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2300 IIPM students get jobs

"Ram Mohan is a juice vendor who was hoping to sell many glasses of juice this year to the fans of IPL. But he is now a worried man. Reason? ”Last year, I was selling juice outside the stadium. It was a very good season for me. One of the best that I have ever had,” he says. The change in the venue is a big blow for the business of Ram Mohan and his fellow vendors, who were eagerly waiting for the second innings of IPL to kick off."

Moreover, as the General Elections would be held during the same period, it is expected that the viewership would be divided. Sample this: as per data from aMap, viewership for news channels shot up by 50% during the State Assembly Elections in December 2008. Imagine what frenzy will be there when General Elections are going on. “A lot of male population that comprise a major chunk of viewership for cricket matches, would also be glued to their idiot box for election updates and results, which would mean that there would be lesser number of people watching IPL at that point in time,” explains Surbhi C. Murthy, Delhi Branch Head, Allied Media. And if the initial TRPs are below expectations, be rest assured that advertisers and marketers will renegotiate deals. And if broadcast revenues take a hit, most certainly, the event will be a dead property as the biggest source of revenues for the franchisees in Season 1 were the monies accrued from broadcast rights (collectively Rs.280 crore).

Take all the above numbers into consideration and even you would arrive at the conclusion that the combined revenues of the eight franchisees this year will work out to be around Rs.387.8 crore (much below last year when the figure was Rs.535 crore). And the total expenses on the other hand will come to Rs.665.16 crore (taking into consideration the incremental cost to be borne for acquisition of new players other than the 20% escalation in administrative costs, due to the shift in venue).This clearly indicates that all franchisees would have to collectively lose a minimum of Rs.277.36 crore because of the event being held at South Africa (see table).

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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