.

MINI PROJECT REPORT

ON
A STUDY ON INTEGRATION OF BUSINESS AND IPL

Submitted in partial fulfilment of requirements for the award on the degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

MITTAPELLI BHUMIKA
M22MB024

Under the esteemed guidance of

Assistant Prof. Dr. B. NARESH

(PROJECT SUPERVISOR)

Associate Prof. Dr. V.NIVEDITA REDDY

(HEAD OF THE DEPARTMENT)

DEPARTMENT OF MANAGEMENT
(2022-2024)

KAKATIYA INSTITUTE OF TECHNOLOGY AND SCIENCE

HASANPARTHY (M), TELANGANA, 506015

1
 .

ACKNOWLEDGEMENT

I, express my deep sense gratitude to Asst. Prof. B. NARESH Department Of

Management, Kakatiya Institute of Technology & Science, Warangal for permitting
me to carry out this report and guiding me throughout this Endeavour, and also
helping me to complete the report.

I, also express my sincere thanks to Dr. V. Nivedita Reddy HEAD OF THE

DEPARTMENT, Kakatiya Institute of Technology & Science, Warangal.

My utmost thanks also go to the FACULTY MEMBERS of DEPARTMENT

OF MANAGEMENT for their co-operation and help for the completion of this
report.

Finally, my sincere thanks to one and all who have been contributed to my
work directly or indirectly.

With Gratitude

MITTAPELLI BHUMIKA
(M22MB024)

2
 .

DECLARATION

I, MITTAPELLI BHUMIKA bearing Roll No: M22MB024. Hereby declare

that the seminar report entitled “A STUDY ON INTEGRATION OF BUSINESS
AND IPL” is submitted by me for the partial fulfilment for the award of the degree
of Master of Business Administration to the Department of Management, Kakatiya
Institute of Technology and Science - Warangal.

Place: Warangal MITTAPELLI BHUMIKA

Date: ROLLNO: M22MB024

3
 .

CONTENTS

CHAPTER TITLE Page

NO No.

Acknowledgement
Declaration

1. INTRODUCTION

1.1. Introduction
1.2. Scope of the study
1.3. Objectives of the study
1.4. Research Methodology

2. SCENARIO

2.1. Business model of the IPL

2.2. IPL Business model & returns
2.3. Economics of IPL
2.4. SWOT analysis of IPL

2.5. Effect of IPL in Indian Economy

3.1 CONCLUSION
3.2 Bibilography

4
 .

CHAPTER:1

The Indian premier league is an entertainment activity and the

business always runs in the background here which is periphrastically
interlinked. Here we make an analysis of business and economic
instruments of the IPL.

1.1 INTRODUCTION TO IPL:

The Indian Premier League (IPL) is a professional league for

twenty 20 cricket championship in India. It was initiated by the board
of control for cricket in India (BCCI), head quatered in Mumbai.

TEAM CITY DEBUT OWNER CAPTAIN BRANDVALUE

Chennai Chennai, 2008 N.Srinivasan M.S.Dhoni ₹8,881 crore
Super Kings Tamilnadu
Delhi Capitals New Delhi, 2008 Sajjan Jindal David Warner ₹7,930 crore
Delhi
Gujarat Titans Ahmedabad, 2022 Steve Koltes Hardik ₹6,512 crore
Gujarat Pandya
Kolkata Kolkata, 2008 Shar Rukh Nitish Rana ₹8,428 crore
Knight Riders West Bengal Khan
Lucknow Lucknow, 2022 Sanjiv K.L. Rahul ₹8,236 crore
Super Giants West Bengal Goenka
Mumbai Mumbai, 2008 Mukhesh Rohit Sharma ₹9,962 crore
Indians Maharashtra Ambani
Punjab Kings Mohali, 2008 Preity Zinta Shikar ₹7,087 crore
Punjab Dhawan
Rajasthan Jaipur, 2008 Manoj Sanju Samson ₹7,662 crore
Royals Rajasthan Badale
Royal Bangalore, 2008 United Faf Du Plessis ₹7,853 crore
Challengers Karnataka Spirits
Bangalore
Sunrisers Hyderabad, 2013 Kalanithi Aiden ₹7,432 crore
Hyderabad Telangana Maran Makram

5
 .

1.2 SCOPE OF THE STUDY:

The Indian premier league (IPL) is a popular and lucrative

professional twenty20 cricket league in India. The study of the economics
of IPL can provide valuable insights into the financial aspects of this highly
successful sports league.

1.3 OBJECTIVES OF THE STUDY:

 The present study is undertaken:

i. To study the integration of business and IPL
ii. To analyse SWOT analysis of IPL
iii. To evaluate the IPL contribution to Indian Economy

1.4 RESEARCH METHODOLOGY:

Data collected through secondary sources.

 Internet
 Research articles
 Newspapers
 Magazine

2. SCENARIO

2.1 BUSINESS MODEL OF THE IPL

6
 .

 FRANCHISES:
IPL invites offers to bid for franchises through auction process.
The party to be selected for franchise will be at the discretion of IPL
body. The main terms and conditions of the contracts between IPL
and franchises that define their earning and expenses are:
 Franchise can earn revenues through
• Broadcast rights (franchise: IPL=80:20)
• Sponsorship (franchise: IPL=60:40)
• Team sponsorship
• Gate receipts (franchise: IPL=80:20)
• In- stadia advertising
 Main expenses franchises have to bear
• Franchisee free to IPL
• Player acquisition cost
• Stadium hire charges
• Team costs
• Marketing/promotion costs

 PLAYERS AND TEAM OFFICIALS:

There is a 3years contract between the franchise and players
of that franchise. According to the contract if a player play no
games or less than a quarter they will still be paid the minimum
payment, which is 25% of their contracted amount.
Player are treated as intangible assets for franchises. When a
franchises bids for certain players, it wins a “Right To Play” of
such players during the tournament.

7
 .
The contract is said to be terminated by the mutual content of
players and franchisee owning the player. And also if there is
violation of code of conduct defined by IPl by any of the involved
parties.

 UMPIRES AND REFEREES:

IPL has a standard set of rules called code of conduct for
these match officials.
In general if such a breach of contract is noted, then it can be
reported to IPL by following people:
i. The team manager
ii. The franchisee of one of the teams playing the match
iii. IPL chairman
iv. However in case a referee finds a breach of contract
involving umpire, then he can also report the same to
the IPL body.

Code of conduct:
i. Umpires and referees should not engage, directly or
indirectly, in betting or any conduct.
ii. Umpires and referees shall not use or in any way be
concerned in the use or distribution of illegal drugs.
iii. Umpires and referees shall not engage in any conduct
which is prejudicial to the interest of the of cricket
and /or the league.
 TELEVISION RIGHTS:
 2008-2017 Sony Pictures Network:

8
 .
The IPL’S broadcast rights were held by a partnership between
Sony Pictures Networks (SPN) and world Sport Group (WSG)
under a ten-year contract valued at US$1.03 billion where SPN
held domestic rights in India, while WSG handled international
Distribution. The initial plan was 20% of these proceeds to go
to the IPL, 8% as prize money and 72% would be distributed
to the franchises from 2008 to 2012. The IPL became a major
television property within India; Sony Max typically becomes
the most-watched television channel in the country during the
tournament. And by 2016, annual advertise revenue surpassed
12 billion (US $150 million)

 2008-2012 Star sports and Hotstar:

On Sep 4, 2017, it was announced that the current digital
rightsholder, star India had acquired the global media rights to
the IPL under a five-year contract beginning in 2018. Valued
at 163.475 billion (US $2,55 billion), it is a 158% increase
over the previous deal, and the most expensive broadcast rights
deals in the history of cricket.
Throughout the 2019 season, international streaming
viewership on hotstar saw record, exceeding 10 million
concurrent viewers multiple times. The 2019 finals broke these
records, peaking at 18.6 million concurrent streaming viewers.

 2023-2027 star sport and Jio cinema:

The next cycle of IPL media rights will last from 2023 through
2027 and was put to auction. In this auction the broadcasting
rights were divided into four packages. Package A was for the
domestic television rights, package B was for the domestic,

9
 .
digital rights, package C was for the digital rights of 18 non-
exclusive matches and package D was for the international Tv
and was further divided into four groups. On 13 June 2022, it
was reported that the packages for domestic television and
streaming rights had fetched at least 397.75 billion in total,
doubling value of the 2018-2022 contract.
The next day, it was announced that star sports had renewed,
its contract for television rights by winning package A, and
that a Viacom 18 consortium had exclusively acquired the
streaming rights by winning both B & C. The two contracts for
package A and B are cumulatively valued at around US $6.2
billion, with the new contract, whose new media contract
taking effect in the 2023 season cumulatively fetched US $ 111
billion.
In Feb 2023 via com 18 announced that if would stream the
2023 IPL for free via its digital platform Jio cinema, with feeds
in 12 languages and in 4K resolution.
 SPONSORSHIPS:
Sponsorship right in IPL can be given to interested parties foe a
particular fee, but it is also subject to:
• IPL sponsorship guidelines.
• Governing body rules (IPL governing council)
• General laws (e.g limitations on alcohol and tobacco
advertising)
• Some of the sponsorship rights given in IPL are as follows:
• Rights to hospitality company
• Right to individual player apperances & endorsements
• Right to player images
• Right to name the team or event (TATA IPL)
10
 .
• Promotional and advertising right across India
• Right to match tickets
• Right to in-stadium hospitality

2.2. IPL BUSINESS MODELS & RETURNS:

The major source of revenue of IPL is not only stadium
ticket sales but also media rights. Other sources of revenue for
IPL are title sponsorship, the sale of franchises and licensed
merchandise and products. A part of the revenues so raised are
retained by the BCCI, a part distributed as prize money and the
remaining is divided equally among the franchises based on a pre-
agreed model.

 BCCI Inflow:
IPL valuation jumps 75% to $10.9 billion in 2022. It
earned ₹ 48,390 crore (USD $ 6.20 billion) through IPL media rights
for a five period, starting 2022.

 Title Sponsorships:
It spent ₹670 crore for two years of title sponsorship-
TATA, i.e. (2022-2024).

 BCCI Outflow:
A part from the revenue generated from the bidding of
franchises, almost all other revenues are shared with the franchises in
different proportion.

 Finally, proceeds from stadium tickets, merchandise sales etc complete

the list of major sources of revenue for IPL.

11
 .

 The title sponsorship for the inaugural IPL tournament, and the
commission from the player auctions – each of the ten franchise teams
can “buy” up to four foreign cricketers through IPL – will earn it more.

2.3 ECONOMICS OF IPL

 IPL make money through:
 Auction of broadcasting rights.
 Title sponsorship and corporate sponsorship.
 Sale of tickets(20% of tickets allocated to IPL)
 Auction of franchises rights
 Official umpire’s sponsorships

 IPL income is distributed for:

 Share of broadcasting money with franchises
 Share of sponsorship money with franchises
 Share of ticket money with franchises
 Inauguration expenses

 Sources of income for an IPL Franchise (ROI):

 Share in revenue from broadcast rights (equal share for all franchise
after IPL’s share).
 Share in sponsorship money (60% of the amount distributed equally)
 Share in revenue from sale of tickets
 Revenue from in – stadium advertising
 Sale of players to other franchise
 Revenue from own sponsorship and corporate sponsorship

 Franchise income distributed through:

 Franchise fee – 10% of total franchise cost every year to IPL
 Player cost
 Match fees and inauguration expenses
 Stadium rent
 Marketing & Promotional cost
 Fee for coaches, physiotherapists and other members
12
 .

 Administrative cost

2.4 SWOT ANALYSIS OF IPL

i. Strengths:
 Short span i.e. 2 ½ hours, fast – paced and exciting
 Can be played on weekdays or weekends
 Revenue is maximized

a. Weakness:
 It is the verge of damaging the game that generated it
 Stakes are very high
 Some teams have overpriced their advertising/sponsorship in order
to gain some short-term returns.

ii. Opportunities:
 Large potential mass audience is very attractive as a marketing
opportunity especially for advertising and sponsors.
 The long term success of all of the franchises lies in the generation
of a solid fan – base who will generate large TV revenues
 Different market and revenue sources will emerge for IPL
 Huge opportunity for merchandising

iii. Threats:
 Maintaining the level of competition and interest in IPL or else the
revenue will fall.
 It won’t be a quick return on investment, so owner need to be in it
for long term
 Franchises are very expensive. Therefore breaking even will also
take time.

2.5 EFFECT OF IPL IN INDIAN ECONOMY

13
 .
Effect of IPL in Indian Economy is long term. During
this short span of time we cannot see much more effect in Indian
economy. But there are definitely some effects in our economy. It
creates a good impression in the mind of the people from all over
the world that India can also organize such a big event and its
economy is also very stable. It definitely increases the amount of
foreign investment in India. Now many foreign companies want to
invest their money in Indian Stock Exchange. It reflects in the
stock exchange. We can see the amount of foreign investment
increases day by day.

Another effect of IPL on Indian economy is that people

from all over the world came to know about India after IPL.
Earlier people from all over the world only knows some of the
places like Mumbai, Bangalore or Delhi. But after IPL, many
places like Hyderabad, Kolkata etc. are known to the world now.
This gives them an opportunity to know about this cities and it
increases the development in their areas also.

IPL may have an effect in our tourism industry also. To

see the IPL matches many foreigner comes to India. This
definitely increases the no. of tourist visit India. From them India
can earn much more foreign currencies which effect Indian
economy. Earlier people from other countries only know some of
the cities of India. After seeing this in television they were eager
to come India to visit those places.

14
 .

3.1 CONCLUSION
Entertainment is what the audience craves, and IPL is a cricket
league that has proved to be an excellent combination of cricket and
entertainment. The cricket contest has earned tons of accolades and fame
for the last 12 years and continues to do so with an enhanced economy.
From the managing staff, the groundskeepers, players, coaches, staff, etc.
the tournament has generated employment worldwide and has emerged as
the largest and most successful sports event worldwide.
The Indian Premier League(IPL) is a professional Twenty 20 cricket
league in India that has become a massive economic force in the world of
sports. The IPL has generated enormous revenues since its inception in
2008, not just for the teams and the players, but also for the Indian economy
as a whole.
One of the primary reasons for the success of the IPL is its ability to
attract top international players from around the world, who bring with
them a massive fan following and increase the league’s global appeal.
Additionally, the league’s franchise model has helped create a competitive
market for player auctions and sponsorships, which has further boosted its
revenues.
The IPL has also contributed significantly to the Indian economy by
generating employment opportunities, promoting tourism, and increasing
the revenue of local businesses. The league has helped create a robust sports
infrastructure in the country, which has further facilitated the development
of cricket at the grass root level.

15
 .
However, the IPL has also faced criticism for its high commercialization
and the influence of money and power in the league. The league has been
plagued by controversies like match-fixing scandals and conflict of interest
issues, which have raised questions about the transparency and fainess of
the IPL.
Overall, while the economics of the IPL, are undeniably significant, it is
crucial to ensure that the league operates with transparency and fairness to
maintain the integrity of the sport and its impact on the economy.

3.2BIBILOGRAPHY

i. https://en.wikipedia.org/wiki/Indian_Premier_League

ii. https://www.slideshare.net/kaustubhbarve/project-report-
on-ipl-indian-premier-league

iii. https://timesofindia.indiatimes.com/readersblog/the-
twisted-whisper/the-economics-of-ipl-26767/

16
.

17
.

18