Business India ×
  Magazine:
Guest Column

Published on: Oct. 5, 2020, 1:14 p.m.
No business like cricket
  • Dream11 makes a debut

By Bela Desai. The author is Promoter Director of Greycells Education. It pioneered the concept of industry led program in Sports Management in 2008 and conducts courses under the brand Ironwood Sports. Email: bela@greycellsltd.com

Cricket’s biggest T20 extravaganza, the Indian Premier League (IPL) has defied all expectations of slow business with a blockbuster 2020 season currently underway in the United Arab Emirates.

The league was pushed back from its usual March-April-May slot due to the Covid-19 lockdown, till the BCCI (Board of Control for Cricket in India), decided to hold it in the UAE. Holding IPL overseas is not a new concept to the BCCI. The 2009 IPL was held in South Africa and the first 20 matches in 2014 were held in the UAE due to general elections in India.

But this is the first time that the IPL is being held in a biosecure environment. Each event has Standard Operating Procedures that are tailored to the requirements of the sport, the place and to reduce the risk of contracting an infection.

Yet, the BCCI faced challenges even before the tournament got underway. It had to look for fresh sponsorships, including the title sponsor after legacy advertisers  —  FMCG, consumer durables companies, BFSI which are the largest spenders in cricket -- pulled back. Initial reservations of an expected downturn in business, however, are found to be unwarranted.

Such is the pulling power of the IPL that Dream11 – a homegrown startup -- grabbed it up four weeks prior to the start of the season. While the new deal is only for the remainder of 2020, with an option for further extension, in terms of the purchase value for the title sponsor, it pays 1.5 times the monetary dividend for the BCCI. Within a few weeks, Dream11 has secured fresh funding of $225 million at a valuation of $2.25 billion from Tiger Global Management, TPG Tech Adjacencies (TTAD), ChrysCapital, and Footpath Ventures.
 
This pulling power has reflected well on BCCI’s biggest partner in 2020 IPL, too, the Star TV network. With the tournament being played in the UAE, it has become a television-only event and, as such, viewership was expected to rise. Instead, it shot through the roof.

On 19 September, an estimated 158 million fans tuned in to watch the season opener clash between defending champions Mumbai Indians and perennial favourites Chennai Super Kings. Another 42 million tuned in via Star’s digital streaming service HotStar, taking the total reach to an unprecedented 200 million.

This is the highest viewership recorded for an opening game of any sporting league across the globe. Such record-breaking viewership numbers have resulted in ringing cash registers for the Star network.

Star Sports has managed to sell out its advertising inventory well ahead of the tournament opener. The ad-rates for a 10-second slot touched pre-Covid expectations at Rs10-12 lakh. It should add up to more than Rs2,000 crore from television revenues alone, with HotStar further contributing Rs300-350 crore to Star’s advertising kitty. Star also earns subscriber revenue through television platforms Airtel, Tata Sky and others, while demand for the 2020 IPL overseas is at an all-time high as well.

BeIN Sports, Sky Sports, Yupp Tv, SuperSport, Willow Tv and Fox Sports have picked up global television rights to broadcast the action to all cricket fans in different parts of the globe. All of this means that the BCCI, and the IPL, has tided over the Covid crisis.

Star will pay up Rs3,200 crore as annual payments for the IPL broadcast rights, with another Rs1,200 crore coming from sponsorships. This is music to the eight franchisees ears who will benefit from the central sponsorship revenue pool despite turbulent times. This has most certainly added one more dimension to the Sports Management Industry prospects and more opportunities for students in digital gaming across various platforms.

The views expressed in this article are personal and the author is not responsible in any manner for the use which might be made of the above information.

Don't miss this

Cover Feature

Media in the new age of regulation

The digital realm now has the maximum number of restrictions in any democracy

Special Report

Commodity prices shoot through the roof

The rising cost is a cause for concern for the industry and smaller companies

Corporate Report

The Brigade group rides a crest

The group founder chairman prepares to hand over the reins to his daughters

Corporate Report

BharatPe all set to crack the merchant’s code

A banking licence could give BharatPe an edge in its engagement with the merchant class

Our letter to you, once a week.
Register with The CSR Weekly for free!

E-MAGAZINE
The new age of regulation
Shree Cement-Stellar performer
Vaccine Veterans
FROM THIS ISSUE

Books

Government

Editorial

From the Publisher

Enterprise

Followup

Social Responsibility

Healthcare

Goodyear India partners Americares India Foundation

Published on Feb. 2, 2021, 9:21 p.m.

The partnership will support COVID-19 healthcare facilities in Faridabad and Aurangabad

Environment

Tata Motors launches a 'Go Green' initiative

Published on Dec. 23, 2020, 10:34 a.m.

The company will plant a sapling for the sale of every new commercial vehicle

Women Empowerment

Tata Starbucks ties up with Educate Girls to empower women

Published on Dec. 2, 2020, 3:10 p.m.

The partnership aims to provide volunteering and educational support to those who have relocated to urban cities from villages

Environment

Indian Oil has a social initiative for a clean and green world

Published on Nov. 25, 2020, 2:53 a.m.

The public sector company is planting a tree for every retail customer visit during its TreeCheers campaign period

Climate Change

Environment

Low maintenance, sustainable green spaces

Published on Feb. 4, 2021, 10:48 a.m.

The Center for Environment Concerns launches a pilot for greening road medians and urban areas

Energy

Husk Power uses rice husk to generate electricity in rural India

Published on Dec. 23, 2020, 9:32 a.m.

The company provides grid compatible and reliable power to customers

Energy

Smart Joules and energy saving solutions

Published on Nov. 17, 2020, 10:17 a.m.

The company's full-stack solution guarantees 15 per cent energy savings and zero upfront costs to the customer

Green Buildings

The GreenPro Ecolabel Standard for steel rebars will help a green built environment

Published on Nov. 5, 2020, 9:33 a.m.

Eight companies have already achieved CII’s Green Building Congress 2020 new standard

Stay ahead of the times.
Register with The Climate Change Weekly for free!