IPL: Money Spinner

Right time, right place with the right product has been the success mantra for several marketing gurus. This thought was strongly reinforced in my mind as I watched Mr. Lalit Modi (Chairman of IPL) talk about the success story of the IPL-2.  The man does deserve credit for introducing the game concept in India (although the same format has been followed in other countries for years and was originally introduced by someone in England). Well, what came as a shocker to me was a statement made by him during an interview: I'm not making money from IPL: Modi.

His statement definitely does not tally with the humongous figures (Rs. 400 cr) that the IPL has generated as advertisement revenue alone. With the stupendous success story at IPL-1, the organizers would not have had much trouble raising money. Companies are paying a 35 per cent premium over the amount quoted last year for each advertisement, and Set Max (the host broadcaster), has been quick in filling 80 per cent of the 12,000 advertisement spots.  All of this would results in more money in the kitties of each of the teams and the BCCI.

In fact, the WSG (World Sport Group-An International Sports marketing company) that had bought the media rights of the IPL at a whopping $1.75bn last year plans to invest Rs. 8,200 cr with the BCCI over the next 9 years. The amount would be shared in a 80:20 ratio between the Team owners and the BCCI. The huge stakes involved in the IPL can be justified, with the returns the team owners get, from not just advertisement revenues, but also various other title sponsors and the revenues collected from the ticket and merchandise sales.

I guess now the presence of the various celebrities (especially Mr. Modi) is pretty evident!!!