Business Model Case Study

Indian Cricket (B): Financial Feasibility of Indian Premier League (IPL) Franchisee

OR

Abstract:
Cricket, as a business, emerged during the late 1970s with the onset of Kerry Packer’s World Series Cricket that re-created the game of cricket with colourful clothing, night match schedules and attractive pay packages for players. However, the series soon faded out with International Cricket Council (ICC) continuing to dominate the cricket world. Three decades later, Indian Cricket League (ICL) tried to bring in the same magic of Kerry Packer through T20 cricket format. However, Board of Control for Cricket in India (BCCI) retaliated with its own series, Indian Premier League (IPL). Compared to ICL, IPL was an instant hit as it enjoyed the support of ICC and thus could attract the best global players and sponsors. The enormous amount of money and publicity they gathered has revolutionised the cricketing world. Nevertheless, it remains to see whether the novelty of fast-paced sports entertainment is there to stay or wears off, thereby deciding the fate of franchisees who have shed millions of dollars.

Pedagogical Objectives:

• To discuss the business of sports
• To discuss the various successful sports leagues and their business models
• To discuss and analyse the business and revenue models of IPL and its sports franchises
• To evaluate the financial feasibility of the IPL franchises
• To perform a break-even analysis of IPL franchises
• To debate on the sustainability of IPL

Keywords : Indian Cricket, Board of Control for Cricket in India (BCCI), Indian Cricket League (ICL), Monopoly, Competition, Economics of Sports, Commercialising Cricket, Indian Premier League (IPL), Franchisee Model, Financial Feasibility