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BCCI is set to make revenues of Rs 1,000 crore from IPL 2011, according to a report by institutional equity research firm IIFL. Of this, the bulk will come through franchisee fees of Rs 656 crore. An estimated Rs 198.5 crore will come to BCCI from broadcaster SET Max. Central sponsorships account for close to Rs 53 crore flowing into BCCI's coffers, while the online rights for this edition will account for Rs 65 crore, says the report.
Thanks to their significantly higher bid amounts, Rs 316 crore in franchisee fees will come from the two new franchisees alone — Pune Warriors and Kochi Tuskers. Franchisee fees are paid by the team-owners to the BCCI in equal instalments over 10 years. In 2010, the revenue from franchisee fees was about half that in this edition.
For broadcaster SET Max, the report suggests that advertising revenues will touch Rs 939 crore, largely because of pre-selling 80 per cent of the inventory on the basis of client expectations from the property's previous edition. IIFL notes that 80 per cent of the inventory was pre-sold at Rs 5 lakh per 10-second spot. It further estimates that the remaining inventory is likely to sell at Rs 3.5 lakh per 10-second spot, thanks to a 20 per cent y-o-y drop in ratings.
Media planners informed Business Line that while the ratings have dropped below expectations, the rates for the remaining inventory would not drop to the low of Rs 3.5 lakh per 10-second spot as suggested by the report.
According to sources, the spot rates for remaining inventory went up to as high as Rs 6.25 lakh in end-April, depending on the teams, match timing and the day of the week. While pre-buys were sold at Rs 5.25 lakh per 10 seconds, the remaining inventory is estimated to average out at Rs 5.7 lakh. Each IPL match allows 45 minutes of ad air time. According to the report, the drop in ratings is attributable to ‘viewer fatigue following the euphoria of the World Cup, and also large-scale personnel changes in the teams which has diluted some of the loyalty built up over previous seasons.
The fourth edition of IPL has 70 brands on board, “but a lot of surrogate advertising and local brands which would not otherwise advertise on television,” observes the report. Brands riding on IPL 4 include McDowell's, Royal Stag, Carlsberg, Kingfisher, Royal Challenge, White Mischief and White and Mackay.
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