For monetising the brand value of the bollywood actors and actresses, IPL gave good opportunity. But now the game is changing day by day. Now 2-3 famous people coming together and taking the teams.
Recently IPL Pune team took by Sahara Group. And they told that they will go for IPO for financing this team. But is this realistic? Is Indian Investors r so dumb that they will invest money in such IPO which dont have any realistic assets and which is totally depend upon good will and Brand Value?
Today I had a serious discussion on this topic with one of my friend. And we come to know from our analysis that it is possible to go for private placement for IPL team financing but IPO is the impossible thing..
The main reason behind that is to list any company for IPO, company have to give quarterly report to its shareholders which is imposible as IPL happens only in summers.
The whole game of IPL is giving idea to a new concept called " Summation of Brand Value"
If we see now Priety and Mr. Wadia want to sell King XI Punjab which they took at arround 40- 50 mn. Now they want to sell it at 300 mn. How this valuation came into picture? King XI Punjab team has never performed so well to create trust that its value go to 6 times of its original value.
The Brand value of Cricketrs, Investors like Actor, businessman, the brands attached with team this together summing up to create brand value of Team. Its like a ready made portfolio.
IPO can come for whole IPL but not for individual teams. But Can Mr. Modi will allow to scarifies his monopoly on IPL? Certanly not. And recent drama about the Kochi team has proved that no one wants to miss the opportunity to create this bubble of Brand financing. Be it A politician or beautician.
And as fans of Cricket we guys should not be part of all this.. just be rational and enjoy the game... And remember that we are the people who gives a Brand value to a Brand... So dont be so emotional about the teams guys.. caz then finally we are the people who have to give money to these people to entertain us.. so dont allow to create bubble.. And Just enjoy the game... Have u happy IPL season.. :) :P
