Indian Premier League: A cricket extravaganza or something else
Cricket has gone through a mighty metamorphosis, moving from the pattern of 5 day test matches to one day internationals giving 50 overs per team and now, we are into an even more compact format of cricket called T20 or twenty twenty. The twenty twenty format further reduces the game to just 20 overs per team. The current T20 world cup is supposed to be held from April 30 to May 16, 2010. In addition, we also have different competitive events like Sharjah Cup, Champions Trophy, etc. Given the sheer number of cricket events and the huge following they have, it was only a matter of time before a sports entrepreneur decided to capitalize on this phenomenon and create one of India’s biggest sporting spectacles of all time. And as India is a cricket-mad nation, the Indian Premier League, which is largely based on the successful English Premier League, found an almost instant following.
So, the first installment of the IPL started in 2008, with 8 teams: Delhi Daredevils, Rajasthan Royals, Mumbai Indians, Chennai Super Kings, Kolkata Knight Riders, Deccan Chargers, Kings XI Punjab, Royal Challengers Bangalore. Basically, the teams are named after specific states in India and are owned by different entities, starting with movie stars, media and industrial conglomerates, etc. There was a massive media frenzy surrounding the entire event as it kicked off in early 2008, with international players, Indian players up for grabs and a huge auction afterwards. Teams were formed and matches began. The model was interesting in more ways than one. First, players from the same country played against each other many times. So when it comes to sport, we were able to see the magic of Muralidharan along with keeping Dhoni in one team. Just like watching Tendulkar and Jayasurya bat on the same side! Second, all the teams were tied to different states or cities. So, a Mumbai Indians game against, say, Kings XI Punjab was played in Mumbai or Punjab, and somehow brought out the twinkle of seeing a Mumbai team in Mumbai or a Deccan team on AP, much like how fans find watching Man U play at Old Trafford more enjoyable than any other Man U match! It even served to unite a state with the underlying theme being cricket. So while different teams won and lost at different times, the winner was clearly cricket. At the same time, the entire franchise is valued at over $4 billion!
And so, as is the case with any event that achieves instant stardom and is worth billions of dollars, this one too encountered its controversies. Even the perfectly executed Beijing Olympics were not without controversy, from the lip-syncing ceremony performers to the instant shutdown of polluting factories. So how can this sports company be saved?
So IPL2, the second installment, was embroiled in a security controversy. The event coincided with the general election in India, so security was a primary concern. The Government asked the organizers to postpone the tournament until after the elections, but this was denied as the television rights and spaces were apparently reserved. So, amidst much controversy and uproar, the tournament moved to South Africa, leaving a disgruntled Indian government and disappointed Indian fans in its wake.
IPL3 was not spared either. When peace talks with Pakistan reached a deadlock, some political parties opposed allowing Pakistani players to participate in the IPL. Once again, the newspapers shouted how some politicians were interfering in the sport and how the unifying spirit of the sport was being wasted, etc. Ultimately newer players were given a chance and Pakistani players did not get a chance to play in IPL3.
However, now IPL4 attracted controversy even before it could start and this controversy has threatened the entire existence of the company, the biggest controversy yet.
According to the original plan of the organizers, 2 more teams would be added to the IPL franchise in 2011: Pune and Kochi. There have apparently been some irregularities in terms of money laundering and corruption underlying some deals and the way in which auctions and franchises have been run is allegedly not very transparent. So the last few weeks have brought up a lot of confusion in the story. Now, one of the 2 new proposed teams was Kochi, in Kerala. IPL chief Lalit Modi once tweeted that he revealed the winners of the Kochi team and also commented that a Kerala MP and Union Minister Dr Shashi Tharoor were involved in ‘tutoring’ the team . It emerged that the winning bidder, Rendezvous Sports World, belonged to Dr. Tharoor’s friend, Sunanda Pushkar. What followed was a murky exercise in mud-slinging, with accusations of wrongdoing flying everywhere. On the one hand, the union minister was accused of pocketing some money, Ms. Pushkar’s financial capacity was questioned, the union minister’s involvement was viewed with suspicion, her friendship with Ms. Pushkar was questioned, and as it takes a pinprick to open a can of worms, all the skeletons came out of the IPL closet.
Tax collectors then stepped forward and began examining the records of the bidding process. Interestingly, bidding documents were missing from two legitimate bidders who lost. The owners of the winning franchises were not spared either. Except for a couple of teams like the Chennai Super Kings with 100% ownership by India Cements, many other teams seemed to be owned by different entities, some from tax havens like the British Virgin Islands too! Clearly the IPL had ventured into much more than just cricket and the unification of the sport.
Dr Tharoor was asked to resign as it appeared the minister was exploiting his government powers and the Indian opposition demanded the same from the ruling coalition. Mrs. Pushkar gave up her sweat in an attempt to prevent the minister’s resignation. As if that was not enough, the former chairman of BCCI (Board of Control for Cricket in India), Mr. Sharad Pawar, and his political party were embroiled in the controversy. And when he was approached, Mr. Pawar, with whose blessings Lalit Modi had started the IPL franchise, had to disavow the whole thing. And then apparently Multi Screen Media (MSM), an arm of Sony Entertainment Television, paid the entire Rs 125 crore or Rs 1250 crore to World Sports Group (WSG) for the broadcast rights. Apparently, this money has flown to various recipients with “political connections.”
The controversy becomes increasingly cloudy and different entities and their nefarious interests continue to come to light. And while all this is going on, Mumbai Indians take on Chennai Super Kings on Sunday, April 25. Whether that match is interesting or not, the IPL controversy surely makes it an interesting read for early morning coffee time!
What does all this mean to me as an Indian? Well, I was exposed to how a business can take shape from an Indian fan phenomenon. At school, a representative from an IPL team came and gave us a talk about their business plan and proposal, and that’s when I realized how an entrepreneur can capitalize on the two things that fuel the Indian imagination: cricket and the glamour. The combination was a masterstroke. And now, with the entire franchise mired in controversy, another Indian phenomenon has come to light and that is the quintessential C of corruption that every company planning to shoot in India seems to underscore today. Until the controversy opens up, I guess we at least have enough stories for media fodder and enough to fill newsprint. So no matter who wins this battle of who is the most corrupt of them all, the winner is definitely the medium that ultimately has one of the juiciest Indian stories of all time.