing number one necessarily translates into higher sponsorship revenue.

    Then what matters?
    You need to look at what a team stands for. Is its branding consistent? Does it show on the ground? Does the team overall project a strong and a healthy personality? Are there characteristics in the team that can take sponsorship value to a different level?

     

    If an IPL team draws sponsors on the back of winning and losing, then you have a problem. Performance is a factor, but it can’t be the only thing.

     

    While KKR did well in terms of getting in sponsors, somewhere down the line they or the brands associated with it made the mistake of going down the performance route. That is a dangerous platform to walk on. The amount of bad press it got did not help the franchisee nor the brands that were associated with it.

     

    On the other side, Idea did an outstanding job with the Mumbai Indians. Their activation platform was brilliant and had nothing to do with winning or losing. It gave fans the opportunity to aspire to talk with their favourite players. Even though Mumbai Indians lost on the field, the aspirational value is still there.

    What was Group M’s role in this IPL?
    We did a few deals with some clients for having their logos appear on T-shirts. We lost out big time, though, as the IPL moved out of India. We had a smaller role to play compared with last year. We are now not involved with the Deccan Chargers.
    ‘Revenue growth will come from local sponsorships. If you are heavily relying on the central pool, then the franchise has not built itself properly. Building up local sponsorships and fan base will be key‘

    Do you see yourself playing a bigger role going forward?
    Yes! We have knowledge on brand activation around the IPL. We have got a good understanding of this space and the valuation process. We can give clients a fair idea of what they should pay for a logo, depending on the position they take. We are also open to associating with teams.

    The IPL is looking at doing another event each year abroad, possibly a smaller one. Is this the best way forward?
    The aim appears to be to develop cricket in smaller, non cricket markets. Is there a window available? Are players available? These issues have to be addressed.

    Where does KKR go from here?
    They have to relook at what they have got. They are not a bad team per se. They have a high profile owner and they need to look at the relationship between owner and team.

     

    Secondly, they had too many people like Buchanan and Ganguly trying to become high profile. The bigger you are, the harder you fall and that is what has happened.

     

    Kolkata’s sponsorship is on the back of Shah Rukh Khan and not because of the team. They could rejig what their brand stands for – and then sponsors will come in for the team’s values. That is a call that they will have to take. What you will find is that franchisees will move away from performance as a platform for brand activation.

     

    Going forward, the growth of revenues will come from local sponsorships – and not so much from the central pool. If you are heavily relying on the central pool, then the franchise has not built itself properly. Building up local sponsorships and fan base will be key.

    How would this happen?
    The IPL will move away from being just a 45-day event. Franchisees will do activities over a longer period of time to build a fan base. They would do things like promotions, interactions and meets.

    There is talk that with the IPL the focus is shifting away from individual player sponsors and more towards team sponsorship. Are players like Dhoni going to lose out on lucrative deals going forward?
    When a team association is done, three to four players are used. Even if you are associated with CSK, you can only use Dhoni as far as IPL is concerned. This makes sense when the IPL is on or just about to start. But in December if the team endorses a brand, what will a viewer take out of it? The viewers are not stupid. If people believe that they are getting a Dhoni for free by associating with his IPL franchise, then they have a short term approach to the business.

     

    You could associate with a team to get national reach. If you associate with a player, it would be due to his characteristics. It is not necessary that the characteristics of the franchisees will be the same.

    When the IPL adds more teams in 2011, what would be the likely cities?
    Gujarat and UP have opportunities. You could see another team from Maharasthra – perhaps Pune or Nagpur. Kerala also has a chance if some NRI is interested. The payout could cross $200 million. But the interested party will have to work his maths out properly. Otherwise, it will be difficult to recoup your investments. The parties that shelled out the most for a franchisee the last time around are just about making it. The lower end of the payout table are more comfortable.

     

    Also keep in mind the fact that after 2010 all player contracts are up for grabs. The whole scenario will be reworked and changed. There should again be a cap on money that can be spent or there will be teams that will be far stronger than the rest. The IPL could then turn into a two or a three horse race which will take away from its appeal. Some deals, though, might be done outside the bidding. We will see more performance-related deals. Player loyalties and disloyalties will also come into the equation.

    Next year England starts P20. In 2011 South Africa, Australia and New Zealand start a joint league along the lines of the IPL. How do you see this affecting international cricket?
    The question is with so many leagues happening, what happens to Tests and one-dayers. Is there enough of a window for this to happen? There was a league that started in the West Indies, which subsequently got killed.

     

    Can the other leagues generate the kind of money that the IPL gets? I don’t know if Kevin Pietersen will get $1.5 million a year in those leagues.

     

    Then you must look at it from a player’s perspective. He plays around 35 ODIs, 15 Tests, 20 T20 games a year. Does he have time to play anything else? Remember also that T20 is successful in India as it is a country sport first. Then it is a club sport.

    Could we see players bypassing the international grind and just focusing on league cricket which is lucrative?
    The question is whether a player wants to play cricket for a living or does he want to represent his country and make money. You cannot have somebody only focus on the T20 format. This is something that this edition of the IPL brilliantly showed.

     

    The players who did well like Kumble, Gilchrist and Hayden are seasoned campaigners who have excelled in the other formats as well. T20 is not a wham bam affair. It is about playing proper cricket. If a cricketer chooses league cricket over his country, then he might be asking for trouble. Most of the IPL players got there as they made a statement by playing for their country. Then there are youngsters who did well in the IPL and are now playing for their country. I do not think that it is a choice of one versus the other.
    What impact will India’s exit in the T20 World Cup have on ESPN Star Sports?
    Ratings will take a hit. Already we are seeing that clients are not getting enough of a return when India does not play.
    How do you see the Champions T20 League faring?
    You need to let it happen once. Some players play for two teams and so will have to decide where their loyalties lie when this event starts.
    Would playing at night help Test cricket?
    This is not a bad idea. What has happened is that T20 has had a positive impact on the other formats. The run scoring in Test matches is quicker which is forcing results. This is desirable. Each format lives off the other in some form or the other.
    There will be lots of T20 cricket happening. Are you concerned that the overdose might kill the format?
    It could lose its flavour. You cannot have too much of one format. There is value in T20, but it should not be at the cost of the other formats.
    What challenges does the economic downturn pose for Group M ESP?
    We need to work harder. We need to give more value to clients. It is a partnership in good times and bad. We need to find better opportunities for clients but it is not as though we need to think differently.
    What progress has Group M ESP made in the celebrity endorsement and management space?
    We have moved away from this. Keeping in mind the Indian mindset towards celebrities, we did not believe that it was a scalable model. We focus, among other areas, on branded content in film and television. The strike affected us but hopefully the films have only been shifted and not cancelled. We have done regional tie ups with brands.