Archive for January, 2008

New Zealand board attacked for Bond decision

Written by karan on Wednesday, January 30th, 2008 in IPL News.

Cricinfo staff

Heath Mills, the executive manager of the New Zealand Cricket Players Association (NZCPA), has expressed disappointment at New Zealand Cricket’s (NZC) decision to terminate Shane Bond’s contract and called on the authorities to address the situation to avoid international cricket being devalued. He has also accused NZC of acting to appease the Indian board.

Mills said that Bond’s contract with NZC allowed him to play for third parties when his NZC commitments allowed, and that there were no restrictions on what events he could participate in. “Three months ago Bond sought and was granted consent by NZC to sign with the Indian Cricket League (ICL) in line with his playing contract,” Mills said. “Further to that Bond ensured his ICL contract released him for international duties if required.

“In this way his ICL contract did not affect his ability to play for New Zealand or impact on international cricket. NZC has become increasingly concerned at the implications should they select Bond, or any other player, to represent New Zealand if they are contracted to the ICL. These concerns principally relate to NZC’s relationship with the Indian board (BCCI) and perceived risks to future revenue streams should the BCCI take a stand against NZC given the ICL is not sanctioned by that organisation.”

NZC has also recently been made aware of an ICC operating manual regulation that purports to not allow them to release players to participate in non-sanctioned events. However, Mills said this regulation formed no part of the contracting arrangements with players and had never been communicated to them by the ICC or NZC.

“It has no application within the current player contracting arrangements between NZC, the NZCPA and the players. Attempting to retrospectively introduce and impose a regulation which amounts to a restraint of trade is simply unfair and inappropriate, and it compromises the freedom of contract that is preserved for our players under their agreements.

“The NZCPA fully understands the position NZC has found itself and we do not want them to damage relationships with the BCCI and other ICC members. However, pressure to preserve these relationships should not be placed above preserving New Zealand’s right to select its best players to represent the Black Caps, the rights and aspirations of New Zealand citizens to represent their country and the legal rights of players under their signed playing contracts.

“Given the issues Bond has decided to stand aside from international cricket at NZC’s request. The NZCPA supports this decision as it enables him to preserve a strong relationship with the board of NZC in the hope that he can again contribute to the game in New Zealand at some stage in the future. However, this is not a decision that he was compelled to make and under our contract system negotiated with NZC it remains open for any player to play for a third party like the ICL and still remain contracted to and play for NZC.

“It is this situation that leaves the NZCPA concerned for cricket in New Zealand. We urge the ICC to step in and attempt to influence this situation and find a way to manage third party investment in our sport before we lose more players both here and around the world, and international cricket has been damaged further. History has shown that professional sports cannot afford to become split. It is absolutely vital that international cricket remains the pinnacle of the sport and that we ensure the best players are playing.”

 

Sourav-Sachin-Dravid will be paid higher than others

Written by karan on Sunday, January 27th, 2008 in IPL News.

Indian leading batsmen Sourav Ganguly, Sachin Tenduakar, Rahul Dravid and MS Dhoni will attend in the inaugural IPL cricket tournament that will be started from 18 April 2008. IPL authorities are going to mark them as an icon player and they will be paid higher than the others players.

Sources said BCCI has shortlisted five cricketers ? Sachin Tendulkar, Sourav Ganguly, Rahul Dravid, MS Dhoni and Yuvraj Singh ? who will be called “icon players” and will be the highest paid players in the league. They will not be auctioned if they have a city team.

IPL chairman Lalit Modi confirmed, “This is one of the BCCI suggestions and it awaits the nod of the IPL board. The player bids will take place next month.” A top BCCI official added that regular members of the Indian team will probably make Rs 1.2 crore to Rs 2 crore from the 44-day event, with the icon players getting the highest amount.BCCI stands opposite ICL but I think it is making another ICL by stabling IPL with their activities

 

IPL valued at $1.749 billion, with bids to own teams

Written by karan on Friday, January 25th, 2008 in IPL News.


Televisionpoint.com Correspondent

The Indian Premier League (IPL), formed under the Board of Control for Cricket in India (BCCI), drew a massive response with some of the biggest names in not just business, but also the entertainment industry, winning bids to own teams in the inaugural Twenty20 venture.

The cricket league is modeled on football’s English Premier League. India’s top industrialists, like Mukesh Ambani and Dr Vijay Mallya, and film stars Shah Rukh Khan and Preity Zinta won some of the bids. The Deccan Chronicle group was in the thick of the action and cornered the franchise for the Hyderabad team.

After an extensive wait, governing council chairman Lalit Modi announced the names of the winning bidders, who shelled out big money to own the teams. The UB Group chairman, Dr Vijay Mallya, won the bid for his home team Bangalore for $111.6 million as his dream of being associated with the Mumbai team came to an end when Reliance Industries Ltd chief Mukesh Ambani topped the bids for the Mumbai team with $111.9 million. Dr Mallya will still be happy as he won the bid for his home team, Bangalore.

Actor Shah Rukh Khan, along with Juhi Chawla and Jay Meath, won the bid for Kolkata for $75.09 million. Actress Preity Zinta and her boyfriend Ness Wadia were declared the winning bidders for the Mohali team for $76 million. Among the high-profile names of winners were GMR Holdings, who won the bid for the Delhi team ($84 million), India Cements for Chennai ($91 million) and Deccan Chronicle for Hyderabad ($107.01 million). Emerging Media won the bid for the Jaipur team for $67 million.

Said Modi: “We can say that all the hard work has paid off and that the IPL is here to stay.”

The bids by ICICI, Sahara and Futures Group were disqualified as late entries. The process makes IPL richer by about Rs 3,000 crores (or $724 million) even before it launches its Twenty20 tournament in April. The eight successful bids, for a period of 10 years, have enriched the BCCI’s already swelling coffers and added to its share of the media rights sold for $1.026 billion, which would fetch the BCCI $100 million annually, according to BCCI secretary Niranjan Shah.

Shah Rukh Khan said he would like to see former India captain Sourav Ganguly leading his outfit in the Indian Premier League. He added, “I have already decided on the entertainment part, but we have not decided on the core and content of the team. We want to put together a winning combination, for which I would definitely seek advice of the experts. I don’t have anyone in mind right now but we would seek expert views on that,” he said.

“I hope Ganguly leads my team,” said King Khan, adding, “It’s not about money. The idea is to nurture youngsters and give them more platform for playing cricket. I have a huge passion for the game and I want to be part of every sport. I guess I would have to make more films to ensure we can run the team.”

Preity Zinta, too, sounded excited about owning the Mohali team. “All I want to say is that it was fantastic and a great opportunity. And I’m happy that we won the bid,” she was quoted by PTI as saying.

Liquor baron Vijay Mallya said, “I was the under-bidder for Mumbai but I’m happy I won the Bangalore team.” Asked if Shah Rukh Khan was bidding just to use cricket as a means to promote his films, Modi said, “Shah Rukh loves cricket and that’s why he has invested his money. It has nothing to do with film promotions. We have heard similar complaints in the past but the board has never endorsed those views.”

Fans of some of the contracted international players may be disappointed in the first season as they would skip the Twenty20 tournament, which begins April 18, owing to national commitments, but Modi said the pool was big enough to compensate. “A team needs only four players from abroad and we already have a huge number of them contracted with us. You will have enough of them from day one,” he added.

With Sony and World Sport Group having already won the global media rights over 10 years with a $1.026 billion bid, the league is now worth $1.749 billion (Rs 6996 crore). The world’s top 80 players (based on ICC rankings) will be contracted as IPL cricketers.

A total of 59 matches are to be played over 44 days, under floodlights during television prime time and under ICC World T20 rules. Teams would earn 80 per cent of TV revenues in the first five years and 60 per cent from the next five years. They will earn 60 per cent of sponsorship revenues in the first 10 years and 100 per cent of local revenues.

IPL to generate city-based loyalty

Written by karan on Thursday, January 24th, 2008 in IPL News.

TNN / Indranil Basu
 
With top Indian players set to enjoy big pay-cheques from the IPL, the organisers are likely to use them to generate local affiliations in the major cities. “We have to make sure that there is city loyalty in the tournament. If Ganguly plays for a Mumbai team, it will not generate local support, which he will enjoy in Kolkata,” the BCCI official said.

Bidding for the eight franchisee teams will be held in Mumbai on January 24. Industry sources said that 13 bidders deposited refundable guarantees of $5 million (Rs 20 crore) each to the Indian cricket board on Tuesday. According to BCCI sources, IPL is in the process of preparing a long list of base price tags of every Indian cricketer, which will be handed over to those who win the bids.

BCCI secretary Niranjan Shah said, “We are still working on the players’ payment. It’s too early to comment on the issue. At the same time, it’s very tough to say who is going to get how much when the auction is yet to take place.”

It was also revealed to TOI that some of the board officials met the senior cricketers of the team during the India-Pakistan Test match in Kolkata last year and discussed the payment issue at length. “The icon cricketers have agreed to the pay package we have offered to them,” a BCCI official informed on Tuesday.

IPL franchisee will not make money initially

Written by karan on Thursday, January 24th, 2008 in IPL News.

TNN / Indranil Basu

As the likes of Shah Rukh Khan, Ambani brothers and others from India Inc bid to become franchisees of the Indian Premier League on Thursday in Mumbai, sources in the industry say that the Twenty20 league will not be a profitable venture for at least the first two years.

Like any other business, it will take at least two to three years to break even, if the calculations are done on the base bid price of $50 million for 10 years. “But, thereafter, it has huge potential in the Indian market,” the source said. According to the IPL tender document, the franchisee revenue is divided into two sections. The first is centralised revenue under which falls the title sponsorship, media right and official umpires’ sponsorships.

The second is franchisee revenue which primarily deals with team naming rights, team shirt sponsorship and ticketing revenues. Based on the calculations of the media rights, some of the bidders have reached the conclusion on Wednesday evening that earnings from the sale of different rights are not going to exceed more than $8 million (Rs 320 crore).

Hence, the franchisee will really have some spending to do in the first year after winning the bid. The tender says that the franchisee will have to bear the minimum cost of the players’ salary that’s between $3.2 million to $4 million. Then, there are other expenses like travel, accommodation, office and support staff, team management, coach, training and preparation, insurance, ground expenses and floodlights, marketing and promotional cost.

Moreover, the bid amount, which will be paid to the IPL, will also be accounted for expenditure. This means that if a franchisee buys a team for $60 million for 10 years, that team will have to shell out an amount of $6 million per year. In all probability, the expenditure will go up to $12 to $13 million.

Sources close to the bidders reveal that a franchisee is willing to undergo losses worth at least $4 million in the first year. Hence, to make it lucrative for the franchisee, the IPL has granted a 10-year ownership initially. From the 11th year, team owners will have to pay a certain percentage of their revenue to the BCCI to get the license for life.

“It is natural for any business to break even in a couple of years. IPL is a big venture and it’s certainly going to do wonder to the world of cricket,” a top IPL official told TOI on Wednesday. If that happens, Indian cricket will surely benefit from the 10-year event on and off the field.

Mukesh, Mallya top bidders for IPL

Written by karan on Thursday, January 24th, 2008 in IPL News.

Eight franchised city-based teams will feature in the BCCI-backed Indian Premier League (IPL). The star-studded 59-match Twenty20 cricket competition will be held over 44 days in April and May.BCCI vice-president and IPL chairman Lalit Modi announced in Mumbai on Thursday that Mumbai, Delhi, Kolkata, Chennai, Bangalore, Hyderabad, Mohali and Jaipur would be the teams.

Mukesh Ambani’s Reliance Industries Limited won the Mumbai franchise, with the most expensive bid of $111.9 million. Vijay Mallya’s UB Group was close behind with a $111.6 million bid for Bangalore.

The other bids were won by Deccan Chronicle ($107 million for Hyderabad), India Cements ($91 million for Chennai), GMR Group ($84 million for Delhi), Shah Rukh Khan’s Red Chillies Entertainment ($75.09 million for Kolkata), Preity Zinta, Ness Wadia, Karan Paul and Dabur’s Mohit Burman ($76 million for Mohali), and Emerging Media ($67 million for Jaipur).

The tournament has a pool of nearly 80 international cricketers, and the franchisees will take part in an auction for the players next month. The Sony Television network and the Singapore-based World Sports Group have purchased the event’s television rights for the next 10 years for $1 billion.

Players can’t have stake in IPL teams: BCCI

Written by karan on Thursday, January 24th, 2008 in IPL News.

As it received an overwhelming response to the offer of franchise for owning cricket teams in the Indian Premier League, the Cricket Board today made it clear that no current player can have a stake in a company owning any of the teams.

The BCCI stand came in the wake of media reports that star batsman Sachin Tendulkar was in talks for a joint bid with the Future Group, which has expressed interest in becoming a franchisee of the BCCI’s Twenty20 venture. However, the company itself maintained that reports about Tendulkar were mere speculation.

“He is playing, so where the question of buying a team comes from? When someone is playing, how can he buy a team?” BCCI Vice President Rajeev Shukla, who is also a member of the IPL Governing Council, told ‘Times Now’.

His views were shared by BCCI Joint Secretary MP Pandove who said, “Any player contracted with the Board can’t have stakes in participating teams.”Shukla told reporters at the BCCI briefing that the IPL had received overwhelming response from companies.

“We will first decide the media rights for the league before taking up the issue if franchise. All I can say is that we have received overwhelming response,” he said.

According to reports, industrialists Vijay Mallya and Anil Ambani were interested in buying franchise, as was Hollywood star Russell Crowe.Lalit Modi, BCCI Vice President and the mastermind behind the high-profile league, however, refused to comment on the issue.

“I have no comments to make on media reports. Whatever clarifications we have to issue will be done at a later stage,” Modi told PTI.

Future Group, which had sponsored the recent home series against Australia, confirmed that it was interested in buying one of the teams in the IPL but said reports of Tendulkar being a minority stakeholder were “purely speculative”.

“Yes, we are interested in sponsoring a team in the IPL. However, we have not spoken to anybody or firmed up our plans as yet since we are still unclear about the structure and the format of the league,” a Future Group spokesman said.

Sony Entertainment Television has got the Broadcast right of IPL

Written by karan on Thursday, January 24th, 2008 in IPL News.

After a bid, Sony Entertainment Television has got the IPL broadcasting right. The Twenty20 formatted IPL will commence on April. Sony Entertainment Television and sports marketing and management agency World Sports Group (WSG) have won the broadcasting rights for the Indian Premier League (IPL) for $1.03 billion (around Rs 4,000 crore) for ten years.

BCCI is pleased with Sony Entertainment Television and sports marketing and management agency World Sports Group (WSG) that it has got the right to telecast the IPL tournament on April.

Sourav-Sachin-Dravid will be paid higher than others

Written by karan on Thursday, January 24th, 2008 in IPL News.

Indian leading batsmen Sourav Ganguly, Sachin Tenduakar, Rahul Dravid and MS Dhoni will attend in the inaugural IPL cricket tournament that will be started from 18 April 2008. IPL authorities are going to mark them as an icon player and they will be paid higher than the others players.

Sources said BCCI has shortlisted five cricketers ? Sachin Tendulkar, Sourav Ganguly, Rahul Dravid, MS Dhoni and Yuvraj Singh ? who will be called “icon players” and will be the highest paid players in the league. They will not be auctioned if they have a city team.

IPL chairman Lalit Modi confirmed, “This is one of the BCCI suggestions and it awaits the nod of the IPL board. The player bids will take place next month.”

A top BCCI official added that regular members of the Indian team will probably make Rs 1.2 crore to Rs 2 crore from the 44-day event, with the icon players getting the highest amount.BCCI stands opposite ICL but I think it is making another ICL by stabling IPL with their activities

IPL franchise rights bidder winners announced

Written by karan on Thursday, January 24th, 2008 in IPL News.

http://televisionpoint.in/2008/01/24/ipl-franchise-rights-bidder-winners-announced/

MUMBAI: The BCCI’s Indian Premier League team franchise rights winners have been announced.They are as follows: Mumbai has gone to Mukesh Ambani’s Reliance Industries; Delhi to GMR Group; Kolkata to Bollywood badhsah Shah Rukh Khan’s Red Chillies Entertainment; Bangalore to Vijay Mallya’s UB Group; Hyderabad to Deccan Chronicle; Jaipur to Emerging Media; Chennai to India Cements; and Mohali to Preity Zinta and Ness Wadia.

A total of 14 bids came in the final list, of which three - ICICI Ventures, Kishore Biyani’s Future Group and Sahara Hospitality - were disqualified.The minimum bid price for the eight team franchises was $50 million but all the IPL bids were well over that with the highest being for Mumbai at $ 111.9 million.

GMR got Delhi for $ 84 million, Mumbai was won by Mukesh Ambani for $ 111.9 million, Chennai went for $ 91 million, Bangalore for $111.6 million, Mohali for $ 76 million, Jaipur for $ 67 million, Hyderabad for $107.01 million and Kolkata for $75.09 million.

Each Franchisee bid can own teams in any eight of the 12 cities that satisfy the eligibility criteria. The next step involves the players. The BCCI says that IPL has contracted the top 80 players according to the ICC rankings. The IPL player auction will be held next month and will allow each franchisee to bid for the Indian team and overseas players contracted by the IPL. A maximum of eight overseas players will be allowed per Franchisee.

Each franchisee has the right to market their team sponsorship rights. The franchisees, in consultation with IPL will finalise the appropriate names for the teams. Team names will be associated with the city or area they are based in. All teams will play one Home and one Away match against each of the other participating teams.

In addition to the marketing benefits that accrue to IPL Franchisees, each Franchisee will have a share of central revenues and local revenues. The franchisees will get 80 per cent of TV revenues in the first five years and 60 per cent from the next five. The franchisees will also get 60 per cent of sponsorship revenues. The BCCI adds that the franchisees will get all local revenues. These will come from many sources including gate revenues, franchisee shirt sponsorship, local sponsorship, licensing programme and uniform merchandising.

In terms of IPL sponsorships, the BCCI will look for a title sponsor, 4-6 Official Partner sponsorships, Umpire sponsorships and IPL Team Uniform supply.

The tournament will begin on 18 April. There will be 59 matches spread over 44 days, with two matches every Saturday and every Sunday The tournament will culminate with semi finals and the Grand Final, all played in one city over one weekend All matches will be played under floodlights which is television prime-time. In terms of production the BCCI says that four crews will cover the IPL using the latest equipment and standards.

In terms of marketing of the IPL it had sought presentations from world class advertising agencies for selection as its creative agency and then chose Ogilvy. Mindshare will be doing the media planning/buying.



Site Navigation