By no stretch of imagination can anybody recover the money they have invested in IPL. Once the first tournament is over and the hype dies down people will realise what kind of mind boggling losses they have made. Sample this: For an international match, the highest rate for a television commercial ranges between Rs.1 lakh to Rs.1.5 lakhs per spot. Even if we take that as a basic rate (which, in itself, is very unrealistic), there are about 1500 seconds in every tournament to be sold for 59 matches of the IPL tournament. By no stretch of imagination, Sony can make more than Rs.30 crores; whereas Sony has to pay Rs.60 crores in the first year. That means the net loss of Sony in the first year itself will be around Rs.30 crore, taking the most optimistic approach.”
If Sony has a tough challenge awaiting it, the new ‘sports entrepreneurs’ too have a daunting battle ahead. They have to recover their investments primarily through advertising, merchandising and ticket sales. The real challenge will be to lure viewers into the stadium and then lure millions more on to the TV sets. And top level professionals from the world of advertising do entertain doubts about it. Says Naresh Gupta, Executive Vice President, Planning Division, Publicis, “Will they ever be able to make money? I don’t think in the short run they will be able to make any money. It is only when the format takes off after 10 to 15 years. But then again, there is no certainty about that happening.”
There is no doubt that the blue-blooded industrialists, who have invested big time in IPL and cricket, will have a relatively smoother sailing. Take the example of Vijay Mallya, who has paid $111.6 million for the Bangalore team. He has already decided that he will strategically leverage IPL and his team to promote the Kingfisher brand in a major way. Mallya will also cross leverage IPL with Formula One in his quest to emerge as the liquor baron of the world. He says, “Might be I am not sounding like a typical industrialist, so at the same time I make sure my passions do help me earn and keep our group Kingfisher financially healthy always.” Similarly, the $111.9 million that Mukesh Ambani has paid for the Mumbai team is literally chicken feed for him. And he will use team members like Sachin Tendulkar, the matches, the live telecasts and the media frenzy to promote the Reliance brand, now that Mukesh Ambani is interfacing directly with consumers through corporate initiatives like Reliance Retail.
However, the real challenge will be for the neo-nascent entrepreneurs like Shahrukh and Preity. The audience response to IPL will decide their fate as the new sports entrepreneurs. But while the challenge is daunting and future prospects not crystal clear, it is not as if the more innovative among the new entrepreneurs will not have various ways of generating money through IPL. Says Sainath Saraban of Leo Burnett that is handling Delhi Daredevils, “We are looking at a 360 degree approach to promote the Delhi team and we have devised the communication so that it can involve a high degree of people participation. There would be a lot of direct activities. We would also be looking at merchandising and creating franchisees as an option to lock supporters with their team.” The Delhi team has tied up with Adidas for designing the Delhi team’s dress and merchandising. Since this format and even 20-20 is still new to India, the new sports entrepreneurs will be looking at global sports events, teams and activities to better understand new revenue models that can be stitched up as a part of IPL. Says Melroy D’souza, General Manager, Professional Management Group, “Besides the money generated from central revenue (domestic & international rights, IPL title sponsor & IPL secondary sponsor), local revenues (gate revenues, franchise sponsorship agreements, instadia branding & match concessions) & merchandising the teams can raise money through many other avenues like selling sub properties during the matches – Man of the Match et al – corporate boxes/hospitality boxes, player/celebrity appearances, player transfers and playing matches internationally.”
The editorial team at B&E too is convinced that stars like Shahrukh Khan will have a natural advantage. Imagine a scenario where Shahrukh makes an ‘exclusive’ box for 500 people who will pay money to watch matches with him and his wife Gauri plus Saurav Ganguly’s wife Donna and then get to see Shahrukh doing a twist on a few item numbers while the Royal Bengal Tiger Saurav, too, breaks into a jig. How much do you think rich Indians will be willing to pay for a night out like this? Your guess would be as good as ours, but we bet there are enough rich Indians who will fork out lakhs of rupees just like that. Equally tantalising is the prospect of Preity Zinta shaking a leg for her fans, who have probably paid through their noses to spend an evening with Bollywood and cricket.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
If Sony has a tough challenge awaiting it, the new ‘sports entrepreneurs’ too have a daunting battle ahead. They have to recover their investments primarily through advertising, merchandising and ticket sales. The real challenge will be to lure viewers into the stadium and then lure millions more on to the TV sets. And top level professionals from the world of advertising do entertain doubts about it. Says Naresh Gupta, Executive Vice President, Planning Division, Publicis, “Will they ever be able to make money? I don’t think in the short run they will be able to make any money. It is only when the format takes off after 10 to 15 years. But then again, there is no certainty about that happening.”
There is no doubt that the blue-blooded industrialists, who have invested big time in IPL and cricket, will have a relatively smoother sailing. Take the example of Vijay Mallya, who has paid $111.6 million for the Bangalore team. He has already decided that he will strategically leverage IPL and his team to promote the Kingfisher brand in a major way. Mallya will also cross leverage IPL with Formula One in his quest to emerge as the liquor baron of the world. He says, “Might be I am not sounding like a typical industrialist, so at the same time I make sure my passions do help me earn and keep our group Kingfisher financially healthy always.” Similarly, the $111.9 million that Mukesh Ambani has paid for the Mumbai team is literally chicken feed for him. And he will use team members like Sachin Tendulkar, the matches, the live telecasts and the media frenzy to promote the Reliance brand, now that Mukesh Ambani is interfacing directly with consumers through corporate initiatives like Reliance Retail.
However, the real challenge will be for the neo-nascent entrepreneurs like Shahrukh and Preity. The audience response to IPL will decide their fate as the new sports entrepreneurs. But while the challenge is daunting and future prospects not crystal clear, it is not as if the more innovative among the new entrepreneurs will not have various ways of generating money through IPL. Says Sainath Saraban of Leo Burnett that is handling Delhi Daredevils, “We are looking at a 360 degree approach to promote the Delhi team and we have devised the communication so that it can involve a high degree of people participation. There would be a lot of direct activities. We would also be looking at merchandising and creating franchisees as an option to lock supporters with their team.” The Delhi team has tied up with Adidas for designing the Delhi team’s dress and merchandising. Since this format and even 20-20 is still new to India, the new sports entrepreneurs will be looking at global sports events, teams and activities to better understand new revenue models that can be stitched up as a part of IPL. Says Melroy D’souza, General Manager, Professional Management Group, “Besides the money generated from central revenue (domestic & international rights, IPL title sponsor & IPL secondary sponsor), local revenues (gate revenues, franchise sponsorship agreements, instadia branding & match concessions) & merchandising the teams can raise money through many other avenues like selling sub properties during the matches – Man of the Match et al – corporate boxes/hospitality boxes, player/celebrity appearances, player transfers and playing matches internationally.”
The editorial team at B&E too is convinced that stars like Shahrukh Khan will have a natural advantage. Imagine a scenario where Shahrukh makes an ‘exclusive’ box for 500 people who will pay money to watch matches with him and his wife Gauri plus Saurav Ganguly’s wife Donna and then get to see Shahrukh doing a twist on a few item numbers while the Royal Bengal Tiger Saurav, too, breaks into a jig. How much do you think rich Indians will be willing to pay for a night out like this? Your guess would be as good as ours, but we bet there are enough rich Indians who will fork out lakhs of rupees just like that. Equally tantalising is the prospect of Preity Zinta shaking a leg for her fans, who have probably paid through their noses to spend an evening with Bollywood and cricket.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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Situated on the outskirts of Bhubaneshwar, around 15 kms from the state capital on the National Highway No. 5, it seemed like an abode for a few people. However, in 2008, Sijua seems to be preparing itself for tomorrow’s hustle and bustle. One can judge the signs of development by the growing number of concrete structures each day.
verandah in this village. It’s cold as the Gangetic plain was witnessing a long winter and, this year, it wasn’t unusual for the mercury to dip to 2ºC – a phenomenon that wasn’t common in this region. The village elderly claimed that Bihar’s Samastipur district hadn’t witnessed such a chilling cold in decades. Still, Garvi, 80, and a Baantar (lower caste refugees from Myanmar), isn’t worried.
in Barak Hessein Obama, a senator from Illinois and a charismatic contender for the Democratic presidential nomination. They wrote him off at the beginning, saying the 47-year-old “inexperienced” Illinois senator could not even pose a potential threat to the former first lady, Hillary Rodham Clinton. But, as things stand today, Obama’s popularity is surging day-by-day cutting across the community lines. He has won eight of the nine primaries and caucuses held since Super Tuesday on February 5, while his experienced rival could take only one victory (New Mexico). He has won by much larger margins, both in black and white dominated states. Now more and more corporate houses are ready to pump money into the Obama campaign.
need of a gender responsive budget, gender-based assessment of budget, including a gender perspective at all levels of the budgetary process and restructuring revenues and expenditures in order to promote gender equality. Since inception, over 50 countries have adopted it. France incorporated gender related budget statement and a fixed ministerial expenditure since 2000. Government offices in developed and advanced countries like Australia, Sweden, Denmark, Norway, Finland, Ireland, Nordic countries and many developing countries like Rwanda, South Africa & Uganda have taken gender issues seriously.
stock market has been undoubtedly brilliant. Can one assume that the dust of the last few weeks’ carnage has settled and the positive performance on the bourses in the last two trading session marks the beginning of a new bull run? “Skepticism is still there,” says Satish Kannav (Senior Analyst, Arihant Capital Markets Ltd); certainly it will take time before confidence returns to the market. He cautions further that “one can not consider this as the beginning of a new bull run.”
to be 448,000 MW by 2020, could lead to huge environmental damage if the current methods of energy production go on. On the one hand, there is this huge demand-supply gap and on the other hand is the fragile condition of environment. Well, there is a solution for this dilemma too. The Waste-to-Energy (WTE) production technology solves these two problems as it converts waste from landfill sites into energy and reduces greenhouse gas emissions too.
not the least a money spinner, busy converting his international political capital into lucre. These are some of the criticism the former British Prime Minister Tony Blair is facing in his run-up for the European Union Presidency. In addition to Blair, currently, there are two more candidates – Taoiseach Bertie Ahern of Northern Island and Luxembourg Prime Minister Jean Claude. While Nicholas Sarkozy is all for Tony, the former French president Giscard d’Estaing has expressed his apprehension, “Tony Blair cannot be President of Europe because the new President of Europe must come from a country, which respects all its European commitments.”
days after the crash, Finance Minister Palaniaapan Chidambaram commented, “We had anticipated that markets will open today on a downward note and may hit the circuit breaker. I am assured by RBI and all the banks that enough liquidity will be provided to brokers and market players.” His belated ‘forecast’ statement clearly bordered on the jocular. Could it have been made earlier? The answer is a no-brainer, yes! But to his credit, government institutions did step in on the subsequent days to massively increase their purchases; and despite continued FII selling pressure, the markets actually recovered to reach the 17,000 plus levels on January 24, 2008. Few allege the lack of transparency in financing margin money, overvaluation of IPOs, over speculation and faulty settlement mechanism for the mayhem.
price of oil briefly hit $100 a barrel. The new record made headlines, as well it should have. But what does it mean, aside from the obvious point that the economy is under extra pressure? Well, one thing it means is that we’re having the wrong discussion about foreign policy.
downturn hover around a number of economies. Ironically, of course, that’s welcome news for OPEC nations. Take the instance of the Middle East, where the recent uptrend in oil prices has led to an increased economic revolution. Now the region is expected to pump over $2 trillion in the infrastructure space, indirectly offering enormous potential to cement firms.