How RCB Built a ₹580 Crore Empire Despite On-Field Struggles
Who hasn’t heard of RCB, or Royal Challengers Bangalore, a prominent name in the world of cricket? While many are familiar with the team’s strong brand, have you ever wondered what sets RCB apart? It’s not just their on-field performance—or lack thereof—that makes RCB unique. Their innovative business strategy is key to their profitability, even without a significant impact on the cricket field. Let’s dive into how Royal Challengers Bangalore’s business model operates and drives their success.
Rooting for RCB: The Brand That Thrives Beyond the IPL
I’ have always rooted for a team that may or may not win the IPL, but it’s certainly going to make a significant impact financially. What’s truly remarkable is that, when you compare RCB with the other top three most valued teams, RCB stands out as a major exception. Despite never clinching an IPL title, they’ve created an extraordinary brand value.
RCB has managed to position itself not merely as a sports team but as a global lifestyle brand. This unique approach has fostered an incredibly loyal fan base, filling stadiums even during practice sessions—yes, you read that right. It’s an impressive feat that highlights their deep connection with fans.
In 2012, RCB was the fifth most popular sports team worldwide on Instagram. This is a remarkable achievement, especially considering that the top four spots were dominated by global football giants like Real Madrid, Barcelona, Manchester United, and PSG—clubs with massive international followings.
How RCB Thrives Financially: The Three Key Revenue Streams
Curious about how IPL teams make money? Let’s explore the three key strategies that RCB has mastered to become one of the highest-earning franchises, even without winning the tournament. But before we dive into that, let’s first understand the basic revenue streams for RCB and other IPL teams.
RCB and any IPL team primarily earn through five main channels:
- Central Rights: Revenue from the league’s central broadcasting and media rights.
- Team-Specific Sponsorships: Income from various sponsors whose logos appear on caps, jerseys, and player kits.
- Ticket Sales: Revenue from match tickets, though 20% of this goes to the BCCI.
- Royalties and Licensing Fees: Earnings from licensing deals and brand partnerships.
- Prize Money: Although RCB has yet to win any prize money, this remains a potential revenue stream.
By leveraging these revenue streams effectively, RCB has managed to build a robust financial foundation and become a leading earners in the IPL.
The Power of Star Association
RCB has expertly harnessed the power of star association to elevate its brand and drive fan engagement. Think about the impact of a high-profile player joining a team—much like when Cristiano Ronaldo moved to Al-Nassr. Before his arrival, the club had around 700,000 Instagram followers; now, they boast approximately 25 million. Similarly, RCB has transformed into a haven for cricketing stars.
However, attracting top players is just the beginning; retaining them is where the real challenge lies. RCB excels in generating massive loyalty by treating their athletes like the superstars they are. For instance, the franchise retired the jerseys of iconic players like AB de Villiers and Chris Gayle, and held a grand Hall of Fame induction to maintain fan engagement. These actions significantly boost loyalty and fan connection.
Adding to their roster of influential players, RCB proudly features Virat Kohli, one of the most-followed athletes globally. Kohli, who ranks just behind Cristiano Ronaldo and Lionel Messi on Instagram, is also one of the highest-paid athletes worldwide. His remarkable reach and popularity have been a boon for RCB. The franchise’s early bet on Kohli, when he was just 19, has proven to be a masterstroke, coinciding perfectly with his rise as a record-breaking captain.
RCB’s brand positioning was strategically crafted from day one. When Vijay Mallya, the “King of Good Times,” acquired the club, he envisioned it as a highly desirable brand. RCB was the first team to have celebrity brand ambassadors like Deepika Padukone and Katrina Kaif, adding a touch of glamour to its image. Additionally, the integration of the Royal Challenge brand name into the club’s identity was a clever move, setting RCB apart from other teams like Mumbai Indians or Chennai Super Kings, whose names don’t feature their parent brands.
This strategic use of star power and brand association has been a cornerstone of RCB’s success, reinforcing its position as a premier cricket franchise.
Mastering the Offline Experience
Vijay Mallya recognized that RCB was the perfect complement to his alcohol company, United Spirits Limited. Consequently, positioning RCB as a lifestyle brand was a strategic move to enhance the company’s visibility. Early on, he invested significantly in hosting high-profile events and exclusive parties, leveraging RCB’s growing popularity to promote his brand.
Over time, RCB’s marketing team refined its focus on creating impactful offline experiences. While digital and online platforms offer excellent reach, the true challenge—and opportunity—lies in fostering community loyalty through tangible, real-world interactions. This is a principle we’ve embraced at GrowthX as well.
RCB’s dedication to cultivating an immersive offline experience has played a crucial role in building a strong, engaged fan base. By blending high-profile events with a deep understanding of community engagement, RCB has successfully turned its cricketing platform into a lifestyle phenomenon.
Mastering Content Creation
RCB excels in the art of content creation, understanding that staying relevant throughout the IPL’s two-month tournament is crucial. To maintain engagement year-round, RCB’s team is highly active on social media platforms, consistently delivering compelling content that resonates with fans.
Whether it’s celebrating a record-breaking achievement or capturing the excitement of major events like the World Cup, RCB knows how to create viral content. For instance, their Instagram post celebrating Virat Kohli’s record for the most hundreds in an ODI tournament garnered an impressive 2 million likes. This level of engagement demonstrates their ability to connect with fans effectively.
Their slogan for the season, “Ee Sala Cup Namde,” which translates to “This time, the cup is ours,” has become a rallying cry for supporters, showcasing their fierce loyalty to the team. The slogan’s impact is evident in the way it has resonated with fans, turning it into a symbol of their dedication.
During the IPL, RCB often finds itself the subject of playful rivalry and trolling from other teams, with memes and tweets circulating on social media. However, this fan banter only serves to energize RCB’s loyal supporters, who actively defend their team and engage in spirited discussions. This dynamic interaction not only fuels the hype around RCB but also strengthens the bond between the team and its passionate fan base.
All these factors have collectively transformed RCB into more than just a cricket team; they have established it as a powerful brand in its own right. By strategically leveraging star power, mastering offline experiences, and excelling in content creation, RCB has crafted an identity that extends well beyond the boundaries of cricket.