Click to play videoThe Indian Premier League Season-Two started on Friday with another multi-million dollar players’ auction at Panaji in Goa.
Kevin Pietersen and Andrew Flintoff became the costliest players in IPL history as the two were sold for $1.55 million (Rs 7.35 crore) each at the IPL auction.
The beleaguered Bangalore Royal Challengers successfully bid for Pietersen, while last year's runners-up Chennai Super Kings bid the highest for the England all-rounder which set the new record, overtaking the $1.5 million bid last year for Mahendra Singh Dhoni.
Jean-Paul Duminy became one of the prized catches of the auction, as Mumbai Indians' $950,000-bid for the South African batting sensation raised his value over three times.
Bangladesh pacer Mashrafe Mortaza's bid made for an intriguing duel between Kolkata Knight Riders and Kings XI Punjab with the Knight Riders finally securing him for $600,000, a 1,100 per cent appreciation on his base price of $50,000.
The Rajasthan Royals spent $1.25 million out of $1.87 million, Chennai Super Kings spent $1.6 million out of $2 million while Bangalore Royal Challengers loosened their purse by $1.21 million dollars out of 1.95 million.
Mumbai Indian let go of $1.17 million out of $1.76 million they had in their kitty while Kolkata Knight Riders spent $ 650,000 out of $1.21 million. Kings XI Punjab spent $600,000 out of $1.45 million, Deccan Chargers spent $250,000 out of $1.9 million while Delhi Daredevils spent $550,000 out of $1.45 million.
But with the global economic slowdown and several countries facing recession, will IPL Season-Two be as big as Season-One?
Rajdeep Sardesai discussed with IPL Chairman and Commissioner Lalit Modi on the Weekend Edition about how the League hopes to cope up with the economic slowdown.
Rajdeep Sardesai: Will IPL season 2 be as big as season 1. There is a feeling that once the novelty factor wears off like a Hindi film, the sequel is never as good as the original? Will the IPL be any different?
Lalit Modi: If it was a pure entertainment programme I would probably go along with you. On the other hand it is a cricketing and a sporting programme. If you look at the history of all sporting programmes around the world, they only tend to get bigger. Everybody says this could be the biggest year but they tend to get bigger. Last year we went into it without anybody knowing anything about it. This year we have built a fan base and will expand that fan base. We have brought new players and the teams have evolved themselves. They themselves are going to be pulling up their fan base. It will be much bigger than last year.
Rajdeep Sardesai: You say it will be bigger. But let me play Devil’s Advocate. The negatives – the Australians for example Michael Clarke has once again said no. The English players are only going to be here for a couple of weeks. Pakistanis are not there. The international flavour seems to be missing this year to the extent you would have liked.
Lalit Modi: I don’t agree. Last year New Zealanders were there for two weeks. The Australians were there for three weeks and the Pakistanis were there for four out of six weeks. In fact we have a majority of players this year for a longer period of time. The Australians are joining us. They are not joining us for six weeks but they are here for two-three weeks. And the English are there for three-four weeks. The New Zealanders are there all the way. Sri Lankans are there all the way through. The South Africans are there except for the first week all the way through. The Bangladeshis are all the way through. Keep in mind we have only four foreign players allowed in a side.
Rajdeep Sardesai: But a number of players prefer to play Test cricket saving themselves up for international cricket instead of IPL. To that extent it seems that nationalism matter more than Twenty20 cricket for a number of big stars?
Lalit Modi: It matters for me too and I am glad it does because as far as we are concerned that they need top play the FTP (Futures Tour Programme) tour. We have taken that into account while fixing the IPL matches. We don’t have a clear window now… we have a natural window. So the idea is they will have equally good chance. Stars like Chris Gayle never even made it to the field last year.
Rajdeep Sardesai: But the big question is we are in an economic slowdown. Some suggest in certain countries it is a recession now. Isn’t that somewhere down the line going to affect IPL in terms of sponsors? Even some of the franchisees are looking in some way to cut the cost.
Lalit Modi: I think that is good. In a recessionary year we need to cut and trim ourselves. But as far as the execution side is concerned… in terms of marketing the first thing that people do is cut their marketing budget in most companies around the world. We consciously have taken a decision that as we are only in the second year of operation, we are not decreasing our marketing budget, we are actually increasing them. Our revenues are up and we are 25 per cent over last year’s revenue and we can afford to have a higher profitability over last year.
Rajdeep Sardesai: But your franchisees are not sounding so confident. There have been reports that some of them want to sell-off. The Deccan Chargers is looking for some one to sell the franchisee to. Couple of other franchisees are looking for buyers. Is that the way the business will be that some people will have to get out of the fray?
Lalit Modi: I don’t think that is absolutely accurate in any which way because last week we had Rajasthan Royals divest 11.7 per cent of their stake at an astronomical value of 3,733 per cent increase to shareholders. Deccan Chargers at a fraction of that valuation has decided to pull out their mandate from KPMG and not go forward with sell this year. What everyone is looking at is dilution. The benchmark has been set by Rajasthan Royals in terms of valuation. So it is a phenomenal growth in that regard. If there is a recession that it has also impacted that value, I am sure. So whoever has invested in that has taken that into account.
Rajdeep Sardesai: What is the one new innovation that you have taken into account in season 2 to bring in the crowd? Last year there were was the concept of Twenty20 cricket, the cheerleaders, the marketing buzz. What is the new innovation this year?
Lalit Modi: Rajdeep, that would be telling. What we are going to be doing is that we have a successful formula. We are only going to fine tune and tweak the successful formula. We would need to bring new changes in IPL if the IPL wouldn’t have worked. When it is working, we are going to execute it better and provide a wholesome entertainment and cricket to our fans. That is our job. That we are going to go out and execute it to our best. Our opening ceremony and closing ceremony are going to be unparalleled and they are going to surpass this year.
Rajdeep Sardesai: The government has changed in your home state of Rajasthan and there is a feeling that the Congress government there is getting at you as you were seen as being close to Vasundhara Raje,. There are even reports that you maybe even out of the Rajasthan Cricket Association. Is that going to affect IPL and your position in Indian cricket?
Lalit Modi: First and foremost what is going to happen in IPL and RCA doesn’t affect me at all. I am the Governing Council Chairman of the IPL for five years and Champions League. I am the BCCI Vice-President for three years. It is not necessary that you need to be in a state association to be a member of the BCCI. You need to be nominated to the BCCI in the first place. I am not losing Rajasthan. I am here to stay, go out and win the votes irrespective if the government is vindictive or not. I have the votes and I am going to go forward and get them.
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