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Vol. 28 | April 16th - 30th, 2009 | No. 8
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Editorial | ||
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Reports | ||
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Articles | ||
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Abhinav Bharat vows to fight dishonest RSS-BJP : DV supports "Sacred Brahmins"
Here is a top secret. Brahminical toilet papers deliberately suppressed it because of the current parliament elections which are going against their own Brahmana Jati Party (BJP).
DV was the first in India to scent the stink during our recent visit to Nagpur where the headquarters of the premier Hindu terrorist party (RSS) is located. (DV April 1, 2009 p.9: "Brahmin revolt against Advani?").
The sudden change of the RSS chief was announced on March 21, 2009. K.S. Sudarshan (78) retired and his No.2, Mohan Bhagwat (59), took over at Nagpur.
RSS failure: RSS (Rashtriya Swayamsevak Sangh) is a hydra-headed serpent which is deeply involved in converting India into a Hindu Rashtra and yet it miserably failed. The RSS was born in 1925. Even after 84 years RSS failed to fulfil even a single one of its declared objectives. The most important is to change the name of India into Hindu Rashtra (the land of Hindus). It demolished the Babri Masjid in 1992 but failed to build their favourite Ram Temple on its site even after 17 years.
There are ever so many objectives – particularly the scrapping of the Muslim Personal Law, banning cow slaughter, abolition of special status of Kashmir etc. RSS has miserably failed the Hindus (meaning the 15% upper castes led by its 2% Brahmins). The hate-mongering Hindus are so disgusted, so frustrated, so angry with the RSS.
Advani as anti-Brahmin: On the top of that their own favourite Brahmana Jati Party has come to be headed by not only a non-Brahmin but a hard-core anti-Brahmin, L.K. Advani, a Sindhi Khatri, who praised the "great secular qualities" of M.A. Jinnah, the founder of Pakistan.
Not only that. The hated Advani is grooming the more rabidly anti-Brahmin Narendra Modi, a low caste Ghanchi (Teli), to succeed him. Modi recently demolished thousands of Hindu temples – Ahmedabad and outside, a permanent source of income to Brahmins.
This is what made the Brahminists to lose faith in the Indian state itself (Deccan Herald, Nov.23, 2008).
"Caste" killing Brahminists: No doubt the ruling class with the help of its Brahminical "national" toilet papers has popularised the word Hindu and made their slaves —the SC/ST/BCs (85%)— to call themselves Hindu. But what is happening is when the elections come all the time, money and efforts that the RSS-BJP spent on hinduising (enslaving) the SC/ST/BCs go waste and they all break-up into castes. The caste is killing the casteist RSS-BJP Hindu heroes. This is their greatest worry. They never expected that their own dream child, the Hindu Hriday Samrat, Modi, would stab the Hindus of Gujarat and turn into a Hindu hater. Did we not say that anything the Brahminists touch will turn into charcoal?
Killing is Hindu Dharma: Such a revolt of the 15% Brahminical upper castes (Brahmin, Bania, Thakur or Kshatriya) against RSS-BJP resulted in the birth of Abhinav Bharat, a super RSS Hindu (Brahminical) terrorist force with close links to Israeli killer Mossad and Indian Army.
DV was the first in India to disclose the "Sacred Brahmin bid to kill RSS bosses for not enforcing Manuwad" (DV Dec.16, 2008, p.5). Mohan Bhagwat (the then No.2), the newly appointed RSS chief, and Indiresh Kumar, both Brahmins, were sought to be killed by the Abhinav Bharat. The plot to kill the top RSS leaders was confirmed by Madan Das Devi, also a Brahmin top RSS leader, at a Delhi press conference on Nov.22, 2008.
Such a thing has never happened in the history of RSS which virtually runs a parallel Govt. in India. Many times it is above the govt.
Killing is not new to RSS. It killed M.K. Gandhi, the "Father of the Nation", like a dog. (Read DSA book, Why Godse Killed Gandhi?, only photocopy available Rs. 75 and Gandhi's Murder & After, Gopal Godse, 1989, pp.550). What caused the sudden change in the RSS top leadership is the fear that the "Hindus" are shifting away from BJP and that the party may indeed face election defeat. Even Brahminical toilet papers themselves are predicting BJP defeat.
The Bhoodevatas believe only in destruction. They never-ever did any construction. A careful reading of Indian history will convince anybody of this statement. Read: History of Hindu Imperialism, by a Hindu monk, Swami Dharma Thirtha. (Copies available with us. Rs. 150).
Brahmin women hated: The latest is the "India Shining" bullshit. They only created this mirage and now they only are replacing it. They never believe in Justice, Truth. Humanity. That they have been so cruel to their own Brahmin women was proved by Dr. Ambedkar himself in parliament when the Brahmin men in parliament including Prime Minister Nehru, a Kashmiri Brahmin, blocked Babasaheb's Hindu Code Bill.
The abrupt change in the RSS leadership taken over by Mohan Bhagwat, who was sought to be killed by the Abhinav Bharat, and his bitter criticism of the new outfit shows a big power struggle between the two factions: Sacred Brahmins vs. Socialist Brahmins. In his Nagpur speech, Mohan Bhagwat bitterly attacked the Abhinav Bharat and called it "hard-line fundamentalists and secessionists forces who have tried to create an illusionary and self-contradictory lie called Hindu terrorism" (Hindu, March 22, 2009).
DV supports "Sacred Brahmins": But DV has been consistently supporting those who honestly speak the Truth and prefer to suffer and die for Truth. We call such Truth-seekers as "Sacred Brahmins". We have explained this in our book, Dialogue of the Bhoodevatas: Sacred Brahmins vs. Socialist Brahmins (DSA 1993).
Going by this yardstick set for ourselves after a good deal of study and experience we feel that we have to support the more honest and straight-forward Brahmins of the Abhinav Bharat — now all in a Bombay jail — headed by Lt. Col. Prasad Srikant Purohit.
We are convinced that like the honest "Sacred Brahmins" (Nathuram Godse, Nana Apte, Gopal Godse led by the Chitpavan Brahmin Savarkar) who killed M.K. Gandhi (1948), the Malegaon bomb blast accused headed by Lt. Col. Srikant Purohit are also honest and dedicated Brahmins. That is how the entire Bhoodevatas shifted towards them disgusted by the hypocrisy of the RSS-BJP.
Ram Sena attack on girls: An experiment of the Abhinav Bharat work is currently going on in Karnataka where the ruling BJP Govt. is not able to control its leader, Pramod Mutalik of the Ram Sena which wants to see that BJP candidates are defeated.
When the entire RSS-BJP leadership has disowned Varun Gandhi for his honest attack on Muslims, it is the Abhinav Bharat which rushed to his aid. Mutalik went to Philibhit (UP) to support Varun contesting the parliament elections there. Mutalik found nothing wrong in Varun's attack on Muslims. What an honest statement.
RSS-BJP and even many other "Hindu" political leaders and writers also hate Muslims and Dalits. But will not say it in public. Dishonest Brahmins hate Dalits in private but praise and pamper them in public to use them against Muslims.
Gandhi hated Dalits & Muslims: M.K. Gandhi also hated Dalits, Muslims, Christians and Sikhs but deceived them with his sweet sounding words. That is why both Dr. Ambedkar and Jinnah hated Gandhi. But it was Savarkar and his Godse gang that decided to kill Gandhi for his double-talk and double-dealings. We like honest Brahmins.
Abhinav Bharat comprises a set of dedicated Brahmins. The very fact that they are now undergoing torture in the jail and yet refused to compromise shows they are 150% pure, honest, dedicated Brahmins. We like them.
In DV, we have always supported honest, dedicated Brahmins who defend violence and say their religion and gods always used violence and terrorism to kill the enemy. Non-violence was never a part of Hinduism. It is the Gujarati Bania Gandhi who misinterpreted Hinduism and created dishonest Brahmins.
Intellectual corruption, the most serious form of corruption, was the gift of Gandhi.
Hinduism stands for violence: But dishonest "Socialist Brahmins" like Mohan Bhagwat say Hinduism stands for peace and non-violence and Muslim/Dalits/Christians "are our brothers". Nonsense. Mohan Bhagwat is not true to his heart and the Bhagwad Gita with which he swears. In the Gita, their God Krishna tells Arjun to kill. B.G. Tilak in his book, Gita Rahasya (Tilak Brothers, Narayan Peth, Pune, 1986) says nonviolence is not part of Hinduism. He says it is Gandhi's mischief.
Hinduism (Brahminism) stands for violence and nothing but violence.
All their Hindu gods are fully armed and always resorted to killing.
Gandhi misinterpreted Hinduism (which itself is a wrong name) and misled India to its present status of a beggar country.
Honest Brahmins in the Abhinav Bharat will help clean up the country by driving the imprisoned slaves to take to armed struggle — Varna Yudha.
That is what we want.
http://www.dalitvoice.org/Templates/april_a2009/editorial.htm
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The LPG MAFIA runs the Political system of Mass Destruction and the Colonial Periphery Economy has turned IPL Cricked league with SKIN exposed thanks to Item girls and cheerleaders!Thanks to Slumdog Millionaire, Irrfan Khan has been listed as the one of the most bankable stars from India in Hollywood and has been ranked with the Khans of Bollywood in a new Forbes list. I have writing from the beginning that the FALSE RECESSION is hyped by the SWISS BANK Politicians led by WORLD BANK gangsters, Superslaves Political Leaders and economists and the FDI FED Toilet media to PUMP the Tax payers` MONEY as well as national Revenue and Resources into the BLACK HOLE named Killer Money Machine. IT major Tech Mahindra, which needs to pay Rs.1756 crore for acquiring 31 percent stake in the troubled IT firm Satyam Computer Services, Saturday said it has raised Rs.600 crore through debt instrument. In a scathing attack on L K Advani, Congress alleged on Saturday that the BJP leader was a "dishonest PM-in-waiting" while questioning his statements on the Kandahar hijack episode. Simply the UPA plays the Nationalism card as well as RSS plays the BLIND Nationalism card. In the same way, the BENGALI MARXIST Brahmins do TRUMP with the BANGLA NATIONALISM and SCINTIFIC SOCIAL ENGINEERING to make POSSIBLE a BRAHMIN FRONT Possible and SUCCEED for decades!
The LPG MAFIA runs the Political system of Mass Destruction and the Colonial Periphery Economy has turned IPL Cricked league with SKIN exposed thanks to Item girls and cheerleaders!Thanks to Slumdog Millionaire, Irrfan Khan has been listed as the one of the most bankable stars from India in Hollywood and has been ranked with the Khans of Bollywood in a new Forbes list. I have writing from the beginning that the FALSE RECESSION is hyped by the SWISS BANK Politicians led by WORLD BANK gangsters, Superslaves Political Leaders and economists and the FDI FED Toilet media to PUMP the Tax payers` MONEY as well as national Revenue and Resources into the BLACK HOLE named Killer Money Machine. IT major Tech Mahindra, which needs to pay Rs.1756 crore for acquiring 31 percent stake in the troubled IT firm Satyam Computer Services, Saturday said it has raised Rs.600 crore through debt instrument. In a scathing attack on L K Advani, Congress alleged on Saturday that the BJP leader was a "dishonest PM-in-waiting" while questioning his statements on the Kandahar hijack episode. Simply the UPA plays the Nationalism card as well as RSS plays the BLIND Nationalism card. In the same way, the BENGALI MARXIST Brahmins do TRUMP with the BANGLA NATIONALISM and SCINTIFIC SOCIAL ENGINEERING to make POSSIBLE a BRAHMIN FRONT Possible and SUCCEED for decades!
"Irrespective of what happened in Kandahar, the fact is a leader should lead from the front. He should speak nothing but the truth," Congress party's national spokesperson Abhishekh Singhvi told reporters in Ahmedabad.
Referring to the Kandahar incident, he asked, "whether the country can afford to have a dishonest prime minster in waiting, who is deliberately, blatantly taking liberties with the truth."
"There are several fronts for grabbing power and chair. These fronts have no ideals, principles and also no future," Gandhi told an election meeting in Bhadrak in ORISSA.
These fronts, she said, also have no political agenda for the betterment of the country and welfare of the people except to criticise the UPA government at the Centre headed by Prime Minister Manmohan Singh.
Hitting out at BJP, she said, "Congress never does politics in the name of religion on communal lines, whereas BJP is a communal party with an agenda to divide society."
The UPA chairperson also lambasted the Naveen Patnaik government in Orissa accusing it of "throwing all development works and welfare schemes into the sea".
The terrorist attack on the Sri Lankan cricket team near the Gaddafi Stadium at <?xml:namespace prefix = st1 />Lahore in March this year might have brought the security arrangements for the Sri Lankan players, who were promised the highest security in Pakistan, into question. More importantly, it queered the pitch for the Indian Premier League (IPL)-2 matches that were slated for take off in April.
Following the attack on the Sri Lankan players, the Indian Home Minister, P. Chidambaram, urged the IPL organisers to postpone the matches as he did not want to juggle security personnel between elections and matches. Originally, the IPL twenty20 matches were scheduled to be staged in 14 cities (then it was brought down to eight cities) from April 10 to May 24 which overlaps the Lok Sabha elections (elections to the lower house of parliament) scheduled to be held in five phases across the country from April 16 to May 13.
"The petty bickering of Manmohan Singh and L K Advani on the issue of terrorism is an insult and added injury to the people of affected states like Assam," she told reporters.
"It would be in the interest of the country that such petty bickering stopped and they work together towards building a strong nation and take action against anti-nationals," Karat said.
Alleging that the "flag of secularism" was not safe in hands of the Congress, she stressed the need for an alternative secular Central government.
"The flag of secularism is not safe in Congress hands because it is compromised with the Hindutva forces. There is total lack of action against organisations involved in the incidents of Malegaon, Hyderabad, Mangalore and Kandamahal," Karat said.
Congress, she said, was resorting to "double standards" in the name of secularism. It knew about the activities of SIMI, but the government has not banned it, she alleged.
"Congress is betraying people in the name of secularism.
Therefore, there is the need for an alternative secular government at the Centre," Karat, a Rajya Sabha member, said.
"We have issued a notice to the SP General Secretary Sanjay Dutt for violating the model code of conduct by his objectionable remarks against the Chief Minister during a rally held in Pratapgarh on March 17," said Pratapgarh District Magistrate Pinky Jowal on Saturday.
Dutt, during an election rally held at KP Hindu College in support of SP candidate Akshay Pratap Singh Gopal, had allegedly said that he will "give 'jaadu ki jhappi and pappi' (magical hug and kiss) to the people of Pratapgarh, and given a chance he will do the same with the BSP supreme Mayawati".
"His statement goes against any woman," the District Magistrate said.
Meanwhile, BSP workers in Pratapgarh have lodged a complaint with Kotwali police station in this regard. Earlier, on April 14 an FIR was lodged against Dutt for making communal remarks during an election rally in Mau district.
Dutt, who was campaigning in support of the party nominee Arshad Jamal Ansari had allegedly said: "jab mai police custody me tha to police wale mujhe third degree dete the..woh mujhe marte the aur kehte the ki tumhari maa musalman hai. (When I was in police custody, I was given third degree because I am the son of a Muslim woman).
SP nominee from Mau seat Arshad Jamal was also named in the FIR.
Congress has slight edge over BJP, predict analysts
Washington Congress appears to have a slight edge over the BJP in key states but both parties are likely to fall short of a majority in the Lok Sabha elections which may lead to intense horse-trading before a new government assumes power, an American think tank has predicted.
It also feels there is small chance that a Third Front could emerge in these elections should the communist parties link up with key regional parties to challenge Congress and the BJP.
"Congress appears to have a slight edge over the BJP in key states, but neither party is likely to win a clear majority of seats," Stratfor, based in Texas, said in its analysis on the Indian elections released after the first phase of polls.
The influence of these national parties has faded over the years while smaller regional and caste-based parties have proliferated, Stratfor said concluding as a result, intense political horse-trading will ensue after the election.
"Both Congress and BJP therefore will need to throw all their efforts into cobbling together a coalition with smaller parties to have a chance at taking office June 2," it said, without explaining how it expected the new government to be formed on a particular date. In its analysis, Stratfor noted that Prime Minister Manmohan Singh, who is once again the Congress candidate for prime ministership, "has announced that he is willing to bury past differences with the left-wing parties, and would be open for forming a new coalition with them should circumstances require it".
"The left-wing parties will use their political clout to try and sway the ruling party away from the United States, though they are unlikely to have much success in determining how New Delhi conducts its foreign relations," it said.
The left-wing front led by the CPI (Marxist) was vital to forming Congress' coalition in the 2004 elections, but became an annoyance as the ruling UPA sought to ink the Indo-US civilian nuclear deal.
The think-tank said Congress' five-year stint in power witnessed record growth rates of nearly nine per cent, but felt that this is expected to slump between 4.5 and 5 per cent in the coming year.
"The Indian economy has been more insulated than most Asian countries in dealing with the global economic crisis, but is still facing job losses, drops in industrial output and slowdowns in the manufacturing sector.
Stratfor said there is unlikely to be change in the foreign policy of the country by a government led by either the Congress or the BJP. However, any government with the support of the Left Parties would experience pressure for change in the nation's foreign policy.
Obama, Chavez shake hands at Americas Summit
Port-Of-Spain (Trinidad) Presidents Barack Obama and Hugo Chavez, Venezuela's socialist leader, met on Friday and shook hands on the sidelines of a summit of their hemisphere's democracies.
Obama walked across a hotel meeting room to meet Chavez for the first time, said a senior US administration official who witnessed it and spoke on condition of anonymity to discuss the details of the event. The official said Obama initiated the encounter.
Chavez has been a fierce critic of the United States during President George W. Bush's tenure.
"It was very, very short," the official said of Friday's meeting. "The president shook his hand, smiled and then went back to his position in the line."
The encounter comes as Obama softens US policy against Cuba, a Chavez ally. Asked later about the meeting, Obama elicited laughter from reporters with a brief response: "I said, 'Como estas?"
That's the familiar form of Spanish for "How are you?" Chavez was more forthcoming with reporters.
"We shook each other's hands like gentlemen, and it was predictable this would happen," Chavez said. "We don't have any complexes that would prevent us from extending our hands to each other. I'm grateful for his gesture."
Photos released by the Venezuelan government show the two smiling and Obama touching Chavez on the shoulder. Other photos show them with clenched hands in the room next to the main summit ballroom while the heads of state and government were waiting in line to enter the opening ceremony.
The Venezuelan presidency also said Obama initiated the handshake and quoted Chavez as telling Obama he hopes for better relations between their nations.
Chavez told reporters he had a simple message in English for Obama: "I want to be your friend."
Obama's comments were limited to saying that he wanted to introduce himself to Chavez, the US official said. The Obama official would not comment on what Chavez told the US president.
But when a reporter asked if the Venezuelan account of what happened was accurate, the Obama official said: "I wouldn't dispute that."
As recently as last week, Chavez expressed a desire to "reset" relations with Washington.
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Kolkata Knight Riders' Sourav Ganguly has said that New Zealander Brendon McCullum will do a good job as captain in the first match.
Vijay Mallya, owner of IPL franchise Bangalore Royal Challengers, may sponsor England and Wales Cricket Board's new Twenty20 competition P20, which may be broadcast on Zee TV.
Even before the first match, between Sachin Tendulkar's Mumbai Indians and MS Dhoni's Chennai Super Kings, Multi Screen Media, which plans to rake in close to Rs 400 crore, claims to have sold 85% of advertising space.
With such a large economic benefit for the country, South Africa has pulled out all the stops to assist the IPL.
Owners, coaches, captains and leading players of the eight teams contesting the Indian Premier League which starts in South Africa on Saturday.
On the eve of the second season of Indian Premier League, the duration of the strategy break has increased from five minutes to seven-and-a-half minutes.
Indian Premier League chairman Lalit Modi claims 90 per cent of the tickets for the cash-rich Twenty20 event starting tomorrow have been sold at the eight venues.
The package takes into account all 120 auctioned players as well as a few non-auctioned players.
It was learnt that the broadcaster had submitted a new offer to the organizers of IPL and sought an out of court settlement with them.
IPL officials fear the franchisees and BCCI could suffer losses worth Rs 200 cr due to shift in venue.
Moving IPL to South Africa could prove to be a taxing affair for the Board of Control for Cricket in India.
South Africa itself is going in for a general election which will take place on April 22nd, five days after the probable start of the IPL!
Lalit Modi said logistics favour South Africa as the possibility of a rainy spring had become a major obstacle in hosting IPL in England.
About 70% of Indians feel that the high-profile Indian Premier League cricket tournament should have been played in India
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IPL in South Africa makes sense
Graham Thorpe, Tuesday, April 14, 2009To be honest I'm not surprised the IPL decided to host the tournament in South Africa this summer and not in England and Wales.
The ECB would certainly have done an excellent job hosting the matches, and it would have been a great event to see on these shores, but a congested calendar of cricket would have made it a complicated operation. Ultimately I think the IPL made the right choice.
The South African season will be drawing to a close when the IPL arrives and they will therefore have the resources available to deal it. They will also have the weather.
I do worry about the crowds in South Africa however. They might struggle to fill stadiums unless the IPL franchises do everything they can to make themselves attractive.
There is an argument for the teams having a greater number of South African players, but that may be difficult now the allocations have been settled. Still, it wouldn't surprise me if something along those lines was agreed and the IPL bent the rules a little.
The IPL really is a great event. It's a massive, glamorous tournament packed with star players that is bringing new fans to cricket - and for that reason South Africa has a wonderful opportunity to benefit.
Last year there were big crowds on the sub-continent and everybody back here was glued to every match. It might not be in India this time, but I don't think the television audiences will suffer as a result.
People love to watch the best players in the world go up against each other and I for one will be watching on with interest as the action unfolds.
http://cricket.yahoo.com/cricket/blog/grahamthorpe/2/2grahamthorpe
Sunday, 01 June 2008 | |||
B-SCHOOL IPL Fever To Hit B-Schools BW Online Bureau
Mumbai-based Narsee Monjee Institute of Management Studies (NMIMS) plans to organise a workshop for its faculty on 'teaching sports management' with the help experts associated with IPL. The institute also plans to offer an elective in sports management during the second year of the programme. The contents of the programme will be designed by the experts who have been managing the IPL logistics. Another institute, SP Jain Institute of Management and Research, Mumbai also plans to make IPL a part of its curriculum in the form of a case study. |
Indian Premier League (IPL), global economic slowdown won't impact the second edition of the 20-20 league in the current year. Some of us have questions that "There Was No Financial Crisis?".
The whole world is going through a depression. (Financial Crisis, Global Employment Crisis) and some how cricket match is a place where people will come to relax. So the economic crisis will have no impact on the IPL.
The inaugural edition of the IPL was immensely successful with media rights being sold to Sony and World Sports Group (WSG) for a whopping $918 million.
Bollywood beauties in IPL, Now every team will have more bollywood glamour than cricket, before the IInd mega IPL - Shilpa Shetty And Raj Kundra Buys Share In IPL Team Rajasthan Royals. adding more glamour to IPL.
IPL Auction 2009 : Pietersen had a reserve price of $1.35 million and Bangalore Royal Challengers had made no bones about their determination to get him.
Flintoff, with a base price of $950,000, proved to be hot property with teams desperate for his all-round skills. Mumbai Indians, Team Mohali and Team Chennai fought a pitched battle for him, with bids often increasing by $25,000 at one go. Chennai finally bagged him for $1.55 million.
In IPL teams making records while buying player's, In IPL auction some of team's buying player over there Specified Budget.
And IPL teams ready to buy player's above there Base Price.
Surprisingly Murtaza, who starting from a base price of $50,000 was bagged by the Riders for 12 times that amount - $600,000.
And JP Duminy, who also generated quite a bidding war eventually selling for $950,000 - 3 times more than his base price of $300,000
This is all about money game.
IPL's Impact : What impact does IPL have on the the future of cricket???
Internet Public Library: Business & Economics
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Seems to me the teams which rope in enough co-sponsors, make to
semifinals first few years could make some decent money. Or, atleast
make themselves attractive for PE buyouts.
I like the accountability aspect of IPL. No more "team in
transistion", "rebuilding for the next world cup", "its the process,
not the results" talk. The results and accountability is
instantaneous. But, thats just about the only thing I like. I might be
in the minority of one, but already the cricket is repetitive, the
last over finishes have the
'been there, seen that' feel and its hard to feel ownership of Deccan
Chargers with the lone HYD batsman D.B.Raviteja coming in at no.7. I
might watch the next season only from the semifinals, sorry, playoffs
Cheers
The Revenue Side
Share of central pool: $7 million per year
Prize money: $5 million on offer
($3 million for winner; $2 million divided among others)
Local pool revenues: $0.75-2.5 million
Total average revenue potential per franchise: $8-12.5 million
The Cost Side
Franchise fee: $6.7-11.2 million
Cost of players: $1.1-1.7 million
Other costs: $2-5 million
Total average annual cost per franchise: $10-18 million
Notes: 'Other costs' includes executive and coaching salaries, stadium leasing costs, match-day costs like staffing and security, administration costs, team travel and accommodation and training expenses Estimates are purely indicative and based on a simple mathematical model. IPL follows a graded structure and actual cash flows will differ from these figures.
The Upsides
Title sponsorship:
It went for $50 million for the first five years, and is renegotiable after the third year. If the IPL gains momentum, it can be much higher.
Player trading:
After the first year, teams can trade players. Players can be sold for many times the cost at which they were acquired.
Gate fees:
Beyond the third year, gate fees can increase significantly if the IPL takes off in a big way. The English Premership earns $5 billion in gate fees every year.
Franchise sale:
After the third year, a franchisee has the option to sell out. This could lead to a windfall.
Franchise forever:
The franchise fee is for the first 10 years, after which franchisees continue to own the teams for perpetuity.
The Downsides
Not enough eyeballs:
Sony-WSG and the franchises could suffer losses in the first two to three years till IPL wins over spectators and viewers, and draws a critical mass.
Not enough star players:
Constant availability of top-notch overseas players may be an issue due to growing number of international fixtures.
Other tournaments:
If the ICC decides on an annual international Twenty20 championship, it might get better viewership than the IPL.
Iffy advertisers:
Many advertisers are still in the wait-and-watch mode.
Game pull:
Business prospects may be affected if the franchisees fail to create a loyal fan following in their turf.
http://business.outlookindia.com/inner.aspx?articleid=1037&subcatgid=501&editionid=31&catgid=9
DLF to exit from four IT/ITeS SEZs
NEW DELHI, April 17: Realty giant DLF has approached the commerce ministry for surrendering four notified IT/ITeS special economic zones (SEZs) in the wake of slowdown in demand for office space.
In a filing to the Bombay Stock Exchange, DLF today clarified that "the company has requested the ministry of commerce & industry for de-notification of four IT/ITES SEZs". n PTI
Growth forecast
NEW DELHI, April 17: Prime Minister's Economic Advisory Council (PMEAC) today said it expected the country's economy to grow at over seven per cent in the current fiscal as it had already started showing signs of recovery. "Seven per cent plus is what my 2009-10 overall forecast is...I think it has already started recovering in my own assessment," PMEAC chairman Mr Suresh Tendulkar said. Meanwhile, economic forecasting consultancy Oxford Economics said India's GDP growth rate would fall to 3.4 per cent in calendar year 2009. n PTI
RPower
MUMBAI, April 17: Anil Ambani-led Reliance Power was likely to complete tying up of funds for the 4,000 MW Sasan ultra mega power project in Madhya Pradesh this month, a top official of Power Finance Corporation said today. n PTI
AIG
NEW YORK, April 17: American International Group, the insurance giant surviving on US government aid, said today it had sold its US auto insurance business to Zurich Financial Services for $1.9 billion. n AFP
Unitech
NEW DELHI, April 17: Unitech Ltd today said it had sold out a hotel in Gurgaon for Rs 231 crore and was in advance stages of talks for selling out an office complex in the national capital. The company has also signed MoUs for sale of school plots in Gurgaon and another realty project in Kochi. n PTI
Jet Air
NEW DELHI, April 17: Private carrier Jet Airways has expanded its 'code-share' agreement with Brussels Airlines to add the European cities of Marseilles, Toulouse, Geneva and Vienna to its existing international network. n PTI
Vodafone
MUMBAI, April 17: Vodafone Essar today announced reduction in international roaming rates for its postpaid customers travelling to South Africa during the IPL Twenty20 cricket tournament beginning tomorrow. Vodafone Essar is the official partner of the second edition of the Twenty20 tournament. n PTI
Gold import
NEW DELHI, April 17: After lying low for two straight months, India has imported an estimated 10-15 tons gold in the first fortnight of the current month and it may go up if prices drop further, Bombay Bullion Association president Mr Suresh Hundia said.
n PTI
CBI corroborates Raju's view
Press Trust of India
NEW DELHI, April 17: Satyam founder Mr B Ramalinga Raju was honest at least about his dishonest dealings, with the CBI finding that balance sheets were inflated by Rs 5,020 crore ~ almost the same amount disclosed by the former IT posterboy.
The CBI said it found that books were first inflated in fiscal 2001-02. As against the projected cash and bank balances of Rs 5,160 crore by the end of the second quarter of 2008 in the balance sheets of the company, the actual cash and bank balance was only Rs 139 crore, thereby reflecting a gap of Rs 5,020 crore.
Satyam had been maintaining deposit and current accounts with as many as 15 scheduled banks over the years and the CBI, with the help of chartered accountants, had prepared a comparative picture of cash balances in current account, money parked in fixed deposits as shown in the balance-sheet and the actual cash available in the current account and the money available in the FDRs.
"Thus, it is revealed that huge amounts of cash and bank balances were fraudulently and dishonestly reflected in the balance sheets of SCSL (Satyam) by the accused, where only very less amounts of cash and bank balances were actually available," the CBI said in the charge-sheet filed earlier this month against Mr Raju and eight others.
Mr Raju, in a letter to Satyam's board on 7 January, had mentioned that the balance-sheet as of September 2008 carried non-existent cash and bank balances to the tune of Rs 5,040 crore.
"Thus, the investigation established that the balance-sheets for the second quarter of 2008 had non-existent cash and bank balances to the tune of Rs 5,020 crore. Similarly, the non-existent cash and bank balances fraudulently and dishonestly reflected by the accused in the balance-sheets during the previous years are also established," the CBI charge-sheet said.
It alleged that the current account balances in Bank of Baroda, New York branch, alone reflected Rs 3,319 crore in Satyam Computer accounts raising the total cash and bank balances come to Rs 5,103 crore.
News results for IPL
World Cup winner Pienaar boards IPL bandwagon - 9 hours ago CAPE TOWN (AFP) — Former World Cup-winning Springbok captain Francois Pienaar is assisting the Indian Premier League (IPL) marketing team in South Africa ... AFP - 748 related articles » |
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IPL 2.0 turns into punter paradiseNDTV.com - 5 hours ago Like the game of 20-20 cricket which has wild swings every ball, the betting rates for teams in IPL are also changing quite fast. Champions of the inaugural ... Miss Bollywood SA contest at IPL 2 Oneindia IPL-2 : Who are you voting for? Economic Times EDITORIAL COMMENT | IPL 2.0 Times of India Johannesburg will host IPL semi-final and finalHindu - 1 hour ago Cape Town (IANS): The second semi-final and the final of the Indian Premier League (IPL) will be played at the Wanderers in Johannesburg after all, ... IPL or ICL (Indian Controversial League) Business Standard It's important to play in the IPL, says Flintoff Press Trust of India IPL important for me - Flintoff BBC Sport Ground invasion of the canine sort at IPL openerHindu - 1 hour ago Cape Town (PTI): Every dog has its day -- goes the old adage and a black canine literally lived up to to it at the Indian Premier League opener, ... IPL opener: Chennai Super Kings in trouble Economic Times Gearing up for fresh IPL innings Calcutta Telegraph McCullum supplants GangulyThe Statesman - 17 hours ago Ganguly, who led the team in the first IPL season, and Gayle were given what were described as "senior management roles" in the team. ... McCullum will do a good job as KKR skipper: Ganguly Economic Times IPL games on mobiles too Business Standard IPL-2 will be low-scoring: WesselsHindu - 33 minutes ago Cape Town (IANS): The second edition of the Indian Premier League (IPL) will not be as high scoring as the inaugural tournament in India because the pitches ... Warne has the rare vision to read the futureHindu - 16 hours ago By winning the first edition of the Indian Premier League (IPL), the unsung Rajasthan Royals had rekindled memories of a feat achieved on a far greater ... We were 'saddled' with Warne during IPL: Team Jaipur Expressindia.com Bangalore look to prove a point Hindustan Times Gayle backs call for IPL window The Press Association Cricket Australia stops Tait from playing in IPLHindu - 5 hours ago The Royals, who apart from Watson are also missing last IPL's top bowler Sohail Tanvir, bought Tait for USD 350000 in the auction. ... Tait not allowed to play for Warne's team in IPL eTaiwan News Tait 'ordered' out of IPL Indiatimes Tait left shattered as IPL ban hits hard The Australian Max NY bets big on IPL with pension plan adEconomic Times - 15 hours ago The timing is critical to, the ads will hit TV screens on Saturday when the IPL gets underway in Cape Town with the much awaited clash between the Rajasthan ... Poll takes a toll on IPL bettingTimes of India - 14 hours ago Sources claimed that the IPL betting is in doldrums after investments of the bookies and punters are locked up in speculation over Lok Sabha elections. ... As stocks tumble, city elite turn to satta to earn quick buck Daily News & Analysis For satta players, IPL bigger draw than polls Times of India Terror threat leads to doubling of insurance coverCricInfo.com - Apr 17, 2009 The second IPL season has been insured for a total of $286 million, more than double that of the $125-million cover last season, and includes provisions for ... |
City | Franchise Owner | Cost (in US$ millions) |
Bangalore | Vijay Mallya's UB group | 111.6 |
Chennai | India Cements | 91 |
Delhi | GMR Group | 84 |
Hyderabad | Deccan Chronicle | 107 |
Jaipur | Emerging Media-led consortium | 67 |
Kolkata | Shah Rukh Khan's Red Chillies Entertainment | 75.09 |
Mohali | Preity Zinta, Ness Wadia & team | 76 |
Mumbai | Mukesh Ambani's Reliance India Limited | 111.9 |
Tuesday, March 4, 2008
Economics of IPL - The Indian Premier League
How much BCCI will earn?
* The bidders pay only 10 per cent of the price they offered to buy each team, which means Mukesh Ambani's Reliance Group needs to pay a little over Rs36 crore for the first year, with similar amounts for the next 10 years.
* Of the total Rs 2,894 crore bid amount for the eight teams, the board will get about Rs288 crore each year.
* The Board also earns money raised from the sale of TV rights (Rs 4,000 crore put up by Sony and World Sports Group). That amount is also to be paid over 10 years.
How do the franchisees make money?
* Of the amount raised as TV rights each year, approximately 60 percent is distributed among the eight franchise owners as their income from TV rights.
* The franchisee also gets gate collection money; can raise further revenue from logos on T-shirts,merchandising and other promotions.
How much do teams earn?
* The tournament, involving teams based in eight cities, will be held in eight cities under floodlights for 44 days beginning April 18. The prize money will be approximately Rs 16 crore.
* Each team will play 14 matches, seven at home and seven away.
What's in it for the players?
* The auction money may range from a few lakhs to a few crores. For example the Icon Players -- Sachin Tendulkar, Sourav Ganguly, Rahul Dravid, Yuvraj Singh -- will get 10 to 15 per cent more than the other highest paid players.
* Minimum salary to be paid for a player around Rs 8 lakh per year with a contract of minimum of three years. The salary can shoot up to Rs 1.6 crore (Shane Warne's reported fee).
* Even Anil Kumble, who has retired from the shorter version of the game, will get around Rs 1 crore. Harbhajan Singh too will cost around while Irfan Pathan will be cheaper by around Rs 30 lakh. The T20 stars like Robin Uthappa, Gautam Gambhir, Virender Sehwag will cost a neat Rs 80 lakh.* Players can also earn from individual endorsements deals.
http://ganeshayan.blogspot.com/2008/03/economics-of-ipl-indian-premier-league.html
IPL player pricing: Dhoni worth $1.5 mn !!
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The Indian Premier League (IPL) has changed the face of Indian cricket, drawing huge audiences, corporate biggies, film stars and ravishing cheerleaders from abroad. A sensation in itself, it intrigued minds at the country's premier management institute by its pure economics. ET reports:Professor Satish Deodhar and fellowship student Siddhartha Rastogi at the Indian Institute of Management, Ahmedabad (IIM-A) are jointly working on a paper to figure out the economics of this cricketing revolution. The paper, Player pricing and valuation of cricketing attributes: Exploring the IPL Twenty20 Vision, was recently uploaded on the institute's official website. Deodhar said, "The study aims to find what implicit process of valuation may have occurred in deciding the final bid prices of the players, when team owners bid for cricketers for a total of $42 million. Given the data on final bid prices, a host of cricketing attributes of the players, and other relevant information, we try to understand which attributes seem important and what could be their relative valuations." The duo hopes this study will facilitate better understanding of player price formation, offer benchmark estimates for bidding for new players and underscore the predictive value of such data driven analysis. This season, Dhoni's charisma and association is expected to work wonders with actresses. Andrew Symonds could be a crowd-puller due to the controversies he has been in, especially in the Indian context. Valuation estimates of important player attributes:
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More Modi, more PR, what's not to like?
In which a school is won over with a substantial donation. Ground staff, now that's another matter
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Lalit Modi - sorry, him again - went on a charm offensive yesterday, and quite possibly needed to. The scene was Alexander Sinton High School in Athlone, a half-hour drive from the more affluent parts of Cape Town, which is beginning to feel like the new spiritual home of the Indian Premier League. With his aquiline eye for publicity, Modi had chosen the school - filled almost exclusively by students who during apartheid would unblushingly have been referred to as Cape Coloured - to announce the launch of a 9m rand initiative to help underprivileged schoolkids in South Africa.
What was not to like? Modi and his glittering team - Shane Warne, Kevin Pietersen, Yuvraj Singh, Preity Zinta, Ravi Shastri, Jonty Rhodes, Francois Pienaar and plenty more besides - sat on the stage of the school hall while the pupils ("learners", as they're called here) went wild with excitement. Many of Modi's utterances were lost amid the cacophony, but there was no mistaking the significance of a giant cheque worth 100,000 rand handed over to the school's headmaster, Faziel Parker. Cue pandemonium. Afterwards, the learners swamped the cricketers in search of autographs, stardust and a story to last them a lifetime.
It was an undeniably worthy cause. The event ran like clockwork. Modi took on the air of a modern saint, and the IPL PR machine went into overdrive, triumphantly pointing out that a "perfect morning was rounded off with the 1000-odd children spontaneously singing the country's national anthem, bringing a tear to many an adult's eye".
But while the children of Athlone lapped up the attention - and revelled in the delights of an hour or two away from Science and Home Economics - over in Johannesburg things were not going quite so smoothly. The Wanderers is due to host eight matches, including the final, in the coming weeks - only Durban and Centurion have more games - yet there is considerable ill-feeling at what one member of staff at the venue last night described as the IPL's "attitude".
As the South African journalist Neil Manthorp reports in his Supersport column, the Johannesburg cricket authorities were yesterday considering the possibility of withdrawing their ground from use for the duration of the IPL, so fed up have they become at the demands made of them.
The member of staff mentioned above is quoted as saying: "They can take their tournament somewhere else; they can hold the final somewhere else. Unless they change their attitude then I can't see a way forward. They are renting our facility, not buying it. We have protocols which we respect and expect them to do likewise."
Like we said, Modi quite possibly needed the good publicity yesterday. He milked it - and why not? - but it will take more than a thousand delirious schoolchildren to deflect from the suspicion that the IPL may just be confusing the notions of guest and host.
Lawrence Booth is a cricket correspondent at the Guardian. He writes the acclaimed weekly cricket email The Spin for guardian.co.uk
© Cricinfo
The economics of IPL
The economics of IPL is based on how such sub-national loyalties get firmed up over a period of time. For, 60-70% of future revenues, which franchise holders would earn, will be contingent on how assiduously such loyalty economics is cultivated and nurtured. The franchise holders hope a time will come when T-shirts and other consumer items could be branded on the basis of a deep emotional connect, the kind one sees in English football. A Manchester United fan, for instance, remains one for life. It is difficult to imagine that sort of fealty emerging in the IPL games in the near future.
At the moment, allegiance is based on all sorts of narrow factors. For instance, many fans from Kerala support the Punjab team simply because the only Malayalee cricketer of any consequence, Sreesanth, is with the Kings Eleven from Punjab. It is another matter he was slapped by a Punjabi from the Mumbai team! Over time, cricket fans will have to get over their fixation with the origin of individual players while deciding their long-term support.
It has to be based more on the kind of tradition a club builds while playing the sport. For instance, there are English football clubs where nearly all 11 players are of foreign origin. Yet they have durable support from locals and foreigners. Witness Bengal's love for Brazilian football. French football legend Michel Platini recently remarked that France perhaps cannot have all 11 players of a local club from abroad. Perhaps, that is the difference between the French and British way of doing things. India will hopefully evolve its own way.
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What is sports economics? Economists have for long been fascinated by markets and how they work. In recent times, economists have trained their sights on addressing the peculiarities of the sports market and the field of sports economics has evolved. Sports provides an ideal testing laboratory for economists for the following two reasons. First, the availability of rich statistics collected as a part of the sporting/competition process, and secondly, contrary to popular perception, sports appeals even to the tribe of dismal scientists. What will drive the success of the league? The simple answer to this question is demand. The fan base determines demand, and demand translates into revenues, profits and franchise value in that order. The league will be financially viable if the entertainment that is packaged, marketed and sold is what the fans demand.
Therefore, it is in the interest of the league organiser, BCCI, to ensure an adequate level of competition that will sustain demand and determine the long-term viability of the league prevails. The number of teams in the league, the structure of the league— relegation system versus a single-tier system—number of games in a season, end of season playoffs and tournaments, salary caps, and free agency are all factors that will contribute to the level of competition in the league. This is an area that has been well researched by economists, and, in fact, the BCCI has used the services of sports economists to structure the league. In the US, the structure of the sports league has been observed to be important: the more unified structure of NFL has been more successful in marketing the sport than the less unified one of MLB (Major League Baseball). How can the franchisees contribute to the success of the league? Functioning within the league structure created by BCCI, the franchisees have to engage in activities that strengthen the demand-generating fan base. The league will be financially viable only if franchisees take and implement value-maximising decisions. Understanding what viewers want from an IPL match and how much they are willing to pay are imperative to franchise value maximisation. a) Understanding of consumer behaviour should drive pricing and seat allocation IPL fans will be of different stripes.
Similarly, the paying capacity of fans differs. A franchisee who can discern this and price access according to the fans' willingness to pay will maximise his revenues. Decisions regarding seat allocation in the stadium—daily tickets versus season tickets versus box seats— and pricing of seats in various sections of the stadium stem from a good understanding of consumer behaviour. In allocating stadium seating, the franchisee is basically rationing quality and quantity of seats. In terms of the shape of a cricket stadium and angles from which the game is viewed, cricket is closer to baseball than any other sport. In the US, with regard to quality and ticket pricing, baseball stadiums vary in the number of different quality segments. This is a big deal for baseball because there are many games, and they don't generally fill up. Entry into the quality seats must be policed. Policing costs increase with the number of defined sections, and, therefore, policing costs determine the optimal number of sections. The total amount a fan is willing to pay for a game is not just the ticket price, but the cost of transportation to the ground, the time spent travelling to the stadium and back, standing in queues inside and outside the stadium, etc. Some fans may be willing to incur these nonmonetary costs in exchange for a cheap ticket. A prudent franchisee will separate the wheat from the chaff and target fans who are willing to pay a higher price for the tickets if these other costs are reduced. When a fan purchases a ticket, he is purchasing the rights to watch the game and to consume amenities at the stadium such as concessions and refreshments. The way these amenities are priced will significantly contribute to revenues. Economists refer to this as two-part pricing, and it is very commonly used in sporting events in the US. b) Rearing a fan base is crucial to tap into other revenue sources The key to a franchisee's long-term success is the rearing of a solid fan base. An ardent fan base creates various revenue opportunities—primarily, revenues from the sale of merchandise and television revenues.
One strategy to build a strong fan base for IPL will be to target the 10- to 12-year-olds who grow into adulthood supporting their favourite teams and players. They do not carry the baggage that adults carry in terms of biases towards other forms of cricket and, being impressionable, they have the ability to influence the consumption patterns of their parents. c) Team composition and valuation of players should fit into the fans' demand profile The question that a franchisee has to answer is how cost-effectively he can provide the entertainment demanded by his fans. Team composition should reflect the demand of the fan base—whether they demand celebrity players, local players, foreign players, hard hitters, etc. This, in turn, determines the value that a team places on a player and the price it is willing to pay. This is a scientific process and not merely an ad hoc exercise. For instance, the Boston Red Sox, under its new management, has used quantitative analysis of player statistics for decision making and has become one of the most dominant teams. While projections are being made about potential revenues and breakeven points, all of this will be a moot point if the organisers of the league and the franchisees do not consider the human element. It is not about gazing at a crystal ball but about doing your homework and truly understanding what your fans are demanding.Dr Tamara is the Managing Director of Nathan Economic Consulting India Pvt Ltd (Nathan India), Chennai, a wholly-owned subsidiary of Nathan Associates, Inc. a US-based economic consulting firm ( rtamara@nathaninc.com This email address is being protected from spam bots, you need Javascript enabled to view it ) Dr Maloney is Professor of Economics at the John Walker Department of Economics, Clemson University, US, and a Principal Consultant at Nathan India ( maloney@clemson.edu This email address is being protected from spam bots, you need Javascript enabled to view it ) |
NFL Cheerleaders, $1 mn pay shake cricket world
IPL Economics | Andy Mukherjee
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Opportunity, choice and the IPL Talk about silly money all you like, but the bottomline is, the IPL will bring competition and the rules of the market into cricket - and that can't be bad Amit Varma March 13, 2008 | |||||||||||||||||||||||
The silly season of cricket punditry is upon us, and I blame Lalit Modi. Had the man not unleashed the Indian Premier League, newspapers and websites would not be full of otherwise sensible commentators telling us that the world is coming to an end because there is so much money in the game and the centre of cricket is shifting to savage, uncultured Asia. They rail against the profit motive and splutter indignantly and eloquently against the huge amounts given to some of these players. Some, like Tim de Lisle in a column a few days ago on Cricinfo, complain that such "silly money" is "disgusting" in a country that "encompasses a great deal of poverty". I disagree. Firstly, I think that the IPL is a huge step forward for cricket. Second, contrary to what de Lisle writes, it is good for India as well. Let's start with cricket. The problem with cricket in most cricket-playing countries, certainly in India, is that the cricket market is what economists call a monopsony. A monopsony is a market in which there is only one buyer for a particular class of goods and services. Until now, a young Indian cricketer who wanted to play at the highest level could only sell his services to the BCCI. If it treated him badly and did not give him his due rewards, he had no other options open to him. This was exacerbated by the lack of accountability in the BCCI. The men who run it get their posts by pandering to the state associations that vote for them, by handing those associations ODIs that bring them revenue, by distributing posts within the board, and so on. How the cricket team performs on the field has no bearing on the tenures of these men; those are determined by politics. This has two implications. One, the incentives for picking the best team possible aren't too strong, as there is no penalty for poor performance. (In fact, regional politics within the selection committee has sometimes ensured that the best team hasn't been picked.) Two, a player who suffers because of this has no other options open to him. While the BCCI will continue to run along the same lines, the IPL turns this on its head. There is competition between the franchises, who have spent tons of money to enter the IPL and need to make profits to justify their involvement. This acts as a powerful incentive for them to hire the best cricketers they can find, and to develop new talent. Teams that are selected based on politics or bias will play worse than the teams that don't, and their bottomline will suffer. Equally, all the incentives are tailored towards finding and developing new talent. If the IPL is a success, don't be surprised if the franchises open their own academies and nurture youth teams - it is in their financial interest to do so. Precisely such feeder systems have developed in the Premier League in England, and all for the sake of the much-maligned profit motive. Think of what this will mean for the players. A talented young cricketer frustrated by the BCCI will no longer have to suck up to officials and hope that they notice his talent in the handful of games he gets in local cricket. Instead, he will find eight potential buyers for his services. If he has either talent or potential, they will compete to employ him. The BCCI has helped this process along with the mandate that each team employ at least four cricketers under 22. As a result, the players of the current Under-19 side have suddenly become much sought after. This will happen to every future Under-19 side. Young talent will be less likely, in future, to fall by the wayside and be ignored. Callow fast bowlers will be less likely to be injured for long periods of time, for their employers will hire the best trainers to look after their assets - cold as it sounds to call them that. A common complaint about the IPL centres around the money paid to individual cricketers. Does Rohit Sharma really deserve more than Ricky Ponting? Are the men paying Ishant Sharma more than Dale Steyn and Glenn McGrath making a silly mistake? Well, firstly, these investments are made not just on the basis of cricketing ability but also on factors like brand appeal and likely availability. Secondly, more importantly, if they are foolish decisions, then the most potent commentary on them will come not from cricket writers but from the balance sheet. Those who make foolish investments will suffer; those who are smart will prosper. Eventually, as this market matures, we will come closer to finding out the true value of players.
Some commentators take issue with so much money being spent on a sport in a poor country. "[M]ost of these millions will be leaving India," de Lisle wrote in his piece, "filling the coffers of Australian stars who are already very highly paid. Money shouldn't travel in a direction like that." If that logic was correct, we might as well stop poor countries from importing anything. Every trade happens because it leaves both parties better off, and the IPL's foreign players are being paid so much because they bring that much value to the table. That value, the return on those investments, will happen within India. Andrew Symonds may be delighted that his services are being sold for $1.35m, but the franchise that bought him also thinks that it can get at least that much value out of him, through the various revenue streams open to them. Every flourishing business creates employment opportunities and enriches the local economy. The IPL will offer more opportunity to cricketers coming up the ladder, and more choices to cricket viewers. The income disparities that pundits complain about are best tackled using exactly such a combination of opportunity and choice - and not by keeping everyone poor. Also, we don't live in a zero-sum world - the profits from the IPL will not come at the expense of better causes. In fact, they will be invested back in the local economy, and in the long run, along with the profits of many other businesses started for the supposedly base purpose of making money, will end up creating jobs for people who might otherwise have to depend on charity. That is how economies grow and people progress. Having said that, the IPL could fail, for not every good idea is rewarded with smart execution. Maybe the franchises got carried away and bid too high (game theorists call it "the winner's curse"). Maybe the games will not get high enough TRPs, as a cricket-loving public deluged with an overdose of cricket finds other ways to entertain itself. If it does flounder, it will be a pity, for its failure will be remembered and used to prevent other such experiments. On the other hand, if the IPL succeeds, cricket historians may one day write about 2008 as the year that cricket discovered its future. Amit Varma, a former managing editor of Cricinfo in India, writes on economics and politics. He won the 2007 Bastiat Prize for Journalism, and writes the popular blog India Uncut © Cricinfo |
"Non-cricketing traits matter in IPL"
An Indian Institute of Management study has found out that non-cricketing traits would also earn for players in IPL.
The study was conducted by IIM, Ahmedabad.
"It appears that apart from their cricketing excellence, players get hefty premium for their non-cricketing attributes, for they are instrumental in pulling big crowds and viewership for IPL business," IIM-A Professor, Economics Department Satish Deodhar told PTI.
"Out of the total price of USD 1.5 million and USD 1.12 million received by Mahendra Singh Dhoni and Sachin Tendulkar, the value of their cricketing attributes is USD 705,420 and USD 622,213 respectively, and, their net crowd pulling business value is about USD 794,580 and USD 499,037 respectively," Deodhar added.
"Dhoni is an outstanding cricketer and also famous for his personal charisma and association with film stars. Thereby he fetched 1.5 million USD during last bid. His value of non-cricketing attributes is much higher than that of Sachin," he said.
Study based on a unique model
The study based on a unique 'econometric' model developed by the IIM-A economic department to analyse the process of valuation that might have occurred in deciding final bid prices of the players has evoked response from some universities abroad.
Australian University La Trobe has evinced interest in the econometric model based study done at IIM-A.
"The economic department of La Trobe University in Australia has approached us and is keen to know how this model of threadbare analysis of an event has been made possible," said Deodhar.
However he added that the captaincy skill of Dhoni was not factored in the study which is based on benchmark estimates.
Andrew Symonds, who got USD 1.3 million during bidding in IPL last year, had said he was surprised that he got more than his captain Ricky Ponting, Deodhar said, adding, "the reason I found to his query was that he was a big crowd puller."
Symonds had then became popular in the wake of the monkey gate controversy.
Indians command premium over foreign players
The IIM-A study also suggests that Indian players command premium over foreign players in the bidding.
"Among the foreign players, none receives any premium for their nationality, however an Indian player, on an average, controlling for other attributes, is likely to receive a premium of USD 203,156 over non-Indian players," Deodhar said.
The other important attributes of players found during the course of study were that an Indian player on an average fetches a premium of USD 203,156 over foreign players, besides the other parameters in an ICC approved matches such as a half century fetches USD 2683, a stumping fetches USD 2596, and an additional wicket fetches USD 377.
"An increase in Twenty20 batting average by one run fetches a player USD 4658, and as the player get older by a year he looses USD 30,000," Deodhar said.
"Thus, premium for being younger in the IPL is established in this study. In fact, we hope that this kind of research would facilitate better understanding of player price formation," he added.
IPL - Auctioning our top cricketers
05 Feb 2009
After the buzz of an auction we often ask: have I paid more for this house than it's really worth? With the second Indian Premier League (IPL) auction taking place in Goa tomorrow, it seems the same reservations emerge when it comes to auctioning our top cricketers – some of whom command prices that would fetch a very nice house!
A study by La Trobe University sports economists has used sophisticated techniques of economic modelling and regression analysis to simulate a 'fair valuation' for 20 players selected as most likely to be bought from the 43 who have been short-listed for the IPL auction.
The research – by Dr Liam Lenten, Wayne Geerling and László Kónya from La Trobe's School of Economics and Finance – lists five Australian players, five from England, with the rest from South Africa, New Zealand, Sri Lanka, Bangladesh and the West Indies.
It suggests, for example, that neither Australian vice-captain Michael Clarke, who has nominated a reserve price of US$1 million, and former English captain Kevin Pietersen, who has asked for US$1.3 million, are worth their reserve price.
In fact, Dr Lenten says that according to his group's model Andrew Flintoff is worth more than either of them. 'They might still be sold, but whoever buys them has, in our view, paid too much – which echoes our findings for several of the "star" players in the 2008 auction.'
Further, 'lesser-light' players seem to be sold for less than they are really worth. 'This is due to the laws of supply and demand; there are simply more players up for auction than are required by the teams.'
Last year for example, he says, there was considerable controversy over Andrew Symonds getting US$1.35 million compared with Ricky Ponting's $400,000, 'although our models showed those two valuations to be fairly accurate'.
Unfortunately, the two auctions are not identical. He says the 2009 auction involves fewer players with a lower spending cap of $2 million. 'Nevertheless, we can still approximate with some reliability.'
Dr Lenten stresses that the model does not predict or forecast. 'If selling prices differ from our valuations, it suggests that the bidders misvalued the player.'
The La Trobe research will be presented at three economics seminars in the near future, at the Economics Society Tasmanian Branch, University of Canterbury New Zealand, and at the University of Queensland.
Dr Lenten says last year's inaugural IPL season was arguably the biggest business revolution in the 130-year history of the game, capitalising on the financial windfall generated by the explosive growth in the new, shorter, form of the game, Twenty20 cricket.
'Eight franchises were auctioned for a total of US$724 million, while the ten-year broadcast rights were sold for US$1,026 million. To allocate players to teams, IPL held its first auction last February in Mumbai. The winning bid was the player's wage for the tournament.
'Sports economists around the world were very interested,' says Dr Lenten. 'The auction represented an extremely rare opportunity for economists to measure the true value of labour of professional athletes in the sports industry at a single point in time.'
'We used player career statistics to identify those playing traits valued most highly by teams. We also considered other observable personal characteristics that determine a player's "marketability" as distinct from their playing talent.'
The resulting model partitioned explanatory variables into distinct groups, categorised by the broad athletic trait described by the statistic. The first two were based on identifiable characteristics and the remainder on career statistics.
The categories were: (i) personal characteristics; (ii) cricketing characteristics; (iii) ability; (iv) experience; (v) accumulated contribution; (vi) expeditiousness/economy; (vii) freak performances; and (viii) familiarity with the Twenty20 format.
Contact: Dr Liam Lenten Tel: + 61 3 9479 3607, E-mail: l.lenten@latrobe.edu.au
The Indian Premier League
Re-hyphenated
Mar 26th 2009 | DELHI
From The Economist print edition
The decision to shift its favourite cricket tournament looks bad for India
IT IS fashionable in India to say that the country has been "de-hyphenated" from its crisis-stricken rival, Pakistan. An announcement this week that the Indian Premier League, a dazzling cricket tournament due to be held in India next month, will be shifted to South Africa because of security concerns, is therefore hugely embarrassing. Pakistan is also newly out-of-bounds to foreign cricketers—after Sri Lanka's national team was ambushed there by terrorists last month.
The comparison is imprecise: no such atrocity aimed at sportsmen has occurred in India. But the upheaval is particularly painful, for two reasons. First, the IPL, in which eight city-based "franchises" play a shortened and fast-paced form of cricket, is an emblem of Indian aspirations. Its franchises are owned by some of the country's best-known billionaires. Several are co-owned by Bollywood stars. With huge salaries on offer, foreign cricketers have flocked to the IPL.
The second blow is that this marvel is being taken away from India because of its democratic system—which Indians should feel proud of but often do not. The IPL, which is spread over six weeks, would have coincided with India's general election, and, after long debates with state governments and the cricket board, the central government decided it could not be adequately policed. To make matters worse, there is a suspicion that electoral politics played a part. The Congress party, whose home minister made the decision, has less influence on India's rich and powerful cricket board than some of its rivals.
The changing face of cricket
Neville Cardus, probably the greatest sports writer of all time, once wrote that if everything about England was destroyed except for the laws of cricket, English society could be recreated.
Much has changed since then but one thing that has remained constant is that cricket is intrinsically English.
As George Orwell put it, our abiding picture is of an English village scene on a summer's day when, as the light fails, a ball hit for four kills a rabbit on the boundary.
Yet this weekend a meeting of the men in suits who run world cricket will take place in Dubai. Yes, Dubai, not Lord's, which emphasises that this very English game is no longer controlled by England, who may have to adjust its own cricket programme to accommodate the economic might of India.
For the first time in the history of sports, a major game is now controlled by a non-European power. How well cricket adjusts to such a development will tell us much about the game and also whether any sport, not just cricket, can accommodate such a major and sudden economic, cultural and racial shift of power.
We all know about the impact Bangalore call centres can have on our lives, but the significance of this development is equally far reaching. Until India emerged as the superpower of cricket, world sports was one area where Europe reigned supreme and the United States had very little influence.
The US may affect all our lives - in politics, economics and culture - but when it comes to world sports it is almost like a third world country. The nature and structure of world sports have remained constant for more than a century and a half.
Most of the sports the world plays were either invented or codified in these islands and much of the governing structure was devised by the French. Certainly, the bodies that govern football and the Olympics were French-created, probably reflecting an English preference for muddling through.
And the men who run these bodies have nearly all been European. In 114 years of the Olympic movement, there has been only one non-European president.
World football was governed for a long time by a Brazilian of Belgian descent and his tenure did not affect the essential power structure of the game.
And while some of the best players in the world come from South America, it is Europe that controls the economic power and dictates the shape and nature of the world game.
So much so that the Uefa Champions League is a showcase for world talent watched by millions round the globe and English Premier League matches are so popular round the world that it even thought of playing some of them overseas, a move which led some Asians and Africans to call it the second European colonisation.
Cricket is very different.
On the field, it is Australia not India that dominate. Off the field, however, India's economic power is so great that even Australia has had to come to terms with it.
Australia have just refused to tour Pakistan, but they would never dare not to tour India because they need Indian money far too much. Indeed, the newly-created Indian Premier League (IPL), where 20-over matches are to be played under floodlight, is so lucrative that Australian cricketers have been tripping over themselves to rush to India to collect their rupees.
India produces 80% of world cricket's income, largely through television rights to cater for the insatiable appetite for the game in this land of over a billion, which has a fairly well-off middle-class of some 350 million.
The auctions for the IPL demonstrated India's economic clout. The franchises for the teams, many of them owned by Bollywood stars, went for millions and the cricketers themselves can earn as much as £500,000 or more for five weeks work, the sort of money top Premier League footballers get but until now cricketers have only dreamt of.
Most of England's top cricketers have kept away because the IPL matches clash with the English season. But the Indians not only say that English cricketers would love to play in India but they also want the English board to delay the start of their season from next year to adjust to the new league.
All this illustrates one fundamental problem for world cricket: its lack of a proper governing structure.
The structure is so weak that I am told the retiring chief executive of international cricket, the Australian Malcolm Speed, will tell the Dubai meeting that cricket has become dysfunctional. His paper will produce much chat this weekend but there is no sign that there is any appetite to marry India's cricketing billions to a viable world cricket structure.
The Indian money juggernaut will just go rolling on and the danger for cricket is that it is not only rabbits that will be killed on the boundary edge.
Much else of what cricket has stood for could get trampled, too.
http://www.bbc.co.uk/blogs/thereporters/mihirbose/2008/03/the_changing_face_of_cricket.html
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