IPL controversy snowballs

Whatever happens to the current IPL related chants, we have to accept the fact that it indeed has taken cricket to a whole new world and given it a platform it deserved!

My two cents on the current IPL controversy

It all started with Modi spilling the beans on Kochi IPL stakeowners and especially One Sunanda Pushkar, whom former Minister, Shashi Tharoor is expected to marry soon (though this can take a back seat in the light of this controversy). I am not interested in knowing what is the role of Ms Pushkar in the franchise or what is her role vis-a-vis Mr Former Minister. Neither I am interested to know if Tharoor ever requested Modi not to disclose the owners and their stakes. What I am interested to know is what role actually the former minister enacted in the IPL franchise and was he truthful thus far? From the looks of it, it seems, he did have a role, may be some financial stake as well. If there had not been any role, why would the govtt. ask him to step down and cut a sorry figure in the eyes of the common man. As it is, the govtt, is already running short in respect to the rising prices, Women's bill, Telangana controversy (Thank God! it is not buring right now), Nucler liability bill, etc. If he was not at fault, why shuould the immensely popular and internationally acclaimed minister step down? I agree, since becoming minister last year, he has become controversy's favourite child, but still, I don't buy the argument that he was not at fault and still resigned for moral reasons or whatever.

What can we say about Mr Lalit Modi. From his resume, it seems, he has a penchant for the wrong! But, everytime he has come back strong and better equipped! I bilieve, this time would be no different either! He gave cricket and India something different and something to chear about! An internationally acclaimed brand worth billions within 3 years is something which not even top business houses could ever imagine. No investment, no business would have ever grown so popular in such a short timeframe. His marketing and selling acumen is there for all to see. But I bilieve, the immense popularity of IPL and that everyone wanted their share of the pie and to top it all the fact that he became the most saught after business man, celebrity created all the problems. Did success caught up with him? Did he started taking things for granted and treated everyone else with contempt? Did he manouvered around the law and regulations to help his business causes and his kith and kin? It seems answer to these questions may be a big Yes. His high handedness proved to be his unbecoming. We can't say anything for sure, but answer to many such questions would be interesting to know. I am sure, millions like me want to know these facts.

Another thing that bothers me is that why did our tax authorities, govtt and other agencies react to such happeneings? Why can't they be proactive? Why do they have to wait for some whistleblower to lift the lid? This time again, they joined late! Everyone knows these franchises, BCCI, IPL are all private bodies and hence they don't have to declare any financial or business information. Hence, they can easily play around. With millions at stake and numerous theories flying across about the financial status of the franchises over the internet and other media, it should have been reason d'etre for all such investigations. Nevertheless, better late than never!

Having said all this, I would be as interested to know the facts and outcome of the investigations as you and would be following the drama all over! I sincerely hope, none of the witnesses turn hostile and this one doesnt run into years as many have over the past :)

IPL takes the everyone by storm

I know the title above sounds like a cliché :) Not that I couldn't find something which would sound better and attractive to the audience, but I wanted to put this to bring a point into perspective. T20 cricket was conceptualized just a few years ago by someone who has long been forgotten and never knew that it would generate the moolah like it is now, otherwise he would have put a royalty fee to his idea :) He just tried it out to bring some loyal supporters back to the English county cricket and make it enjoyable for the teams as well as the audience.

Look at it now, it indeed has taken the world by storm, just look around and we see everything which is suited to this shortest version of the game. We have T20 leagues all around the world. Cricket boards have risen to the fact that to keep themselves going and maintaining the spectator interest they have to adopt this newest child and pamper it to the hilt. Even corporates and celebrities have put in some huge amounts and we can see them all having fun at the grounds – showing their famous dimples, smiles, dance moves, and then the latest one – tweeting to “connect with their fans”. The players are also having some good time – get to earn astronomical amounts of money which was never heard of in cricket, learn, compete with the best in the business and if they are lucky, as some of them have been, get hugs and kisses from their famous and beautiful owners :)

Before we lay threadbare some of the other interesting facts about IPL, lets understand the business model that this competition adopts and see its merits and demerits. All in all, the major inflow of money to the league comes from the following
> Media Rights
> Central Pool – includes title sponsorship and licensed merchandise
> Money raised by the franchises – in stadia advertisement, licensing products, merchandising, advertisements  
   on tickets, and gate receipts
> Franchise bid money
Out of this money that comes into the IPL, all but franchise bid money is shared across the BCCI and franchises and if franchises wish, between the players as well.

Apart from everything that is money in IPL, what are the other benefits that have risen out of IPL. For the players, it is a world level platform, where they are earning much more during this 40-50 day period than they would otherwise for the rest of the year (For some, I might sound over optimistic here :)). They get to share dressing rooms with the best in the world and get to feel how it is playing at the international arena under the glare of the lenses and where every smart catch and pathetic running between the wickets is being watched and liked and ridiculed globally. Imagine how it would feel for someone like Saurabh Tiwary to play alongside Sachin Tendulkar and learn some tricks of the trade. Would someone like Yusuf Pathan had ever dreamt of playing and being coached by Shane Warne and being pampered by him, like he is? And see the transformation, over the last few years, since IPL1, Yusuf has become a regular member of the Indian T20 and ODI squad and bowlers world over dread him for his batting histrionics. Since then, every captain, wants to see the back of Yusuf as soon as he comes out to bat. Experts say that since IPL1, he has improved a lot in his batting and bowling both. Some of the players, like Ravindra Jadeja and Yusuf Pathan should thank IPL very much that this gave them a platform to showcase their talent and earn an Indian blue jersey.

Earlier, the Indian domestic teams for the Ranji trophy and the likes except the zonal teams only had players from their respective states, with only a few exceptions here and there. This somehow, seemed like a regional bias. But with the advent of IPL, we see players from North Indian states playing for the team from the land of “Marathi Manoos”. Thanks to the clout that the BCCI enjoys, that those regular chants from the “manoos” have been allowed. Who knows, may be some mouthpiece would condemn the Ambanis to employ the services of a North Indian Harbhajan Singh for the team from Mumbai.

The corporates and celebrities who have invested some huge amounts of money into buying their respective franchises also seem to give thumbs up to this carnival of cricket. Mind you, these are some of the best business minds of the country and some of the best known faces in the Indian social circuit that they wouldn't have missed a point before investing millions into them. According to some estimates, over the 3 years of its inception, IPL has grown to be a brand worth more than $4 billion and continues to grow and bring more into its ambit. Critics, say millions invested into buying the franchises and then buying cricketers is not a sane business idea and may take years for them to come out of the red. But, I ask them a simple question, unless, a sound business idea was shown to the prospective bidders for the franchises, why would some sane person or a large business house put in such monies for which they might be accountable to the public too. Also, the business model discussed above seems pretty okay for most of the franchises to turn profitable in a year or two of their inception. Having said that, understand all from how things stand now, after 3 years into the IPL mania. 2 new franchises were bought together for an amount more than what was spent for 8 of the old ones 3 years back. 10 second advertisement spots for the IPL3 league matches were sold for Rs 4.5 lakh, which is 200% more than the price for similar ad spot during IPL1 in 2008 and this rose to Rs. 5.25 lakh as the league progressed. For the semi finals and final, these rates are expected to shoot to more than Rs. 6.5 lakh per 10 second spot. For all this, Sony Max is expected to rein in Rs 700 crore during IPL3 this year. All product launches, special cricket based advertisements and events have all aligned themselves to the IPL window. All this is generating money and much moolah as expected.

When the players and the business houses are enjoying their association with IPL, how can the most important stakeholder – the quintessential cricket fan be left behind? And people – we are right up there, sharing the stands with the likes to those celebrities and enjoying to the core. Most of the venues running to packed houses is a testimony in itself that we are all involved and sharing our moments in the sun. The concept was new to us – city teams, clubs and the format – all enchanted us and with the fact that it was cricket – the national pastime and passion, we all got into the thick of the things quickly and with vigour. It has given us enough to spend our after-office hours with our friends and loved ones together and enjoy a few hours, being treated to that barrage of fours and sixes, scoops and free hits.

The BCCI, the parent body and owners of the IPL are the ones who are smiling the most. And why wouldn't they not, they are earning the most of the money that is being generated from the league. They keep a share from everything that is money from the league, be it media rights, gate receipts, merchandise deals and sponsorships.  IPL has led BCCI to get another point to wrestle themselves with the other cash stripped cricket boards of the world and the ICC. Even though, it is not wise to have such a clout rest with just one board, but as they say, who cares, until it doesn’t affect anyone? And whoah!! As I write this one...it has started to affect a few people and everyone is now terming IPL as a saga of Power, Mystery and Deceit!

PS: We shall discuss a few more aspects in the following articles.

The biggest Indian brand of the year…

In the year 2007, when the BCCI announced the launch of the Indian Premier League (IPL) – a premium T20 tournament, everyone thought that it was just out of competition from ICL (remember the T20 step brother from Zee Networks / Essel Group stable). Everyone took the announcement of IPL as a reply to the ICL and nothing else. But who knew that 2 years into the tournament it would become the 6^th biggest brand in sports ever. None believed and I believe, not even the BCCI or its office bearers and our very own Mr. Lalit Modi, Commissioner, IPL knew that it would attract moolah the way it actually did and would become a benchmark for others to follow.

The best thing that IPL really has done apart from taking India to the world, which I think is not a big task because there are so many of us already doing that job for our country. The silver lining lied in the opportunities that a tournament of this nature brought to the local Indian cricket talent who could never climb the ladder to reach the destination called Indian National Cricket Team. Till IPL 1 in 2008, did anyone know Yusuf Pathan, except for that he is the elder brother of Irfan Pathan who himself was living in oblivion after successful 2 years with the National team. But now everyone is enthused by his pyrotechnics on the field and even the opposition knows that he can smother any attack out of the ground on his day. Even the news of he getting marriage proposals from across the country made into newspapers and news channels. Didn’t the board and the selection committee unearth talents like Ravindra Jadeja who is gradually becoming a regular with the National team? Or didn’t IPL give a fitting opportunity to people like Irfan Pathan whom people of the nation were fast forgetting, alike the national selectors? IPL gave us other stars like Manpreet Gony, Swapnil Asnodkar, Kamran Khan, to name a few. In my view this is the biggest gain for these small town players who could have otherwise struggled to fulfil their dreams. Isn’t it helping the board in preparing the bench for the future? Another positive out of IPL was the experience of locking horns and sharing dressing rooms with greats like Sachin Tendulkar, Shane Warne, Glenn McGrath and playing in a competition of this magnitude. The feeling and gains from playing alongside world class players from every cricket playing nation could be enormous and would have taken the local Indian talent to a new height in the sport they love so passionately. There were other gains as well like the money they would get from the contracts with their franchise and the advertisement money that would be splurged on the players and the name and fame that these players make out of it. But I think they were all secondary or I will call them allied – as this comes along with a tournament of such stature.

A lot has been said about the success of IPL or so to say the marketing success of the IPL. No wonder some great minds have worked behind the scenes and on scenes too to make it a $2bn brand. People applaud the BCCI and hail its man behind the concept – Mr. Lalit Modi was creating a global brand out of the most famous pastime of a crazy nation. I guess that’s what he played his bets on and came out trumps.

Conceptualising and making it happen on the grand scale with which the IPL is happening for the past years would have taken its toll on everyone involved. The idea took almost a year to materialise and what magnificent way it flowered. The concept of private franchise and club like atmosphere was well taken from European football, but believing in it and believing it is possible in cricket too was the start of it. Then building it brick by brick and creating a huge edifice which is being values so high in just 2 years from start is no mean achievement.

The financial clout of the BCCI is notoriously famous in cricketing circles that must have given them a heads on in this assignment. But they had to make it happen the way it finally did. They sold the concept pretty well. Actually, the saleability of cricket in our country where we can see empty streets and shops closed for cricket matches is commonly known and hence the idea was easy doing with in the corporate circle for the organisers. They easily knew that they would eventually make money, if not for 1-2 years in the start but after that it should be easy going. Most of the franchises involved were big businessmen (with lots of business interest that cut across various functions and sectors with a lot of gestation periods) with deep pockets.

The $1bn television deal and the player auctions has generated a level of hype and razzmatazz never seen before in the world of cricket. For the companies and business houses bidding for teams and getting hold of prime players under its fold, it meant better brand image for their company. With India becoming World T20 champions, the game started generating a lot of eyeballs and it could eventually become a show of strength for these corporate houses, just like what happens in English soccer and American basketball. It made business sense for these conglomerates as well, when the teams can be bought and sold for profit if they perform well. Comment by India Cements vice-chairman and MD, Mr. N Srinivasan, summarises the game here – IPL will help us build brand image at no cost.

The rising popularity of T20 format of the game and the ever crazy cricket fan in the country had made IPL what it is today. If we look at the reach delivered by the league, we are made to believe that this is not the future of the game, it is the present. Whether or not it is recognised by the ICC is irrelevant to the audiences, who are attracted to watch the best of the world at one forum. It is big-ticket cricket. The brand positioning of the game with the common man is it is “Fast and Quick Entertainment”. I believe that is what is making it sell like hot cake.

IPL expanded the marketing budgets of companies, instead of creating a flight of funds. According to estimates, the league has added almost Rs. 300 crores to the total advertising pie. The rates for ad slots have also risen stupendously. The presenting sponsor fetched more than 25 crores to Sony (TV rights holder for IPL). At the start, it was only Rs 2.5-3 lakh for a 10 second spot. But all this changed while the event became a huge success and started garnering major TRP and ratings.

The continuing list of sponsors for the event, sponsors for the venues, merchandise, and online media has made everyone go tizzy. The list of sponsors for the individual teams doesn’t end too, from Reebok to Nokia to Tag Heur to Master Cards of this world; everyone is making a beeline for their share of the pie.

Undoubtedly, IPL, the microcosm of cricket – 8 teams, 20 overs and 3 hours a match, over 1 billion people watching and we have a $2bn brand. Who would have thought that? The best part of IPL is nobody wins or looses. Everybody just makes money. Isn't it what we Indians like the most about it. If it is the National team which looses a tournament, hearts will be broken and we would starting shouting and cribbing. Not the case with the IPL. There is no emotional attachment so far, yet there is a lot of interest. Best of all – it is a money spinner. RBI might be well placed to order a new war chest to accumulate the foreign reserves IPL is ringing in J