Is IPL realising its full revenue potential?
The full potential of IPL has not been realised yet. Its business model is robust and is still growing if we go by the current valuations. However, we are happy to have been profitable for the past two years.
What are your advertising and marketing plans?
Rajasthan Royals has planned a blitzkrieg of marketing programmes to connect with our fans in Rajasthan, Gujarat, and the rest of India. We have recently launched a slew of marketing initiatives with our partners UltraTech, Moov and others. We would be working closely with all our partners to launch below-the-line activities as a build-up to IPL 3. Shilpa Shetty has also been an integral part of all our campaigns so far and will continue to be so. Now that IPL is back in India we wanted our fans to have a royal experience?thus we have introduced our hospitality programme called ?Blue Carpet Programme?. Also we have tied up with Suvidhaa Infoserve S-Commerce platform for easy access to tickets. Our new music video which brings to life the biggest and the first fan of the team ?Moochu Singh? is also being played across all the channels.
Are you looking at more investors?
If there are investors that can add strategic value, then we will always welcome them into the family.
How different will the IPL be this time?
Given the additional teams joining the competition (in the next season) and the re-auctioning of players there will be a huge incentive for teams and players to perform in season 3.
Amrit Bathur, CEO, Delhi Daredevils
?Real potential not realised yet?
How does IPL 3 look like to you?
The IPL has grown tremendously with each season. Last year when the tournament moved to South Africa we missed a great opportunity. However, this year we have a great chance. There is a huge interest among Indian audiences around the homecoming of the tournament. And hence the commercial opportunity is much more this year.
How close is IPL in realizing its full revenue potential?
We are nowhere near the full potential of the tournament. There are many other commercial opportunities waiting to be tapped. But, as I said, with the tremendous growth of the IPL we are creating newer opportunities, like the deals with Colors, Google and others. I would say we are just about starting to scratch the commercial opportunities of the IPL.
What are your advertising and marketing plans?
With the tournament happening in India this year, everyone is working hard to strengthen their brands. The commercial tie-ups are one way to create brand recall and maintain connect with the audiences. This year we have an exhaustive and elaborate advertising and promotional strategy. However, the majority of the activities will be done in partnership with our sponsors? Coke, Panasonic, Idea Cellular, Hero Honda, Kingfisher and others.
When do you think you will be able to break even?
I cannot share the exact details. All I can say that the numbers look extremely encouraging.
Mohit Burman, Co-promoter, Kings XI Punjab
?Stadium is a key source of revenue?
To what extent did the change of venue of IPL 2 impact your earnings?
IPL season 2 was a good experience for us. IPL was a huge success last year and it will only become stronger. From a financial perspective, the transfer of IPL to South Africa did set us back. We lost out on the potential of our gate revenues, our brand growth was stunted due to low visibility on ground with the fans, sponsors had less to do by means of activation and therefore, overall while the game prospered, the business did not.
What are your focus areas for IPL 3?
What we are looking at is a more robust training and fitness system designed to win the cup this year. In terms of marketing, we plan to use tactics that can help us to galvanize the global fan base using on-ground tactical initiatives. The stadium is a key source of our revenue and to protect this source, we have had to put technology and systems in place to ensure minimal erosion through pilferage. he rest of the focus is to get an ambitious international plan in place along with a good talent scouting system to encourage young players and provide an opportunity to them to hone their skills.
Who are the new sponsors for season 3?
We have added Mountain Dew, ACC Cement, Whirlpool, Digi Cable, Gitanjali, Spinz and Aroma Mobiles to our already existing sponsors this year. As a result revenues have definitely gone up since last year but I am not at liberty to disclose how much.
When do you think you will be able to break even?
In 2011.
?Rahul Sharma
VB Chandrasekar, Chief Selector, Chennai Super Kings
?No plans to offload stake?
How was IPL Season 2 for Chennai Super Kings?
The shift to South Africa was exceptionally well-managed by the IPL. Promotional activities relating to personal touch with the growing fan base for CSK at home had to be modified with our website and blog reaching out to them. The exposure to international cricket for our youth brigade has helped immensely with their transition into higher grade.
What new activities are you focusing on?
The IPL coming back to India brings with it the opportunity to focus on widening our fan base. This time our membership drive has gained momentum. We are focusing on the launch of our merchandise and ties with local retail chains to offer CSK merchandise, besides sports and team promotional activities through CSK?s radio, beverages and mobile partners.
There seems to be no co-relation between performance in the league and earnings. What?s your view on this?
The financial performance of a club depends largely on brand image and fan base. Winning adds a vital flavour. Without doubt, the character of a team is the most important aspect.
Are you looking at offloading stake?
The answer is an emphatic no.
?Rahul Sharma
JOY Bhattacharya, Director, Kolkata Knight Riders
?Valuations are robust?
Did the change of venue have an impact on KKR?
Yes, change of venue definitely had an impact on everybody, all the eight franchises. There was no chance of full marketing. Fulfillment became tougher. But on the other hand, the renegotiation of TV rights, which was a positive factor for all the teams.
How does season 3 look to you? What new things you have planned?
Last year we were at a disadvantage, as some players were injured. We?ve got new players. We have a very stable team now. We now have Triple X as sponsors. They will be visible on the back of the jersey. All our previous sponsors are back except Lux Cozi, which has been put on indefinite hold. All the sponsorship deals we did are for 3 years. We also have a Knights Club. On the merchandising front, we have changed the colour of our jersey. It will be out in the first week of March.
Have you broken even?
We are doing well in terms of revenues. From here on it will get better and better. As you can see, the valuations are also robust.
There seems to be not much of a link between winning IPL and profitability. Your comments.
It doesn?t look immediately. But no doubt it?ll happen. In the long run, successful teams will be the one reaping benefits.
?Rahul Sharma
DINESH WADHWA, COO, Deccan Chargers
?An investment in our own brand?
How did the change of venue last season affect your earnings?
We lost out on ground connect with the fans. In terms of sponsorships, we focused on expanding our own brand. The big properties, the front and back of the jersey did not go out. It can be viewed as investments in our own brand. The response to merchandising was very good last year. It was our first year of merchandising.
What are the new deals that you have struck for season 3?
We have sewed up good deals. We looked at long term, larger commitment from the sponsors. On the merchandising front, we have come up with interesting products. And this time there are products not just for adults, but also kids, like stationary. Apparel though remains the key merchandising item. We are also looking at good distribution tie-ups. We have tied up with Planet M for this and are also looking at other outlets.
You have started a fan club membership card. Tell us about that.
We have a local fan club card. It?s a part of the strategy to generate business for 365 days. The annual membership fee is for Rs 349 and tRevenues he discounts/benefits are not just limited to the 45-50 days when IPL is held.
Are you concerned that IPL is just limited to 45-50 days?
I won?t call it a concern but there is an opportunity to break the seasonality. We are looking at strategic tie-ups. A case in point is our annual fan club card.
?Rahul Sharma
Spokesperson, Mumbai Indians
?New venture needs time?
What does 2010-2011 look like?
IPL season 3 looks very positive and promising for Mumbai Indians. We have witnessed renewed interest among sponsors, with Videocon coming on board as founder sponsor with MasterCard, while Adidas, Pepsi, Wrigley, Royal Stag, Kingfisher among others continue to support us. We are also in the final stages of closing deals with a few more sponsors who have exhibited keen desire to be associated with the Mumbai Indians brand for IPL 3 and beyond.
How sustainable is IPL?
IPL, with its fast paced nature of the game, was always bound to be popular among Indians and the world over and we had no doubt about its potential. Every new venture needs time for sustainability. We have made our investments, accordingly.
What are your advertising and marketing plans?
I have to admit that after the change of venue of IPL 2 to South Africa, we had to reduce our planned efforts on branding and marketing. However, even the limited editions of merchandise we introduced in key markets in India as also in South Africa, were very well received by the fans. Fortunately for this year, we have the time and the advantage of the home venues to bring the fans closer to the team through some exciting and innovative merchandising. Even for the sponsors, with IPL coming back to India, it presents an exciting opportunity to tap their target market through our partnership.
Apart from this, the Mumbai Indians have launched a social cause initiative?Education For All. One can buy a Mumbai Indians wristband, autographed by our captain Sachin Tendulkar, wherein all proceeds from the sales will go to our support partner NGOs: Akanksha, Nanhi Kali, Pratham, Teach for India and Ummeed .
When will you be able to break even? Are you planning to offload any stake?
We do not disclose specific financial details.
?Pritha Mitra Dasgupta
VIJAY REKHI, President, UB Group
?Revenues will grow manifold?
How badly were you affected by the change of venue last season?
The Board of Control for Cricket in India (BCCI) agreed to make sure that all team owners will be compensated since the tournament moved out of the country and team owners lost the opportunity to earn through gate collections.
What are the revenue generating opportunities in IPL 3?
There is a tremendous opportunity this year to earn through in-stadia advertising opportunities and ticket sales. This year we are expecting our revenues to grow manifold. The popularity of the IPL is sure to drive the ticket sales this season. Capital expenditure that mainly includes player acquisition is a continuous investment that we need to make and that also looks positive.
Have you realized the full potential of the IPL in terms of revenues?
Yes, I think we are realizing it, and for this I would like to congratulate Lalit Modi and his team for building these relationships which are constantly adding value. It is also creating the excitement. And now the popularity of the IPL will not be restricted to India alone and will reach Indians all over the world and to every cricket loving nation.
What are your advertising and marketing plans?
We have around five main sponsors and we will be doing a number of activities for them. We are also being approached by many companies for the branding opportunity on the RCB jerseys.
?Pritha Mitra Dasgupta