Here,I would actually like to know why would you have a reserve price for getting a franchise? Chances would've been in a bid to get the team,owners might have outbidded each other and hence more money.
You seem to know quite a bit about marketing so do you know the strategy behind? I don't know much about bussinesses in these league so if you could help me out here.
For the first, I think your question is how the price of a franchise can be maximized. I think, the best way is open bidding, build the PSL brand & then introduce new franchise - which, PCB is doing. The idea is - no body knew how successful PSL can be, therefore investors/owners were restrained to go in a bidding war. So, theoretically, had PCB phased it out over 10 years, they could have made more money - may be start with 4 teams & gradually increase up to 8. If the brand is bullish, each time the next franchise will be sold at much higher price. The risk in this model is that a flop PSL (or unstable market scenario - war, economic recession, declining mass interest, corruption ..) could have bankrupt PCB, because they can't manage overhead with 4/5 teams, neither can increase teams because of lack of interest from investors.
Second model can be what in used in US sports - they (take NBA) hardly increase franchise/team, but the participation right is sold for a particular period, after that one has renew with fees or sale their franchise to new owners; something like Minneapolis Lakers becoming LA Lakers (Laker brand was strong, so the owners relocated the franchise keeping same name), or Super Sonics at Seattle moved to Oklahoma as Thunders. What PCB has done is perfect - they covered initial risk with 5 franchise for 10 years contract (?) & once the PSL marketability is established introducing new teams at premium - after 10 years, with other economic factors going as expected, each franchise could be sold at 10X. But, they must maintain a check & balance between number of teams - to cash the market pull, if PCB introduces say 16 teams, quality will go down (& too many matches reducing the mass interest), which might kill the business prematurely. NBA can introduce another 30 teams (still big cities like Austin, Baltimore, Buffalo, Jacksonville, Nashville, Seattle, Las Vegas, St. Luis ...... don't have NBA team), but the result might end as a disaster. PCB has to find the optimum number of teams for best case scenario.
Second question is probably how the new franchise can come at per with the existing teams - this one simple, as I mentioned, either introduce a transfer market or trading system (i. e. ambitious owners will buy players contracted by existing franchise, paying fees to the club) or an annual free agent policy - every contract is for one season; new franchise can start the first season with equally strong team by hiring free agents. There can be mutual understanding between players & their franchise, but technically each player is free to move at the start of new season. This one again isn't helpful for new franchise in capped budget system (why a player will leave his current team to a new one for same money?). NBA uses cap to stop market blowing out of proportion, but they allow multi season contracts, bringing trading into equation.
Last question is probably, why Schon Property has spent so much & what's their marketing logic? To me, from business perspective - nothing. Real estate isn't a mass branding item; i. e. - it's not mass consumption product that one can bring economy of scale in mass brand campaigns, because the market is niche (selective) & it's not a bulk/repetitive purchase item. Rather, direct marketing strategy is used for products. You'll never see Boeing or Air Bus or Dessult or Bomberdier spending on their brands/communication - because their product (air craft), most likely won't be bought after watching ads pr logo on Barca shirt ..... The most expensive consumer product that is associated with consumer branding is probably automobile (car) - still you won't see much branding by Bugati, Ferrari, Koennigsegg, Lamborghini or Maybach - because, like real estate, their customer base is too small & they are more feature conscious. Instead of spending PR 450 crore on PSL, I probably would have hired 450 young graduates on salary & made their payment, at least 50% as direct commission from sales success - they'll also be happy to earn 12,000/month + allowances & a bonus of 50,000 in every 4/5 months for selling one apartment for 25,000,000.....
Why Schon Properties have spent so much then? Frankly speaking, every T20 franchise is a washing machine to clean some black money. I shouldn't talk about IPL or PSL, but I know many of the owners of BPL franchises ...... If I could do a civilized robbery of a bank (that's loan defaulter of 1 billion+), or I were a mafia boss of smuggling racket, illegal casino, brothel ... or I if were the son of a federal minister who handles lots of public expenses - I would have definitely bought a BPL franchise - even better, if it can push me to officially Bankrupt.
Then sign warner for that team and it would be perfect.
