Television

'We will get an opportunity to build our brand in the international arena of cricket' : Amrit Mathur - GMR Sports CEO

http://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2015/12/02/Amrit%20Mathur.jpg?itok=cV1BcWC3

The drama over, it is back to business. As the Indian Premier League (IPL) takes refuge in South Africa to play out its second edition, the team owners are readying their new plans to size up their revenues.

GMR Sports, the owner of Delhi Daredevils, is trying to figure out how to make up for the revenue loss from ticketing sales. The spotlight is on sponsorship revenues.

In an interview with Indiantelevision.com's Anushree Bhattacharyya, GMR Sports CEO Amrit Mathur talks about the opportunity that South Africa throws up in establishing the Delhi team franchise as a brand in the international arena of cricket.

Excerpts:

GMR Sports was aiming at a 20 per cent revenue growth from sponsorship and ticketing. Now with IPL being shifted to South Africa, will that be achievable?

No, very unlikely. With ticketing revenues under pressure, it will be difficult to reach the target. Sponsorship will be the only avenue open for us to actually earn. Also, with the tournament moving out of the country, the business model in terms of cost and revenue sharing changes.

How does the revenue pattern shift dramatically?

Till last year, IPL was a tournament organised by the eight franchises. Out of the total 59 matches, 56 matches were run by the franchises while IPL organised the two semi-finals and the final. But for this year, all the matches will be organised by IPL and the BCCI. So unlike last year where each franchise was clear about the cost model, (for example, the franchise knew it was to organise seven matches and could size up the costs of organising them), it is all uncertain now of how much we as franchises have to bear.

We also don't know how the revenue will be shared this time. Till last year, we knew that the central pool contributes revenues of about Rs 320 million. Now it is possible that the IPL may add the ticket revenue to the central pool to share it with the franchises. So the revenue from central pool might increase this time. It will, thus, depend on the revenue share model the IPL finally decides upon.

Which are the areas where you feel the costs will increase for the franchises?

Since the franchises have been told that it would be a centrally managed tournament, the IPL is expected to bear all the costs. But the main cost will depend on the financial structure of the facilities being made available - including the ground, the infrastructure, availability of ground for practice, etc. Now IPL will have to discuss these arrangements with the South Africa cricket board and figure out the expenses. As owners of teams, we have an idea of what the games would have cost in India. But we have no idea of what it would be like outside. The cost of travel and the hotels will be relatively minor.

What if the IPL asks the franchises to bear a certain portion of the costs?

We will go by the consensus approach. We understand that it's an extraordinary situation. So if there is a cost attached to the tournament, I am sure everybody will sit together and find out a way.

On the sponsorship front, GMR Sports has roped in Coca-Cola, UB, Hero Honda, Religare, adidas and Kingfisher. What has been the progress on the two slots that are still lying vacant?

We are trying to close the last two sponsorship deals as soon as possible. However, the last couple of weeks had been uncertain and there were doubts about the tournament being played. Due to this, we had put on hold our talks with the sponsors. Now that the dates and venue have been announced, we are hoping that the interest for the property will revive.

'We are unlikely to reach our target of 20 per cent revenue growth this year. Ticketing revenues will be under pressure'

With the game shifting outside India, are sponsors looking at renegotiating their old deals?

No, not so far. We had signed sponsors for three years and there is further scope for extension. But at the same time, we are supposed to give them certain benefits. We are in constant negotiations with our sponsors and are open for any sort of dialogue.

With the broadcast partner yet to be finalised, how much of damage will that do to the business?

The audience is not really bothered about who the broadcast partner is. The main concern is whether the tournament is on or out. Now that we all know that it is in, things would start moving again.

Now that the IPL will be played in foreign land, does your marketing strategy go through a complete overhaul?

Well, it will change to a large extent. What we could do in terms of promoting our team in Delhi, we can definitely not carry out those activities outside India. So our marketing plans will change. We will now try to build our fan base even stronger with ticketing being handled by IPL. Moreover, we will promote our team through our media partners which include BigAdda.com, SMS GupShup, Hindustan Times, Times of India and CNN-IBN.

Do you think the IPL will manage to gather enough loyalty in South Africa?

This year it is true that the character of the tournament has changed because it's no more a domestic league. The nature of loyalty will change. For example, Delhi Daredevils will miss its loyal Delhi fans. The team will play in venues like Durham or Johannesburg which might see an inflow of neutral crowd only interested in cricket as a sport. But then this is only for this year, as the schedule clashed with the Lok Sabha polls.

What would have been a better decision - no IPL or IPL in South Africa?

The most important thing is to have the IPL running. About hosting it in South Africa, the benefit is that the tournament and teams will get an international exposure. As team owners, we would get an opportunity to build our brand in the international arena of cricket.

Latest Reads

http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/15/HOP.jpg?itok=lvLK36Q0
NDTV launches India’s first mobile-only portrait live channel

New Delhi Television Ltd (NDTV) has launched India’s first mobile-only vertical live channel with the name NDTV HOP Live. India has nearly 432 million internet users and this number is growing at a rate of 4-8 per cent, according to Deloitte’s Technology, Media and Telecommunication (TMT)...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/15/discovery.jpg?itok=6Fa3Bavl
Running Wild with Bear Grylls’ on Discovery channel gets extraordinary traction from advertisers

The premiere of new series Running Wild with Bear Grylls on Discovery and Discovery World HD

Television TV Channels Factual @ Discovery
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/15/colors.jpg?itok=TXA_pJ9H
Woh Talent Hi Kya Jo Kisi Ke Kaam Na Aaye; COLORS Announces the Launch of India’s Got Talent

Don’t let talent go to waste advocates COLORS’ flagship reality show – Maruti Suzuki Arena presents India’s Got Talent powered by Vaseline and Frooti as it returns to wow viewers with some mind-boggling acts in its eighth edition.

Television TV Channels GECs
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/15/Lizol.jpg?itok=lICakAZ0
Lizol tops chart; P&G makes comeback in BARC week 40

The Broadcast Audience Research Council (BARC) India has released its data for last week’s top advertisers and brands between 29 September-5 October 2018. The data is a reflection of top 10 advertiser and brands across genre on Indian television (U+R) : 2+ Individuals.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/15/pkd.jpg?itok=F8PRMMYX
Star India’s PKL draws higher sponsorship revenues in season 6

The Pro Kabaddi League (PKL) auctions saw six players command over a crore, offering further proof of the property’s rising popularity in terms of viewership and advertising interest. If we look at the viewership, the live telecast of PKL season 5 garnered 1.6 billion impressions with a target...

Television TV Channels Sports
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/15/mix.jpg?itok=pru8JVNF
Zee Keralam to launch in Q3 FY19

Though the general notion has been that Hindi GECs are the most watched shows across the nation, the truth is far from that. Over time, broadcasters have realised that if they want to rule India, they must cater to the various languages.

Television TV Channels Regional
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/13/aaj-tak.jpg?itok=lowRXhHz
Aaj Tak maintains lead across every Hindi news genre in BARC week 40

Republic TV continues to lead the English news genre as per All India BARC data week 40.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/13/regional.jpg?itok=qoFd2a51
Bengali, Kannada markets maintain status quo in BARC week 40

No changes were observed in the Bengali and Kannada markets in BARC data week 40.

Television TV Channels Viewership
http://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2018/10/12/flix.jpg?itok=l05t4_Ym
&flix brings to you the story of unsung heroes of the first Christmas with the Flix First premiere of ‘The Star’, this Sunday!

Premiering under the Flix First programming block on &flix, this animated musical comedy is all about an animal ‘toon’ with a Christmas message.

Television TV Channels Factual @ Discovery

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories