There are some other factors like bidding, monopoly (over the sport as well as venue), content ownership by media companies (like TV shows), Promotion & exposure of their brand and products in Indian market. This is why the valuation looks so much over the roof. There is a good paper by Christina Vogel on this topic that why some investers pay so much more than the value of a Franchise ?. 1999 but still relevant. http://users.wfu.edu/palmitar/Law&Valuation/Papers/1999/Vogel-Sports-Franchise.htm
With an accepted methodology for
valuing sports franchises, why then would a purchaser pay up to 97% more than
the value of a franchise. Is this the ego factor at work? Not
necessarily. To some individuals, like Rupert Murdoch, a sports franchise
represents more than just the purchase of a team. In 1998, Murdoch
purchased the Los Angeles Dodgers from the OMalley family for $311
million. According to FW, the Dodgers 1997 value was $180, Forbes had
valued the Dodgers at $236 million in 1998. Why then would Murdoch pay so
much above the franchises value. Is the ego factor that valuable or was
FW and Forbes calculations that far off. Essentially, the problem wasn�t with the methodology used by both
FW and Forbes. The problem lies more with what was being valued, in this
case, a baseball organization, a stadium on a parcel of land and a training
complex with some undeveloped land in Vero Beach Florida. However, to
Murdoch, chairman of News Corp, which owns Fox Networks, the Dodgers represent
much more.
In the Dodgers, Murdoch gained a
guaranteed audience, at least 162 days a year, in Southern California for his
cable sports TV station. Additionally, there is the possibility that the Dodgers
brand can be exploited by his other sports shows and even his Fox movie
operations. There are also expectations that the Dodgers� surplus land in Los Angeles may
become home to a football stadium and a new NFL team. It is also possible
that the undeveloped parcel of land in Florida could be used for the
development of a theme park for 20th Century-Fox and Fox Sports. These
are some of the reasons why the Dodgers were so valuable to Murdoch and why he
was willing to up to 97% more than the current value of the team.
Murdoch isn�t the first or only media company to
own a sports franchise. Others include Cablevision, which owns the New
Knicks and New York Rangers, Comcast Corporation, which owns interests in the
Philadelphia Flyers and 76ers, The Tribune, which owns the Chicago Cubs, Walt
Disney, which owns the Anaheim Angles and the Mighty Ducks and of course Ted
Turner, owner of the Atlanta Braves. What does the purchase of a sports
franchise give these media companies. It allows them to own content as
well as distribution. By owning a team outright, these companies can, in most
instances, control all the rights to games without paying someone for
them. In essence, they are cutting out the middleman. This is the
same logic that has pushed networks to create their own TV shows.
What else is it about sports
franchises that have media companies bidding far above the franchise�s actual calculated value. In
sports programming, companies have a fail-safe tool for holding audiences
captive for predicable periods of time. More specifically, sports
programming allows media companies to hold the attention of 18-to-49 year old
males, the rich core of television demographics. Advertisers will pay a
premium to reach this group of consumers. Additionally, sports viewers
are also the most likely to pay for see games on a pay-per-view basis.
Considering
these factors, is it really a surprise that Murdoch bid $ 1 million for England
premier soccer team, Manchester United. Murdoch�s bid was a 50% premium above the price Manchester United
dictated in the stock market before his bid was made. Murdoch isn�t really interested in the sport of soccer. His goal
is to own Britain�s premier team for its broadcast
rights, to pipe through his broadcasting system, charging fans whatever he
wants. He can also use the games as an opportunity to promote other
programming in a manner similar to that in which he had Bart Simpson promote
other Fox shows during US football games. It is widely thought that
Murdoch would love to make many of Manchester United�s games pay-per-view events. Many industry watchers
believe that with the popularity of Manchester United, pay-per-view events
would be like coining money. It is also widely thought that Murdoch�s purchase of Manchester is only the beginning of an even
greater plan. Suspicions are that Murdoch would like to use his ownership
of Manchester to gain leverage to organize a pan-European �super� soccer league
We cant just copy American Model because they are expert in doing these things for many decades. But possibly due to success of IPL model in India, we are able to attract buyers from abroadin other sports.
They have their own objectives behind investing in India. The main promoters behind City Football Group also has a Property (Real Estate) portfolio around the world. They promote Etihad Airways. They will promote their brand once they establish themselves in Indian market.
The Orange Brigade had earlier threatened to shut shop during the Super Cup.
With Indian football currently in dire straits with a rather uncertain future, it is NEROCA FC now, who face a rather unfortunate scenario of having to possibly pull out from the I-League.
With the AIFF taking a rigid and unfortunate stance towards the I-League clubs, it doesn't come much as a surprise. It is already known that the Imphal-based club lost its main investors in the guise of Classic. Khel Now had also revealed earlier that the club's new gaffer Renedy Singh had also joined Classic's new football academy as technical director. According to Khel Now sources, "the club won't participate in the I-League if it doesn't get an investor soon".
Khel Now sources have also revealed that the club won't shut down, but if it doesn't get the right investor, then it would participate in local leagues and competitions.
NEROCA finished off the 2018-19 I-League season with a sixth-place finish. The club registered 26 points, coupled with seven wins, five draws, and eight losses. During the Super Cup protest, the club had threatened to shut shop too!
The future looks unsure, with the AIFF still not revealing anything about Indian football's future, regarding the top-league status. We have already had Minerva Punjab reveal that they would play a U-23 team in the upcoming I-League, and now NEROCA's uncertainty, could be a sign of bad things to come.
AIFF OPENS INDIAN CLUB LICENSING SYSTEM FOR 2019-20 SEASON
The Club Licensing administration of AIFF today distributed the Club Licensing Application Pack (CLAP) to all the clubs who are eligible to undergo the Indian Club Licensing process for the 2019-20 season.
Clubs will have to confirm their intention to undergo the Indian Club Licensing process for the 2019-20 season by submitting the Club Licensing Agreement on or before June 5, 2019.
AIFF LAUNCHES INAUGURAL GRASSROOTS LEADERS COURSE IN REGIONAL LANGUAGE
Since its introduction in early 2013, the AIFF Grassroots Leaders Course Programme has seen over 135 courses being conducted across 18 states in India with over 3,500 Grassroots Leaders being certified, and more than 20,000 player participants being directly involved in course activities.
In an effort to increase the nationwide footprint, and to take the game to the remotest parts of the country, All India Football Federation is now on the verge of introducing its maiden Certificate Course in a regional language.
June 3, 2019, will represent a landmark day in Indian football when the AIFF Grassroots Leaders Course will be delivered in Marathi in Kolhapur, Maharashtra in association with the Western India Football Association, and Kolhapur Sports Association.
This will be the first time that that any GR Leaders course will be conducted in a regional language. Ms. Anjana Turambekar, Head of AIFF Grassroots & Instructor, a native Marathi speaker, will be the Lead Instructor in the course.
Mr Kushal Das, General Secretary AIFF, believes that in a country like India with as many as 22 official and many other unofficial languages, there are several challenges to be overcome.
“We had envisioned this for a long time, and after several months of working with several stakeholders in collaboration with the AIFF, I am delighted that the first-ever course in an Indian regional language is finally here,” Mr Das stated.
Mr Isac Doru, AIFF Technical Director, believes it is more important to get the information across to the coaches in a universal manner, regardless of the language one speaks.
“I’ve been in this country for just around three weeks so far. But I’ve already charted out Grassroots development as one of my top priorities. It requires a good coaching education, and special attention on the curriculum we set for the coaches,” said Mr Isac.
“I am happy that we have now started to explain the universal principles of Grassroots in local languages, taking into consideration the traditional knowledge and experiences,” he further explained.
The AFC Coaching Convention allows Member Associations like the AIFF to offer its own coach education courses within its territory at the AFC-approved level which are delivered in their own region-specific languages.
“Once you break the language barrier, it opens up new frontiers. More coaches will come to the forefront who in turn will be able to express their thoughts, and ideas through the powerful medium of their own native tongue,” Ms. Anjana explained.
"Translating content while keeping the overall context intact is crucial. Likewise, we need Instructors who are fluent in the language, and can deliver in a manner which is easy to understand,” Ms. Anjana explained.
Posting it here, chettri spoke very frankly about many topics including merger, new coach, young players also trolling one lady journalist regarding cricket question
Comments
There are some other factors like bidding, monopoly (over the sport as well as venue), content ownership by media companies (like TV shows), Promotion & exposure of their brand and products in Indian market. This is why the valuation looks so much over the roof.
There is a good paper by Christina Vogel on this topic that why some investers pay so much more than the value of a Franchise ?. 1999 but still relevant.
http://users.wfu.edu/palmitar/Law&Valuation/Papers/1999/Vogel-Sports-Franchise.htm
With an accepted methodology for valuing sports franchises, why then would a purchaser pay up to 97% more than the value of a franchise. Is this the ego factor at work? Not necessarily. To some individuals, like Rupert Murdoch, a sports franchise represents more than just the purchase of a team. In 1998, Murdoch purchased the Los Angeles Dodgers from the OMalley family for $311 million. According to FW, the Dodgers 1997 value was $180, Forbes had valued the Dodgers at $236 million in 1998. Why then would Murdoch pay so much above the franchises value. Is the ego factor that valuable or was FW and Forbes calculations that far off. Essentially, the problem wasn�t with the methodology used by both FW and Forbes. The problem lies more with what was being valued, in this case, a baseball organization, a stadium on a parcel of land and a training complex with some undeveloped land in Vero Beach Florida. However, to Murdoch, chairman of News Corp, which owns Fox Networks, the Dodgers represent much more.
In the Dodgers, Murdoch gained a guaranteed audience, at least 162 days a year, in Southern California for his cable sports TV station. Additionally, there is the possibility that the Dodgers brand can be exploited by his other sports shows and even his Fox movie operations. There are also expectations that the Dodgers� surplus land in Los Angeles may become home to a football stadium and a new NFL team. It is also possible that the undeveloped parcel of land in Florida could be used for the development of a theme park for 20th Century-Fox and Fox Sports. These are some of the reasons why the Dodgers were so valuable to Murdoch and why he was willing to up to 97% more than the current value of the team.
Murdoch isn�t the first or only media company to own a sports franchise. Others include Cablevision, which owns the New Knicks and New York Rangers, Comcast Corporation, which owns interests in the Philadelphia Flyers and 76ers, The Tribune, which owns the Chicago Cubs, Walt Disney, which owns the Anaheim Angles and the Mighty Ducks and of course Ted Turner, owner of the Atlanta Braves. What does the purchase of a sports franchise give these media companies. It allows them to own content as well as distribution. By owning a team outright, these companies can, in most instances, control all the rights to games without paying someone for them. In essence, they are cutting out the middleman. This is the same logic that has pushed networks to create their own TV shows.
What else is it about sports franchises that have media companies bidding far above the franchise�s actual calculated value. In sports programming, companies have a fail-safe tool for holding audiences captive for predicable periods of time. More specifically, sports programming allows media companies to hold the attention of 18-to-49 year old males, the rich core of television demographics. Advertisers will pay a premium to reach this group of consumers. Additionally, sports viewers are also the most likely to pay for see games on a pay-per-view basis.
Considering these factors, is it really a surprise that Murdoch bid $ 1 million for England premier soccer team, Manchester United. Murdoch�s bid was a 50% premium above the price Manchester United dictated in the stock market before his bid was made. Murdoch isn�t really interested in the sport of soccer. His goal is to own Britain�s premier team for its broadcast rights, to pipe through his broadcasting system, charging fans whatever he wants. He can also use the games as an opportunity to promote other programming in a manner similar to that in which he had Bart Simpson promote other Fox shows during US football games. It is widely thought that Murdoch would love to make many of Manchester United�s games pay-per-view events. Many industry watchers believe that with the popularity of Manchester United, pay-per-view events would be like coining money. It is also widely thought that Murdoch�s purchase of Manchester is only the beginning of an even greater plan. Suspicions are that Murdoch would like to use his ownership of Manchester to gain leverage to organize a pan-European �super� soccer league
We cant just copy American Model because they are expert in doing these things for many decades. But possibly due to success of IPL model in India, we are able to attract buyers from abroad in other sports.
They have their own objectives behind investing in India. The main promoters behind City Football Group also has a Property (Real Estate) portfolio around the world. They promote Etihad Airways. They will promote their brand once they establish themselves in Indian market.
NEROCA FC's I-League future in doubt
The Orange Brigade had earlier threatened to shut shop during the Super Cup.
With Indian football currently in dire straits with a rather uncertain future, it is NEROCA FC now, who face a rather unfortunate scenario of having to possibly pull out from the I-League.
With the AIFF taking a rigid and unfortunate stance towards the I-League clubs, it doesn't come much as a surprise. It is already known that the Imphal-based club lost its main investors in the guise of Classic. Khel Now had also revealed earlier that the club's new gaffer Renedy Singh had also joined Classic's new football academy as technical director. According to Khel Now sources, "the club won't participate in the I-League if it doesn't get an investor soon".
Khel Now sources have also revealed that the club won't shut down, but if it doesn't get the right investor, then it would participate in local leagues and competitions.NEROCA finished off the 2018-19 I-League season with a sixth-place finish. The club registered 26 points, coupled with seven wins, five draws, and eight losses. During the Super Cup protest, the club had threatened to shut shop too!
The future looks unsure, with the AIFF still not revealing anything about Indian football's future, regarding the top-league status. We have already had Minerva Punjab reveal that they would play a U-23 team in the upcoming I-League, and now NEROCA's uncertainty, could be a sign of bad things to come.
https://khelnow.com/news/article/indian-football-2019-neroca-fc-to-pull-out-of-i-league
AIFF OPENS INDIAN CLUB LICENSING SYSTEM FOR 2019-20 SEASON
The Club Licensing administration of AIFF today distributed the Club Licensing Application Pack (CLAP) to all the clubs who are eligible to undergo the Indian Club Licensing process for the 2019-20 season.
Clubs will have to confirm their intention to undergo the Indian Club Licensing process for the 2019-20 season by submitting the Club Licensing Agreement on or before June 5, 2019.
The Indian Club Licensing Timelines & Regulation - 2019-20 document can be downloaded here: https://www.the-aiff.com/document-library.htm
https://www.the-aiff.com/news-center-details.htm?id=9722
AIFF LAUNCHES INAUGURAL GRASSROOTS LEADERS COURSE IN REGIONAL LANGUAGE
Since its introduction in early 2013, the AIFF Grassroots Leaders Course Programme has seen over 135 courses being conducted across 18 states in India with over 3,500 Grassroots Leaders being certified, and more than 20,000 player participants being directly involved in course activities.
In an effort to increase the nationwide footprint, and to take the game to the remotest parts of the country, All India Football Federation is now on the verge of introducing its maiden Certificate Course in a regional language.
June 3, 2019, will represent a landmark day in Indian football when the AIFF Grassroots Leaders Course will be delivered in Marathi in Kolhapur, Maharashtra in association with the Western India Football Association, and Kolhapur Sports Association.
This will be the first time that that any GR Leaders course will be conducted in a regional language. Ms. Anjana Turambekar, Head of AIFF Grassroots & Instructor, a native Marathi speaker, will be the Lead Instructor in the course.
Mr Kushal Das, General Secretary AIFF, believes that in a country like India with as many as 22 official and many other unofficial languages, there are several challenges to be overcome.
“We had envisioned this for a long time, and after several months of working with several stakeholders in collaboration with the AIFF, I am delighted that the first-ever course in an Indian regional language is finally here,” Mr Das stated.
Mr Isac Doru, AIFF Technical Director, believes it is more important to get the information across to the coaches in a universal manner, regardless of the language one speaks.
“I’ve been in this country for just around three weeks so far. But I’ve already charted out Grassroots development as one of my top priorities. It requires a good coaching education, and special attention on the curriculum we set for the coaches,” said Mr Isac.
“I am happy that we have now started to explain the universal principles of Grassroots in local languages, taking into consideration the traditional knowledge and experiences,” he further explained.
The AFC Coaching Convention allows Member Associations like the AIFF to offer its own coach education courses within its territory at the AFC-approved level which are delivered in their own region-specific languages.
“Once you break the language barrier, it opens up new frontiers. More coaches will come to the forefront who in turn will be able to express their thoughts, and ideas through the powerful medium of their own native tongue,” Ms. Anjana explained.
"Translating content while keeping the overall context intact is crucial. Likewise, we need Instructors who are fluent in the language, and can deliver in a manner which is easy to understand,” Ms. Anjana explained.
Exclusive: I think that both ISL and I-League are important for Indian football- Eelco Schattorie
The recently appointed Kerala Blasters boss feels the I-League has the best setup for young players while the ISL has a higher level of competition.
https://khelnow.com/news/article/isl-2019-20-kerala-blasters-eelco-schattorie-exclusive-interview