Opinion Premier no more

IPL 5 is a crucial season for the league — it is the year when the central revenue pool contracts conclude and the renewal negotiations commence. It is also the year when franchisees may look at diluting their stakes to gain a measure of liquidity for expansion purposes,or they may simply look to involve strategic investors. These were areas of concern that needed to be addressed during this season,but as of now much remains unclear. If this season shows a flattening of growth and profitability figures,it could have a significant impact on the future valuations of central revenue pool contract renewals and the teams’ brand value. It was important for the league to keep flourishing and draw more viewers,converting casual viewers into a dependable and regular fan base. If the TRPs and overall environment are any indication,this has not been achieved by the league. Overall viewership has declined significantly despite a relatively close points table. This is in stark contrast to the increasingly expensive advertising slots that advertisers and sponsors are dealt with every successive season.

If initial projections had remained consistent,by season five one would have expected the league to have exponentially increased its collateral revenues,especially gate receipts and merchandise. But one fears that the IPL is still clubbed with or compared to other entertainment properties. If that fear becomes a reality,it will soon be considered a seasonal reality show with dwindling popularity as the novelty factor wears off,much like the Indian Idol model. This is not the perception that a bona fide professional sports league hoping to build an asset for itself,and exploitable intellectual property brands for its teams,aims to have. But this explains the growing apathy of viewers. There also does not appear to be a visible increase in team brand value or city loyalty despite a game effort by each of the franchises. Further,star power is missing due to international fixtures or injuries,besides the obvious cricket-related fatigue.

While there are a myriad of probable reasons why IPL 5 is struggling,one reason in particular is cause for concern and could hamper any hope of a turnaround. A competitor has taken centre stage in the past month,and will continue to do so over the next four weeks as well — European club football. IPL 5 is in direct competition with the English Premier League (EPL),La Liga,and the much-awaited grand finale of the UEFA Champions League. European club football has a huge fan following in India and has seen exponentially increasing TRPs for leagues and tournaments. Football is fast emerging as a legitimate threat to cricket’s once unassailable position at the top in terms of television viewership. As luck would have it,this year the EPL,La Liga and Champions League have each produced unprecedented and electrifying seasons,and this will continue until the last week of May. This could be a recurring feature every year,possibly at the cost of more than just IPL 5’s TRPs.

IPL 5 is at risk of becoming irrelevant and,consequently,at risk of reduced profitability as it moves towards the second half of the season. Unless it can reverse this trend and keep all the stakeholders interested in a value proposition that has increasing potential,it may face more challenges going forward than it bargained for. The month of May is tantalizingly poised.

The writer is a sports attorney. Views are personal. express@expressindia.com