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Tag: Mohit Burman

  • Avon Cycles partners with the Punjab Kings

    Avon Cycles partners with the Punjab Kings

    Mumbai: Avon Cycles is proud to partner with the Punjab Kings, a Chandigarh-based franchise owned by Mohit Burman, Ness Wadia, Preity G Zinta, and Karan Paul.

    Avon Cycles had partnered earlier with the Punjab Kings in 2020 and have renewed their partnership for the cricket league season 2024.

    Avon Cycles CMD Onkar Singh Pahwa said, “Going on and beyond, here’s to sponsoring and coming together with the most coveted cricket team this season 2024. We are grateful to have a team that embodies the true spirit of sportsmanship, resilience, and excellence throughout the journey. As we carry on Avon’s legacy of being a frontrunner in bicycles, sports, and fitness, we are excited to reflect the values for the nation.”

    Avon Cycles joint MD Rishi Pahwa said, “We are delighted to hold a mark on the Punjab Kings for the upcoming 2024 season for the second time with optimism and enthusiasm. We are excited and thrilled to partner with this year’s most anticipated cricket team and look forward to rolling in with full speed and strength on the ground.”

    Avon Cycles ED Mandeep Pahwa said, “As we share the brimming values, it’s a moment of joy that we take on board the ‘lions’. We are grateful to share the strength and aim together to excel on the field in the true spirit of the game. All the best to the team Punjab Kings, looking forward to an amazing tournament of the season with a strategic win.”

    KPH Dream Cricket Pvt Ltd CEO Satish Menon said, “We are delighted to have Avon as our partner. For us the pleasure is multifold, firstly to have a Punjab-based brand and second that they have chosen to ride along with us again.”

    Avon Cycles, a leading player in the bicycle industry, has consistently promoted health and fitness at a higher level. With years of excellence, they have emerged as a preferred brand for Indians seeking reliable and sustainable commuting solutions.

    Today, they are even more delighted and proud to endorse the formidable Punjab Kings for the biggest franchise cricket league, wavering up the credibility and stride of the nation. Avon is aiming to align with the ethos of promoting an active and healthy lifestyle, encouraging the building blocks, the youth, to not only embrace the sport but embody the true values of sportsmanship in daily life.

    The collaboration has leveled up the excitement towards translating the values through the Punjab Kings! With their hustle, power, and performance, both brands are set to wheel into the season in 2024.
     

  • Dabur’s Amit Burman steps down as chairman, to continue as a non-executive director

    Dabur’s Amit Burman steps down as chairman, to continue as a non-executive director

    MUMBAI: Amit Burman has resigned as the chairman of FMCG major Dabur India. Burman shall continue to be the non-executive director of the company, Dabur India announced in a regulatory filing. The company has accepted the resignation of Amit Burman from the post of chairman of the board of directors with effect from 10 August 2022.

    The board has also affirmed the appointment of Mohit Burman, who is currently the non-executive vice chairman, as the non-executive chairman of the board for five years with effect from 11 August. 

    Apart from this, Saket Burman has been appointed as the non-executive vice-Chairman of the board of directors for five years.

    Burman started his career at Dabur’s Industrial Engineering Department where he was responsible for the induction of machinery, method improvements, manpower reduction and improving product packaging. He took on the responsibilities as the CEO of Dabur Foods in 1999 and forayed into the processed foods business with a range of ethnic cooking pastes & chutneys and packaged fruit juices.

    Burman stepped down as the CEO of Dabur Foods when the company was merged into Dabur India in July 2007. He was then appointed the vice chairman of Dabur India. He took charge as the chairman of Dabur India in 2019. He is credited for Dabur India’s foray into the processed foods business with the setting up of Dabur Foods Ltd. He is also responsible for driving all business strategy, development and communications at Dabur Foods.

    An alumnus of the University of Cambridge, he also holds M.Sc degree in Industrial Engineering from Columbia University, USA and a B.Sc. degree in Industrial Engineering from Lehigh University, Bethlehem, PA, USA.

  • Exclusive: IPL franchise Punjab Kings revenues to grow by 20-25 per cent this season

    Exclusive: IPL franchise Punjab Kings revenues to grow by 20-25 per cent this season

    Mumbai: This season, the Indian Premier League (IPL) franchise Punjab Kings revenue will grow by 20-25 per cent. This will be a mix of central revenue and local revenue. Speaking to IndianTelevision.com Punjab Kings co-owner Mohit Burman says that revenues are up by 25 per cent and quite a bit of this jump is from local sponsorship revenue on the jersey and centrally one or two sponsors have been added. 

    “Licensing and merchandising and ticketing will not impact the P&L. The BCCI running ticketing centrally. Licensing and merchandising has never given money because you do not have the regulation to curtail spurious jerseys that are made in your name and sold outside stadiums. You will never end up making big money from this area. It will only be a small amount of money,” he tells. 

    Only two sponsorship deals open up on the jersey next year. So the franchise will have to wait two years to do new sponsorship deals. Non-jersey sponsorship deals can be done in the digital space but the value is much less. While the franchise has reached just one IPL final back in 2014, he maintains that it has not made a difference in terms of sponsorship revenue of more than 15 per cent. 

    Sponsors look for brand visibility at the end of the day and also doing activation with the franchise’s players. “It is all measured back to what the viewership is, the number of games and so and so forth,” Burman says, adding that, “The two new franchises that came in Lucknow and Gujarat benefitted when they did sponsorship deals because there was not enough inventory in the market. The other franchises he explains were riding out Covid and so earlier did long-term deals. It is a question of demand and supply. The two new teams commanded a premium rate maybe of 50 per cent. This has nothing to do about whether a team has won or not.”

    He further says that this year the franchises sponsors have focused more on digital activation. There have not been many commercial shots by Punjab King’s sponsors. “They are doing digital activities which both the players and consumers love.” 

    He also notes the growing trend of sponsors like Jio, Amul, Boat doing deals across franchises. The advantage he says is that the brand gets constant exposure regardless of who is playing.

    He says that earlier in a normal situation the franchise did not make as much from ticketing compared to other franchises like Mumbai. That is because Punjab is a very price-sensitive market and it was hard to sell more than 20,000 tickets for a match through the stadium capacity might have been 25-28,000.  

    Most of the franchise’s revenue comes from the central pool and Burman hesitates when asked to what extent central revenue’s contribution could rise with the media rights auction next month. But he does say that the BCCI splitting the media rights into broadcast and digital was needed to fully exploit the potential rights value. 

    When asked about the fall in TV viewership he says that a lot of it has gone to digital through mobiles but this is not being measured properly because there is no single currency yet to measure digital. “Digital is not officially measured. So you do not get the real numbers. There is no body controlling digital measurement. The fact though remains that there is a huge shift where people are viewing IPL matches on the mobile. People sometimes mirror the IPL on their TV. The digital value and cost of streaming the IPL will both go up,” he shares.

    In terms of future sources of revenue, he points out digital streams like NFTs, metaverse. “It is early days in terms of NFTs. Crypto has to get regulated but it is big money. We also have a $3 million offer sitting on the table regarding the digital rights of our players. From this content can be created. The BCCI has to approve of it,” he tells. 

    In the pure cricketing space academies is something being pursued big time. In terms of academies, he says that it will be in catchments areas which is Punjab, Kashmir, Haryana. A central Academy will be set up in Punjab, to begin with. The concept is to then set up Academies in other parts of the country. “We have a huge catchment area in North America and the UK which we will possibly explore. We will do scouting and find potential boys who can be funneled into the system. We will use the help of the local federation.” 

    When asked about the franchise changing its name to Punjab Kings he said that the aim was to use the name Punjab first which is what other franchises do apart from Bangalore. “People must immediately attach the franchise to the market. We wanted to attribute ourselves to the State we come from.” He adds that operating in a Covid environment has been difficult but it was a bigger challenge for the BCCI. “The fact is that we have pulled off all three seasons quite well. The challenge for us was staying in the bubble and keeping everyone on their toes and happy.” 

    He also explains that costs did not go up due to Covid. That is because matches were played only in one or two venues. So air travel and hotel costs were saved. “This season we are playing in Mumbai. Otherwise we would have been travelling to different cities and spending money on transport and logistics. Things have evened out.” Beyond the IPL Burman owns the St. Lucia franchise in the Caribbean Premier League (CPL) in West Indies. He is happy about how the ownership has turned out and says that the franchise was profitable from the first year. 

    “We got the franchise at the right price and we did central deals even before we picked up the franchise. We will probably make money on the jersey also. The local government supports our team and we also have a big sponsor. Our revenue split between central and local revenue is almost equitable.” He is also interested in the upcoming league from Cricket South Africa (CSA) but notes that it is in its formative stage.. Right now the Big Bash League in Australia does not allow for outsiders to own a franchise. “Otherwise we would definitely explore it due to viewership and there is a lot of interest in India on the Big Bash League.”

    He adds that he is not interested in non-cricket leagues. Years ago Burman had exited the now-defunct Hockey India League because the math was not adding up. “We have to be sure that we will get a return on investment. We do not get into any league if we know that there is no money to make. Ideally, we would like to make money in the first year itself which is what we did in the CPL. We look at leagues where the cricket board is involved as there will be accountability,” he concludes. 

  • Dabur India appoints Amit Burman as chairman

    Dabur India appoints Amit Burman as chairman

    MUMBAI: FMCG major Dabur India Ltd today announced the appointment of Amit Burman as the company's chairman in place of Anand Chand Burman. Amit Burman has been elevated to the position for five years with effective from 19 July.

    “Amit Burman vice chairman of the company has been appointed as chairman of the company and Mohit Burman has been appointed as vice chairman of the company w.e.f. July 19, 2019, post board meeting, for a period of five years,” the company informed Bombay Stock exchange in a filing.

    The company’s board also approved the induction of Aditya Burman, son of Anand Burman, as a non-executive additional director on the board. At the same time, Sunil Duggal has resigned from the office of director of the company as non-executive director of the company.

  • Mohit Burman willing to look at cricketing leagues globally

    Mohit Burman willing to look at cricketing leagues globally

    MUMBAI: They had never won the Indian Premier League (IPL) title in 10 seasons but that didn’t stop Kings XI Punjab (KXIP) from investing in big names for the eleventh edition. Chris Gayle, Aaron Finch, Yuvraj Singh and KL Rahul are names associated with this team.

    Since the commencement of the league, the ownership of KXIP has remained unchanged with Dabur India director Mohit Burma holding the majority stake and the rest being distributed among actress Preity Zinta, businessman Ness Wadia and Apeejay Surrendra Group’s Karan Paul.

    This season, the IPL has introduced a novel concept of allowing mid-season transfer of players. While some team owners believe that it won’t be used much, Burman thinks the opposite. Speaking to Indiantelevision.com, he says, “It is a great move by IPL. It helps the team realign its strategy keeping in mind the kind of position it is in at that particular moment. The players who haven’t received enough opportunity to play for the team will get a chance to play for some other team.”

    The first seven seasons were loss-making with KXIP losing Rs 70 crore but the team stuck to it and managed to turnaround things in the next three seasons. Burman is set on cricket and isn’t keen on investing in other sports but will look at other cricketing leagues globally.

    Burman may have taken a lesson from his investment in the team Dabur Mumbai Magicians in the Mumbai Hockey India League (HIL) from 2012 to 2014. The team is now owned by DoIT Sports Management. But he still owns the Pune team of the Indian Badminton League.

    Financially, this was the best pre-tournament time for KXIP’s history. “For the first time in history, we closed all our sponsorships one month before. This year, we changed our strategy to sell out sponsorships by approaching the companies that generally don’t advertise on cricket. In terms of sponsorship revenue, we grew by 20-25 per cent compared to last year. The average title sponsorship for all the teams is between Rs 10 crore and Rs 20 crore. The top teams for selling sponsorships are Mumbai Indians and Kolkata Knight Riders,” Burman adds.

    KXIP sponsors for season 11 include Kent RO, Lotus Herbals, Jio, Fena, Royal Stag, Finolex, Manyavar, Tecno, Surya LED, Kingfisher, Tic-tac and Coca-Cola.

    He lauds the investment by Star India to ensure the IPL reaches out to regional crowds this season onwards. “Star has put it a lot of work because of the amount they have paid for broadcasting it. IPL viewership has gone up in the south because they are showing it in different languages like Telugu, Tamil and Kannada,” he says.

    The team that failed to qualify for the knockouts in the previous season, surprised everyone by deciding to release star performers Glenn Maxwell and David Miller with the former going to Delhi Daredevils and the latter being retained using the right to match option. The side that ended in the fifth position of the table decided to retain only the bowling all-rounder option Axar Patel this year.

    As of today, KXIP stands fourth in the IPL ranking chart trailing Sunrisers Hyderabad, Chennai Super Kings and Kolkata Knight Riders. The team will have to buck up if it wants to defeat champions and become champion for season 11.

  • Kings XI Punjab ropes in Tata Motors Prima as title sponsors for IPL 8

    Kings XI Punjab ropes in Tata Motors Prima as title sponsors for IPL 8

    MUMBAI: The cricketing season is on and in the midst of the ICC Cricket World Cup 2015 fever, Tata Motors Prima has announced that it will be the title sponsor for Kings XI Punjab in the soon to begin Indian Premier League (IPL) season eight.

    The announcement is an extension of the brands partnership with the team from the last season, where it was the associate sponsor. HTC is the associate sponsor for the franchise, for this season.

    Speaking to indiantelevision.com on the reason for the extension, Tata Motors executive director commercial vehicles Ravi Pisharody said, “Firstly there is a natural connect with cricket as our target audience is male. Secondly, the transport community in Punjab is a big chunk of our customers.”

    Reasoning further he said, “If you see, the colour of the truck and the teams jersey is the same i.e bright red.”

    Kings XI Punjab co-promoter and director Mohit Burman said that the coming together of the two testified the brands faith in the franchise. Burman stated that the team’s performance both on and off the field would prove to be beneficial for the brand. Kings XI Punjab had made it to the finals in the last season of IPL, where it lost to Kolkata Knight Riders.

    Meanwhile, Kings XI Punjab co-owner Preity Zinta feels that the brand acted as a lucky charm for the team which saw them moving towards the finals in the last season.

    At an event held in Mumbai, the Kings XI Punjab jersey was also unveiled.

    The team will play its first match on 8 April 2015 against Rajasthan Royals at MCA International stadium, Pune.

  • “Any model that guarantees 70% of your revenue is a great business to be in”: Fraser Castellino

    “Any model that guarantees 70% of your revenue is a great business to be in”: Fraser Castellino

    In April 2014 he was appointed as the COO of Kings XI Punjab, the team that sparkled on field during the seventh season of the Indian Premiere League (IPL). Fraser Castellino has over a decade of experience of working in the sports industry.  Besides leadership roles in IPL teams like Royal Challengers Bangalore and Rajasthan Royals, he was also instrumental in setting up the Sahara Group’s polo and other non- cricketing ventures. Castellino is a marketing graduate from Mumbai and also holds a bachelor’s degree from St Xaviers College.

    Ahead of the upcoming Champions League Twenty2O, Indiantelevison.com’s Herman Gomes talks to him about the franchises plan ahead and the factors that have contributed to the team making a profit this season.

    Excerpts…

    It was one of the best seasons for Kings XI Punjab having reached the finals. What are your thoughts?

    Yes, you’re absolutely right. We went on to win 11 out of the 14 games in the home stretch which was great. I think what was most exciting for me was the fact that Kings XI Punjab this year, demonstrated a brand of cricket which people identified with. People actually wanted to come and watch us play the games, because they loved the entertainment factor around our team.

    There were teams, who set up scores of 200 but we chased those down. There were teams that put us in to bat first, we scored and defended it. When I spoke to some cricket experts, one of them mentioned to me that teams did not know what to do with Kings XI Punjab. Opposing captains didn’t know whether to put us to bat or whether to make us chase or what to do at all because we guys seemed to tackle anything that came our way. That was a great and pleasant feeling.

    It wasn’t also that we were going overboard with it, but it was great to know that so many people identified and wanted to watch Kings XI Punjab.

    Earlier this year, KPH Dream Cricket showed a profit of Rs 78 lakh before tax. So you have finally broken even and made a profit. What has been the winning combination for your team?

    Yes, we have made a profit this year. There were a couple of reasons that contributed to this. We made a lot of smart decisions about the way we spent money this year. One of the first things was with player costs. A lot of people don’t know this but 60 to 70 per cent of the cost is actually the player cost which is the amount of money you spend on buying the players.

    If one spends Rs 60 crore, that’s 70 per cent of the budget. I think Kings XI Punjab this year was very smart in purchasing players and thus saved money. But having said that, we still bought a great team.

    Secondly, our team performed well. When a team performs well, people want to buy the tickets and come to watch the matches.  In India, there is a typical problem. People want to come for the games but in exchange for a free ticket. But this time we had people who actually were willing to buy the tickets and come and watch because they were enthused about the kind of brand of cricket that we played.

    Then there was sponsorship money. When a team is doing well, it makes money because the structure of the sponsorship contract ensures that when a team moves into the playoffs, the sponsor pays bonuses.

    Then finally is the prize money you win. The winning team as well as the runner-up make very decent sum money which comes to the franchise.  These factors have contributed to our winning combination.

    How well is the team preparing ahead of the upcoming Champions League?
    The Champions League is a very clear tournament. We get a participation fee for qualifying and participating in the tournament. And we pay 10 per cent of the player cost for the team. So one is already in a very good position, since they are making some money even without doing anything. The rest is taken care by the organisers. The travel etc is all paid by the organisers so there is no cost to the franchise. The big upswing is winning the tournament because the prize money is half million dollars. So that is the target for us. So in terms of preparing, we are looking at the apple and saying let’s go and shoot it.

    Have you looked at new deals with sponsors?

    We have signed two new sponsors ahead of the upcoming Champions League which is Air Asia and HTC. There are also a couple of other brands that will be announced in a couple of days. It’s simple business actually. All brands want to associate with the winning combination and many do well and perform.

    How difficult is it for a franchise to get a sponsor on board?
    The IPL is a successful property. Brands, want to be associated with it. But there are only those limited number of teams. So I think as long as we see the IPL remaining prime, every team will receive sponsorship. The amount of sponsorship one earns will depend on how the team performs and the stars one has. We have done well this season and we hope to continue doing it.

    How much of your local revenue comes from sponsorships?

    Sponsorship would be about 60 per cent of our local revenue. The rest comes from gate revenues.

    How is the team now approaching licensing and merchandising and how important is it for you?

    Licensing and merchandising should be looked at a greater context. Licensing is still progressing but if one looks at merchandising and the amount that teams make from it, I think there is a lot of potential to grow further. For Kings XI Punjab there is great potential. The Punjabi fan base is large. Our catchment area is not just Punjab or Himachal but everywhere the Punjabi exists.  This can be UK, Toronto, Canada Dubai or Australia. Punjabis are everywhere and these are our fans. The answer to your question is if we can take our merchandising internationally, then I think we will have a different story to tell.

    How much amount do you allot to digital marketing to interact with fans?

    There is a small team that works on various programmes. We have interesting deals where we don’t spend much money on digital marketing.  We in fact make money from it. Digital is actually a revenue line.  It’s small right now but for every video we put on YouTube, we earn money from it. In digital marketing there is a way of earning money and that will be our focus growing forward.

    During the off season what are the various programmes the team engages with?

    During this time our team works on sponsors, ideation, planning, thinking about players. We have programmes to engage with our fans like the Kings XI Punjab Cup which is a local identifying talent tournament. It is played all across Punjab in cities like Jalandhar and Amritsar. We target players between the age group of 18 to 25 years. These are players who play for colleges, clubs and various tournaments.

    Do you think the BCCI should be working more closely with teams to make them more profitable?

    The BCCI has done what they had to do. They have sold the franchise and every owner has bought the teams. They haven’t changed the terms and we need to work within those frameworks we bought in 2008 to make money.  I think any business that guarantees you 70 per cent of your revenue is a great business to be in. A team owner may have a different view but I personally feel BCCI doesn’t have to do anything more.

  • “I, nor my co-promoters, are wanting to exit KXIP”: Kings XI Punjab co-owner Mohit Burman

    “I, nor my co-promoters, are wanting to exit KXIP”: Kings XI Punjab co-owner Mohit Burman

     For Kings XI Punjab last year came to a good end with its dispute with the BCCI being amicably resolved. This means that it will finally break even this year according to Kings XI Punjab co-owner Mohit Burman. Next year is when it will start making profits.??Burman is also adamant about the fact that none of the co-owners are looking to exit. While the franchise will have sponsorship growth of 30 per cent there is still room for improvement says Burman given that the base is small. Indiantelevision.com’s Ashwin Pinto caught up with Burman to find out more about where the franchise is at and about the company’s plans.

     

    Excerpts:

     

    Q. What targets has Kings XI Punjab set for itself this year?

    A. We will break even this year. Next year is when we will start making profits. The legal cost, bank guarantee cost are not there this year. We will get more from central revenue.

     

    Q. Now that the issues have been resolved I assume that the co-owners are free to exit. Are you looking to do that?

    A. No! None of the co-owners are looking at selling a stake or exiting the team. I am not a seller at any price. In the past, too, there have been rumours of stake sale which turned out to be untrue.

     

    Q. What would be the valuation of an IPL franchise today?

    A. It is difficult to provide figures. However, a sort of benchmark has been set with the new franchisee Hyderabad Sunrisers.

     

    Q. Given that Sun TV is paying much more than what the Deccan Chronicle did, isn’t it surprising that stake sale deals have not happened?

    A. A lot of people say that a franchise’s valuation has gone down a lot from what Sahara had paid. I am not surprised that other deals have not been done. I don’t think that there are that many people in the market willing to pay these types of prices.For people who came in at the start, the Central pool revenue covered them even if local revenue took time to grow. That has not been the case for people who came in afterwards. You don’t get so much from Central revenue compared to what Sun TV is paying.

     

    ‘They (BCCI) should work more closely with franchises though. The franchises’ health is not always on the top of their agenda’

     

    Q. How do you see Sun TV faring?

    A. I don’t think that they will break even for at least three to four years. But I don’t think that they are expecting to. We are breaking even after six years. No business model allows you to break even so soon. Sun TV would have calculated their business model with a five to a 10 year vision.

     

    Q. Are there lessons to be learnt from Kochi’s failure?

    A. I don’t think that there are lessons to be learnt. When Kochi bought the team I told those guys that they would lose Rs 1 billion a year. If you project revenues that are not possible what is the lesson? It is a simple business model. Your franchise fee and player costs are fixed more or less. Your central revenue is fixed. The money you can make from ticket sales and local sponsorship can be calculated. It is not difficult to figure things out. Having done all that if you are still going to pay so much money ($333 million) you are not going to survive. It is not rocket science.

     

    Q. Is it fair to say that at one point a bubble was created?

    A. I would not say that. I would say that the people who originally came in paid sensible prices. But because of the hype that was built up the two new teams that came in – Sahara and Kochi paid prices that were unsustainable. Clearly the third new party that has just entered – Sun TV has come in at a more realistic price.

     

    Q. Does the BCCI need to work more closely with franchises and understand their needs so that they are more economically viable?

    A. The BCCI has done sponsorship deals at a higher price this year. Pepsi has come in as has Vodafone. The idea is that the BCCI is also trying to bring value for all the teams.

    They should work more closely with franchises though. The franchises’ health is not always on the top of their agenda but the BCCI also has the onus of doing a successful tournament.

    Obviously their premier objective is to make profits for themselves. We come a little bit below. I don’t think that it is understandable but it isn’t surprising.

     

    Q. Keeping costs under control is paramount in this regard. How do you do this?

    A. We are into the sixth season of the IPL and have an experienced management in place. The good thing is that we know how things work and what is required. We use our funds judiciously and in keeping with the standards that we have set for ourselves.

     

    Q. Could you shed light on the preparation that goes before the season starts?

    A. When it comes to preparing for an IPL season all activities related to aspects such as sales and marketing, ticketing, venue operations, cricket operations, branding etc start approximately five months in advance of the due date of the start of the season. The IPL is a five-month activity of planning for us. What you see during the 45 day season is the culmination of a lot of effort. The sales and marketing part includes sponsorship sales, associations and partnerships, ticketing plans, licensing and merchandising. Other aspects include creatives, photo shoots, the social media, website and app plans.

    In terms of venue operations we have to look at things like security, government licensing, hospitality, and stadium upkeep. From a logistics point of view one of this involves getting the best hotel and airline deals. We also prepare the season matrix.

     

    Q. From a cost control point of view are you in favour of player retention and the current auction cap?

    A. There are operational and player expenses. I think that the player costs are much higher than what they should be. I think that it should be a closed auction as then it would be fair to everyone. If it is a closed auction then the cap does not matter. In terms of player retention, if you are inviting new franchises then allowing player retention is not fair. At the same time as an existing franchise I want a certain amount of retention as teams to an extent are identified by key players. I would not want a completely new team next year. It is a catch 22 situation. But after the Sunrisers no new team will come in. So player retention is fine as nobody is at a disadvantage. If each team is allowed a few players it is not a problem.

     

    Q. Doesn’t player retention raise your costs substantially? 

    A. But the player cost will also go up through open bidding. If you want to get a certain player back you might pay more compared to having done it through retention. This is a call that you have to make.

     

    Q. This brings me to the issue that teams change frequently. Again next season the composition of all the teams will mostly change. Doesn‘t this create a challenge in terms of building team loyalty as there will again be confusion next year among fans as to who is playing for which franchise?

    A. In my opinion, cricket is a team game and is not led by an individual. Therefore, fans have greater loyalty towards the team then an individual player. However, players do have their own fan following but if a franchise has established connect with its fans then player movement does not make a significant impact.We shall take a call on team composition post the culmination of the coming season.

     

    Q. What is the revenue split between central and local?

    A. I would say that is 65:35 in favour of central revenue. Central will always be more. The amount that the BCCI can negotiate from central sponsors will be more than what we can do from selling inventory on our shirt and other things.

     

    Q. How has Kings XI Punjab fared in terms of sponsorship?

    A. We were targeting a 30 per cent revenue growth in terms of sponsorship this year. But the base is low. So there is a lot of room for improvement which will happen next year now that the uncertainly about whether we will take part in the IPL is not there.

    Having said that Mumbai, Delhi will always get more sponsorship revenue. Shah Rukh Khan’s team will also get more. We are a small catchment area. Also, due to factors beyond our control, like termination, companies were a little scared that we might not play. Now we are on a clear wicket. Next year we will get better amounts from sponsors.

     

    Q. How much of your local revenue comes from sponsorship?

    A. Almost 65 per cent of our local revenue comes from sponsorship. We got eight new partners this year in addition to the six existing partners which have renewed sponsorship deals.

    This year NVD Solar is the title sponsor. The other companies with us include Lux Cozi is Official Comfort Partner, ACC, Arise Inverters and Batteries, Raindrops Basmati, USL and McDowell’s no. 1 as Official Team Partners.

     

    Q. Did you approach sponsorship in a different manner this time around?

    A. We were not happy with the revenues we managed last year. We felt that there was scope for improvement. So we dealt directly with sponsors this year rather than going through agencies. We created a team that approached companies, which made a big difference. Half of the deals done were managed by directly talking to them.

     

    Q. Did it take a lot of convincing given the economic environment to get partners on board?

    A. Some deals took three weeks to close this year while others took a couple of months. Some deals are for a year while others are for three years.

    At the end of the day it is a question of sitting down with clients and understanding their business objectives. We have to match their objectives with our marketing parameters. We see if there is synergy in what we are doing and if a tie up is mutually beneficial. Different companies have different goals some want visibility, others want activation while some want to use our platform for better fan engagement.

     

    Q. Could you give me an example of this?

    A. NVD Solar came on-board as title partner since it is expanding its operations to North India. They are launching products using the franchises players as a platform. On the other hand, Lux Cozi does activation with their wholesale and retail people. They run gratification contests where people can see matches.

     

    Q. Have you approached ticketing and hospitality in a different way this time around? 

    A. We have set a benchmark for the services we offer at the stadium and very closely monitor feedback on ‘customer experience’ to try and make it even better every year.

     

    Q. The licensing and merchandising part has been slow for most franchises. How does Kings XI Punjab plan to grow this area with Miroma Entertainment?

    A. Licensing and merchandising (L&M) is an integral part of our campaign as it is a valuable tool to reach out and connect with our fans. To give our fans a chance to adorn their favourite team‘s merchandise, we ensure that we offer them a variety of merchandise and licensed goods. We have a good long-term deal with our L&M partner and are on the right path. From the revenue perspective too there shall be an increase in returns from our L&M programme.

     

    Q. What things do you do to keep the franchise alive during the off season?

    A. We have undertaken a number of activities in the catchment area with the intent to strengthen our bond with our fans and these have been very well received.

     

    We had organised The Kings XI Punjab Cup in the catchment area, which like every year saw huge participation and was a platform to promote cricketing talent at the grassroot level. We have also launched a mobile application for iPhone/iPad and android phones to keep our fans updated about information related to the players, live match data, music, photos, news and event updates, fixtures and the KXIP YouTube channel stream. Apart from this, a live in-app FanWall is available to allow the fans to engage with each other and the team by posting comments, likes and photos on Facebook and Twitter. For us, our fans are at the forefront of any activity that we undertake.

     

    Q. Is Kings XI Punjab also looking at playing matches in foreign locations against clubs of other countries?

    A. Yes! We are currently planning for such games overseas in ICC associate countries under the guidelines laid down by the BCCI.

     

    Q. What impact do you think twenty20 leagues in countries like Australia will have on international cricket?

    A. I don’t believe that globally so many leagues can work on one sport. The BCCI has stated that no Indian player can take part in any other league. So the other leagues are disadvantaged. Indian players are integral for a league to be successful.

    Secondly I don’t believe that there is a window where many leagues can take place with all the good players. The other leagues will have second tier players or they will be bad copies of the IPL.As far as the IPL’s impact on Indian cricket is concerned it gives youngsters a platform to show how good they are. They will not choose the IPL over the country. But they will use the IPL as a platform to play for their country.

     

    Q. The Champions Twenty20 League has not got the desirable viewership numbers. Where do you see it going from here?

    A. Unfortunately it has not managed to get the numbers. I don’t know if it will continue to be there. I have my doubts. But if it continues then it is good for the IPL teams.

     

    Q. What is the challenge that it faces?

    A. The challenge is that people get confused. Players can play either for their home team or their IPL team. So suddenly teams become disjointed. Key foreign players in an IPL franchise might play for their local franchise and vice versa. There is confusion on which team is from where. Maybe it needs more time.

     

  • KXIP’s gets aggressive on sponsorship front

    MUMBAI: It‘s hoping to pocket a king‘s ransom this year. IPL franchise Kings XI Punjab is eyeing 30 per cent growth from team sponsorship, buoyed by the encouraging response it has got from advertisers.

    The franchise co-promoted by Bollywood actress Preity Zinta, Dabur’s Mohit Burman, Wadia Group’s Ness Wadia and Apeejay Surendra Group’s Karan Paul has roped in 14 brands as partners. That‘s way up from the 11 it had last year.

    KXIP has signed NVD Solar as title partner for three years till 2015 to replace direct-to-home (DTH) operator Videocon d2h had taken the lead sponsor status for last year‘s IPL.

    “We will manage a 30 per cent revenue growth in terms of sponsorship this year. Almost 65 per cent of our local revenue comes from sponsorship. We were not happy with revenues we managed last year. We felt that there was scope for improvement,” KXIP COO Col. Arvinder Singh.

    The franchise has got eight new partners this year in addition to the six existing partners which have renewed sponsorship deals.

    Apart from NVD Solar, those who have signed on the dotted line with the KXIP team include Lux Cozi as Official Comfort Partner, ACC, Arise Inverters and Batteries, Raindrops Basmati, USL and McDowell’s no. 1 as Official Team Partners.

    Kingfisher as the Official Good Times Partner, Pavilion Sport as Official Licensing and Merchandising Partner, Noida University as the Official University Partner, Mountain Dew as the Official Beverage Partner, Meshi Creations as the Official Entertainment Partner, 92.7 Big FM as the Official Radio Partner, Kabirz as Official Food Partner and TK Sports as Sportswear Partner are others who have decided walk hand in hand with the KXIP team during IPL6.

    Singh also stated that the franchise dealt directly with sponsors this year rather than going through agencies. KXIP reached out to almost 60 advertisers for team sponsorship.

    “So we created a team that approached companies which made a big difference. Half of the deals done were managed by directly talking to them. Last year we had 11partners while this time we have 14 partners with two partners taking two spots each. Some deals took three weeks to close this year while others took a couple of months. Some deals are for a year while others are for three years,” he stated.

    Singh adds that it is a question of sitting down with clients and understanding their business objectives. “We have to match their objectives with our marketing parameters. We see if there is synergy in what we are doing and if a tie up is mutually beneficial. Different companies have different goals some want visibility, others want activation while some want to use our platform for better fan engagement.”

    Singh explained that NVD Solar came on-board as title partner as the company since it is expanding its operations to North India. “They will launch products using the franchises players as a platform. On the other hand, Lux Cozi does activation with their wholesale and retail people. They run gratification contests where people can see matches,” he added.

    NVD Solar managing director Saibal Hazra was extremely gung-ho about the assoction. He said: ” KXI is one of the most dynamic IPL teams. We wish them all the luck for the upcoming tournament and hope this association can reap benefits for both the parties.”

    The franchise has meanwhile gone ahead and launched a loyalty programme to strengthen its bond with supporters. Other initiatives like launching a mobile application, a live in-app FanWall and an initiative with the Punjab Police to support women empowerment have also been instituted to engage with fans and contribute to the society.

    Clearly, Kings XI Punjab has got its act together on the partner front. Let‘s wait and watch if it will match that performance on the field too.

  • ‘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.