For Sundar Raman, the game has just begun. As IPL CEO, he is planning for next year’s tournament and the T20 Champions League scheduled to begin in September. Tying up with vendors for revenue generating streams such as merchandising, Raman is in talks with two new sponsors after sealing one deal for $7 million (about Rs29.4 crore). Happy with the response to IPL’s debut run, he attributes the success to quality cricket and the right entertainment mix. However, he points out that the real challenge lies in Season 2, where the format, though accepted readily by consumers, has to be taken forward with more consumer engagement and interaction. Raman talks about what fans can expect in the run-up to the next season. Edited excerpts:
What is the learning for the Board of Control for Cricket in India, team franchisees and sponsors from Season 1?
Everybody is richer after the first year. Most teams have got the composition right. This was the first time India experienced the 20-over format in such high quality and it’s clear that Twenty20 (T20) is not like Test matches or one-day international (ODI) cricket, where you already know the advantages, positioning, weaknesses, etc., of the respective teams. Here, the only exposure to T20 was World Cup T20 in 2007—so it has given us all more insight into the composition of teams and the profile, how to manage it differently from ODI and Test matches. The insights people pick up from the first season will determine what is in store for the coming years.
What was the revenue in the first season? Is it likely to increase?
IPL has already signed deals that add up to $2 billion with sponsors and broadcasters for the next 10 years. For this year, we made $91 million from broadcast rights, $72.4 million from franchisee bids, and sponsorship added up to $30 million. So, for a year it adds up to approximately $200 million . This does not include associated revenues such as ticketing, which is handled by franchisees.
For next year, we are looking at the same except for the sponsor bit, where we are looking at selling a couple of more slots at around $7 million. Depending on when they are sold, it should add $21 million to revenues. We are in discussions with certain brands but nothing has been finalized.
Could you list the factors that contributed to the success of IPL?