IPL has been a pioneer for creation of leagues in badminton and hockey: KPMG-CII report

The IPL has inspired the creation of several other franchise leagues, like the IBL, HIL and IPTL

The recent report released by KPMG-CII on Indian sports demonstrates the roaring success that the Indian Premier League has enjoyed since its inception, and the positive effect it has had on various other sports in India.

According to the report titled “Business of Sports – Shaping a Successful Innings for the Indian Sports Industry”, the IPL has been a pioneer for national and state level leagues in not only cricket, but also other sports like football, badminton, hockey and most recently, tennis.

“Reasonable success of the Indian Badminton League (IBL) and the Hockey India League (HIL) – sports that don’t enjoy the same popularity as cricket – has shown that leagues are a good medium for generating interest and driving sports culture besides the potential RoI. These leagues may therefore not only benefit their respective sport monetarily, but also boost their uptake in the country,” the report states

The success of Lalit Modi’s creation can be measured by the fact that it is more profitable and on a larger scale than the Airtel I-league, which has struggled to find viewership and sponsors despite it being one year older than the IPL.

The report also states that the IPL has now become the flagship brand of the BCCI considering the revenue it earns from the project every year.

“It has managed to attract a majority of the top players in the sport and has also extended its presence to places outside of its country of origin. IPL has become a highly profitable property for BCCI and it has also been able to maintain high TV ratings (TVR) since its inception,” the report notes.

The IPL, according to KPMG and CII, is a great prototype of the marketing that such a tournament needs, especially to attract premier foreign talent to increase the quality of the event, and thus the viewership.

“An effective marketing campaign is another critical factor in increasing a league’s popularity. Again, involvement of various celebrities as brand ambassadors or owners in IPL contributed to increased viewer interest in the league. In fact, the collaboration of the Indian entertainment industry and cricket has aided in making the IPL a commercial success. The length of games and timing of matches are also some other important factors, as gathered from the IPL experience.”

As per the financial statements, the IPL franchises earn Rs. 1 to 3 crore per match subject to occupancy and ticket prices which range anywhere between Rs. 500 to Rs. 20,000. The teams get 10-15 per cent of their revenues from gate receipts.

The report goes on to explain how the sporting ecosystem in the country could improve with the introduction of more IPL-like leagues for various sports. It also identifies key issues in the sports ecosystem and explores measures to develop a private investment-led sporting scenario in the country – one that helps imbibe a sporting culture and achieve the country’s vision of excellence in sports.

“The business of sports in India is yet to pick up steam and this could largely be driven by the introduction of more leagues on the lines of the IPL in cricket,” the report states.