A World Of Barons And Movie Stars

Sydney Morning Herald

Saturday February 2, 2008

Jamie Pandaram

ONCE upon a time, the board running cricket in India had to pay a television station to broadcast its games. Now, the highest-profile Bollywood actors are splurging $80 million to buy cricket franchises invented by the same board.

This is not a circular story, however. The journey of cricket's revolution is only beginning, and today's $80 million expects to become tomorrow's $800m. Investors who have bought into the Indian Premier League - creating Asia's first billion-dollar sporting competition - envisage glorious returns from a product expected to rival the beacons of American and European examples.

"It will not happen overnight," insists the brains behind the IPL, Lalit Modi. But the vice-president of the Board of Control for Cricket in India does believe that in "five to six years" each franchise will be valued at between $US400m-600m ($446m-669m).

"I don't think any of the franchise owners expect a profit in the first two to three years," Modi said. "When you are building an asset, it takes time to build the brand. You invest in it, then build on it. This is an asset for life.

"It's critical that we fill the stands, build the fan base. The key is to wholesomely deliver the right entertainment product."

The money would flow if the competition was addictive, Modi said. "Players must deliver, too. This can't be a competition of friendly matches. It has to be serious." With predictions that, in full swing, the likes of Sachin Tendulkar could earn $US40m a year, there's little reason to disbelieve that players will deliver what the owners expect.

The Mumbai franchise, bought for $127.27m by India's richest man Mukesh Ambani, could equal the New York Knicks on an earning scale of $US600m a year, but India's population of 1.129 billion gives the IPL the chance to swamp other sports.

A survey commissioned by Outlook Business magazine reported that nearly 79 per cent of active cricket watchers chose Twenty20 cricket as their favourite format.

India was the last country to hop on board the Twenty20 gravy train, believing the shorter match span would yield fewer dollars but it is now driving the train towards the rainbow's end. With a $US1 billion, 10-year television deal tucked away, and the involvement of foreign players and interests, the IPL may be pacing itself to become the world's most watched sporting event.

"Each franchise collects 80 per cent of the broadcast revenue, 60 per cent of the sponsorship revenue, and what comes of full stadiums," Modi said.

The shrewd global investors, including Lachlan Murdoch, view the IPL in the manner of a cat salivating over a mouse.

Brett Lee, who has never played a Test in India, earns 30 per cent of his off-field money from the country. His agent, Neil Maxwell, sees no end to this new world of possibility in cricket. "Already the BCCI earns 10 times more than any other country," he said.

© 2008 Sydney Morning Herald

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