Bigger, better, richer. That is what the franchises hope the Indian Premier League (IPL) will grow into year after year.
In an interview with Indiantelevision.com's Ashwin Pinto, GroupM ESP managing partner Hiren Pandit talks about the vast revenue opportunities that are waiting to be tapped as the IPL grows into a sporting spectacle.
Excerpts: |
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How is GroupM ESP involved with the IPL this time around? |
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Are franchises able to fetch better rates this year with the economic situation somewhat improving? |
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In terms of local revenue, how will franchises fare this year as per your calculations?
Kolkata will get hit in terms of gate receipts as the two large stands that seat the most number of people is being reconstructed. Mumbai's matches will happen in the CCI and DY Patil. Ahmedabad should boost Jaipur's gate receipts. I, however, do not know the extent to which Dharamshala as a venue will help Punjab. The question that remains is Hyderabad. There needs to be some clarity on where the matches will be played. |
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If you include the central pool, how much revenue will franchises earn? |
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Will Hyderabad's revenues be hit due to the venue being shifted? |
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Is there a danger of sponsorship getting cluttered? |
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Could you give me a couple of examples where team sponsors have successfully leveraged the IPL? |
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What is the key to a successful licensing and merchandising campaign?
Licensing and merchandising is different from having a logo on a T-shirt. People are still struggling to figure out what is the difference between advertising and licensing and merchandising. These two categories are separate but are getting mixed up. That actually helped Wrigleys who did a smart number on franchises. They did a partnership at a low cost and signed up most franchises for three years. From what I understand, Wrigleys can now milk the value of its deals to such an extent that franchises feel that they did not get the value that they were looking for. I don't think that Wrigleys shares revenues of its products. Franchises now realise that the deal might have been a mistake for them. |
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Have the franchises got it right on ticket pricing? |
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Will the break even period elongate for the new franchises as the IPL has set a fourfold increase in base price? |
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Who has fared the best in this area so far?
Also, keep in mind that with more teams coming in, costs and revenues will go up. The impact will be felt across the board. Player costs, travel and stadium maintenance costs will rise. Sponsorship revenues will also go up. All this has to be taken into account by whoever is bidding. |
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Another issue is that current franchises will be allowed to retain some key players even after the third season. This could limit the pool of payers who are available to the new franchises. How do you see things panning out? |
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Rajasthan Royals has tied up with other cricket clubs globally. Is this the trend for the other franchises as well?
If you have world class players who can play in different countries and fill a stadia, then it forms another revenue stream. The IPL guidelines state that Rajasthan Royals cannot play against Kolkata in, for instance, England. So by doing this kind of a tie up, they avoid that situation. Events can take place all over and more money flows in. There is an opportunity here. |
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Do you see the IPL playing out well in cinema theatres?
This year it will be a tried and tested concept. The concept looks very impressive. You will have high definition which makes a big difference. The 16:9 screen size will allow you to see more ground. This is the summer and people might want to go to an air conditioned place and enjoy it together. It is about the quality of experience. If it is good, then word of mouth will spread. |
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How important is the YouTube deal in spreading the IPL brand globally?
The question is how YouTube is going to monetise the IPL property. Will YouTube become pay for international markets? Today they have said no. They can continue to say no if there is enough ad support. |
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The Champions T20 League got off to a slow start. Where do you see it going from here?
The franchises and the IPL need to start developing a club culture. Nobody says that they want to go for an IPL match to see a particular franchise play. They simply go for great cricket. That has to change. You need to create a fan base that is passionate about the team per se, even if it comes last. Franchisees need to invest money in creating a club culture. |
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