EPL v/s IPL
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Explains the difference between English Premier League (Football/Soccer) and Indian premier League (Cricket T20) in terms of the Functioning, Structure, Revenue Distribution, Sustainability etc... IPL which was said to be the next big thing, and growing to be the next EPL
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EPL v/s IPL
- 2. Functioningof the Sporting Leagues
- 3. Corporate Structure – EPL The Premier League is operated as a corporation and is owned by the 20 member clubs. Each club is a shareholder, with one vote each on issues such as rule changes and contracts. The clubs elect a chairman, chief executive, and board of directors to oversee the daily operations of the league.
- 4. Corporate Structure – IPL The Indian Premier League (IPL) is a professional league for Twenty20 cricket competition in India. It was initiated by the Board of Control for Cricket in India (BCCI), and is supervised by BCCI Vice President Chirayu Amin, who serves as the league's Chairman and Commissioner. It is currently contested by 10 teams consisting of players from around the world.
- 5. Corporate Structure – Difference!
- 7. Revenue Distribution 25% is paid in merit payments determined by where a club finishes in the final league table. 25% is paid in facility fees, based on how often a club is shown on TV in the U.K., with each club guaranteed a minimum of 10 facility fees. 50% of the domestic revenue is split equally. 100% of the non-domestic revenue is split equally among the clubs. Domestic Revenue
- 9. Brand Valuations The Forbes 2011 brand values of the top EPL teams: Manchester United – $ 1.86 Billion Arsenal – $ 1.19 Billion Chelsea – $ 660 Million Liverpool – $ 550 Million Brand valuations of the current IPL franchises looks as follows: Chennai Super Kings – $ 70.16 Million Mumbai Indians – $ 57.13 Million Kolkata Knight Riders – $ 46 Million
- 10. Costing ‘You’- Ticket Prices Highest: $240 Rs. 11,200/- Lowest: $84 Rs. 3900/- Lowest: $42 Rs. 1950/- Highest: Rs. 12,500/- Lowest: Rs. 625/- Average: Rs. 1,200 – 1,500/- (Rupees) 300 500 750 1500 3000 7500 15000 Average: Rs 1000/-
- 11. Sustainability
- 12. Sustainability? Tripping TRPs IPL - 4 3.91 IPL - 3 5.29 IPL - 2 4.49 IPL - 1 5.24 Viewership spread across 15 Countries Estimates a reach of 21 million per game The Premier League has a global reach into 613 million homes Viewership spread across 202 Countries It estimates a typical live audience for a single match of around 79.5 million
- 13. Criticism… There is no relegation in IPL, while in EPL – the bottom 3 get booted out. Football is played on a regular basis in more than a 100 countries (even a 147th ranked India has 5 local leagues and a national league), the same cannot be said of cricket. Teams such as Manchester United have a massive worldwide fan base, which translates into huge revenues from merchandise sales. For the IPL franchises to build such a huge fan base will take a long time. Further, because of income and cost disparity between England and India, cost of merchandise of the IPL franchises will be significantly lower than that of the EPL clubs.
- 14. Sustainability! The world's richest cricketing body - the BCCI - earned nearly Rs 10,790 crore with IPL 4, almost double the Rs 450-500 crore it got in the third edition of IPL EPL has been going on since 1992 – while the IPL is only 3 year old. EPL has been marketed widely across the globe – while IPL is just reaching out. Absolute fan base (defined as the number of fans a club/franchise has/will have all over the world) will play an important role. The collective turnover of English Premier League soccer clubs hit a record US$3.33bn in the 2009-10 season and will have exceeded $3.61bn in the season 2010-11* *Deloitte
Editor's Notes
- The Premier League is owned by 20 Shareholders - the member clubs, whose membership in the league is dependent on the performance of their football team in the Barclays Premier League. The shareholders meet quarterly. Any shareholder can table a motion to be discussed at the meeting. Each shareholder is entitled to one vote and all rule changes and major commercial contracts require the support of two thirds of the clubs voting at a general meeting. The Football Association is also a special shareholder. They have the right of veto in certain crucial areas, such as the appointment of Chairman and Chief Executive and promotion and relegation, but have no say on other areas of Premier League work. The day-to-day business and statutory company responsibilities are handled by the Board of Directors, which comprises of Chairman and Chief Executive, and the full-time members of staff at the Premier League. The current chairman is Sir Dave Richards, who was appointed in April 1999, and the chief executive is Richard Scudamore, appointed in November 1999.
- Another major point of difference is perhaps the rules… There is no relegation in IPL, while in EPL – the bottom 3 get booted out. That is going to be followed even in the English-Cricket-PL. Perhaps that is something to think about for the IPL committee.The sports itself – while football is played on a regular basis in more than a 100 countries (even a 147th ranked India has 5 local leagues and a national league), the same cannot be said of cricket – with only 10 test countries, and a handful of associate countries. Even in these associate countries, there may be the romance of Afghanistan making it from fifth division to within a win of playing the World Cup, but the chasm is to huge to bridge between the top 8 and the rest. EPL has been going on since 1992 – while the IPL is only 3 year old. EPL has been marketed widely across the globe – while IPL is just reaching out. absolute fan base (defined as the number of fans a club/franchise has/will have all over the world) will play an important role. Teams such as Manchester United have a massive worldwide fan base, which translates into huge revenues from merchandise sales, typically in the region of £12-13 million per year. In the case of Manchester United, this fan base has been built over the past 60+ years, starting with the era of the Busby babes (possibly even earlier). For the IPL franchises to build such a huge fan base will take a long time. Further, because of income and cost disparity between England and India, cost of merchandise of the IPL franchises will be significantly lower than that of the EPL clubs.