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Indiantelevision.com's interview with Zee Sports business head Himanshu Mody |
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'We
expect ICL to break even in two and a half years'
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| Posted
on 21 April 2008 |
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When
Zee launched the Indian Cricket League in the face of a take-no-prisoners
campaign of opposition from the Board of Control for Cricket
in India last year, there was scepticism galore on whether
the Subhash Chandra-backed league would bat it out. Particularly
after the the BCCI announced plans for its own league shortly
thereafter.
ICL, however, successfully staged two events despite all the
hurdles thrown in its way. The Indian Premier League kicking
off on 18 April notwithstanding, Zee Sports business head
Himanshu Mody is confident that his cricket endeavour will
hold its own.
Indiantelevision.com's
Ashwin Pinto
caught up with Mody to ascertain his views on the progress
made and future plans.
Excerpts: |
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Firstly, congratulations on having been able to deliver the
second edition of the ICL despite the best efforts of the
BCCI to skewer you. How has the experience been different
from the first edition?
It was much better. The first one was with six teams in
one venue. There were 20 games. For the next event we added
two more teams and had three venues. Lahore came from across
the border. The event was held on a larger scale.
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What were the learnings from the event that you will take,
going forward?
We learn every day. Despite the pressure and resistance
that we face, I think that we are set on a path to success.
We have good players and have built on the ground infrastructure.
We have 250 members, 80 of whom are Indian players. The rest
are foreigners - coaches, players support staff, etc.
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How is the event being expanded upon this year? From April to September
it is summer and then the monsoon season. There is not we can do in this period.
We will hold an event later this year. We could include ODIs as well. We had a
non televised ODI tournament in January which was played in Chennai and Hyderabad.
What we come out with will depend on the commercial viability. |
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How succesful have you been thus far in infrastructure and
grassroot talent development?
The Indian players come from various small towns and cities
like Jammu, Srinagar, Assam, Indore and Bhopal. The Indian
players come from 58 cities. We have a diverse mix in this
sense. We also have talent scouts in each Zone where they
have gone out to find emerging talent. We will now be setting
up a central Academy for our boys.
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A
notable feature this time round was that there was an increase
in spectators in the stadia. Has some sort of a spectator/viewer
connect with the state teams happened?
This is starting to happen. The event is a family viewing
experience. People are supporting the local team. In the final,
Hyderabad Heroes had a lot of local support. At the same time
support depends on performance as well, which is what has
hampered Mumbai.
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Simulcasting the event on Ten Sports and Zee Sports has ramped
up viewership quite significantly. What have been the average
combined ratings? Have they been up to expectations or have
they exceeded your brand partners' expectations?
The ratings have exceeded our expectations. We managed
an average of 1.5. Ratings peaked at 3.5, which is more than
India Test cricket and some ODI ratings.
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Was it a challenge to get sponsors on board given the BCCI stance?
The establishment tried everything they could to prevent
us from getting a start. They tried to resist sponsors from
coming on. Also, to be fair, for the first event sponsors
were reluctant as they did not know what to expect. The first
event was a solid start.
The
second event has been a big hit and on the back of that we
launched a tri series between an Indian XI and a World XI.
We sold most of our inventory for this. The likes of Pepsi,
HUL and Vodafone have come on board.
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And what of the other cricket boards? Do you see a softening
of their stances vis-a-vis the ICL and what could be the catalyst
for it?
The other cricket boards have to realise that more than
ICL, it is the IPL that presents the biggest threat to them.
I think that they are starting to realise this. We do not
ask any existing players to break their contract. At the moment
the IPL presents that dilemma to current players as to whether
they should play for their country or IPL club. We have taken
players who are on the fringe or who do not have a central
contract with their respective boards.
The
international governing body needs to take a call on what
is more important. In soccer for instance, club soccer contributes
more revenue as opposed to countries playing against each
other. Cricket must decide if it wants to go down this route.
If that happens, then country versus country matches will
have to come down. If, however, it decides that the country
format is more important, then the IPL could be limited in
terms of matches played.
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How has ICL fared businesswise? Could you offer any idea of the kind of investments
that have been pumped in?
I cannot talk about numbers. However the business is robust.
Earlier when we started this last year, we had given ourselves
a breakeven period of three years. Now we expect that to happen
in two and a half years.
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'The
other cricket boards have to realise that more than
ICL, it is the IPL that presents the biggest threat
to them'
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Where have the revenues come from and how does it compare with the inaugural edition?
We have several revenue sources. We have ground sponsorship, associate sponsorship,
ticket sales sponsor, advertising on television, broadband rights.
ICL
was aired in several countries including UK, US, Pakistan,
the Middle East, Africa, Southeast Asia, Australia and New
Zealand. We did deals with international broadcasters for
ICL including Showtime in the Middle East, Starhub in Singapore
and Astro in
Malaysia. |
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The ICL is unique in that everything - whether it be telecast
rights, teams, stadia - is owned by the promoters. Therefore,
by extension, it's Essel that has to spend on development,
promotion and marketing of every aspect of the event. With
IPL as a rival, in effect you're confronting the power of
10 - not just a powerful cricket board but eight strong franchises
as well as an established television network for share of
mind. Doesn't that become a huge challenge?
We took satisfaction from the fact that the IPL format
has duplicated ICL. The economics of the whole thing differs
from product to product. We knew what the marketing plan would
be and what would be enough to cover the country. We are on
track. If we incur all costs and do it ourselves, then all
revenues belong to us. We do not have to share them with anybody
on a
80:20 or 60:40 basis.
If
there is no India cricket in a certain period, then the ICL
becomes a strong proposition. If you can have many news channels,
I don't see why two leagues cannot co-exist. We can have as
many events as we like with all our players.
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Actor Mithun Chakraborty has picked up a stake in the Kolkata
ICL team. What are the future opportunities for stakes in
teams?
We are talking with a few corporates. We chose not to
sell teams initially as we wanted to show people the value
that we bring to the table and what our delivery is. Having
done this, we can now command a premium for our teams for
strategic partners. It is not just a question of money. We
are looking for partners who share our vision and who can
bring synergies to the table that will help the ICL grow.
We
will, therefore, be selective about whom we choose to partner.
We need to know the drive they have and what their objective
to invest is.
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With
the BCCI's league being launched next week, what impact will
this have on ICL in terms of retaining both local and international
talent and viewer interest? In the present context, the ICL
has a shelf life as a low-cost, lower value alternative to the
IPL. But if these eight franchisees are going to expand in a
big way, what will be left over for the ICL to pick up might
just be the crumbs. Are some of these fears being expressed?
I don't think that it is a fair
comment. There is enough local and international talent to go around. We have
contracts with our players and I know that the satisfaction level they have is
high. We are a closely-knit family. I don't see substantial movements happening.
A
mature sports market allows for trading, though. The players
have contracts with us and if somebody wants them, then they
will have to pay us accordingly. That is how sports clubs
operate globally. A player cannot simply break his contract.
Our stated objective has been to have talent at the grassroots
level. So we did not go out and try to get the likes of Sachin,
Dravid.
What
we do is in line with what Zee does if you look at shows like
Sa Re Ga Ma or India's Best (Cinestar Ki Khoj). We short-listed
15 Indian players who we felt were the best. They played in
the tri series. The fight they showed was commendable against
a global bowling attack.
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The
flip side to ICL is that many cricket boards, including Pakistan,
are peeved that cricketers were taken. Do you feel that this
will negatively affect your ability to go after their TV rights?
I do not think that there is a conflict over here. The businesses
are separate. If our bid is the highest, then it will come to
us. A good price is what any board would look for. The best
man wins. I don't think that the board will be concerned about
who offers the
highest. |
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How
is the relationship with Ten Sports working out?
We have been partners for a year and a half. It is working
well. There is content sharing. We distribute Ten Sports. They
handle our ad sales. The FPC is made by a central team. If there
are clashes, then the programmes get split between the two channels.
The
Uefa Champions League sometimes has two games at the same
time. So we air one match. In fact, we started doing this
before we partnered with them. This offers the power of two.
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You
are also doing an initiative Goal 2010. How did this idea come about and what
progress has been made?
This came about when Fifa president Sepp Blatter came down
to India. This sport has a huge potential. We are putting money
into this sport and in a couple of years, we will start seeing
the results. We do a lot of school soccer tournaments.
Our
focus is at the grassroots level. We need to emerge as champions at the Asia level
by 2010. We should be among the top five teams in Asia. Ten Sports airs domestic
football in the Middle East. We are also working with the AIFF at tweaking the
format of domestic football. |
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Is
the appeal of soccer moving beyond the three states of Goa, Kerala and West Bengal?
Yes. It is getting popular in parts of states like Gujarat
and Maharashtra. |
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Do
you think corporatisation will help sports like soccer and hockey
to move forward?
It can certainly help soccer. Hockey, however, is on a downturn
not just in India but also abroad. In soccer, you have 32 teams
playing the World Cup. In hockey just seven or eight teams play
the event. Even in those countries the popularity is not as
high as it should be. |
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How
is Zee Sports faring on the distribution front?
The ICL has done us a
lot of good. We have achieved 50 per cent connectivity. This rose from 25 per
cent over the last three months. |
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What
property acquisitions were recently made? Zee and Ten Sports acquire things
together. We renewed the West Indies cricket rights. We have the US Open tennis
event for the long term. India
is a unique country in that there are several sports channels but only one sport
dominates. In other countries there are only two sports channels but multiple
sports are followed. This is why the price of rights are going up dramatcially
in India due to competition. |
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Finally
on the advertising front brands at the moment are not sure about how to use sport
beyond cricket. Do you see this changing in the near future?
It is changing already. A lot of advertisers are going to
Golf. Once the Indian advertisers start to understand the true
value of sponsorship that goes beyond just TRP, things will
change. The best example is what the EPL has done for Barclays.
This,
though, has been built over several years. Indian companies
are realising that they should invest in sport over a long
term. The advertiser has to invest with the sports federation.
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