Abstract
The Indian Premier League - IPL launched in 2008 has achieved a very high level of popularity with more than 140 million TV audiences and a brand valuation of more than 4 billion USD. The high publicity and
glamour filled the franchisee-owned cricketing event has also seen unprecedented money paid as franchise fees, players fees and through advertisement revenue along with scandals of match-fixing.
The business model needs appreciation for integrating a number of complex processes such as entertainment, glamour, marketing, pricing, and hard-hitting cricket. However, the recent couple of seasons indicate a decreasing trend in TV Ratings, reduced audience, fall in advertising rates and withdrawal of franchises. This paper conducts a detailed analysis of the IPL case and examines 10 key issues that threaten the viability of the IPL strategy, the revenue model and if the event can sustain itself. The results indicate that the very high-cost burden for franchise owners means that they undergo losses making their ventures unprofitable. Thus, there is a danger that the event would be forced to shut down or forced to radically alter its avatar. The paper provides some strategic recommendations to overcome these issues and ensure that rational cost structures and expenditures are implemented to make the event viable. Index Terms- IPL strategy, model, workflow, revenue model, viability, sustainability, franchisee I. PAST INTRODUCTION he IPL T20-20 event has become very successful in cricket-crazy India. It represents a fast paced, growing and emergent India that seeks glamour, entertainment, and good cricket. The game has seen an unprecedented amount of player fees, high
franchise fees, glamour and entertainment, and its success is widely accepted. However, the sheen seems to be wearing off as seen in reduced viewership and TV ratings. This case study examines the event from the business lens. The paper raises and answers ten key issues about the game, its viability and the future. Also covered in this case study is an analysis of its unique features, the business and revenue model and entertainment aspects. The case study has four parts and part one and two presents ten issues. Part one provides a background and literature review, part two gives the business analysis of IPL, part three gives answers to the 10 issues that have emerged from the discussions and part four gives the conclusions and recommendations.