IPL-style boxing league set to make impact in India

NEW DELHI: The Indian company which forked out $5 million for a World Series of Boxing (WSB) franchise has pledged its long-term commitment to the global amateur competition and is confident it can break even within seven years.

The Videocon Group set up the franchise last year but backed out citing “unavoidable circumstances”, and the inaugural season of the International Boxing Association (AIBA) event went ahead without Indian representation.

However, TransStadia chief executive Udit Sheth said his company had bought the franchise with definite long-term plans for the Mumbai-based team. “I won’t comment on why they (Videocon) pulled out but we are a sports company and we are in the business of sports infrastructure and sports IT management,” Sheth told Reuters in a telephone interview. “We felt it would be an ideal fit for our market. We bought the franchise for perpetuity… We are here for the long term, definitely.”

Sheth said his company would pump more funds into the project with the hope of breaking even by 2018. “We are paying almost $5 million to AIBA but at the same time we are also investing in our boxers, support staff, events, promotions…

“Over the next five years, we would be investing 500-600 million rupees ($11.16-13.39 million)…

“It will take five to seven years (to break even).” Sheth was convinced that boxing would garner enough interest in the world’s second most populous nation, where every sport is cricket’s poor cousin.

“India is an upcoming sports market. We definitely believe that with our success in international sports events, especially boxing, the market is ready to accept such sporting activities.

“That’s why we decided to bring WSB to India. WSB also has a major goal to enter the Indian market because of the large youth population in the country.

“We are convinced that boxing has a market in India. We would not have invested so much if we didn’t think it was a good venture to get into.”

CRICKET RE-RUNS

Sheth said they were also weighing up options on the best way to televise the event.  “We and the AIBA are looking for the right partner. This is a great opportunity for the broadcasters as well to introduce new content.

“Currently, the only content which really works on TV in India is cricket and then you have re-runs of cricket and then more re-runs of cricket. I think this kind of new, live content would be welcome.”

The company was now in the process of recruiting boxers and support staff to prepare for WSB’s second season starting on Nov. 1.

“It’s like running a company. You need marketing guys, finance guys, technical guys…

“We will recruit 15 boxers and their sparring partners.There has to be some foreign competitors in every franchise as well.”

The tournament’s new competition format will have 12 teams divided into two inter-continental groups, facing each other on a home-and-away basis before the top four teams qualify for the playoffs.

Boxers in five categories trade punches in five-round bouts, without headguards or vests and using a professional-style scoring system.

SOURCE : http://www.dawn.com


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Desi F1 unleashes marketing blitzkrieg

The smell of burning rubber. The screeching of cars zipping around at 300 km/hour. The vra vra vroom pit babes. The speed, the thrill, the big money, the bigger egos-Formula 1 isn't called a marketing circus for nothing. And with its desi debut lined up end October, the marketing buzz is beginning to turn ear-splitting.

Although there are no confirmations from companies on the figures, sources in the Indian Grand Prix circuit say title sponsor Airtel has spent around Rs 30 crore for three seasons spread over three years. Alongside Airtel, the other big sponsors include Red Bull (which will bring everything from its aero models to its bikers and all that they have in the name of adventure to India by September end), UB group (which owns Force India and is the only Indian team in F1), Mercedes Benz, Shell, Renault, Castrol, JK Tyre, Vodafone, Tag Heuer, Helix-you name it. Many companies that haven't signed up as official sponsors are now joining the fray in a slightly different capacity. Hero Motors, for instance, has signed up with Narain Karthikeyan who will drive his Hispania car at the Indian Grand Prix.

TICKETS

The track owners JPSI has spent $400 million on building the track and stadium alone. Given that there are around 100,000-odd tickets for sale-already the lowest denominations, worth Rs 2,500 and Rs 6,000, are sold out, says Sameer Gaur, MD of JPSI-the gate money should be in the region of around Rs 1,000 crore. The platinum boxes, worth Rs 50 lakh, have been booked by corporates like Citi, Venky's, Kingfisher and JK Tyre not to mention some of the top business names in the country. Top of that heap though will be the box bang opposite the grand stand with a cool tag of Rs 1 crore. Gaur refused to divulge details of who has snapped that up. Of course even with all our billions you may still not be eligible for the Paddock Club, the most exclusive club in the F1 firmament. Entry costs $4,500 apiece but just buying a ticket doesn't ensure you're chosen-that's left to Bernie Ecclestone and the boys who run FOM ( Formula One  Management) to scan your application and then take a call. It's not just tickets which are disappearing; even hotel rooms in the vicinity are sold out.

ADVERTISING

So what explains the mad marketing rush for an F1 footprint? The TRPs may not compare with cricket but F1 is a potent marketing opportunity. Says Sam Balsara, CEO of Madison: "F1 as a concept has tremendous appeal for young, modern, dynamic and fast-paced companies. They want to appeal to people with the same characteristics and F1 offers that platform. The TRPs may be miniscule but exposure will be very high." That's pretty much what convinced Airtel to pitch for the Indian Grand Prix. Says Airtel CEO Sanjay Kapoor: "Brand Airtel has always used sports to connect with the audience. The characteristics of both Airtel brand and F1 is similar, as they both stand for freshness, youth and dynamism. Given the demographics, this is a sport that will be very relevant for India and more so given the 14 % growth of the $40 billion sports marketing business (sports, sports entertainment, sponsorships and sports goods retailing) in the country," he explains.

TRPs

F1 is about association, an opportunity to engage with the potential consumer, rather than sheer exposure. That, says Balsara, is part of a growing trend in the advertising world "where the chain has moved from exposure to engagement". Which also explains the money pouring into a sport that still doesn't boast top gear TRPs. Says Anamika Mehta, branch head Lodestar, Delhi: "Typically, the target group is the 15- 24-year-old and the TRPs for a F1 race is between 6 and 8 against 2 of a home series test match."

The low TRPs mean that there would a "lot less money involved when it comes to advertising" and more "below the line marketing for the event". At any rate, she says, when it comes to advertising inventory the "India feed is only about 600 seconds and a good part of that will be retained by ESPN for pricing it at a premium closer to the event." For now, though, the price of a 10 second ad is roughly Rs 1-1.2 lakh, which is double that of cricket. However, unlike cricket, the duration of advertising is limited since there are no ads in the middle of the race.

SOURCE : http://articles.timesofindia.indiatimes.com

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