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BCCI CHANNEL A FEASIBILITY STUDY PROPOSAL To establish an autonomous body/public limited company to fully exploit the potential of BCCI cricket in particular and promote the sport of cricket in India in general. WHAT WILL THIS ENTITY DO?

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BCCI CHANNEL

A FEASIBILITY STUDY


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PROPOSAL

To establish an autonomous body/public limited company to fully exploit the potential of BCCI cricket in particular and promote the sport of cricket in India in general.


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WHAT WILL THIS ENTITY DO?

  • To launch a premier 24/7 hour cricket related channel.

  • Promote the cause of domestic cricket league.

  • Exploit the full potential of Indian cricket among the South Asian diaspora spread around the world (i.e.; UK/Europe, US/Canada and the Caribbean's, Australia/New Zealand and Far East and Middle East and Africa.

  • Explore alternate media to generate other business opportunities(Radio broadcast, internet and web streaming and other emerging media.)

  • Generate opportunities in allied activities like merchandising, event management and franchising etc.


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BENEFIT TOBCCI & VARIOUS STATE

CRICKET ASSOCIATIONS?

  • Need to review the business with a fresh outlook to realise the full potential of cricket.

  • To maximize the revenues generated from sports rights to enhance viewership, brand appeal and additional sources of revenue.

  • Review the BCCI’s contribution to the promotion of the sport of cricket in India, in terms of infrastructure, revenue and popularity of the game, and move ahead from its yeoman’s service.


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BENEFIT TO BCCI & VARIOUS STATE

CRICKET ASSOCIATIONS?

  • Our proposal to BCCI:

  • Consider launching a cricket channel in India

  • To realize the full potential of revenues so generated

  • To plough revenues so generated back into the affiliate associations, cricketers present and past and in upgrading cricket infrastructure in India.

  • Further strengthen BCCI’s unique position amongst ICC members and create a sustainable leadership position.


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ENHANCING OVERALL REVENUE OF BCCI RIGHTS

  • Creation of a valuable brand which can be leveraged for multiple streams of business and revenues

  • Generate substantial stream of revenues as compared to trading of rights.

  • Unlock the potential of realizing subscription revenues in addition to the sponsorship and airtime revenues.

  • Unlock revenue opportunities in the areas of Merchandising, Events and Franchises etc.


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ENHANCING OVERALL REVENUE OF BCCI RIGHTS

  • Unlock revenue opportunities in the overseas markets.

  • Rope in cricket stars to endorse the channel.

  • Establish a dynamic professional organization that can acquire a leadership position in the sports business.

  • Effectively and significantly enhance & create shareholder value.

  • To boost the growth of other sports in India by generating visibility for Indian sports persons and their particpn in International cricketing events not covered by other channels


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KEY SUCCESS FACTORS ?

  • A professional and independent organization answerable to a designated board.

  • Creation of sound production competencies.

  • Airtime marketing skills.[

  • Pay distribution skills.

  • International business development skills.

  • Creation of skills for merchandising and event management.


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KEY THREATS & OPPORTUNITIES

Threats:

  • International cricket rights

  • Consent of Overseas Boards whether on a bidding basis or through mutual negotiations.

    Opportunity :

  • Fragmented Rights for cricket amongst existing sports channels in India.

  • Buoyant capital markets. Appropriate time for IPO or listing.

  • Make Indian public stake holder in the venture – good will.

  • Sorts out the current legal issues in award of Rights.


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KEY ASSUMPTIONS

International Matches in India :

  • Number of Test : 10 Total Days 50

  • Number of ODI : 15 Total Days 15

    International Matches outside India but involving India

  • Number of Test : 4 Total Days 20

  • Number of ODI : 7 Total Days 7

    International Matches outside India without India

  • Number of Test : 15 Total Days 75

  • Number of ODI : 21 Total Days 21

    Total Days of Domestic Cricket : 118 Days

  • Domestic Cricket League :

  • Total number of teams : 8

  • Round robin league on home & away basis : 56

  • Semifinals : 2

  • Final : 1

    Total number of Matches : 59


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KEY ASSUMPTIONS

Sharing of Rights with DD and AIR

  • If required by law, TV Rights will be shared with DD for simulcast of all one day matches involving India.

  • Test matches to be exclusive to BCCI Channel.

  • All Highlights to be shared with DD.

    Other alternatives

  • Even if all international matches are simulcast both channels shall have separate productions as a differentiating factor.

  • Value addition on BCCI channel through better commentators and lead in and wrap up programmes.

  • Simulcast with DD but the entire Air Time inventory is marketed by BCCI channel and DD gets opportunity cost of DD Air Time.


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BCCI MATCHES

  • BCCI should strive to maximize international cricket played in India as a policy.

  • Provide for at least two Test Match cum one day series each year and a triangular one day international tournament in India (may be in the summer months)

  • India to only play one away series each year.

  • Provide for higher match fees for visiting Teams in India as an incentive to draw larger number of overseas teams.

  • BCCI should negotiate as a precondition TV Rights for India market as part of the package of reciprocal visit of Indian Team to other countries.


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BCCI MATCHES

  • BCCI to also negotiate for procuring overseas boards rights to archival TV footage.

  • Encourage live production of all Domestic cricket as promotional effort.

  • Promote a Domestic Cricket League :

    • Total of 8 City Teams

    • Round robin league on Home & away basis : 56

    • Semifinals :2 matches

    • Final : 1

    • Total no. of Matches : 59 

  • Revenues from the overall business to be ploughed back to Associations, Sports persons and in upgrading cricketing infrastructures.


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    BCCI MATCHES INT’L

    • Subscription Revenues are a mix of DBS and Cable subscription platforms.

    • No revenue from web casting or any other emerging media have been forecast.

    • Advertising Revenues from Middle East, Africa, S. E. Asia, Australia/New Zealand not projected.

    • No Revenues from Radio have been considered.

    • Subscription revenues from Bangladesh, Nepal, Pakistan, Srilanka, Maldives not factored.


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    BCCI MATCHES – Other assmpns.

    • Revenues from Title and Team Sponsorship not factored though these are well established revenue sources.

    • Revenues from Merchandising and Franchises not factored but these potential revenue streams will develop as the business evolves.

    • Syndication Revenue stream has also not been factored though could develop healthily as the business evolves.

    • Revenue from Events not factored also. This too can evolve and in addition can provide strong marketing, PR and programming value additions

    • Revenues from web casting not factored.

    • Revenues from DVD’s, Cricket academy video’s etc. not factored.

    • Revenues from Radio in India not factored.


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    PRODUCTION AND TECHNICAL

    • The overall emphasis will be on outsourcing live productions to competent agencies.

    • However, to minimize costs and facilitate logistics only fly away uplinks equipments and out door production vans have been provided as Capital Expenditure items.

    • Core competence for in-house productions, graphics etc. will however be created.

    • Therefore, a total capex of 40.00 crores as one time cost for Broadcast operations center, studios, shooting floor, on-line edit room, non-linear edit room and graphics room will be housed in a centrally air conditioned 5000 sq. ft. of space.


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    PRODUCTION & TECHNICAL (contd.)

    • Commentators will be outsourced on contract.

    • For Live International Matches in India since BCCI will provide Fly Away uplinks and OB Vans we estimate paying at the rate of USD 50000 per day as production cost to an outsourced Agency such as TWI or World Tel or Channel Nine.

    • For Domestic live Matches a second domestic agency will be outsourced for production at USD 30000 per day.


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    PRODUCTION &TECHNICAL (contd.)

    • All promos, fillers and interstitials to be produced at in-house facilities.

    • All technical, creative and production personnel to be employed on yearly retainers.

    • Event Mascots etc would be produced in house.

    • Channel ID and supportings would be created at the in-house facilities.

    • A core team of 38 would manage the entire operations.


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    THE ORGANIZATION

    • A flat organization with CEO reporting to a Board of Directors has been contemplated.

    • Given the size and scale of operations contractual retainerships are contemplated for production and broadcast operations in non core areas.

    • An in-house Airtime marketing and Distribution Team is being recommended.

    • For overseas operations, personnel for effecting airtime sales and distribution are being proposed for the international markets.

    • Payroll functions, PF and other statutory functions and even legal support can be outsourced.

    • No provision for peons/drivers and class IV employees has been made.

    • Accent will be on team building, transparency and multifunctionality skill based organization.


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    NECESSARY STEPS AND TIMELINES

    • Decision by the BCCI in approving the concept.

    • Constitution and registration of an appropriate vehicle whether Company/Board or any other body and the statutory approvals thereof.

      45 Days.

    • Registration of logo, brand name and other trade marks in India and overseas markets.

      45 Days to 3 months.

    • Approval of Ministry of Information and Broadcasting for the license of the channel and its registration.

      3 / 4 months.

    • Funding the capex and equity in the proposed venture as per Board Decision.

    • Setting up the organization and in hiring a suitable core team including the CEO.

      4 months.

    • Launch to coincide with the forth coming tour of Sri Lanka to India in September/October.

    • Enter into arrangements with DBS and cable platforms in UK/Europe, US/Canada, Middle East and Africa, Singapore, Malaysia, Hong Kong and Australia/New Zealand.

      From 4 months to 1 year.

    • The launch of channels in these markets will be staggered accordingly.


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    PROJECT EXECUTION

    • Recommend a stage by stage approach.

    • All International markets may not be served since inception and instead can be launched step by step.




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    PROFITAND LOSS


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