Guest ColumnRetrofit: The IPL mess - Whose responsibility is it anyways?
Now that the can of worms has been thrown open for the world to see and examine, the BCCI chooses to distance itself from the IPL. But the hoi polloi are not willing to buy this argument. Even if they were to accept that Lalit Modi was a flamboyant crook, they reckon that the BCCI is equally guilty, says Sandeep Bamzai.
Individual versus collective? That is the question I am asking today. Whose responsibility is it when the fur starts flying in any enterprise engaged in commerce? Who takes the rap? Who carries the can for financial defalcation or other misdemeanours? For the BCCI’s current travails, one doesn’t need to rewind too far back into the past. Take the Satyam case. It is the best analogous reference point for the BCCI set of problems. One man and those in cahoots with him – B Ramalinga Raju – brought shame upon the company, and in the process India’s tech sector. Yes, the individual was guilty, but so was the collective, which in this case was the board of directors comprising many eminents. They were guilty because there was collusive intent. They turned a blind eye to Raju’s misdeeds and brazen appropriation of shareholder wealth.
Prof M Rammohan Rao, Dean of Indian School of Business, management professor from the Harvard Business School (HBS), Prof Krishna Palepu; a former Director of two IITs, Prof VS Raju; former Union Cabinet Secretary, TR Prasad, and the father of Pentium chip, Vinod Dham, were on the board of Satyam and they failed to protect shareholder wealth from being destroyed. They enjoyed the benefits and perks of independent directorship, but they failed to oversee the company going on skid row. Ergo, they were equally responsible for Satyam’s demolition. The Government, however, stepped in and proactively tried its best to salvage the beleaguered company. A committee consisting of Deepak Parekh, Kiran Karnik and C Achutan made up the transition team till such time as Tech Mahindra bought it outright. It was an efficiently managed operation without jeopardizing the careers of its many thousands of employees or its business interests. The fact that a squeaky clean Anand Mahindra stepped in to arrest the decline worked in its favour. The faith in the tenets of corporate governance had been restored and a company virtually on life support had been saved. And now turned around.
Cut to the Indian Premier League, a sub-committee of the Board of Control for Cricket in India (BCCI), for long a commercial enterprise masquerading as a not for profit and non-transparent organisation. The Governing Council had several members of the BCCI, all ex-officio office bearers and hence, above suspicion like Casear’s wife. The GC also had three top Indian cricketers – Sunil Gavaskar, Ravi Shastri and Mansur Ali Khan Pataudi. All of them reportedly did not have a clue as to what broth Chairman and Commissioner Lalit Modi was cooking. BCCI President Shashank Manohar is an honourable man, completely clean, but his explanation that Modi did pretty much as he pleased does not wash. All 13 GC members are equally culpable. If you know that there was a fiddle in the Rajasthan Royals and Kings XI Punjab shareholding and that Jai Mehta surfaced as an investor in KKR in 2009, then what were you doing when IPL was being architected? Were you deep in the arms of Morpheus or did you choose to ignore Modi’s unilateralism because he was making money in spades for the BCCI? This shocking apathy to follow transparency and corporate governance norms has been dogging BCCI for years. Now, it has blown up in their faces.
From the time that IPL came into being, BCCI’s character and hue has undergone a radical metamorphosis. It is now being viewed as an association of persons by the Finance Ministry’s Revenue Department and not a non-profit organisation registered under the Tamil Nadu Societies Act. As a BCCI sub-committee, it is nothing more than a wholly-owned subsidiary of the body corporate called BCCI. IPL has changed the underlying credo with which BCCI was formed and functioned till 2008. It is now a purely commercial enterprise engaged in business and commerce. It has dealings with broadcasters, advertisers, sponsors and can be hauled over hot coals for non-payment of tax deducted at source for players, referees, coaches and support staff; service tax and entertainment tax.
ET reported on April 27: “Sportspersons, umpires, referees, coaches, trainers, team physicians and physiotherapists, event managers, commentators, anchors, and sports columnists have been categorised as “professionals”, and their services have been brought under the TDS net in 2008 by the Central Board of Direct Taxes (CBDT). BCCI is contesting a contention by the income-tax authorities that the Board not be categorised a not for profit organisation tag that allows it to avail a tax exemption. The Budget 2009-10 had also made changes in the definition of “charitable purpose” to ensure that entities operating on commercial lines do not claim income-tax exemption. The Section 2(15) of the Income Tax Act defines “charitable purpose” to include relief for poor, education, medical relief, and the advancement of any other object of general public utility. The Board has appealed to the Income-Tax Appellate Tribunal against the decision of Mumbai tax authorities and is yet to make a fresh application to the local tax authority for the tax exemption.”
BCCI has been trying to hide behind the fig leaf of a non-profit, charitable organisation. But this status is definitely a page in history now. The individual Modi is taking the rap. Yes, he was arrogant. Yes, he rode roughshod over everyone and conducted business in an extremely secretive manner. Equally important is the fact that a cabal consisting Manohar, secretary N Srinivasan, IPL GC vice chairman Niranjan Shah and GC member Rajiv Shukla had been trying to oust Modi from the IPL or at least reduce his clout, but Modi had smartly ringfenced himself by keeping his benefactor Sharad Pawar in his corner. But when the heat got to Pawar and his 2-I-C Praful Patel, it got uncomfortable. The secret society called IPL functioned like an old boy’s club. Every member of the family was taken care of. N Srinivasan, who was board treasurer in 2008, actually got a franchise, Sunny Gavaskar and Ravi Shastri, who were employed by ESPN Star Sports got hefty $1 million contracts from the BCCI, Rajiv Shukla is a beneficiary of equity from KKR franchise owners Shah Rukh Khan in his company BAG Films, and so it carried on. You scratch my back, I will scratch yours as crony capitalism, or in this case, crony sportism took a garrote like grip on the enterprise.
The opacity in IPL was even more severe than Satyam. Nothing and nobody was allowed in. Now when Manohar says contracts were signed and then presented to the GC in a fait accompli sort of manner, why didn’t anyone blow the whistle? Well, you can guess why? Comfort level. Yes, everyone was sanguine. Now that the can of worms has been thrown open for the world to see and examine, the BCCI chooses to distance itself from the mess. Sorry, the hoi polloi are not willing to buy this argument. Even if they were to accept that Modi was a flamboyant crook, they reckon that the BCCI is equally guilty. In the dock is the BCCI and its so-called autonomous nature. But the nature of the beast has changed and the Government has got its toe in the door. As the door lies ajar and the Government’s roving inquiry opens it that much more easily, each one of us is looking for some sort of accountability from the body that runs cricket. My fear is that now that Modi has been sacrificed as part of the eye for eye pact with the Government, the wolves should not be called off and the BCCI should not be allowed to carry on as it wishes. The BCCI needs to be accountable and Modi should be made a victim. All eyes are on former BCCI president AC Muthiah’s challenge in the Supreme Court on ‘conflict of interest’, which essentially targets Srinivasan. The Apex Court should also look at the larger issue of governance within the BCCI.
Three Faux Pas
• ET’s screaming lead that Home Minister P Chidambaram has been asked by the PM to head the roving investigation into IPL. Response came from the venerable Finance Minister Pranab Mukherjee in his Parliament House office, where he shouted at journos to get out of his room – all you need is a pen and paper to carry out your scurrilous writings, did anyone check with the PM, HM or me before writing this nonsense? That is as conclusive a denial as any.
• ToI’s big bang exclusive on page 1 saying that WSG MD Venu Nair had broken down during interrogation and accepted that a facilitation fee, sorry a bribe of $80 million, had been paid at the time of renegotiating the IPL broadcast contract. The story had three bylines. Meanwhile, ET the same day had a diametrically different story on the same WSG-Venu Nair affair. The following day, WSG sent in a very strong denial saying that the ToI story was hogwash.
• Finally, a bellicose Times Now went to town saying that as many as 27 players had been indicted for match fixing by IT authorities in the 2009 season. This was a bombshell and everyone covering the IPL imbroglio, including this writer, was in a state of shock. Minutes later came a strong government denial that there was no truth in this.
(Sandeep Bamzai is a well-known journalist, who started his career as a stringer with The Statesman in Kolkata in 1984. He has held senior editorial positions in some of the biggest media houses in three different cities - Kolkata, Mumbai and New Delhi. In late 2008, he joined three old friends to launch a start-up – Sportzpower Network – which combines his two passions of business and sport. Familiar with all four media – print, television, Internet and radio, Bamzai is the author of three different books on cricket and Kashmir.
The views expressed here are of the writer’s and not those of the editors and publisher of exchange4media.com.)
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
You May Also Like
TOP STORIES
HT Media posts Consolidated Total Revenue of Rs 580 crore in Q2
Chairperson and Editorial Director Shobhana Bhartia says due to lower commodity prices and control on costs there has been an improvement in operating profit
HT Media has posted a Consolidated Total Revenue for Q2, 2020 at Rs 580 crore.
As per a statement released by the company, EBITDA for Q2’20 increased by 139%, and margins at 14% vis-à-vis 6% in previous year. This has been driven by softening of newsprint prices and continued focus on cost.
The Net Cash position at a consolidated level continues to be strong.
The Print ad revenue has declined due to sluggish volumes, even as yields have improved. National advertising continues to be soft, although local advertising witnessed growth.
Savings in raw material costs have driven improvement in EBITDA margins.
Chairperson and Editorial Director Shobhana Bhartia said, “Slowing economic growth has hit advertising spends in key categories, putting pressure on revenues across the media industry. As a result, our Print and Radio (on like to like basis) businesses saw revenues dip as compared to a year-ago. However, thanks to lower commodity prices and a tight control on costs, we saw an improvement in our operating profit. On the digital front, Shine, our online recruitment portal has shown good progress and continues to grow. Our outlook for the coming quarter remains cautious, given overall economic sentiment and macroeconomic trends. Cost-control and falling commodity prices should help protect our margins.”
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
ShareABP Group posts Rs 15.70 crore as net profit in Q1 FY20
The group’s total operating income stands at Rs 365.55 crore
ABP Group has posted a net profit of Rs 15.70 crore in the first quarter of FY20, as per media reports.
The group’s total operating income stands at Rs 365.55 crore.
It’s net profit for the fiscal ended March 31, 2019, was down 68% to Rs 31.90 crore compared to the previous fiscal.
The Profit Before Interest Lease Depreciation and Tax (PBILDT) has also dropped 53.52% to Rs 107.12 crore.
The group has six news channels - ABP News (Hindi), ABP Ananda (Bengali) ABP Majha (Marathi) and ABP Asmita (Gujarati), ABP Sanjha (Punjabi) and ABP Ganga (Hindi).
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
Zee Media posts consolidated revenue of Rs 137.03 crore for Q2 FY20
ZMCL has recorded 4.4% growth in operating revenue for first half of FY20
Zee Media Corporation Ltd (ZMCL) has posted a 4.4 per cent growth in operating revenue to Rs 337.6 crore in the first half of FY20, as per media reports.
It has reported a consolidated revenue of Rs 137.03 crore for Q2 FY20.
In a statement, ZMCL has said: “During the quarter, the network expanded its footprint s into Southern India through the launch of Zee Hindustan in Tamil and Telugu languages. This is intended to make the network's content accessible to wider audience.”
The operating expenditure in Q2FY20 has dropped by 21.7 per cent.
The statement further said: “EBITDA for HlFY20 improved by 34.1 per cent to Rs 1,029 million from Rs 767.5 million EBITDA for H1FY19, while the same declined by 9.4 per cent to Rs 370.2 million from Rs 408.7 million for the corresponding period last financial year. EBITDA Margin grew from 23.7 per cent in H1FY19 to 30.5 per cent in HlFY20, while growing from 24.2 per cent in Q2FY19 to 27 per cent in Q2FY20.”
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
No slowdown here: In-cinema ad rates up by at least 50% for 3 big Diwali releases
Housefull 4, Made In China and Saand Ki Aankh ready to hit the silver screen this week, with the hopes of giving brands the eyeballs they look for in theatres
It’s that time of the year again when theatres gear up to pocket maximum gains. Diwali is here and there are three films ready to hit the silver screen this week--Housefull 4, Made In China and Saand Ki Aankh. The festive period brings much joy to exhibitors, distributors and theatre owners because it ensures footfalls, giving brands the eyeballs they look for. In fact, industry experts don’t feel that economic slowdown this year has impacted in-cinema advertising. While they are concerned about three movies clashing during Diwali, they predict 50-100 per cent rise in ad rates during this period.
Advertising moolah
Mohan Umrotkar, CEO, Carnival Cinemas, is expecting 60-70 per cent surge in advertisement topline compared to last year. “Going by the buzz and advance booking for these three releases, market is bullish. Advertisers have blocked most of the advt-slots during the festival period. Housefull 4, Made In China and Saand Ki Aankh all combined together should generate around Rs 350 crore topline at the box office during the festival week. We are expecting 60-70 per cent surge in the advertisement topline from last year. Also, this year we have added around 14 per cent new advertisers, and 4 per cent of them are first-time cinema advertisers,” he says.
But according to Siddharth Bhardwaj, Chief Marketing Officer - Head of Enterprise Sales, UFO Moviez, things have changed a lot in the last couple of years. “Since some films have not really lived up to their expectation, advertisers are spreading the spends all through the year. They are picking up far more number of titles in the year rather than focusing only on Diwali or Eid.”
“It is good for the industry because you can monetise the inventories beyond just big weeks. A lot of content- driven films have come up which has given us the opportunity to monetise more markets. It has put lesser pressure on Diwali. Most of the cinemas are sold out for Diwali. It becomes difficult to accommodate everything,” Bharadwaj opines. He also reveals that for this week, the inventories are already full.
Diwali ad rates
Experts reveal that ad rates differ from property to property and depends on location as well. But Diwali surely sees a massive hike in rates. This year, theatre owners are expecting 100 per cent rise in ad rates. While Umrotkar revealed that for Diwali, they are charging 100 per cent higher than the regular card rates, Girish Johar, trade analyst and film producer, shared that even the rates for putting up kiosks of brands go up during festivals like Diwali.
“It’s based on property. On a ballpark, ad rates double up. So if you are putting up a kiosk, they charge say Rs 50,000-25,000 for a month. During Diwali, they charge almost double because of the kind of footfalls theatres witness,” Johar revealed.
Economic slowdown? Not for Cinema!
This year, brands have been pulling back their spends on other mediums due to economic slowdown, but cinema seems unaffected. Calling entertainment business recession-proof, Johar explains, “If you see the other side, box office is up by 15-20 per cent. Yes, it is a bit subdued because the brands are in a wait-and- watch scenario. They are increasing their focus around consumption rather than awareness.”
Bharadwaj too seconded it by saying, “These are challenging times but our medium is very efficient. If you see economy has slowed down, but the cinema has grown instead.”
Clash cover
Three movies are clashing this Diwali which means shared screens and box office gains.
“It’s never good for us when two or more big-ticket films release together. If they would have come on different dates, there are chances that more advertisers will take advt. inventory in those weeks separately instead of that one particular week,” shares Umrotkar.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
INOX Leisure Ltd sees 42% growth in total revenue
Profit After Tax up 327% to Rs 51 crore
INOX Leisure Ltd (INOX) has reported financials for the second quarter ending September 2019.
Its total revenue has risen to Rs 524 crore with a 42% growth from Rs 369 crore in the corresponding quarter in FY19. Its EBITDA has more than doubled to Rs 107 crore with a 121% growth, while the PAT stood at an impressive Rs 51 crore, up 327% from previous year’s second quarter.
Siddharth Jain, Director, INOX Group, said: “At INOX, setting new benchmarks is now a routine, thanks to our consistently sharp focus on luxury, service and technology and our uncompromised desire to offer our patrons, nothing but the latest and the best! We are delighted with our remarkable consistency on all parameters, and we are sure about maintaining the momentum and focus on innovativeness. Content once again proved that why we term it as the ‘hero’. Thanks to the creators of such spellbinding movies, which keep inviting our guests to our properties, and allowing us to pamper them with our signature hospitality. With the launch of Megaplex, we are delighted to further our endeavor of developing experience-driven cinema destinations of global standards, and we will continue to do so. On behalf of Team INOX, I assure all our stakeholders that we will continue to break barriers and exceed all expectations.”
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
Hathway Cable & Datacom reports 100% subscription collection efficiency in Q2
The broadband subscriber base has increased from the previous quarter’s 840,000 to 860,000
Hathway Cable and Datacom has reported subscription collection efficiency at 100%, and the broadband subscriber base has increased from previous quarter’s 840,000 to 860,000 in quarter ending September, as per media reports.
It has narrowed its consolidated net loss by 74% and the operating EBITDA has been reported 15% up to Rs 107.5 crore compared to Rs 93.1 crore a quarter ago.
The total income has dropped 2%, while the expenditure is down 6%.
In the financial results, the company has said the FTTH markets are leading growth in customer acquisition.
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp
ZEEL posts 7.4% YoY growth in total revenue for Q2 FY20
ZEEL's domestic advertising revenue has grown 1.4% YoY in Q2FY20
Zee Entertainment Enterprises Limited (ZEEL) has reported a consolidated revenue of Rs 2,122 crore for the second quarter of FY20, recording a growth of 7.4% on YoY basis.
The Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) was recorded as Rs 692.9 crore with an EBITDA margin of 32.7%. PAT for the quarter was Rs 413.2 crore. The Profit After Tax (PAT) for the quarter was Rs 413.2 million, with a growth of 6.9% YoY.
During the second quarter, ZEEL’s consolidated advertising revenue grew by 1.2% YoY to Rs 1,224.7 crore. The domestic advertising revenues grew by 1.4% YoY to Rs 1169 crore.
ZEEL has posted 26.8% YoY growth in Q2FY20 domestic subscription revenue. ZEEL’s consolidated subscription revenue grew by 19.0% to Rs 723.5 crore during the quarter.
ZEEL’s total expenditure in Q2FY20 stood at Rs 1429.1 crore, higher by 9.9% YoY compared to Q2FY19.
While ZEE5 recorded a peak DAU (Daily Active User) base of 8.9 million in September 2019, ZEE5 users watched an average of 120 minutes of content on the platform in the same month.
During Q2 FY20, the television network had an all-India viewership share of 18.4%.
During the quarter, ZEEL’s international business revenue was Rs 208.2 crore. The advertising and subscription revenues for international business declined by 4.0% YoY and 21.5% YoY, respectively.
Zee Music Company has registered 7.1 billion views on YouTube in Q2.
Punit Goenka, Managing Director and CEO, ZEEL, said, “I am pleased with the performance we have exhibited during the quarter. Our entertainment portfolio continues to grow from strength to strength across all formats and maintained its leading position. Our television network has emerged stronger post the implementation of tariff order on the back of a strong customer connect and brand pull of its channels. ZEE5 continued to gain traction across audience segments and markets, driven by its compelling content library and expanding list of partnerships across the digital eco-system. This strong operating performance allowed us to deliver industry leading growth in both advertising and subscription despite the tough macro-economic environment. Domestic subscription growth of 27% has reaffirmed the value proposition our television network has built over the years. The impact of tariff order has now largely settled down and has brought increased transparency along with improved monetization. Our domestic advertising revenue growth, though significantly lower than historical trend, is higher than the industry growth. We have witnessed an improvement in ad spends through the quarter and we believe that the onset of festive season along with measures taken by the government will help revive the consumption growth.”
Read more news about (internet advertising India, internet advertising, advertising India, digital advertising India, media advertising India)
For more updates, be socially connected with us onInstagram, LinkedIn, Twitter, Facebook Youtube & Whatsapp