Click to play videoIt’s the ultimate money game. The India Premier League - a heady cocktail worth millions of rupees, oodles of glamour and quick-buck cricket - is back.
The season two IPL auction wasn't expected to be quite as thrilling as it turned out. History was made as Kevin Pietersen and Andrew Flintoff became the most expensive players in the league. To add spice to the story, some virtual unknowns became the centre-piece of fierce bidding wars.
Where is the good old call for austerity, of restraint and of being penny prudent in these times of global economic meltdown? The mind-boggling figures at the IPL auction made the word recession almost redundant.
Is it worth spending millions on cricket players when the same corporates go asking for a bailout from government? CNN-IBN debated these on Face the Nation with former Billiards champion Michael Ferreira, cricket commentator Charu Sharma and Managing Director, 21st Century Media, Lokesh Sharma.
When one sees Mallyas and Ambanis spending the kind of money they do in the IPL, there’s a sense that they lose the right to expect the Government to bail them out when they are in trouble.
Michael Ferreira said the IPL auction represented the age-old market mantra of demand and supply. “Who spends this kind of money? Corporates, who may believe that it’s vital to enhance their brand image. There could also be some income tax relief that they may be getting. So it’s completely the shareholder’s call,” he said.
MONEY, CRICKET AND BOLLYWOOD
But the scenario has changed since 2008. Back then, there was much excitement about an old game getting a new form and all the glitz, glamour and paraphernalia that came associated with Tamasha Cricket. 2009 is different. The world’s reeling from the worst recession ever and there’s hardly any liquidity in the market. And yet, the same corporates who are willing to shell out as much as Rs 7.5 cr for a player, go to Government requesting for a bailout in the Civil Aviation sector.
Ferreira also said IPL was a huge ego message for the high-profile corporates and a publicity stunt for the film stars associated with the auction.
But one look across the sporting fraternity makes it amply clear that it’s not just cricket where such phenomenal circulation of money happens. Soccer, golf and tennis are some of the sports where no one is willing to bring down the prize money. Therefore, is it unfair to fault these corporates when it’s the case across the sporting spectrum?
Charu Sharma said it was more a matter of contract than anything else. “IPL is not a fly-by-night setup. There are contracts which have to be met unless one wants to break the bond - which is fairly difficult to do,” he added.
He also made an interesting point that IPL wasn’t recession proof. “Not by a long shot. One is yet to see if the spectators come in to watch the matches. One has to also look at television revenues,” Charu said.
It was also said in 2008 that the first IPL was a teaser of sorts and whether or not it’s here to stay will be determined by how it fares in 2009. However, while there was considerable excitement among the franchisees last year, this time around things may have changed.
But Lokesh Sharma did not agree and played down the gloom’s day scenario. He promised that people will lap up the cheap entertainment the IPL has to offer in times of recession.
“The fact that people have bid such huge amounts shows they are excited. And this IPL will be bigger and better than last time. There are more sponsors this time around,” he said.
IPL: CHEAP THRILL TO BEAT RECESSION
Sharma also disagreed with Ferreira and said the losses that a team incurs will not be billed on the mother company. “Essentially it means that Reliance doesn’t own the Bombay team, the Ambanis just have a stake in it”.
May be the argument about cheap entertainment holds importance but in times of recession it may not be a bad idea to induce some cheer into the market with a potent mix of Bollywood and cricket. But Ferreira said it was simply the case of eat cake if you don’t have bread. “If people feel it’s not justified, fine, go eat cake. Other people can go spend now,” he said.
Charu Sharma said there were rules and regulations with the IPL that people who doubt its business sense must know. “Any team will only have 16 people. So whether there were 40 people up for auction or 5,000, each team picks on 16,” he added.
But what will keep this kind of business going? Lokesh Sharma said the star value will take care of that aspect. “They are attracting sponsors for the team, creating merchandise programme and attracting more spectators. These decisions make sound business logic,” he said.
So what happens to Prime Minister Manmohan Singh’s call for austerity? Will someone do what Obama did? Ferreira ended the show on a dismal - or contrarily a positive - note and said no one would listen since it’s cricket that’s involved.
SMS/Web poll:
IPL auction: Is the money being spent on cricketers worth it in times of global recession?
Yes: 20
No: 80
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