IPL 2022 is about to make it rain for bcci & indian cricket
The BCCI stands to profit handsomely from the addition of two more teams to the Indian Premier League. From IPL 2022 onwards, these new teams will compete in the league. One team will be based in Lucknow, Uttar Pradesh, while the other would be based out of Ahmedabad, Gujarat.
Despite the raging pandemic, the BCCI (Board of Cricket Control in India) managed to stage IPL 13 in the UAE against all odds. According to a report by valuation firm Duff & Phelps, a Kroll Business, what may have been a Rs.3,000 crore loss was turned into a Rs.4,000 crore profit for the cricket board.
Here’s an interesting fact: Since these cricket matches were televised exclusively on Star Sports, the international sports broadcaster has seen a 23% increase in its viewership and generated advertising earnings of Rs. 2,600 crore.
Vivo has replaced Dream11 as the IPL sponsor, which came on board after the Chinese phone manufacturer backed out last year. Star Sports, which paid $2.55 billion for the IPL rights through 2022, has secured 18 sponsors and over 100 ads for the forthcoming season. Last year’s winners were edtech and fantasy sports, but this year’s winners come from every category. Dream11, Byjus, Phone Pe, Just Dial, Bingo, Kamla Pasand, Association of Mutual Funds in India (AMFI), Frooti, Asian Paints, Thums Up, Vodafone-Idea, Mondelez, and Amazon Prime are among the major advertisers.
According to numerous media sources, the broadcaster Star has already sold 95% of its inventory and increased ad rates by 10-15% compared to the previous season. It’s been learned that ad slots cost between Rs.13-14 lakh for 10 seconds.
The IPL is responsible for 60% of the BCCI’s revenue. The IPL’s annual earnings is estimated to be close to 40% of cricket’s global revenue, according to industry estimates. IPL’s financial might could increase even further if market forces live up to BCCI’s expectations.
The BCCI expects the media rights to generate Rs 30,000 to 35,00,000 crores thanks to the league’s quick rise and consistent viewership ratings. It doesn’t seem impossible, given that the expanded IPL will provide broadcasters with at least 14 additional matches in 2022. At today’s exchange rates, that equates to Rs.756 crore. There is also a long-term goal of adding 34 more matches to the IPL each year. We can already hear the cash registers ringing loudly.
All of the best cricket broadcasting properties are owned by the Star, and they pay the BCCI a premium of Rs.60.1 crore for every bilateral international India plays at home. Which too now sees a jump in viewership post IPL.
In India, the emergence of digital entities could be a game-changer. In 2017, Facebook submitted an astonishing Rs.3900 crore bid for the internet rights to the IPL. However, Star’s combined proposal of Rs.16,000 crore plus (TV and digital) was successful.
Disney+ Hotstar has already secured 14 sponsors and is working to secure more. Dream11 has signed on as a co-presenting sponsor for the platform. The ‘co-powered by’ sponsors are Upstox and Vimal Elaichi. As associate sponsors, PhonePe, AMFI, Unacademy, Pharmeasy, Livspace, Swiggy, Parle Agro, Amazon Prime, Coinswitch, CRED, and Xiaomi have joined on.
So, were there any losses in the 2 years?
The lack of in-stadium revenue from the selling of tickets, food, and beverages was a thorn in IPL 2020’s side. Bringing in Dream11 to replace Vivo at a lower cost – it paid 222 crore versus 440 crore for the phone brand – also made a dent. According to Duff & Phelps, this impacted the IPL brand value as well as the brand values of individual franchises.
With the IPL becoming the cash cow for BCCI, its might in the world cricket has risen to a great extent and it has helped the Asian giant to break the hegemony of the Big Two, which is Cricket Australia and England Cricket Board who ruled the ICC (International Cricket Council) and in the noughties.
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