My Two Cents

July 17, 2008

The Indian Market

Filed under: Uncategorized — homerblogger @ 3:51 pm

Sometime ago. I had written this

1. Why is it so difficult for the rest of the world to understand that their opinion vis a vis the IPL matters not a jot! The only people who can make or break the IPL are the Indians. More specifically, the Indians residents in the 8 cities that make up the ICL teams.

and

4. The BCCI and the individual franchises are going to have a pretty hard time selling the game to their constituents. And not because of the marquee names. The ICC World XI was full of marquee names and we all know what happened to the Super Tests. For the next two years, with the team rosters already set, I wonder what the degree of attachment will be for a team comprising of fewer local and national players and more of international players.

thought that I harked back to when I red the following paragraph from Andrew Miller’s article on the EPL

Most crucially of all, the English time zone (as football has discovered) is tailor made for the Indian market, with matches beginning at 9.30pm India time and ending shortly past midnight. Set against that, however, is the difficulty of persuading people to watch. The beauty of the IPL was the richness of the talent in each side – with only eight franchises to choose from, the best players were on show in each and every game.

Now, from a County and EPL perspective, the second point ( of selling the game to their constituents) is a non starter – because of the way the county teams and structured with their foreign imports and the Kolpak players.

What is crucial is the first point.

That the EPL will be a success is not in doubt – 5 years of domestic 20/20 cricket has shown that there are enough patrons willing to spend money and time to have 3 hours of solid entertainment.

But for the EPL to become a real money spinner, the Indian market becomes crucial – get enough eyeballs in India and you have the advertisers queuing up to pay top dollar – unlike the IPL where the English viewership did not make a significant difference to the overall revenues of the enterprise.

And there are plenty of mitigating factors. Here are a few

  • Season 2010 sees England host the West Indies and Bangladesh ( with Australia thrown in for good measure). India, in the meantime, will play the Champions Trophy and the Asia Cup along with the IPL as a lead up to the inaugural EPL.Season 2011 has the World Cup on the sub continent followed by India’s tour to England for 4 tests and 5 ODIs.Because of the way the first two seasons are structured, even if the ECB and the BCCI are willing, Indian player availability is suspect.And if the Indians don’t play, Indian spectators don’t watch – simple as that.
  • Because of the structure of the FTP and because of the Champions Trophy in 2010 and the World Cup in 2011 ( along with the IPL), a lot of the advertising money will be concentrated on these three events. Indian advertising revenue for the EPL – little to none.
  • 57 games in 25 days with a TV window of between 9:30 PM and 12:00 AM – even if India is agog with EPL fever, how many eyeballs and for what games?
  • Ownership of the teams is by the Counties, unlike the IPL where the free market forces are the final arbiters. Given that there will be a profit sharing mechanism in place ( 18 counties ahead of 9 city based teams is proof enough that there will be a profit sharing dynamic with all of the counties getting a piece of the pie) and given that counties are given annual stipends (?), and given that there will be a salary cap in place, where is the motivation for the counties to field the best teams or to be ultra competitive? I mean, if a second division team stands to earn twice what it does currently just by showing up, what is the motivation to do anything more – just cap the costs to the barest minimum, bring in the money allocated by the ECB and show profits.
  • The BCCI – The ECB has been playing hard ball with English player participation in the IPL. Count on the BCCI to reciprocate in kind.And, if the BCCI can persuade the BCB and the PCB to join in, the entire Asian contingent in the stands goes. And with it goes the noise and the color and the vibrancy Asian crowds bring to the cricket field. And that is just the crowd factor.TV rights is another sphere where the BCCI can screw the ECB. And screw it will.
  • Zimbabwe – the ECB reversed it stand on the Oval test of 2006, the Indians bailed them out vis a vis the World Twenty20 next year, god knows what other compromises were made – there is a blow back waiting to happen.
  • Allen Stanford – and his annual quadrangular featuring the West Indies and England to be held in England. Try fitting all of that ( in addition to the FTP) in a cricket calender that extends from May until August ( September would mean clashing with the other EPL).

I am all for the ECB to make money- that should never be the monopoly of a select few.

But now is a good time as any to remind ourselves that when Jagmohan Dalmiya took over as the head of the ICC in 1996, the ICC was nearly 15-20,000 pounds in the red.

20 Comments »

  1. Ownership of the teams is by the Counties, unlike the IPL where the free market forces are the final arbiters.

    Really? Was the bidding all that transparent?

    Comment by John — July 18, 2008 @ 6:39 am

  2. Ownership of the teams is by the Counties, unlike the IPL where the free market forces are the final arbiters.

    Really? Was the bidding all that transparent?

    Comment by John — July 18, 2008 @ 1:39 am

  3. John,

    Wasnt it?

    Cheers,

    Comment by Homer — July 18, 2008 @ 3:24 pm

  4. John,

    Wasnt it?

    Cheers,

    Comment by Homer — July 18, 2008 @ 10:24 am

  5. They were bankrupt when he took over… what did they do with all that money… oh yeah… valid points on your arguement… i doubt there is going to be any indian eyeball… things have become saturated.

    Comment by scorpicity — July 18, 2008 @ 4:23 pm

  6. They were bankrupt when he took over… what did they do with all that money… oh yeah… valid points on your arguement… i doubt there is going to be any indian eyeball… things have become saturated.

    Comment by scorpicity — July 18, 2008 @ 11:23 am

  7. Actually I think the EPL can survive only through the English viewers. They wouldn’t need India to tune in… their gate money would go through the roof I believe..

    John, what are you suggesting? Were the team owners handpicked or rather pre-decided?

    Comment by Q — July 20, 2008 @ 10:56 am

  8. Actually I think the EPL can survive only through the English viewers. They wouldn’t need India to tune in… their gate money would go through the roof I believe..

    John, what are you suggesting? Were the team owners handpicked or rather pre-decided?

    Comment by Q — July 20, 2008 @ 5:56 am

  9. There’s a saying the first man to the shell gets the oyster and the second one just the shell.

    IPL was a huge success bcz it was a new concept everybody was excited,the boards,the players and the viewers all over the world and this made the tournament a huge success, I agree with Q Epl can and will survive on its own, it might not be as popoular in Subcontinent as its target market is only the Goras,I think they have enough market to survive financially.

    But it would be interesting to see how IPL holds up against new competition, especially when next year Australia and Pakistan are also set to launch their leagues.

    Comment by Wasim — July 21, 2008 @ 6:37 pm

  10. There’s a saying the first man to the shell gets the oyster and the second one just the shell.

    IPL was a huge success bcz it was a new concept everybody was excited,the boards,the players and the viewers all over the world and this made the tournament a huge success, I agree with Q Epl can and will survive on its own, it might not be as popoular in Subcontinent as its target market is only the Goras,I think they have enough market to survive financially.

    But it would be interesting to see how IPL holds up against new competition, especially when next year Australia and Pakistan are also set to launch their leagues.

    Comment by Wasim — July 21, 2008 @ 1:37 pm

  11. scorpi,

    there will be some Indian eyeballs but not sufficient to raise the roof :)

    Cheers

    Comment by Homer — July 22, 2008 @ 3:31 am

  12. scorpi,

    there will be some Indian eyeballs but not sufficient to raise the roof :)

    Cheers

    Comment by Homer — July 21, 2008 @ 10:31 pm

  13. Q,

    Twenty20 has brought in money for the counties. The EPL will bump up those numbers.

    But we are talking scale – the IPL, in its first year,generated profits for atleast 3 of its franchises – Sony is now planning to bump up ad prices by more than 50% in its second year.

    The Sky Sports contract expires in 2009 – what is the quantum by which the ECB will sign the new contract ( considering it is for 5 years and includes the Stanford Derby AND the EPL) over the existing contract?

    Cheers,

    Comment by Homer — July 22, 2008 @ 3:36 am

  14. Q,

    Twenty20 has brought in money for the counties. The EPL will bump up those numbers.

    But we are talking scale – the IPL, in its first year,generated profits for atleast 3 of its franchises – Sony is now planning to bump up ad prices by more than 50% in its second year.

    The Sky Sports contract expires in 2009 – what is the quantum by which the ECB will sign the new contract ( considering it is for 5 years and includes the Stanford Derby AND the EPL) over the existing contract?

    Cheers,

    Comment by Homer — July 21, 2008 @ 10:36 pm

  15. Wasim,

    The biggest problem the IPL faced was getting people to identify with the teams ( franchises).

    Today, the brand recognition is there. We are now talking of deepening and broadening that identification – that will be the challenge in the second year.

    If the IPL retains the same viewership numbers as it did in its first year, that itself will point to increased profits for the franchises and the BCCI.

    Pakistan will pose a problem if it overlaps with the IPL because the viewership demographic and geography will be the same as the IPL. Australia wont matter.

    And the competition is good – for the players because it will allow for more revenue streams for them and for the viewing public because of the variety.

    And it could goad the PCB and the BCCI to improve TV coverage and ground facilities to retain or increase their audiences :)

    Cheers,

    Comment by Homer — July 22, 2008 @ 3:49 am

  16. Wasim,

    The biggest problem the IPL faced was getting people to identify with the teams ( franchises).

    Today, the brand recognition is there. We are now talking of deepening and broadening that identification – that will be the challenge in the second year.

    If the IPL retains the same viewership numbers as it did in its first year, that itself will point to increased profits for the franchises and the BCCI.

    Pakistan will pose a problem if it overlaps with the IPL because the viewership demographic and geography will be the same as the IPL. Australia wont matter.

    And the competition is good – for the players because it will allow for more revenue streams for them and for the viewing public because of the variety.

    And it could goad the PCB and the BCCI to improve TV coverage and ground facilities to retain or increase their audiences :)

    Cheers,

    Comment by Homer — July 21, 2008 @ 10:49 pm

  17. Homer, the new Sky contract or whichever channel it is with will be signed for much much more than the previous one.. probably in multiples of 10…

    Comment by Q — July 22, 2008 @ 5:09 am

  18. Homer, the new Sky contract or whichever channel it is with will be signed for much much more than the previous one.. probably in multiples of 10…

    Comment by Q — July 22, 2008 @ 12:09 am

  19. can i descend down on this converastion? maybe not bcos uj mite think its too eclectic.. now there, eclectic is too tough a word is it uj?

    Comment by namya — July 22, 2008 @ 8:14 pm

  20. can i descend down on this converastion? maybe not bcos uj mite think its too eclectic.. now there, eclectic is too tough a word is it uj?

    Comment by namya — July 22, 2008 @ 3:14 pm


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