R P Singh - A stock , An IPL phenomenon
ROYAL CHALLENGERS BANGALORE
Owners: United Spirits Ltd
Team captain: Kevin Pietersen (first six matches), Anil Kumble (for the remaining)
Franchisee fee: $111.6 mn
Brand value: $14 mn
Brand score: 50%
Sponsorships/brand associations: Wrigley’s and mostly in-house brands such as Kingfisher
Income from central pool: 2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from team sponsorships: 2008: Not applicable, as all were in-house brands
2009: Rs10 crore
Total: 2008: Rs35 crore
2009: Rs86.5 crore
Restructuring shows results
From being a laggard in the first season to runner-up this year, Royal Challengers Bangalore was a spectacular success story in IPL 2. And if there was one star the team owed its success to, it was its flamboyant owner, liquor baron Vijay Mallya. After the team’s poor show in the first season, Mallya restructured his team and redefined its key result areas. His personal charisma added to the team’s brand appeal, says the MTI study.
“RCB had a lot of glamour associated with it as it had cheerleaders from the Washington Redskins as its own cheerleaders, and the glamour quotient was furthered by the presence of (actor) Katrina Kaif as the brand ambassador,” it says. The study pegged the brand value of Mallya’s team at $14 million (around Rs66.08 crore), but this is sure to pick up after this year’s comeback.
The team has not had too many sponsors but the owners say that was a conscious strategy.
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RAJASTHAN ROYALS
Owners: Jaipur IPL Cricket Pvt. Ltd
Team captain: Shane Warne
Franchisee fee: $67 mn
Brand value: $10 mn
Brand score: 47%
Sponsorships/brand associations: At least nine; UltraTech Cement, Kingfisher, Royal Challenge, HDFC Standard Life, Puma, 7Up, TCS, Boost, Wrigley’s, fashion designer Kunal Rawal
Income from central pool:
2008:Rs35 crore
2009: approx. Rs76.5 crore
Income from sponsorships:
2008: Rs15 crore
2009: Rs100-110 crore
Total*:
2008: Rs50 crore
2009: Rs176.5-186.5 crore
Defending champions lose steam, gain ground in getting sponsorships
Rajasthan Royals surprised everyone when it stole the show in 2008. It was the least expensive team and its owners Jaipur IPL Cricket Pvt. Ltd did little to change the frugal image, with no marketing buzz and no celebrity endorser.
Winning the tournament in 2008 helped Rajasthan Royals attract bigger sponsors this year. The absence of star players, lesser-known owners and no brand ambassador last year combined to prevent it from creating a differentiated brand identity, but all that changed after the win. This year, the team’s glamour quotient went up when Bollywood actor Shilpa Shetty, with partner Raj Kundra, bought a 12% stake for $16.8 million, pushing the team’s total valuation to $140 million, against the $67 million the team owners had spent to buy it.
All this helped the team attract new sponsors, nine against four last year. The MTI study pegged Rajasthan Royals’ brand value at $10 million (around Rs47.2 crore), the lowest among all teams. Things may be worse next year given the team’s lacklustre performance this time.
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MUMBAI INDIANS
Owners: Reliance Industries Ltd
Team captain: Sachin Tendulkar
Franchisee fee: $111.9 mn
Brand value: $17 mn
Brand score: 51%
Sponsorships/brand associations: At least 13, including MasterCard, Idea Cellular, Royal Stag, Kingfisher, Pepsi, Adidas, Zandu Balm, Red FM, Wrigley’s and Luminous Technology
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from team sponsorships:
2008: Rs15 crore
2009: Rs80-90 crore
Total*:
2008: Rs50 crore
2009: Rs156.5-166.5 crore
An average showing, loyalty factor driven by icon Tendulkar
The most expensive team, Mumbai Indians, bought by Reliance Industries Ltd, had an average run in IPL, both in terms of performance and valuation. Stuck in the middle of the grid, Mumbai Indians was eliminated at the quarter-final stage in both seasons.
The team, however, managed to attract an impressive number of sponsors this year. The MTI study put its brand value at $17 million (around Rs80.24 crore), the fourth highest in the league.
Although Bollywood actor Hrithik Roshan did lend himself to marketing initiatives through music videos and advertisements in 2008, it was icon player Sachin Tendulkar who really drove the loyalty factor for the team and brought in brands such as MasterCard, Pepsi and Adidas, among others.
The team’s biggest strength, according to the MTI study, was its huge fan following among cricket lovers.
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KINGS XI PUNJAB
Owners: Preity Zinta, Ness Wadia and Mohit Burman
Team captain: Yuvraj Singh
Franchisee fee: $76 mn
Brand value: $15 mn
Brand score: 54%
Sponsorships/brand associations: At least nine; Emirates, Gulf Oil, Reebok, Springbok International, Nimbooz, Netlinkblue, Royal Challenge, Dabur Glucose-D, Orbit
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from team sponsorships:
2008: Rs15-18 crore
2009: Rs50-55 crore
Total*:
2008: Rs50-53 crore
2009: Rs126.5-129.5 crore
Zinta brought in advertisers; consistency won loyalty
More than its performance on the pitch, Mohali’s Kings XI Punjab is known for its perky co-owner, Bollywood actor Preity Zinta. The team’s performance in both seasons was average. Although the team made it to the semi-finals in 2008, this year it was eliminated at an earlier stage. The MTI report valued the team at $15 million (around Rs70.8 crore), fifth from the top in the list of franchisees.
“With consistent performance throughout the season, the team was able to attract consistent audience numbers and developed a loyal viewership,” the report says.
Zinta’s association with several brands as their ambassador helped the team get several sponsors and it is likely to have earned about Rs55 crore in sponsorships this year. Popular cricketers such as Brett Lee and Yuvraj Singh also upped the ante of the team.
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KOLKATA KNIGHT RIDERS
Owners: Red Chillies Entertainment Pvt. Ltd
Team captain: Brendon McCullum
Franchisee fee: $75.09 mn
Brand value: $22 mn
Brand score: 52%
Sponsorships/brand associations: At least 12; Nokia, Belmonte, Star Plus, Gitanjali Jewellers, Sprite, Boomer, Reebok, Bilt, Tag Heuer, PlanetM, Next
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from sponsorships:
2008: Rs30 crore
2009: Rs90-100 crore
Total:
2008: Rs65 crore
2009: Rs166.5-176.5 crore
Brand value upped by Khan, likely to be most profitable this time too
It did not have a good run on the field last year and this year, Kolkata Knight Riders, or KKR, was the first team to be ousted from the IPL. Yet the team with Bollywood superstar Shah Rukh Khan, or SRK, as its owner topped the league in terms of brand value.
The MTI study pegged the team’s brand value at $22 million (Rs103.84 crore), 16% more than the second highest team with a brand value of $19 million. “The Shah Rukh Khan brand and the in-stadium marketing strategies of the teams have influenced the team’s brand value, resulting in higher income from gate receipts, merchandising revenues and attracting new team sponsors,” says the study.
The team’s below-average performance on the ground notwithstanding, KKR had the maximum buzz mainly because of SRK’s personal charisma and partly because of team member Saurav Ganguly. This year, an anonymous blogger, Fakeiplplayer, who wrote about KKR’s “inside story”, also kept the brand name bustling. The result: It was reported to be the most profitable team last year, and is likely to have repeated the feat this time as well.
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CHENNAI SUPER KINGS
Owners: India Cements Ltd
Team captain: M.S. Dhoni
Franchisee fee: $91 mn
Brand value: $18 mn
Brand score: 53%
Sponsorships/brand associations: At least 15; Aircel, Cloud 9, Nivaran 90, Reebok, 7Up, Band-Aid, Peter England, Nivea, Lays, Orbit, Boomer, Star Vijay, Hello, Big Bazaar, Coromandel King
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from team sponsorships:
2008: Rs20 crore
2009: Rs100-110 crore
Total*:
2008: Rs55 crore
2009: Rs176.5-186.5 crore
Dhoni key in creating a strong brand
Last year’s runner-up and this year’s semi-finalist, Chennai Super Kings successfully delivered what its owners, India Cements Ltd, expected it to—creating brand awareness for the holding company. “IPL has given us a pan-India presence and strengthened our brand name in southern India,” Rakesh Singh, chief marketing officer of the team, had said earlier.
The brand, according to the MTI study, enjoyed a strong valuation at $18 million (around Rs85 crore), the third highest among the eight teams. With Mahendra Singh Dhoni as the captain and icon player, the brand benefited from his associations with brands such as Aircel, Reebok, Big Bazaar and 7Up.
“The purchase of M.S. Dhoni, under whose captaincy India won the world T20 championship, was the key factor in creating a large awareness, a stronger perception and gave great mileage for creating a strong brand for Chennai Super Kings,” says the study.
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DELHI DAREDEVILS
Owners: GMR Holdings Pvt. Ltd
Team captain: Virender Sehwag
Franchisee fee: $84 mn
Brand value: $19 mn
Brand score: 55%
Sponsorships/brand associations: At least 13; Hero Honda, Kingfisher, Royal Challenge, Coca-Cola, Adidas, Fever 104 FM, Orbit, IBN7, CNN IBN, Cricketnext.com, designer Karan Nasir, Buzzintown.com
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from sponsorships:
2008: Rs15 crore
2009: Rs60 crore
Total*:
2008: Rs50 crore
2009: Rs136.5 crore
A balanced team, Sehwag’s popularity generated advertiser interest
The MTI study valued the Delhi Daredevils brand at $19 million (around Rs89.68 crore), the second highest among the eight teams. The reason: A strong squad, a popular brand ambassador (in 2008) and a well-known owner helped Delhi Daredevils create a good awareness and perception about the team, it says.
Even cricket experts hailed Delhi Daredevils as one of the most balanced teams on the field.
Owned by Bangalore-based infrastructure and construction group GMR Holdings Pvt. Ltd, the team established itself as a serious player with strong performances in both the first and second seasons of IPL.
The popularity of captain Virender Sehwag, along with Bollywood actor Akshay Kumar as the face of the team in 2008, helped it build a loyal fan base and generated interest among advertisers.
According to industry estimates, the team generated Rs15 crore in sponsorships in 2008, and this was likely to have increased to Rs60 crore this year, thanks to the deals signed with brands such as Coca-Cola, Fever 104 FM and Kingfisher Airlines.
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DECCAN CHARGERS
Owners: Deccan Chronicle Holdings Ltd
Team captain: Adam Gilchrist
Franchisee fee: $107.01 mn
Current brand value: $11 mn
Current brand score: 44%
Sponsorships/brand associations: At least nine, including Odyssey, Puma, Kingfisher, McDowell’s, Big 92.7 FM, Boomer, Pepsi, Serendipity Tours
Income from central pool:
2008: Rs35 crore
2009: approx. Rs76.5 crore
Income from team sponsorships:
2008: Rs20 crore
2009: Rs50 crore
Total*:
2008: Rs55 crore
2009: Rs126.5 crore
Valuations remained low but win may change things
The team was, indeed, all charged up this year. Beating Royal Challengers by six runs in the final, the Deccan Chargers team not only scored in terms of popularity, but also made its team owners, Hyderabad-based media company, Deccan Chronicle Holdings Ltd richer by the Rs4.8 crore that it won in prize money.
The team’s valuation at $11 million (around Rs52 crore) was, however, not too impressive. The absence of a popular brand ambassador, lower awareness about its owners and fewer marketing and branding efforts prevented Deccan Chargers from building a popular brand, says the MTI study.
However, there was enough advertiser interest in the team this year, with the number of brand associations jumping from five to nine.
The team owners have been keen to sell a strategic stake in the team, but had not found any takers at the price they were quoting. This may now change.
* The total income does not include gate receipts, revenue from merchandising and prize money.
zyakaira notes: this being an official study, we will be using this to work on all things IPL here and at http://twitterone.mobi
All IPL brands have earned 150-200 crores in 2009 edition with 110 million viewers ratifying the IPL’s tag of 8200 crores ($1.3 bllion) for media rights. Now apart from their going public, i feel the potential is such that at least a couple of these franchises like the Daredevils will start earning closer to 300 crores from edition 3
via Brand valuation | How the teams fared
Though there were unfounded rumors, the first owner club of Bollywood Celebrity and Star Preity Zinta, Ness Wadia and others may give away the team for a $260 million payment to the sports denizens. Other First owners like GMR Group and Deccan Chronicle may also be scouting for partners or buyers as larger investments do bring a faster apocalypse. Hero Honda group is likely to continue as flagship sponsor of many World Sports events in Cricket, Olympics and Hockey. A valuation of $260 million is more than 3 times the base price two years back, still sounds conservative and less than the final tab for public or seconds ownership. The sources of the story, priceless. It’s a shame that such a joke was perpetrated on the serious sports audiences. Also, the Royal2020 must recover its negotiations with each Cricket Board as the planned series is again in the malignant eye of the English Board, saving the English from the game.
The Rajasthan Royals co-owned by Raj Kundera, Lachlan Murdoch and chaired by Manoj Badale and Emerging Media were recently valued at $300 million. The team is set to grow the game franchise and take a larger piece of the growing pie. The Royals are on way to owning four more International T20 teams, The Victoria Bushrangers now to be known as the Victoria Royals, The Nashua Cape Cobras, The TNT team that will become the TNT Royals and maybe one more in England or Pakistan. All these teams made it to the Champions League of National Champions / Victors in the first edition of 2009. The Royals will own a sable stake in each of the teams and share revenues and expenses correspondingly with the current owners in each case.
