Blogging Matters!!! : What's In A Media Right? [Part 1]

Day 74.

image; http://farm5.static.flickr.com/4073/4898642188_367d6b2a47.jpg

In this two part series I'll be deliberating over the subject of media rights and sponsorship deals by taking the example of Indian Premier League or IPL. This is also the same topic on which we had a class with Arjun Sir. Thought it was a good time to bring it up.

• Alright, before I move on to media rights let's discuss in brief, what exactly is a sponsorship deal? First let's try and understand the meaning of the word sponsor. According to the Oxford Dictionary a sponsor is a person or organization that pays for or contributes to the costs involved in staging or artistic event in return for advertising. Deal made with such person or organization is called sponsorship deal.
• There are various types of media; print, television, radio, etc. When they latch on a right and sell it to other broadcasters, there is a direct serving of money. Wealth is the economic value from any asset. At Industrial Revolution, the value of telecom spectrum was zero. The technology was simply not there. With the coming of telegraph, telephone, value grew.
• So, sporting assets also have a similar value. The market understands and puts a value. The whole concept of media rights being auctioned did not exist before. There was a competitive bidding which was the highlight of IPL. So, new types of assets were created which are marketable.
• Right now our Sports Federations, Ministries are generating from sports. The Board of Control for Cricket in India has so much money, while other federations have not identified the assets. The sponsorship value of Indian Hockey team is subjacent to Cricket. Sport is such an asset which you have to unlock and to unlock it, you need skills. If a person wants to do, be something in this industry, he/she has to discover knowledge.

This is the end of part one. Check BM!!! tomorrow for part two in which we'll delve further into the this subject and understand how revenue is generated by our sports federations, particularly the BCCI through these media rights. Till then goodbye and thanks for reading.

Thought Of The Day : - ''Virtue never dies''.