afaqs! news bureauPublished: 3 Mar 2014, 12:00 AM
Marketing

"IPL's success has inspired creation of national, state level leagues in other sports": KPMG-CII report

The report adds that IPL has become a highly profitable property for BCCI and has also been able to maintain high TV ratings since its inception.

KPMG, under the aegis of CII, has released a report titled "Business of Sports - Shaping a Successful Innings for the Indian Sports Industry".

"IPL's success has inspired creation of national, state level leagues in other sports": KPMG-CII report
As per the report, the commercial success of Indian Premier League (IPL) in cricket has led to a surge of similar commercial formats in other sports such as badminton, football and hockey. Its success has inspired the creation of national and state level leagues in other sports. "Reasonable success of the Indian Badminton League (IBL) and the Hockey India League (HIL) - sports that don't enjoy the same popularity as cricket - has shown that leagues are a good medium for generating interest and driving sports culture besides the potential RoI. These leagues may therefore not only benefit their respective sport monetarily, but also boost their uptake in the country."

However, these leagues are yet to achieve the scale and profitability of IPL, which is highlighted by the fact that despite being older than IPL, the I-league has struggled to find sponsors and broadcasters since its inception.

The report also mentions that IPL has not only brought male audiences to prime time TV viewership, but has also attracted female audiences and children. "It has managed to attract a majority of the top players in the sport and has also extended its presence to places outside of its country of origin. IPL has become a highly profitable property for BCCI and it has also been able to maintain high TV ratings (TVR) since its inception," the report read.

Involvement of the top players of the world creates interest among viewers and improves the quality of the game. IPL and IBL are some successful examples, the report said. On the other hand, I-League is struggling to attract top players, resulting in poor viewership. It adds, "An effective marketing campaign is another critical factor in increasing a league's popularity. Again, involvement of various celebrities as brand ambassadors or owners in IPL contributed to increased viewer interest in the league. In fact, the collaboration of the Indian entertainment industry and cricket has aided in making the IPL a commercial success. The length of games and timing of matches are also some other important factors, as gathered from the IPL experience."

According to the report, IPL teams generate Rs 10-30 million per match depending on occupancy and ticket prices and IPL ticket prices range from Rs 500 to Rs 20,000. IPL teams are generating 10-15 per cent of their revenues from gate receipts.

'Business of Sports - Shaping a Successful Innings for the Indian Sports Industry' report identifies key issues in the sports ecosystem and explores measures to develop a private investment-led sporting scenario in the country - one that helps imbibe a sporting culture and achieve the country's vision of excellence in sports. "The business of sports in India is yet to pick up steam and this could largely be driven by the introduction of more leagues on the lines of the IPL in cricket," the report said.

Read the entire report below: