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 guidance of

Dr B. NARESH
Asst.Professor

DEPARTMENT OF MANAGEMENT
(2022-2024)

KAKATIYA INSTITUTE OF TECHNOLOGY AND SCIENCE

HASANPARTHY (M), TELANGANA, 506015

 ACKNOWLEDGEMENT

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

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

MITTAPELI BHUMIKA
(M22MB024)
 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

CONTENTS
CHAPTER - I

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
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 identify the factors influencing the relationship between
business and IPL
iii. To evaluate the IPL contribution to Indian Economy

1.4 RESEARCH METHODOLOGY:

Data collected through secondary sources.

 Internet
 Research articles
 Newspapers
 Magazine
CHAPTER - II
2.1 BUSINESS MODEL OF THE IPL
 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.
 Players 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.
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:
Umpires are responsible for making decisions on the field, such
as whether a batsman is out, whether a ball is a no-ball or a wide, and
whether a catch has been taken cleanly. There are two on-field
umpires in each IPL match, and they are assisted by a third umpire
who reviews decision using television replays.
Referees, on the other hand, oversee the conduct of the match and
the teams. They ensure that the rules of the game are followed, and
they have the authority to impose penalties or sanctions for any
misconduct. The IPL appoints a match referee for each match, who is
responsible for ensuring that the game is played in a fair and
sportsman like manner.
Both umpires and referees in the IPL are appointed by the Board
of Control for Cricket in India (BCCI), which is the governing body
for cricket in India. They are typically experienced officials who have
undergone extensive training and certification to become qualified to
officiate at the highest level of the game.
 TELEVISION RIGHTS:
 2008-2017 Sony Pictures Network:
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 rights
holder, 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,
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:
Sponsorships are most crucial part of the IPL. The IPL attracts
a wide range of sponsors, including global and Indian brands, who
are keen to associate themselves with the league and its teams.
There are various types of sponsorships available in the IPL,
including team sponsorships, title sponsorships, and official partner
sponsorships. Team sponsorships involve companies sponsoring
individual teams in the league, while title sponsorships involve
companies sponsoring the league as a whole. Official partner
sponsorships involve companies sponsoring specific aspects of the
league, such as the umpires or the broadcast.
The IPL has history of attracting big name sponsors, with
companies such as VIVO, Pepsi, and DLF all having been title
sponsors of the league in the past. In 2020, the IPL secured a new
 title sponsor, Dream11, after VIVO pulled out due to tensions
between India and China.
Aside from these major sponsorships, individual teams also have
their own sponsors. For example, the Mumbai Indians are sponsored
by Samsung, while the Chennai Super Kings are sponsored by Gulf
Oil. These sponsorships can be highly lucrative, with some
companies paying millions of dollars to be associated with the IPL
and its teams.
Overall, sponsorships are an important source of revenue for the
IPL and its teams, and are likely to continue to play a key role in the
future of the league.

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.

 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:
IPL generates revenue through various means such as:
1. Broadcasting rights: IPL’s biggest revenue stream comes from
selling the broadcasting rights to various media companies. The
rights to broadcast IPL matches are sold for a huge amount of
money to various companies in different countries.
2. Sponsorship deals: The league also generates revenue through
sponsorship deals with various components. The teams, as well as
the league, have their own sponsors.
3. Ticket sales: Another source of revenue for the league is ticket
sales. IPL matches are played in various stadiums across the
country, and tickets are sold to the fans.
 4. Merchandise sales: The league also earns revenue by selling
merchandise such as jerseys, caps, and other accessories.
5. Franchise fees: The teams participating in the IPL pay a franchise
fee to the league, which is another source of revenue for the IPL.
6. Player transfers: The league also generates revenue through
player transfers. Teams buy and sell players every year, and the
league earns a percentage of the transfer fees.
Overall, the IPL generates a significant amount of revenue through
various means, and it has become one of the most lucrative sport
leagues in the world.

 IPL income is distributed for:

The income generated by the IPL is distributed among various
stakeholders involved in the tournament. The main sources of income
for the income for the IPL include broadcasting rights, sponsorships,
franchise fees, and ticket sales.
1. Franchise fees: The ten franchises participating in the IPL pay an
annual fee to the BCCI, which is a significant source of revenue
for the tournament.
2. Broadcasting rights: The broadcasting rights for the IPL are sold
to television networks and digital platforms, which generate a
significant amount of revenue. The BCCI receives a share of this
revenue, which is then distributed among the franchises.
3. Sponsorships: The IPL has several sponsors, including official
partners and team sponsors. The revenue generated from
sponsorships is distributed among the franchises and the BCCI.
4. Ticket sales: Revenue generated from ticket sales is primarily
retained by the franchises.
5. Central Revenue Pool: A significant portion of the IPL revenue
is placed in a central revenue pool, which is then distributed
 among the franchises and the BCCI. The exact breakdown of the
revenue share for the central revenue pool is not disclosed
publicly.
Overall, the income generated by the IPL is distributed among the
franchises, the BCCI, broadcasters, and sponsors, depending on
the source of revenue.
 Sources of income for an IPL Franchise (ROI):
1. Media Rights: The largest source of revenue for an IPL franchise is
media rights. The IPL has a huge viewership across the globe, which
attracts a lot of broadcasters who pay a significant amount of money to
secure broadcasting rights for the matches. Franchises earn a share of
this revenue through a central pool.
2. Sponsorships: Another major source of income for IPL franchises is
sponsorships. Brands pay a significant amount of money to sponsor
teams and players. Teams can also sell sponsorships for various
elements such as jerseys, helmets, and other merchandise.
3. Ticket sales: IPL franchises can earn revenue from ticket sales for
matches played at their home ground. Teams set ticket prices based on
the demand for the match and the seating capacity of the stadium.
4. Merchandising: IPL franchising can earn money by selling
merchandise such as jerseys, hats, and other accessories. The
franchises can partner with retailers and e-commerce companies to sell
their merchandise.
5. Player Trading: IPL franchises can make profits by trading players.
The franchises can purchase players at the auction and then trade them
for a higher price to other teams in need of that player.
6. Prize Money: IPL franchises can earn prize money based on their
performance in the tournament. The winning team receives a
significant amount of prize money, which is shared between the team
and the players.

Overall, the success of an IPL franchise is measured by its return on

investment (ROI), which is calculated by subtracting the franchise’s
expenses from its revenues.
  Franchise income distributed through:
Franchise income is typically distributed through a revenue-
sharing arrangement between the franchisor and the franchisee. The
exact terms of the revenue-sharing agreement can vary depending on
the specific franchise system, but in general, the franchisor will
receive a percentage of the franchisee’s gross revenue or a fixed free
The franchisor may also earn additional revenue from other
sources, such as selling products or services to franchisees, leasing or
selling real estate to franchisees, or collecting royalties on the sale of
franchise-related products or services.
It’s worth noting that franchise income is generally subject to
taxation in the same way as any other business income, and
franchisees may also be responsible for paying franchise fees,
royalties, and other expenses to the franchisor as part of their on
going obligation.

2.4 SWOT ANALYSIS OF IPL

1. Strengths:
i. Huge Fan Base: IPL has a massive fan following in India and
across the world, which provides it with a large customer base
to market its products and services.
ii. High Revenue Generation: IPL generates a lot of revenue
through sponsorships, broadcast rights, merchandise sales, and
ticket sales, and ticket sales, makingit a lucrative business
opportunity for investors.
iii. Brand value: IPL has a strong brand value that attracts
companies to associate with the league, leading to increased
brand recognition and market share.
 iv. Wide reach: IPL’s matches are broadcasted in multiple
languages and available on multiple platforms, giving it a wide
reach and accessibility.
2. Weakness:
i. Dependency on Players: IPL’s success depends heavily on
the performance of players, and injuries or lack of form of star
players can impact the league’s profitability and viewership.
ii. Seasonal Business: IPL is a seasonal business that operates
only for a few months every year, making it challenging to
maintain a consistent revenue stream throughout the year.
iii. Competition: IPL faces intense competition from other cricket
leagues and sports events leading to the potential loss of
market share and revenue.
3. Opportunities:
i. Expansion: IPL has the potential to expand its reach and
operations by adding more teams and increasing the number of
matches played in a season.
ii. Diversification: IPL can explore diversification into other
sports or entertainment verticals, such as music concerts or
other sports tournaments, to generate additional revenue
streams.
iii. International Presence: IPL can explore opportunities to
expand its reach globally by establishing teams in other
countries or partnering with other cricket leagues.

4. Threats:
i. Pandemic: The COVID-19 pandemic has impacted the
leagues revenue generation
 ii. Regulatory Environment: Changes in government policies
and regulations can impact IPL’s operations and profitability.
iii. Player injuries: Injuries to key players can impact the
league’s performance and profitability, leading to potential
financial losses.

2.5 EFFECT OF IPL IN INDIAN ECONOMY

The IPL has a significant impact on the Indian economy in several ways.
Here are some of the effects of IPL on Indian economy:

1. Increased economic activity: The IPL is a major source of

economic activity in India. The tournament generates significant
revenues for various industries, including hospitality, travel, media,
and advertising. As a result, the IPL creates job opportunities and
boosts economic growth.
2. Tourism boost: The IPL attracts tourists from all over the world to
India. The tournament also encourages domestic travel within the
country as people travel to different cities to watch their favourite
teams play. This influx of tourists boosts the tourism industry and
generates revenue for hotels, restaurants, and local businesses.
3. Branding and advertising: The IPL provides a massive platform for
companies to advertise and promote their products and services. This
leads to increased brand awareness, which in turn help companies
increase their sales and revenues.
4. Employment opportunities: The IPL creates job opportunities for
people in various industries such as event management, hospitality,
advertising and media. These jobs not only provide employment but
also contribute to the development of skills and expertise in these
industries.
5. Tax revenue: The IPL generates significant tax revenues for the
government. The taxes collected from the tournament help the
government finance various development projects and initiatives.
CHAPTER - III
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.
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 fairness 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.

3.2 BIBILOGRAPHY

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/