Mumbai: Once feted as the man who multiplied the revenue of the Board
of Control for Cricket in India (BCCI) and the person most responsible
for the successful debut of the Indian Premier League (IPL) in 2008,
Lalit Modi’s fall from grace two years later was dramatic. The
Enforcement Directorate is looking into corruption charges against Modi,
who’s currently located in London, and violation of Foreign Exchange
Management Act (Fema) in relation with the Twenty20 league. Meanwhile,
the IPL itself seems to have lost much of its allure with some matches
last year being sparsely attended and advertising rates having declined.
In an email interview on the eve of the fifth IPL series, Modi said the
event retains all the basic ingredients of an exciting spectacle.
Edited excerpts:
Certainly, there have been issues. The tournament nearly lost the Pune Warriors after a disagreement between Sahara and BCCI. Although Pune stayed in after Sahara settled the differences, BCCI was mighty close to losing a second franchise following Kochi’s suspension in September. Had that happened, the loss of 20% of the league within a matter of months would have created a massive issue. But there is still much to enjoy. Dhoni versus Tendulkar in the opening match is not bad for starters.
Most IPL teams have not been able to unlock their investment. What in your opinion went wrong?
In order to support the franchisees, the plan was simply to make it innovative and, therefore, appealing to the fans, broadcasters and sponsors on an ongoing basis. We set out to constantly monitor our product, and analyse how we could improve and move things along. We weren’t trying to re-invent the wheel with every move, but we did try to keep things fresh. We made sure we worked with all of our franchisees and partners to maximize visibility and appeal. I am sure now that the lock-in period of three years is over, new investors will find a line-up to take stakes in existing franchises. That will show that IPL is a much-valued property.
Viewership saw a drop last year. What could have been done differently?
In the formative years, we made sure that we stayed on top of the wow factor. A strong part of our approach was to ensure we continued to innovate and present and package the product in a refreshing way. After all, if your favourite meal is served in exactly the same style every night, you’ll soon tire of its splendour. It was always my intention that the IPL should be different. It had to be a constantly developing tournament, consumed by a colourful, vibrant razzmatazz that supported top class Twenty20 cricket played by the best players in the world. And each year we knew we had to work harder to make it different than the last. So, in my view—and whatever the current questions of the commentators—the IPL retains all the basic ingredients of a wonderfully exciting and eagerly anticipated spectacle, lit up by wickets, catches, sixes, and runouts.
Does it now make sense to have fewer advertisers paying a premium versus a large number of them?
I don’t think there’s a specific formula you can apply here, you have to move with market forces. If that’s how the market is going, then you must work to maximize your advantage. You could argue that paying a premium in the current climate is not an option at the moment. The innovation I talked about just now applies to the commercial stuff too. You have to work at it with your partners or potential partners and be prepared to move with the times.
IPL was stated to be the fastest-growing professional league in the world. Where does it stand now?
Well, the analysts appear to be split on where the IPL now stands, that’s for sure. For example, in the last few days, I’ve seen headlines as diverse as: “The turf ain’t that green anymore” and “IPL has all the ingredients of a blockbuster.” But in my view, it is still a terrific tournament.
Any successful new product will have a massive upward curve and equally, there will always be a levelling off. But people are making too much of that. The product we created has all the ingredients for fun, excitement and entertainment, and all those elements are still there. Perhaps I would have done things differently, but I shall still enjoy watching this year’s tournament—and will do so with a sense of pride that I started it all off. It is still the most innovative league to have been launched in last 30 years in sport, anywhere in the world.
The sense is that a few IPL franchise owners are looking to sell out. Why is this happening?
If your sense is correct, then much of it will be because the tournament is now five years old. Things naturally move on. You buy a house and a few years later you sell. It happens, and it should happen. You need transactions to take place for value to keep increasing. If BCCI were to stop transactions from happening, yes, then that would signal death for the league. But if more people want to invest and we allow others to continue to participate in the most innovative league, the value of the teams and league will only increase.
The IPL teams were to grow from the first eight to 10 teams. Today there are only nine teams, which directly hits the revenue of the IPL pool. How big a setback is this for the league?
This was part of what the Sahara issue was all about. Because of Kochi’s suspension, the matches were obviously reduced in number, and the revenue consequently was affected. So the gearing is different for a start and that obviously affects teams, sponsors and broadcasters. In that situation, it’s up to the IPL committee and BCCI to realign accordingly, but when the tournament starts in Chennai, I really don’t think supporters will worry too much about that. The next six weeks are all about a constant stream of entertainment from the cricket fields of India. And there is much for us all to be excited about in that.
How much has IPL contributed to BCCI’s revenues in the last four years in your opinion?
IPL without doubt and for the foreseeable future will account for more than 60% of BCCI’s revenue and over time it will probably be close to 70% of its revenue. This is based on the numbers I have seen. In terms of the last four fears, it would definitely be close to 65-70%.
Saket kumar
pgdm2ndsem.
pg|11|42
Spectator‘s
view: Modi says IPL retains all the basic ingredients of a wonderfully
exciting and eagerly anticipated spectacle. By Abhijit Bhatlekar/Mint
As
the first chief of the Indian Premier League, you had envisioned the
event growing in scale. Have you been disappointed by the previous
season and the upcoming one? Not at all. I’m looking
forward to it. As a cricket fan, how can you not be stimulated by a
tournament that puts many of the world’s top players together in one
condensed league? Many people have had their say in the build-up to IPL
season five and, as I know from my own experience, a successful product
is always a prime target for comment and analysis. Certainly, there have been issues. The tournament nearly lost the Pune Warriors after a disagreement between Sahara and BCCI. Although Pune stayed in after Sahara settled the differences, BCCI was mighty close to losing a second franchise following Kochi’s suspension in September. Had that happened, the loss of 20% of the league within a matter of months would have created a massive issue. But there is still much to enjoy. Dhoni versus Tendulkar in the opening match is not bad for starters.
Most IPL teams have not been able to unlock their investment. What in your opinion went wrong?
In order to support the franchisees, the plan was simply to make it innovative and, therefore, appealing to the fans, broadcasters and sponsors on an ongoing basis. We set out to constantly monitor our product, and analyse how we could improve and move things along. We weren’t trying to re-invent the wheel with every move, but we did try to keep things fresh. We made sure we worked with all of our franchisees and partners to maximize visibility and appeal. I am sure now that the lock-in period of three years is over, new investors will find a line-up to take stakes in existing franchises. That will show that IPL is a much-valued property.
Viewership saw a drop last year. What could have been done differently?
In the formative years, we made sure that we stayed on top of the wow factor. A strong part of our approach was to ensure we continued to innovate and present and package the product in a refreshing way. After all, if your favourite meal is served in exactly the same style every night, you’ll soon tire of its splendour. It was always my intention that the IPL should be different. It had to be a constantly developing tournament, consumed by a colourful, vibrant razzmatazz that supported top class Twenty20 cricket played by the best players in the world. And each year we knew we had to work harder to make it different than the last. So, in my view—and whatever the current questions of the commentators—the IPL retains all the basic ingredients of a wonderfully exciting and eagerly anticipated spectacle, lit up by wickets, catches, sixes, and runouts.
Does it now make sense to have fewer advertisers paying a premium versus a large number of them?
I don’t think there’s a specific formula you can apply here, you have to move with market forces. If that’s how the market is going, then you must work to maximize your advantage. You could argue that paying a premium in the current climate is not an option at the moment. The innovation I talked about just now applies to the commercial stuff too. You have to work at it with your partners or potential partners and be prepared to move with the times.
IPL was stated to be the fastest-growing professional league in the world. Where does it stand now?
Well, the analysts appear to be split on where the IPL now stands, that’s for sure. For example, in the last few days, I’ve seen headlines as diverse as: “The turf ain’t that green anymore” and “IPL has all the ingredients of a blockbuster.” But in my view, it is still a terrific tournament.
Any successful new product will have a massive upward curve and equally, there will always be a levelling off. But people are making too much of that. The product we created has all the ingredients for fun, excitement and entertainment, and all those elements are still there. Perhaps I would have done things differently, but I shall still enjoy watching this year’s tournament—and will do so with a sense of pride that I started it all off. It is still the most innovative league to have been launched in last 30 years in sport, anywhere in the world.
The sense is that a few IPL franchise owners are looking to sell out. Why is this happening?
If your sense is correct, then much of it will be because the tournament is now five years old. Things naturally move on. You buy a house and a few years later you sell. It happens, and it should happen. You need transactions to take place for value to keep increasing. If BCCI were to stop transactions from happening, yes, then that would signal death for the league. But if more people want to invest and we allow others to continue to participate in the most innovative league, the value of the teams and league will only increase.
The IPL teams were to grow from the first eight to 10 teams. Today there are only nine teams, which directly hits the revenue of the IPL pool. How big a setback is this for the league?
This was part of what the Sahara issue was all about. Because of Kochi’s suspension, the matches were obviously reduced in number, and the revenue consequently was affected. So the gearing is different for a start and that obviously affects teams, sponsors and broadcasters. In that situation, it’s up to the IPL committee and BCCI to realign accordingly, but when the tournament starts in Chennai, I really don’t think supporters will worry too much about that. The next six weeks are all about a constant stream of entertainment from the cricket fields of India. And there is much for us all to be excited about in that.
How much has IPL contributed to BCCI’s revenues in the last four years in your opinion?
IPL without doubt and for the foreseeable future will account for more than 60% of BCCI’s revenue and over time it will probably be close to 70% of its revenue. This is based on the numbers I have seen. In terms of the last four fears, it would definitely be close to 65-70%.
Saket kumar
pgdm2ndsem.
pg|11|42
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