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Kings XI Punjab is yet to recover from the shock, its break even target having gone haywire after the Board of Control for Cricket in India (BCCI) terminated its franchise contract in October 2010 for breaching ownership rules. The Bombay High Court came to its rescue, allowing it to be a part of the Indian Premier League (IPL) after submitting $20.7 million in bank guarantee.
Having paid $76 million to acquire the IPL franchise, Kings XI Punjab is now on recovery course. Sponsorship deals have been stitched and the Mohali franchise is hoping to improve its performance this year.
In an interview with Indiantelevision.com‘s Ashwin Pinto,Kings XI Punjab COO Col Arvinder Singh says the franchise should break even this year and post a revenue growth of 15-20 per cent.
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Q. Could you talk about how the IPL as a property has grown year on year?
With time it has also amassed worldwide audiences. The league has grown beyond the realm of cricket and is considered as a complete entertainment package encompassing the entire family. |
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Q. Kings XI Punjab had expected to break even in the fourth year. Has this happened or did the BCCI termination play spoilsport?
Not everything goes as per plan. Ups and downs are a part of every business and they should not deter from chasing our dreams – that is to get the Cup home this year. We are constantly working towards creating a team which is extremely valuable and as partners, we will give all it takes – time, energy and resources for the love of the game.
And yes, the arbitration process is yet to conclude. |
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Q. What revenue growth do you expect this year and who are your sponsors? |
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Q. Emirates has not renewed its deal with you. Is the economic slowdown forcing brands to look at the cost of association more carefully compared to earlier years? |
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Q. IPL ratings fell last year, making it more expensive for marketers and sponsors. Do more efforts need to be taken in terms of marketing the event to consumers? |
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Q. Has the licensing and merchandising area grown? |
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Q. A sports marketing expert noted that the IPL has become more an icon-led rather than a franchise event. This means that if icons like Sehwag and Dhoni do not perform, viewership will get affected as people mainly want to watch icons. Do you agree with this?
For a more concrete connection with the fans, the franchise must establish itself as a custodian of the values and attitude that the region represents. This kind of association will withstand any player movement. |
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Q. If you look at the IPL so far, which three players have been the most value for money in terms of performance for the franchise? |
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Q. On the field, Kings XI Punjab did not fare well in the previous couple of seasons. How much has this affected your brand valuation?
We have been able to establish ourselves as a local team; we also have a loyal fan following in our catchment and also have a very huge fan following internationally. We have been growing for the past four seasons and we can only see it growing further this year. |
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Q. What strategy was followed during the two player auctions and were you affected by not being able to retain some of them?
We believe that we have the required strength in our team to take us all the way. Based on lessons learnt last season, we have enhanced the team strength with players like Azhar Mehmood and James Faulkner. We also have a great mix of experienced and young domestic players. |
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Q. What are Kings XI Punjab‘s marketing efforts this year?
Currently one of the unique activities undertaken by us is our association with Indraprastha All India Sports Foundation for the ‘Cricket Champs‘ reality show. This initiative aims at nurturing youth to develop skills which not only will make them successful cricket captains but also help them in their personal endeavours. |
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Q. Is Kings XI Punjab able to do activation during the off-season once the IPL gets over or is non availability of players an issue? |
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Q. With the Big Bash league doing well in Australia, the debate about club versus country has again raised its ahead given how financially lucrative it is to play for clubs. How do you see things shaping up going forward? |
Tag: Kings XI Punjab
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‘We expect to break even this year’ : Kings XI Punjab COO Col Arvinder Singh
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Kings XI Punjab ropes in five new partners for IPL 4.0
MUMBAI: IPL franchise Kings XI Punjab has roped in five new partners.
Pearl Group and Flying Machine are Official Team Partners, Carlsberg is the Exceptional Team Partner, Q Cinemas is the Official Multiplex Partner, Coca-Cola is the Official Beverage Partner and as the Official Team Partner.
Kings XI Punjab co-promoter Ness Wadia said, “I am extremely delighted with the team composition that has Coach Michael Bevan and Captain Adam Gilchrist at the helm and a host of experienced and talented cricketer. We are also extremely happy about the domestic players who form the part of the squad. These young and energetic boys come from our catchment area and beyond. All of them have the potential of being mettle winners in their own right. All in all our team has the right mix of experience, youth and talent & the exhibited potential to go the distance this year.”
Further commenting on the partners association for IPL 4, he said, “Kings XI Punjab is delighted to renew its association with our long standing partners. Emirates, again is our Title Partner and the other partners who we continue our relationship are ACC as Official Team Partner, Gulf as Performance & Protection Partner, Wrigley as Official Chewing Gum, USL as Official games for Challenge Partner and Reebok as Official Apparel Partner. We mutually remain committed to our objectives and promise to take this association to new heights. We take this opportunity to thank all our partners for trusting us and we assure them of our utmost efforts to fulfill our common objectives.”
Kings XI Punjab COO Col. Arvinder Singh said, “KXIP values its enduring relationship with the fans and this year too our aim is to keep our fans and supporters at the core so that they take pride in being associated with us. We received a stupendous response last year on our initiatives like Homecoming, an opportunity to meet and greet players in their hometowns in catchment area & Flying Catch last year. Hence we will be organizing them again this season in association with our partners i.e. with Carlsberg and Emirates respectively.
The franchise has also announced an initiative to support the team through Paint the town Red and a contest Rocky Ranjit ki Khoj a search for the voices for our Mascots has been arranged. We have also revamped our website – www.kxip.in by adding several new features like live chats, contests, updates about KXIP cricketers. Our aim with all these initiatives is to involve cricket lovers through these interactive means and engage with them during the matches and on off days.”
The team is currently being trained under the coach Michael Bevan who stated, “We have put together a strong team this season with some of the best cricketers in the world. At the helm we have the experienced captain Adam Gilchrist who would infuse right fervor and guide the team to play some great cricket in the upcoming season. I can just say that my boys are enthused to put the right foot forward and play some great cricket.”
Adam Gilchrist who is the captain of the franchise said, “Kings XI Punjab has a new look but we will endeavor to play as one team where each player complements the other. The squad has great talent and with new renewed energy & teamwork we are determined to aim for a successful season. As always we cherish the unrelenting support and love of all our fans and assure them of our best efforts on the field.”
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Kings XI Punjab renews association with ACC for IPL 4.0
MUMBAI:Indian Premier League (IPL) franchise Kings XI Punjab today renewed its association with cement manufacturer (ACC) as their Official Team Partner for the IPL season 4.
ACC‘s renewal reposes the sponsor‘s faith in brand Kings XI Punjab.
Kings XI Punjab COO Col. Arvinder Singh said, “We are pleased to continue our relationship with ACC Ltd as our Official Team Partner for the second year in a row. Both our companies share common values and we are excited about the joint initiatives that we propose to undertake in our catchment area which we shall soon announce.”ACC‘s association with Kings XI Punjab also marks the company‘s re-association with cricket after the last season.
ACC will run a number of promotions during the IPL season. In
addition, ACC also would have its brand presence in stadia in the form of Perimeter boards, ad spots on the big screen placards, etc.
ACC director sales – North Joydeep Mukherjee said, “I am delighted, that our association with Kings XI Punjab continues for the second year. The format of Indian Premier League allows us to associate with the most popular sport in India and gives us a wide scope of running innovative activities around consumers, channel and employees.”
ACC would be using this association to build stronger bonds with the masses of Punjab and HP and in particular, with its channel partners.
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‘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.
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Kings XI Punjab renews sponsorship deal with four
IPL franchise Kings XI Punjab has renewed sponsorship deals with Emirates, Reebok, USL and Wrigley ahead of the fourth season.
Emirates, the Dubai-based global airline, continues to be the team’s Title sponsor while Reebok is the Official Apparel Partner, USL is Official Games for Challenge Partner and Wrigley is the Official Chewing Gum.
The promoters of Kings XI Punjab said, “We are thrilled to have Emirates, Reebok, USL and Wrigley with us yet again for the upcoming season of IPL season IV. We are invigorated and look forward to a fruitful association as our sponsors have reaffirmed that they share the same passion towards cricket and our values. We as a team are eagerly waiting for the tournament to begin and assure an electrifying cricketing experience to our fans in India and overseas.”
Emirates Airline VP – India and Nepal Orhan Abbas said, “We have been very proud of our association with the IPL over the past two seasons. The tournament has grown bigger and better and the standard of the teams has also improved in that time. The Kings XI Punjab team looks very well balanced this season and we are looking forward to a great tournament.”
Reebok will be launching a fresh line up of merchandise soon. A Reebok India spokesperson said, “We are happy to be associated with Kings XI Punjab for the IPL Season 4. We believe the team is going strong and we wish them the best for the upcoming tournament. The apparel being designed especially for the team will be at the forefront of apparel technology and will be made available in a fresh new design for the fans as well.”
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‘Sponsorship rates have reduced by 20 per cent’ : Mohit Burman – Kings XI Punjab co-owner
Kings XI Punjab, the Mohali team for Indian Premier League (IPL), was bought for $76 million by Bombay Dyeing deputy MD Ness Wadia, actress Preity Zinta, Dabur India director Mohit Burman and Apeejay Surrendra Group chairman Karan Paul.
The four shareholders together formed KPH Dream Cricket Private Limited, the holding company of Kings XI Punjab.
Kings XI Punjab is eyeing sponsorship revenues while cutting down on marketing expenses.
In an interview with Anushree Bhattacharyya, Burman talks about how the economic downturn is going to upset the revenue targets of the team franchisees.
Excerpts:
Since Kings XI Punjab did not go for three-year sponsorship deals, how difficult has it been to retain them for the second IPL edition?
Spice Telecom is very much on board as our title sponsor. We are in the final stage of negotiations with Coca-Cola as our pouring partner. Kotak, Provogue and 9X, however, are not there this time.As for new deals this year, we have signed up with United Spirits while Reebok is our apparel sponsor. We will be closing two more deals in the next four to five days. Overall, we are looking at signing eight to nine sponsors this year.
Has the downturn in the economy forced sponsorship rates to fall?
The whole world has changed and overall sponsorship rates have reduced by 20 per cent. We thought we were better off than those team franchisees who had gone in for three-year sponsorship deals. We felt we would be able to command higher sponsorship rates after the build-up from the first IPL tournament. But amid the economic downturn, the teams who signed three-year deals seem to be the smarter ones.Does this mean that the revenue targets have gone awry?
Since the tournament went off on a high note last year, we were under the impression that we would break even this year. However, looking at the present situation, I don’t think that franchisees will be able to break even before 2012. Most franchisees will not be able to make a profit this year, although the tournament will continue to be a success.The fact that the IPL is held after a long gap doesn’t help matters. Globally, leagues are played for eight to nine months with a short break, providing sponsors a continuous flow of events.
Where do you see most of your revenues coming from?
We hope to make more from our sponsorships, ticket sales and merchandising. This should account for over 60 per cent of our total revenues this year, unlike in the inaugural edition where the maximum came from the central pool. We also hope to get our act right on the ticketing sales front this year.Do you plan to decrease the ticket prices to pack more audiences into the stadium?
We already have a pricing strategy. The ticket prices range between Rs 150 to Rs 6000, addressing different segments of audiences. But this year we are going to be very strict in terms of ensuring that people who wish to watch the matches do pay for the tickets.Have you lined up your licensing and merchandising strategies?
For apparel licensing, we have already tied up with Reebok. We will be soon announcing our partner for making accessories like key chain, mugs, etc.Have you trimmed your marketing expense this year?
We are bringing down our marketing cost to Rs 35 million, from Rs 50 million last year. The initial costs in building up a brand are obviously higher. For example, we made a video with Daler Mehndi last year – and that obviously increased our marketing budget. We don’t see such a requirement for making another video this year.‘Since the tournament went off on a high note last year, we were under the impression that we would break even this year. However, looking at the present situation, I don’t think that franchisees will be able to break even before 2012‘What role will Preity Zinta play to promote the franchisee this year?
We have already started our marketing initiatives through the King XI Punjab Cup. We had also sponsored the Manali winter festival in Punjab. This year we will be concentrating more on ground level activities in our catchment areas.Preity Zinta is one of the owners and she is welcome to play whatever role she desires. She has already contributed a lot last year and as the tournament gets closer, I am sure she will help us in our marketing activities.
What was the idea behind organising the Kings XI Punjab Cup?
The idea is to reach out to the people of our catchment areas which include Himachal Pradesh, Punjab, Jammu and Kashmir, etc. At the same time, we want to promote the game of cricket at the grass root level. Since we have a coach and some of the best players from the world, we want to nurture young talent.A few franchises have partnered with TV channels in search of cheer leaders. What are your plans?
We have got plans, but at this moment we are really concentrating on ground activities. Our idea is that instead of doing national hoity-toity shows on TV, we should concentrate on building the brand in our own locality. We believe that if we really want to make our franchise work, then we need to get closer to our fans and get them more involved with the team.Are you looking at beginning a cricket academy as Ness Wadia said that the franchisee job is to acquire and groom new players?
We are setting up an academy and for that we have already got an academy coach. We should be able to roll out the academy a few weeks before the tournament.Will Brett Lee’s injury affect your team’s performance?
I believe Lee will be fit to play for the tournament. We have, however, crafted a team keeping in mind the fact that Lee may not be able to play. Which is why we added West Indian pacer Jerome Taylor and Ravi Bopara.You got England’s Ravi Bopara for $450,000, three times his starting price of $150,000. Would you call this an intelligent investment, looking at the present market scenario?
Kolkata Knight Riders bought Mortaza at a very high rate. So was that an intelligent investment? Every team has to decide on their player investments, keeping many things in mind. While it is true that Bopara was expensive, it is a fact that we needed an all-rounder. And there were two other franchisees who were bidding for him. I believe Bopara would have gone for higher if other franchisees had not run out of money.With the dates of the Lok Sabha polls coinciding with some of the IPL matches, how would franchisees be impacted if venues were changed?
The IPL committee had asked the franchisees to create a back-up plan. Franchisees have an option to play in one or two grounds in the nearby areas. Rescheduling, thus, will not affect the plans of the franchisees.