IPL auctions shows confidence of cricket economy

Rajaraman — Fri, 06 Feb 2009 15:01:59 +0000

The hardcore cricket buffs will spend much time analysing the strategies adopted by the Indian Premier League (IPL) cricket franchisees at the auction in Goa on Friday; others will wonder why such monies are not spent on other sports in India. For the moment, though, I will sit back and smile at how the IPL auction stretched beyond merely the spectacle that the product is.
The fact that eight franchisees signed up 17 overseas cricketers and spent more to $11.5 million – and remember there was a cap of $ 2 million that each franchisee could spend – at the auction is a clear pointer to not just IPL’s health but also that of the cricket economy in the country and, for good measure, the state that India is in.
If you had any doubt about that, you just have to throw a cursory glance at how Kolkata Knight Riders fought tooth and nail with Kings XI Punjab to sign up Bangladesh all-rounder Mashrafe Mortaza. His base price had been set as $50,000 and the Kolkata team ended up bidding as much as $600,000 before the Mohali outfit bowed out of the race.
Cricket, as the venerated West Indian sociologist CLR James wrote, is not played in vacuum but in a society and always reflects that society. It is a message – may be even a powerful statement – to the world that India’s economy is steady on track and, despite reports of jobs being lost in the export-related industry, far from coming unhinged.
My mind goes back to a recent conversation with a colleague of mine who called to ask if I believed the second edition of IPL would happen at all. The question was not with basis, coming as it did in the wake of reports of franchise owners getting together to seek concessions from the IPL Governing Council because of recessionary trends they perceived would hit them.
Yet, some owners were quick to play that down themselves. Kings XI Punjab owner Ness Wadia hit the nail on its head when he spoke of how cricket is TV-based entertainment that reaches to every household. “The economic slowdown will not dampen the spirit of sports. I don’t think there will be any problem to get the sponsors,” he said.
“I don’t think recession is going to affect IPL,” says Kolkata Knight Riders’ owner Shah Rukh Khan, echoing my own sentiments expressed as early as on January 21. “I don’t even think recession is the word for the situation India is in. I would call it a time for correction of figures.”
Hero Honda Managing Director and CEO Pawan Munjal had already indicated that there would be no reduction in his company’s ad-spends. “In fact, we are going ahead with whatever we had planned,” he told SportzPower.com. “All our existing properties will continue to get greater support from our end. Normally, people would say things are bad, let us not support sport, let us not go to TV, but we have a contrarian view. Our call is to back sport more actively.”
The world of sport could not have given the Indian economy a better vote of confidence than this. And I shall savour this moment. Even if I benefit directly by the reduction of petrol prices by Rs 10 a litre and have no direct benefits from the IPL auction in Goa on Friday, I will see the developments as a telling commentary of the confidence in the Indian market.
I see the fact that the two teams chose to bid intensely for Mortaza rather than chase any who had been marked higher reserve prices as a reflection of the fact that India and its businesses, especially those which can bank on experience gained over a year, can now exercise choice. There cannot be any other reason for the likes of Stuart Clark and Luke Wright to be left out.

IPL II set to escape economic slowdown

Rajaraman — Wed, 21 Jan 2009 15:11:58 +0000

There have been suggestions that global recession will leave its impact on the second edition of IPL. I am prepared to stick my neck out and suggest that it will be bigger – and hopefully, better – than the inaugural edition. There were many skeptics even the last time around but I said months before the first ball was bowled that IPL would be a runaway hit.
IPL was the platform that launched the likes of Amit Mishra and Ravindra Jadeja, Manpreet Singh Gony and Dhawal Kulkarni into the higher echelons of cricket. There is no reason why IPL II cannot help discover more such talent while sharpening the skills of those who have already made it big.
As a concept, IPL caught the fancy of many Indians who hadn’t been to a game of cricket in their lives but enjoyed spending evenings watching intense contests that someone like Shane Warne says was an unbelievable experience, quite unlike anything else in his playing career. I can make out that cities are already bracing themselves up to welcome IPL II.There have been some reports on how franchises are thinking of downsizing the strength of their teams; I can also imagine that the host broadcaster will be worried a bit about the impact of the economic downturn on the advertising revenue; but all this will not be enough to affect the quality of cricket or the intensity of competition.
One of the critical components of modern management techniques is to optimise staff strength and this can lead to some downsizing since franchises went about the task of hiring hurriedly and excitedly. There is no doubt that the franchises will learn from last year’s experience and emerge smarter – and leaner.
Mumbai Indians, for example, had as many as 28 cricketers on its rolls last season and fielded as many as 24 in the 14 matches. As many as 15 played six or fewer games and it is clear that the management will look to prune the squad down. Kings XI Punjab is another side that signed up 27 players; only 21 took the field in 15 matches and as many as 11 played five or fewer games.
It is a given that teams will borrow from corporate life and learn to be smart. But it is important that IPL ensures that when the franchises downsize, they stick to the basic rules laid down last year – a maximum of eight overseas players (raised to 10 now), a minimum of four under-22 cricketers and at least four players from the designated catchment areas of the teams.
It is important that the junior – and seemingly less important – cricketers are afforded some kind of protection when the teams begin taking a hard look at the staff strength. A big spin off last season was the fact that many young players got to learn a great deal simply by interacting with legends in the dressing room. Such opportunities must not be curtailed. Not even a wee bit.
Having said that, I reckon this will be the only downsizing we are likely to see in IPL. I will be quite surprised if we do not see it grow bigger and stronger. So what if some Pakistani players are unlikely to be free to travel to India during the competition? And so what if some English cricketers are available only for a short while?
IPL, as most discovered last year, is not just about wild slogging but a format that makes intense demands of its players. Any human endeavour that encompasses body, mind and spirit makes for a heady potion for those who are destined to merely watch it. And that is precisely why IPL II will a bigger hit than the inaugural edition was.

Raj Reflects » Economy

IPL auctions shows confidence of cricket economy

IPL II set to escape economic slowdown