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Royal Challengers Bangalore: Pricing of Stadium Tickets
On May 1, 2018, the M. Chinnaswamy Stadium in Bangalore 1, India, hosted the Indian Premier

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League (IPL) match between Royal Challengers Bangalore (RCB) and Kolkata Knight Riders
(KKR). A six-year-old boy was seated in the B upper stand of the stadium, whose second
cheapest seats were priced at INR 1,750 (approximately USD 27) 2. Wearing an RCB jersey and
waving the RCB flag, it was clear whom the boy was supporting. But occasionally, he yelled,
“Kay-Kay-Aar!” and jumped with excitement every time Robin Uthappa fielded the ball along
the boundary wall below his stand. RCB performed miserably in the 2017 IPL season and were
at the bottom of the points table. Yet, RCB’s home ground was sold out for all their matches.

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Anand Kripalu, managing director and chief operation officer of United Spirits Limited (USL),
was confident his team (RCB) would make a reasonable profit that year despite the losses over
the past seasons. Stadium tickets accounted for about 10% of total revenue. Kripalu wanted to
review the strategies for ticket pricing and sales across consumer segments with the objective of
maximising revenue. He believed there was potential to increase the prices of tickets.

Indian Premier League

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Inception

The Indian Premier League was conceptualised in September 2007 by the Board of Control for
Cricket in India (BCCI). IPL was an innovative format of Twenty-20 3 (T20) cricket, which
significantly differed from how the sport was traditionally played. T20 cricket combined two
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forms of entertainment, Bollywood 4 and cricket. There was something in it for everyone. As per
a KPMG (2016) report, 5 cricket in India enjoyed 92% viewership across all formats, with other
sports accounting for the remaining 8%.

1Bangalore, presently Bengaluru, is the largest city in and the capital of the Indian state of Karnataka.
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2
INR 1 cr = USD 10 million (USD 1 = INR 66.5275)
3Twenty-20 cricket is one of three current formats recognized by the International Cricket Council (ICC). The oldest

form is test cricket, which lasts for more than five days and is still considered the highest and purist form, but one
that is losing the interest of mass spectators given its long duration. One day international (ODI) cricket was started
in 1977. In this format, each side plays 50 overs across a single innings in one day. ODI remained popular but
audience interest gradually plateaued with time becoming a more limited commodity. T20, by contrast, was played
within 3.5 hours and each side batted for a maximum of 20 overs. This fast-paced form of the game garnered much
excitement, making it perfect for weekend viewing with friends and family and for advertisers.
4The Hindi language film industry in India is referred to as Bollywood.
5KPMG (2016, September). The business of sports — Playing to win as the game unfurls. Retrieved from
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https://assets.kpmg/content/dam/kpmg/in/pdf/2016/09/the-business-of-sports.pdf

Prepared by Professor Arvind Sahay and Tara Tiwari, Academic Associate, Indian Institute of
Management, Ahmedabad.
Cases of the Indian Institute of Management, Ahmedabad, are prepared as a basis for classroom
discussion. They are not designed to present illustrations of either correct or incorrect handling of
administrative problems.

© 2019 by the Indian Institute of Management Ahmedabad

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IPL was a combination of the English Premier League (EPL) in the United Kingdom as well as

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the National Football League (NFL) and the National Basketball League (NBL) in the United

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States.

The first IPL season kicked off in mid-April 2008. The season lasted six weeks and had eight
teams, each representing a major city in India (Bangalore, Chennai, Delhi, Hyderabad, Jaipur,
Kolkata, Mohali, and Mumbai). Teams played a home-and-away double round robin (Exhibit

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1), where each team played every other team twice. The four best teams made it to the playoffs
on the basis of aggregate points. The top two teams competed in a Qualifier 1 match, and the
remaining two played each other in an Eliminator match. The winner of Qualifier 1 directly
moved on to the finals. The losing team was given another chance by playing the winner of the
Eliminator match in a Qualifier 2 match. The winner of the Qualifier 2 match made it to the
finals, and the team that won the finals earned the IPL championship.

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The team franchises were first auctioned in January 2008. Eight winner franchisees had to pay a
total of USD 723.59 million (INR 4,813.8 cr) 6 for the next 10 years. A player auction was held in
February 2008. Franchisees paid over USD 45 million (INR 299.3 cr) for the top 75 international
players from their purse 7 (Exhibit 2).

The BCCI sold the broadcasting rights for a ten-year period to the consortium of Sony
Entertainment Television (SET), India, and World Sports Group (WSG), Singapore. The
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broadcasters along with the BCCI promoted the IPL brand, while franchisees promoted their
individual teams.

The IPL turned the BCCI into a superpower, making it the richest cricket board in the world.
Unlike the EPL clubs, the brand value of IPL was greater than its franchises. IPL’s brand value
increased 26% from USD 4.2 billion in 2016 to more than USD 5.3 billion in 2017 8 (Exhibit 3). In
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2015, IPL contributed INR 11.5 billion (USD 182 million) to India’s GDP. 9

IPL’s growing popularity with every passing season attracted more brands. A total of 247
brands were advertised during the 2018 IPL. 10 The brands agreed to pay a premium of 250% to
buy ad space during IPL 2018.

Business Model
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Exhibit 4 details the money flow during the IPL season. The BCCI, the governing council of IPL,
gave companies rights to own franchises. According to the agreement with the BCCI, legal
entities that purchased franchise rights would pay the BCCI 10% of the purchase amount on an
annual basis until the end of IPL 10. Thereinafter, they shared 20% of their revenue with the

6INR 1 Cr = USD 10 million (USD 1 = INR 66.5275)

7Each team was given an auction purse from which they can bid for players at the auction. A team could not exceed
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the purse value, and thus, had to be judicious when bidding.

9Tiwari, M. (2018, January 22). IPL economy: What the cash-rich league adds to the Indian GDP. Financial Express.

Retrieved from: https://www.financialexpress.com/sports/ipl/ipl-economy-what-the-cash-rich-league-adds-to-

indias-gdp/1025063/
10During 2016–2018, the number of advertised brands grew from 138 to 247.

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BCCI. This was the BCCI’s main source of earning. Income from other sources, such as media

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rights, sponsorships and ticket sales, were shared between the franchise teams and the BCCI as

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follows:

1. Media Rights: The BCCI sold the IPL media rights to Sony for USD 1.02 billion for a 10-year
period (2007–2017). In addition, Sony paid the BCCI USD 100 million every year. Of the
USD 100 million, USD 60 million was equally distributed among the IPL teams and the

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remaining USD 40 million was retained by the BCCI. For the first three years, BCCI
pocketed 20% and the franchises kept 80% of the media rights amount. In the fourth and the
fifth year, this amount changed to 30% and 70% for the BCCI and the franchises,
respectively. From the sixth to the tenth year, the BCCI got 40% and the franchises received
60%. 11 Media rights accounted for 60–70% of the revenue earned by IPL teams.

In 2017, Star India won both the digital and TV rights for 2018–2022 in a consolidated bid.

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Star India purchased the Indian and global media rights (Exhibit 5) at a whopping INR
163.47 billion. In addition, it would pay the BCCI INR 32.69 billion per year. 12

However, in 2018, IPL 11 witnessed a decline in viewership on the Star Sports network
compared with the previous year, when it aired on the Sony Pictures Networks India (SPN)
channels. The total reach for the first eight matches was 245.71 million compared with the
254.79 million reported in the previous year. Viewership showed only a marginal increase to
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213.9 million impressions from the 197.8 million registered in the previous year. 13
Nevertheless, viewership picked up after the first eight matches. 14 IPL 11 registered 1.4
billion in viewership, which was a 15% increase from the 1.2 billion impressions registered
for IPL 10.

During the inaugural week of IPL 2018, Hotstar, Star India’s digital-streaming service,
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recorded 82.4 million viewers, accounting for more than 22% of overall viewership. This
substantial increase in digital viewership was despite Hotstar making IPL viewing a paid
experience after the first 10 minutes. 15 Hotstar’s viewers increased to 130 million in 2017
from 41 million in 2015 (Exhibit 6), when it began streaming IPL matches. For IPL 11, 202
million viewers logged on to Hotstar, a 55.3% hike from the 130 million viewers during IPL
10 (2017).
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11Total Sportek (2016, February 5). How IPL and franchises make money? (IPL business model). Retrieved from

https://www.totalsportek.com/money/indian-premier-league-revenue-distribution/
12Das Gupta, S., & Malvania, U. (2018, April 10). BCCI media rights: STAR India’s big gamble may turn into a

goldmine. Business Standard. Retrieved from https://www.business-standard.com/article/companies/bcci-media-

rights-star-india-s-big-gamble-may-turn-into-a-goldmine-118041000004_1.html
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13Laghate, G. (2018, April 20). IPL’s TV viewership sees a drop in week 1. The Economic Times. Retrieved from

https://economictimes.indiatimes.com/industry/media/entertainment/media/ipls-tv-viewership-sees-a-drop-in-
week-1/articleshow/63838815.cms
14IPL 11 registered 196 million impressions in the fourth week compared with the 145 million impressions for IPL 10.
15Mitter, S. (2018, April 21). Here’s what is driving Hotstar record viewership in IPL 2018. YourStory Media Pvt. Ltd.

Retrieved from https://yourstory.com/2018/04/what-driving-hotstar-record-viewership-ipl-2018/

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2. Title Sponsorships: Over its many seasons, IPL had several sponsors including Delhi & Land

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Finance (DLF) Ltd., PepsiCo and Vivo Communications Technology Co. Ltd. DLF, India’s

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largest real-estate company, bought the title rights for INR 200 cr for the first five years,
from 2008 to 2012. For the next five years (i.e. 2013–2017), Pepsi became the title sponsor
with a winning bid of INR 396.8 cr. However, in 2015, Pepsi pulled out from the deal. Vivo
replaced Pepsi for the remaining two years and paid INR 100 cr per year. Vivo retained the
title sponsorship until 2022 at a price of INR 2,199 cr (or INR 440 cr per year). 16 Until 2017,

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the BCCI received 60% of the sponsorship amount and the franchises got 40%, and
thereafter, the amount was equally distributed between the two entities. About 6% of the
BCCI’s sponsorship revenue was allocated for prize money. Title sponsorship revenue
accounted for 20–30% of the IPL teams’ revenue.

3. Ticket Sales: The ticket sales were divided into 20% for the BCCI and 80% for the teams. All
teams were in charge of hospitality and ticket sales for their home matches. Ticket revenue

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accounted for about 10% of team revenue. 17

4. Miscellaneous: Miscellaneous revenue was generated from franchise sponsorships, prize

money, merchandise and hospitality 18 and was not shared with the BCCI. Each team had a
main sponsor and associate sponsors. Prize money was distributed among the team owner
and players. 19 Champions received a larger share than runners-up and other teams.
Franchises also sold merchandise such as team kits and clothing (e.g. t-shirts, hoodies and
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caps).

Exhibit 7 lists the team expenses such as costs of franchising, players (salaries), marketing,
stadium, event management and administration.

Players’ salary was affected by their availability during a season. Foreign players often had to
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leave the tournament to fulfil duties towards their countries. Unlike NFL, NBA and EPL, which
largely had club-based games, cricket and its various forms were played at the national level.
However, national-level game schedules overlapped with the IPL season, making it difficult for
players to be available for a complete season.
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16The Times of India (2017, Jun 27). VIVO retains IPL title sponsorship for five years. Press Trust of India. Retrieved
from https://timesofindia.indiatimes.com/sports/cricket/ipl/top-stories/vivo-retains-ipl-title-sponsorship-for-five-
years/articleshow/59334413.cms
17Pyne, S. (2016, April 7). Here’s how IPL franchises make money. Business Insider. Retrieved from

https://www.businessinsider.in/Heres-how-IPL-franchises-makemoney/articleshow/51727135.cms
18According to a Times of India report, in 2014, the annual market growth for sports gear was 100%, and the market

value was projected to be USD 30 million. The numbers continued to grow exponentially thereafter. Hospitality
revenue was generated through food and beverage stalls at stadiums. A third party was given a contract for the
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stalls, which were subcontracted by the contractor. Each franchise earned fixed revenue for a fixed term on a per
match basis.
19For IPL 2018, the total prize money was INR 50 cr, of which INR 20 cr was given to the winning team. The money

for the winning team was further divided: the franchise owner received INR 10, and the remaining INR 10 cr was
equally divided among the players. The runner-up team got INR 12.5 cr and teams that finished third and fourth
were given INR 8.5 cr each.

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Royal Challengers Bangalore (RCB)

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In 2008, Vijay Mallya bought the RCB team for USD 111.6 million. Mallya ran the team as a
USL 20 subsidiary under Royal Challengers Sports Pvt. Ltd. and was the sole owner before
British distiller Diageo assumed control.

In March 2016, Mallya left for the United Kingdom after facing a probe by various investigative
agencies for defaulting on loans in excess of INR 9,000 cr. Mallya’s financial scandals, however,

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had no bearing on USL’s abilities to attract talent and keep the team motivated. 21 RCB turned
profitable for the first time in 2017 (Exhibit 8) and expected tidy profits in 2018, with IPL
expected to generate revenue of at least INR 200 cr.

Between 2007 and 2017, RCB reached the play-off stage only twice (Exhibit 9). Since 2008, the
team had been the runner-up thrice and had not won the title even once. With Virat Kohli as the

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team captain and Daniel Vettori as the coach, the team held the record of both the highest and
the lowest total score.

Changes in media rights increased central revenue, thus benefitting all participating teams. RCB
managed to attract sponsorship revenue (nearly 95% of the team’s sponsorship revenue was
earned through external partners such as Eros Now, HP and Domino’s) 22 and ticketing revenue
owing to its large fan base (Exhibit 10).
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RCB along with Chennai Super Kings (CSK) and Kolkata Night Riders (KKR) were perceived to
have the most loyal fan base, which was evident from the packed stadiums during their home
matches. RCB’s attractiveness was mainly attributed to the team’s captain Virat Kohli and A. B.
de Villiers. In 2017, the RCB team stood third in brand valuation 23 at USD 88 million, which was
31% higher than its brand value in 2016 (Exhibit 3).
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Ticket Prices

Tournament tickets we sold online and offline. In addition, tickets were purchased through an
unauthorised secondary market (ticket scalping), where tickets were resold with an intention of
making profits. Laws for ticket scalping tended to vary: scalping was banned or regulated in
most jurisdictions 24 if not entirely banned.
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20United Spirits Limited (USL) is an Indian company that manufactures and sells alcoholic beverages and is the

second-largest spirits company (by volume) in the world. USL is a subsidiary of Diageo and is headquartered at UB
Tower in Bangalore, Karnataka.
21In 2015, it was speculated that JSW Group, the steel-to-power conglomerate controlled by Sajjan Jindal, was close to

buying RCB from Diageo for about INR 634 cr. The deal, however, did not go through.
22Govind, D. (2018, June 4). Despite poor showing in IPL, RCB delivers on profitability. Live Mint. Retrieved from
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https://www.livemint.com/Sports/BmxZelLg84ZfSd69mc9X0K/Despite-poor-showing-in-IPL-RCB-delivers-on-
profitability.html
23Valuations are projections of future revenue minus projected expenses on the basis of current available data.
24For instance, Major League Baseball in the United States signed an agreement with StubHub to resell tickets. Sellers

incurred a 10% fee and buyers were charged a 15% commission on the website. Profits were shared between the
teams and StubHub.

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IPL 2018 comprised 60 matches. The ticket prices ranged between INR 400 and INR 40,000. Each

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franchise priced their tickets differently. RCB priced their tickets between INR 800 and INR

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35,000, CSK quoted INR 1,300–6,500, KKR priced them at INR 400–26,000 and Mumbai Indians
set the price between INR 800 and INR 8,000. 25

Ticket sales at stadiums formed a part of the home teams’ revenue. Prices were fixed by team
owners. Sponsors and the BCCI received a small proportion of the sales. The IPL franchises sold

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around 80% of the tickets for their home grounds. Prices were based on, for example, stadiums’
seating capacity, the hype surrounding the match and the local standard of living. Each stand
was priced differently (Exhibit 11).

About 7,500 seats of M. Chinnaswamy Stadium were reserved for members of the Karnataka
State Cricket Association and affiliated cricket clubs. These seats were priced the lowest and
sold for INR 800 per seat. The general public also had access to 5,000 seats at INR 800 per seat.

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These tickets were sold exclusively at the box office at the ground. Cricket fans did not mind
waiting in long queues, making multiple visits and buying scalped tickets at INR 7,000. 26

The next pricing level was INR 1,750 per seat. Tickets for these seats were sold online for those
gripped by cricket fever during April and May. The buyers of these seats were generally
families who wanted to watch the sport on a budget or wanted to experience it irrespective of
the teams playing.
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Buyer profiles changed as ticket costs increased. Tickets priced at INR 7,000 and above were
generally purchased online and in bulk by corporations for their clients. The tickets included
hospitality benefits (e.g. food and beverages) that buyers could avail of at the lounge.

The most expensive ticket was priced at INR 35,000, which is equivalent to the cost of a short
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vacation in Sri Lanka or Singapore! These seats were generally purchased by high net worth
individuals, such as CEOs of companies, and a majority were sold in pairs.

The key consideration for team franchises when setting ticket prices was ensuring stands were
full, which also contributed to the experience of those viewing the match from home.

In 2015, the BCCI set up IPL fan parks throughout the country to provide a stadium-like
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experience to residents of cities where it did not host IPL matches. 27 These parks had large
format displays for public screenings of the IPL matches; special arrangements for women and
children; stalls for merchandise, food and beverages; and activities organised by IPL’s official
sponsors. Fans could watch matches free of cost at the parks.

In India, matches were televised on various channels, including Star Sports 1, Star Sports 1 HD,
Star Sports 1 Hindi, Star Sports 1 Hindi HD, Star Sports 1 Tamil and Star Sports First. Airtel
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25Sportskeeda (n.d). IPL 2018 tickets. Retrieved from https://www.sportskeeda.com/cricket/ipl-tickets

26George, C. N. (2018, April 26). Metrolife: IPL tickets sold out, but plenty in black. Deccan Herald. Retrieved from
https://www.deccanherald.com/metrolife/ipl-tickets-sold-out-plenty-available-black-666802.html
27 The New Indian Express (2018, April 6). BCCI to have 36 IPL fan parks nationwide this year: Official. Press Trust of

India. Retrieved from http://www.newindianexpress.com/sport/ipl/2018/apr/06/bcci-to-have-36-ipl-fan-parks-

nationwide-this-year-official-1797927.html

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customers and Jio Prime members in India could watch the match live and for free on their

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service provider apps. Viewers outside of India had to subscribe to a platform to watch the

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match (see Exhibit 5 for a list of broadcasters).

Bangalore: City Lifestyle 28

RCB represented the city of Bangalore, presently known as Bengaluru. As per the 2011 census,
Bangalore was the fifth most populous city and the fifth most popular urban agglomeration in

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India. Bangalore’s economic strength was its high value-add business services, mainly
outsourcing services in information technology (IT), IT-enabled services (ITeS) and start-up
operations in technology-related industries. About 40% of India’s IT industry was concentrated
in Bangalore, which attracted multinational companies such as Apple Inc., Google LLC,
LinkedIn, Oracle Corporation and International Business Machines (IBM) Corporation. The
city’s high-tech focus expanded beyond IT and ITeS to include defence and aerospace service

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(and manufacturing) industries.

Bangalore’s demographic expansion was mainly driven by net migration. The city’s population
(9.9 million in 2016) increased by 16% during 2011–2016, recording a growth rate twice as fast as
that of the entire country. By 2021, Bangalore’s population was expected to grow to 11 million.
The high disposable income in the city (twice as high as any other city in India) and career
opportunities were key factor underpinning annual migration into the city with 19 migrants per
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1,000 inhabitants on average during 2011–2016.

In 2016, household income in Bangalore was USD 14,900, which was lower than those in
Mumbai (USD 16,900) and Delhi (USD 22,000). The lower household income can be attributed
to the relatively small household size and low labour productivity. Nevertheless, compared
with the rest of the country, Bangalore enjoyed 103% higher disposable income per household
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(Exhibit 12).

In 2016, Bangalore’s total consumer expenditure reached USD 22 billion, which was about half
of that in Mumbai (USD 42 billion; the city is the largest urban market in India) and only 15%
higher than that in Kolkata (USD 19 billion). Spending per household (excluding transport and
housing) was 66% higher than those estimated in other Indian regions in 2016.
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The city had a young population and a robust workforce. About 71% of the population were of
working age (15–64 years) in 2016. This rate is broader than the national average of 66% and yet
less than that of Delhi (75%). Further, 22% of the city’s population was 15 years or younger,
which was still less than the 24% in Mumbai. Only 6.9% of Bangalore’s total population was 65
years and above in 2016. Households’ discretionary expenses including those for beverages,
transport and housing were USD 3,900 (i.e. 96% higher than the national average). Bangalore
reported a large proportion of high-income households.
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28 For more details, see the Euromonitor International Database

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“Cricketainment” and “AAR-CEE-BEE!”

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RCB’s home ground was the M. Chinnaswamy Stadium in Bangalore. With a seating capacity of
35,000 for cheering fans in their favourite team jersey, the stadium included a large ground,
flood lights and other lights with special effects. The spectators profile underwent a sweeping
change, with women and families forming a sizeable proportion of the audience. The
entertainment value and carnival-like feel kept IPL games popular among all age groups.

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Moreover, experiencing a live game meant no interruptions by sponsor advertisements.

Shruti, a young IT professional, described her experience:

It is like going to a movie. Instead of a small theatre, we now get entertainment

under floodlights. Some of the venues are transformed into magnificent theatres
with two teams battling it out. It hardly matters who wins. We get to see a lot of

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fours and sixes. This is what the future cricket is going to be.

Commitment towards and passion for the sport was devoid of gender. According to the teams
website (https://www.royalchallengers.com/), Women accounted for 40% of RCB’s fan base,
which was significantly higher compared with the female fan base for other IPL teams. The
hashtag #ItsHerGameToo dedicated to female RCB fans and the 12th Man Campaign that
encouraged men to talk about mental health also contributed to the team’s popularity.
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Wafa Aga, an RCB fan, stated:

RCB is not just a team, it’s an emotion. True RCBians, like me, watch the match
not only to see the team play but also to support and cheer them on. RCB is by
itself the most entertaining IPL team. Entertaining is not only RCB’s best
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attribute, but the team effort and spirit drive each fan to watch the match at the
stadium. Every six they hit. Every wicket they take. Every single Mexican wave
that happens ... the Chinnaswamy Stadium is almost like my second home.

The Path Forward

Kripalu was faced with the challenge of designing an effective pricing strategy to sell cricket as
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a high-involvement reality show to consumer groups and to ensure the stadium was sold out,
thus maximising revenue for the franchise. Given that Bangalore was a high-income city and
RCB as a team and IPL as a whole were increasingly popular, was there scope to increase ticket
prices? If yes, then by how much? If not, then why? How much flexibility was available given
the demographics, demand and number of seats?
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Exhibit 1: IPL 2018 Teams

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Team Team Captain Owner

Mumbai Indians Rohit Sharma Reliance Industries, India’s largest conglomerate,

under Indiawin Sports Private Limited, with Mukesh

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Ambani heading the company and Nita Ambani
representing team activities

Indian industrialist N. Srinivasan, and later, under a

Mahendra Singh separate entity named Chennai Super Kings Cricket
Chennai Super Kings Dhoni Limited

GMR Group and JSW Sports owned by Grandhi

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Delhi Daredevils Gautam Gambhir Mallikarjuna Rao

Rajasthan Royals Ajinkya Rahane Royal Multisport Private Limited run by Manoj Badale

Royal Challengers Diageo PLC through United Spirits Limited under

Bangalore Virat Kohli Royal Challengers Sports Private Limited
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KPH Dream Cricket Private Limited with Preity Zinta,
Ravichandran Ness Wadia, Mohit Burman and Karan Paul as
Kings XI Punjab Ashwin directors

Knight Riders Sports Private Limited with Shah Rukh

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Kolkata Knight Riders Dinesh Karthik Khan and Jay Mehta as directors
Sun TV Network with Kalanithi Maran as chairman and
SunRisers Hyderabad Kane Williamson founder
Source: MoneyControl News (2018, July 20). IPL 2018: Meet the owners of the 8 teams taking the field in season 11.
Retrieved from https://www.moneycontrol.com/news/trends/sports-trends/ipl-2018-meet-the-owners-of-the-eight-
teams-taking-the-field-in-season-11-2542331.html
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Exhibit 2: IPL Auctions, 2018

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IPL Auction IPL Auction
Price
Purse Spent Left Squad
Team (million Indians Overseas
(INR) (INR) (INR) Strength
USD)
Mumbai Indians 111.9 47 cr 46.35 cr 65 L 25 17 8

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Chennai Super Kings 91 47 cr 40.5 cr 6.5 cr 25 17 8
Delhi Daredevils 84 47 cr 45.4 cr 1.6 cr 25 17 8
Rajasthan Royals 67 67.5 cr 65.85 cr 1.65 cr 23 15 8
Royal Challengers Bangalore 111.6 49 cr 48.85 cr 15 L 24 16 8
Kings XI Punjab 76 67.5 cr 67.4 cr 10 L 21 14 7
Kolkata Knight Riders 75.1 59 cr 59 cr Nil 19 12 7

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SunRisers Hyderabad 107 59 cr 58.35 cr 65 L 25 17 8
Source: The Times of India (2018, January 28). IPL auction 2018: How the franchises spent, who got whom.
Retrieved from https://timesofindia.indiatimes.com/sports/cricket/ipl/top-stories/ipl-auction-2018-how-the-franchises-
spent-who-got-whom/articleshow/62683541.cms

Exhibit 3: RCB Brand Value (in USD)

op
Year MI KKR RCB SRH DD KXIP CSK RR IPL
2016 78 M 77 M 67 M 41 M 34 M 31 M 4.2 B
2017 106 M 99 M 88 M 56 M 44 M 41 M 5.3 B
2018 113 104 98 M 70 M 52 M 52 M 98 M 43 M 6.3 B
tC

Source: Duff & Phelps (2018). IPL Brand Valuation Report. Retrieved from https://www.duffandphelps.com/-
/media/assets/pdfs/publications/valuation/ipl-brand-valuation-report-2018.ashx
No
Do

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 11 of 17 A00281

Exhibit 4: IPL cash flow

t
os
Advertisements
Sponsors
Gate Money
Sponsors Merchandise
Advertisers

rP
Title
Licensing

Broadcasters IPL Franchisees

Media Rights Bids

Franchise Rights

yo Central Revenue and Media Rights

Source: Total Sportek (2016, February 5). How IPL and franchises make money? (IPL business model). Retrieved
from https://www.totalsportek.com/money/indian-premier-league-revenue-distribution/
op
IPL: Sources of Revenue & Expenses
Direct Revenue Revenue via BCCI Expenses
Broadcasting rights
tC

and sponsorships (60-

70% of franchise
Sponsorships (20-30% of franchise revenue) revenue) Franchise fees
BCCI’s share of
Merchandise Sale ticket sales
Payment to local
cricket clubs for
Prize Money grounds
No

Ticket Sales (10%) Players fees

Player Trading Marketing
In-ground Advertisements Running cost
Source: Quickxpert (2019, October 12). How do IPL teams make money? Retrieved from
https://www.qwixpert.com/2019/10/12/how-do-ipl-teams-make-money/
Do

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 12 of 17 A00281

Exhibit 5: IPL 2018 Broadcasters

t
os
Territory Television Digital
Star Sports 1 and 2
(English)
Select 1 SD and
Select 1 HD (English)

rP
Star Sports Hindi and
Star Sports HD Hindi
(Hindi)
1 India Star Sports 1 Tamil Hotstar
(Tamil)
Star Suvarna Plus
(Kannada)

yo
Jalsha Movies (SD)
(Bengali)
Star Maa Movies
(Telugu)
2 United States Willow Hotstar
3 Canada Willow Hotstar
op
4 Caribbean Flow TV flowtv.com, Flow Sports app
5 Unites Kingdom Sky Sports skysports.com, Sky Go
6 Sub-Saharan Africa SuperSport supersport.com, supersport app
Middle East and
7 beIN SPORTS beIN connect
North Africa
8 Pakistan Geo Super www.geosuper.tv, www.geo.tv
tC

9 Bangladesh Channel 9 Channel 9

10 Australia Fox Sports foxsports.com.au, Foxtel GO
Australia, Europe,
11 SE Asia and South YuppTV
America
12 New Zealand Sky Sports www.skygo.co.nz, fanpass.co.nz,www.sky.co.nz
No

13 Afghanistan Lemar TV
AUDIO PARTNERS Radio Station
Global (Ex Indian
14 Cricket Radio
Sub-Continent)
United Arab 89.1 Radio 4 FM,
15
Emirates Gold 101.3 FM
16 United Kingdom talkSPORT
Do

Source: Indian Premier League (2018, April 4). Vivo IPL lines up the best global broadcasters for fans across the
world. Retrieved from https://www.iplt20.com/news/115128/vivo-ipl-lines-up-the-best-global-broadcasters-for-fans-
across-the-world

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Exhibit 6: Hotstar Viewers

t
os
Viewers
Year Viewership (in million)
2018 202
2017 130

rP
2016 100
2015 41
Source: Tewari, S. (2018, May 29). 202 million viewers watched IPL on Hotstar. Live Mint. Retrieved from
https://www.livemint.com/Consumer/zdYxoNZsVghCvyorw2FiUK/202-million-viewers-watched-IPL-11-on-
Hotstar.html

Exhibit 7: RCB Player Salary, 2018

yo
Player Players Salary (USD) Salary (INR)
1 Virat Kohli 2,656,250 187,180,773.14
2 A. B. de Villiers 1,718,750 121,139,016.91
3 Chris Woakes 1,156,250 81,493,520.47
4 Yuzvendra Chahal 937,500 66,067,552.64
op
5 Umesh Yadav 656,250 46,245,612.62
7 Brendon McCullum 562,500 39,645,260.28
8 Washington Sundar 500,000 35,239,401.57
9 Navdeep Saini 468,750 33,036,938.98
10 Sarfaraz Khan 468,750 33,036,938.98
11 Quinton de Kock 437,500 30,834,545.41
tC

12 Mohammed Siraj 406,250 28,697,394.76

13 Colin de Grandhomme 343,750 24,281,380.44
14 Murugan Ashwin 343,750 24,281,380.44
15 Nathan Coulter-Nile 343,750 24,281,380.44
16 Moeen Ali 265,630 18,761,028.66
17 Parthiv Patel 265,630 18,761,028.66
No

18 Mandeep Singh 218,750 15,450,451.75

19 Manan Vohra 171,880 12,139,993.81
20 Pawan Negi 156,250 11,036,626.43
21 Tim Southee 156,250 11,036,626.43
22 Corey Anderson 150,000 10,595,161.37
23 Kulwant Khejroliya 132,810 9,381,972.43
24 Aniket Choudhary 46,880 3,332,172.18
Do

25 Aniruddha Joshi 31,250 2,221,211.19

26 Pavan Deshpande 31,250 2,221,211.19
27 Kulwant Khejroliya 15,000 1,066,138.83
Source: Cricmetric (2018, August 23). Twenty20: win percentage.
http://www.cricmetric.com/team.py?team=Royal%20Challengers%20Bangalore

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 14 of 17 A00281

Exhibit 8: RCB Profit & Loss Statement

t
os
RCB Profit & Loss Statement (INR cr)
March 31, 2017 March 31, 2016 March 31, 2015
Revenue
Central Rights Income 78.75 65.57 57.98
Income from Sponsorship 39.65 28.77 19.71
Ticket Sales 21.98 25.16 15.42

rP
Prize Money 20.16 15.37 0.17
Branding Income 0 0.02 0.25
Transfer Fees 0.85 0 0
Total Revenue from Operations 161.38 134.89 93.53
Other Income 0.71 0.35 0.35
Total Income 162.09 135.24 93.88
Expenses

yo
Players Fees 65.56 71.47 67.06
Per Diem Allowance 0.78 0.72 0.54
Stadium Rent 2.16 2.1 1.5
Ticketing Cost 3.08 2.88 1.86
Cricket Equipment 0.42 0.86 0.039
Travel Expenses 1.4 1.29 1.01
Hotel Expenses 1.73 1.5 1.6
op
Event Management Costs 26.22 22.08 14.64
Prize Money Distribution 10.37 7.27 0.24
Talent Hunt and Development Camp Expenses 0.16 0.01 0.051
Total Match Playing Expenses 111.88 1613 88.57
Advertisement and Sales Promotion 1.9 1.45 1.6
Entertainment Tax 2.49 1.55 0.9
tC

Insurance 1.18 0.9 0.48

Bank Charges 0.02 0.02 0.01
Purchase of Tickets 0.98 0.06 0.83
Printing and Stationary 0.01 0.08 0.01
Legal and Professional Charges 1.65 1.42 0
Auditor Payment 0.09 0.09 0
Medical Expenses 0.24 0.22 0.21
No

Rates and Taxes 1.16 0.26 0.34

Sitting Fees 0.01 0 0.005
Trademark Fee 0.01 0.01 0.015
Provision for Bad and Doubtful Debts 1.09 0 0
Miscellaneous 3.77
Other Expenses 10.83 6.06 8.19
Finance Costs 26.94 28.36 22.13
Depreciation and Amortization Expenses 9.3 9.3 9.2
Total Expenses 158.95 153.9 128
Do

Profit/(Loss)
Profit Before Tax 3.15 −18.66 −34.31
Reported Net Profit 3.15 −43.9 −30
Source: Royal Challengers Sports Pvt. Ltd. Annual Reports. Retrieved from
https://www.diageoindia.com/investors/financials/annual-and-financial-reports/

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 15 of 17 A00281

Exhibit 9: RCB’s Percentage of Wins

t
os
Percentage of Wins
60
57.1 56.2
55 54.5 53.3
50 50

rP
47.6
42.9
40
35.7
30 28.6 Win Percentage
23.1
20

yo
10

0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: Cricmetric (n.d). Twenty20: win percentage. Retrieved from

op
http://www.cricmetric.com/team.py?team=Royal%20Challengers%20Bangalore

Exhibit 10: Social Media Followers for IPL teams

Social Media Followers

tC

Kolkata Chennai Royal Kings

Mumbai Knight Super Challengers SunRisers XI Delhi Rajasthan
Indians Riders Kings Bangalore Hyderabad Punjab Daredevils Royals
Facebook 13.26 M 16.68 M 12.39 M 9.38 M 5.92 M 8.78 M 4.67 M 4.22 M
Instagram 1.9 M 0.72 M 1.20 M 1.80 M 0.65 M 0.71 M 0.46 M 0.33 M
Twitter 4.98 M 3.97 M 4.46 M 3.32 M 2.01 M 1.90 M 1.30 M 1.06 M
No

Source: Aditya (2018, January 31). IPL 2018: Most popular IPL teams on social media. CricTracker. Retrieved from
https://www.crictracker.com/ipl-2018-popular-ipl-teams-social-media/
Do

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Exhibit 11: M. Chinnaswamy Stadium Stands

Do
No
tC

617.783.7860
op
yo
rP
Source: Cricket News (2008, March 24). Royal Challengers Bangalore ticket booking M. Chinnaswamy stadium: Cost and price list: IPL 2018. Retrieved from
https://www.cricketnews.net.in/2018/03/ipl-2018-royal-challengers-bangalore-m-chinnaswamy-tickets-booking-price-cost.html
os
t

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 17 of 17 A00281

Exhibit 12: Number of Households by Income Groups in Bangalore, March 2016

t
os
Households By Income (2000)
>USD 500 2,500
>USD 750 2,498
>USD 1,000 2,496
>USD 1,750 2,480

rP
>USD 2,500 2,452
>USD 5,000 2,260
>USD 7,500 1,944
>USD 10,000 1,578
>USD 15,000 943

yo
>USD 25,000 337
>USD 35,000 154
>USD 45,000 91.1
>USD 55,000 65
>USD 65,000 52
>USD 75,000 43.7
op
>USD 100,000 30.9
>USD 125,000 23.6
>USD 150,000 18.9
>USD 200,000 13.3
>USD 250,000 10.2
tC

>USD 300,000 8.2

Source: Euromonitor International Database
No
Do

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