#Thread
Women's #IPL franchises
An interesting week is coming up. A total of 29 bid documents (ITT) have gone on sale and five #WIPL franchises are in the fray, waiting to be bought.
Even if a dozen of them come to the bidding table, consider it to be a winning exercise.
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Women's #IPL franchises
An interesting week is coming up. A total of 29 bid documents (ITT) have gone on sale and five #WIPL franchises are in the fray, waiting to be bought.
Even if a dozen of them come to the bidding table, consider it to be a winning exercise.
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And will at least a dozen come? Well, it looks like.
Remember -- not every single party that buys the ITT buys because it wants to bid. Some buy it to see what's the business model all about.
So, who all have bought? And who may bid?
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Remember -- not every single party that buys the ITT buys because it wants to bid. Some buy it to see what's the business model all about.
So, who all have bought? And who may bid?
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Who have bought: All 10 men's IPL franchises, Kotak, Haldiram, GMR, Capri Global, Torrent, Adani, JSW (not sure), few agencies, Aditya Birla Group, a pvt equity company & definitely some others.
Who may bid: Expect 8 out of 10 franchises to definitely submit (7 strong) bids.
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Who may bid: Expect 8 out of 10 franchises to definitely submit (7 strong) bids.
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MI, DC (GMR), KKR, RCB, LSG, RR, PBKS, GT.
As I've mentioned earlier -- still not getting the same vibes from CSK & SRH camps. But who knows? Maybe I haven't heard things correctly.
A franchise like CSK staying on board will help the property immensely. Fingers crossed.
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As I've mentioned earlier -- still not getting the same vibes from CSK & SRH camps. But who knows? Maybe I haven't heard things correctly.
A franchise like CSK staying on board will help the property immensely. Fingers crossed.
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Outside of the franchises, expect Torrent, Adani, Capri, Kotak etc -- all to submit their bids.
Although, my assumption is, existing men's franchises will be able to put in stronger numbers because they have a steady revenue stream in this business already.
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Although, my assumption is, existing men's franchises will be able to put in stronger numbers because they have a steady revenue stream in this business already.
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The latest sale of media rights ensures franchises will earn Rs 24,000 cr over 5 years between the 10 of them from broadcast revenues alone.
That's Rs 480 cr per franchise per season in revenues from broadcast. Add central & local sponsorship and the gross is pretty handsome.
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That's Rs 480 cr per franchise per season in revenues from broadcast. Add central & local sponsorship and the gross is pretty handsome.
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I know I'm going to get calls from industry cursing me for saying this -- but I'll say it anyway... 😆
I'm expecting teams to go between Rs 800 & Rs 1200 crore.
If well sustained by intelligent economics, these properties can develop impressive growth charts in time to come.
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I'm expecting teams to go between Rs 800 & Rs 1200 crore.
If well sustained by intelligent economics, these properties can develop impressive growth charts in time to come.
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Remember -- there's no benchmark to put a finger and suggest what should a minimum or maximum bid look like.
The last time this may have happened was in 2007-08, when the original 8 IPL franchises were sold.
There was no saying what the returns in 10 years would look like.
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The last time this may have happened was in 2007-08, when the original 8 IPL franchises were sold.
There was no saying what the returns in 10 years would look like.
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How long can you hold an investment without the pressure to break even -- that's the key.
In 2007-08, MI committed US$111.09m over 10 years. RR committed US$67m over 10 years. Both had no way of knowing what to expect.
15 years later, RPSG & CVC definitely knew better.
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In 2007-08, MI committed US$111.09m over 10 years. RR committed US$67m over 10 years. Both had no way of knowing what to expect.
15 years later, RPSG & CVC definitely knew better.
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Why?
Because there was a 15 year business model to look back at and take lessons. That gave RPSG the heart to take a billion-dollar bet.
Cut back to women's cricket -- it's the 2007-08 kind of time once again, except one change.
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Because there was a 15 year business model to look back at and take lessons. That gave RPSG the heart to take a billion-dollar bet.
Cut back to women's cricket -- it's the 2007-08 kind of time once again, except one change.
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As against a fresh bidder who has no experience in cricket franchise business, the existing men's IPL franchise owners can take bigger risks because they're already earning from the game.
It'll help if BCCI sees this space more from a CSR standpoint than bottomline-driven.
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It'll help if BCCI sees this space more from a CSR standpoint than bottomline-driven.
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WIPL franchises will not make any money for quite some time. And honestly, women's cricket has a long way to go before it can start making money.
But that said, is there potential?
Trust me, sky can be the limit if initial years are sustained. That's where the trick lies.
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But that said, is there potential?
Trust me, sky can be the limit if initial years are sustained. That's where the trick lies.
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Bids will be submitted on Jan 26 & opened the same day.
Tournament will begin tentatively by March 6 or 7 & conclude by around March 22 for men's IPL to start on 26th.
I'm sure all of this will be officially announced once franchises are on board.
Have a lovely Sunday. 🙂
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Tournament will begin tentatively by March 6 or 7 & conclude by around March 22 for men's IPL to start on 26th.
I'm sure all of this will be officially announced once franchises are on board.
Have a lovely Sunday. 🙂
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25th *
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