September 18, 2012

Indian Premier League

IPL isn't foolproof

Abhishek Mukherjee

The Deccan Chargers saga is proof of a harsh reality, suggests Kunal Pradhan in Pune Mirror. It is that the IPL, inspite of its glitz and aura, is not independent of the global economy and is susceptible to recession.

The problem, top franchise managers explain when speaking off the record, is that the IPL, contrary to Modi’s grand declarations, never had a self-sustaining business model. It had ten different models, one for every team, and that each one was viable only when the franchisee’s core business was thriving. That’s why the consortiums, which didn’t have large parent companies to soak in the losses, were the first to get a taste of reality.

The reality is that the IPL, like all businesses, is irrefutably linked to the global economy. Still only half a decade old, it is in fact the logical first casualty when an owner’s mother brand is under attack. ‘Recession- free’ is just pseudo-economics propagated by people in crinkle-free suits.

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