From spending big to spending smart

The player-acquisition strategies of the franchises have changed over the years the IPL has been in existence

Nagraj Gollapudi

April 1, 2013

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Kane Richardson took five wickets for South Australia, South Australia v Victoria, Ryobi Cup 2012-13, Adelaide, February 9, 2013
Kane Richardson: was in the wishlist of several franchises despite being only a promising talent © Getty Images
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In a couple of days, the first match of the sixth IPL will be played, but the buying strategies at the auction in February are already coming under scrutiny.

Glenn Maxwell, the Australian allrounder, was the only million-dollar buy. Today, after his less than impressive debut Test tour (39 runs at 9.75 in two Tests, redeemed somewhat by seven wickets), the question that might be asked of Mumbai Indians, the franchise that bought him, will be whether they spent too much.

Maxwell, Kane Richardson ($700,000, Pune Warriors), Chris Morris ($625,000, Chennai Super Kings) and Sachithra Senanayake (also $625,000, Kolkata Knight Riders) fetched jaw-dropping sums. Not many outside their countries had heard about the talent and skills of these players, but IPL franchises were willing to gamble on them.

The four players above were on the radar of many franchises, who did active research on them, and other players, over 2012. Local coaches in various countries acted as scouts, relaying information on these and lesser-known players, and some of the franchises' own coaches travelled or kept a keen ear to the ground on the progress and performances of these cricketers.

Delhi Daredevils team director TA Sekar and his assistant coach Aashish Kapoor, the former India offspinner, made repeat trips to Australia to scout for local talent, where they spotted Maxwell in 2012. This is part of a trend where franchises have moved from chasing big names to looking for untapped but promising young talent.

Take the case of Richardson. The South Australian, recently turned 22, was the third-most expensive player at the 2013 auction, bought by Pune Warriors India. The former South Africa fast bowler Allan Donald, who is the Warrriors' bowling coach, saw Richardson play in the Ryobi Cup and was hooked. "The thing that excited me about Kane was his death-bowling skills," Donald said. "He is completely left-field, he brings something completely new, and not a lot of people know about him."

Equally left-field was Morris, who was sold for $625,000 after having his base price set at $20,000. "I have never seen this much money in my life," he said. Apparently Morris was on the wishlists of more than one franchise on auction day. Donald believes Morris has a good "heavier ball", which, along with his pace and attitude, will serve him well.

According to Venky Mysore, Knight Riders' chief executive, his franchise could have happily returned empty-handed from the auction, but having perceived a couple of gaps in the side during their pre-auction analysis, they decided to bid for Senanayake, who Trevor Bayliss, Knight Riders' head coach, had watched play in the Big Bash League. Bayliss, who is also the coach of Sydney Sixers, hired Senanayake in the BBL first and recommended him to Mysore.

"He [Senanayake] is a very interesting mystery bowler. If you look at his stats, he has done a very good job in the shorter version of the game especially. He has the variations and he can bowl with the new ball, in the Powerplay, [and is] someone who batsmen have found difficult to counter." That was enough for Mysore to pay over half a million dollars for Senanayake.

Over the years Knight Riders have continued to be bold at auctions. In the 2011 auction, the first big one after 2008, they spent $4.5 million on buying Gautam Gambhir and Yusuf Pathan, and $1.1 million on Jacques Kallis - $5.6 million out of an auction purse of $9 million. Too many eggs in one basket, seemingly, but a year later, with the same core of players, Knight Riders won their first IPL crown.

Under Mysore the emphasis has been on keeping the squad lean. "Everybody has become conscious that player costs are going up and clearly it is not sustainable from a franchise point of view," he said. His biggest priority has been on getting value for money. Last year he released four Indian domestic players, including the left-arm seamer Jaydev Unadkat, who had been signed for $250,000. That money and the sum left over from the previous auction purse, was used to buy Senanayake this year.

In the first two seasons nearly all the franchises adopted the high-risk strategy of building teams around big names. "Everybody came bleary-eyed to the auction table," said an official who attended the first auction. "A few said they had done overnight mock auctions. However, nobody had a clue about how to distribute the money, how many Indians to buy, how many overseas players to buy, considering only four could play." The auction purse for the inaugural auction was $5 million per franchise. Except for Chennai Super Kings, Deccan Chargers and Rajasthan Royals, the rest of the franchises had icon players, who would be paid 15% more than the most expensive player they bought at the auction.

Those first player contracts were worth three years, and most franchises learned from their mistakes over that period. In 2009, Super Kings picked up a young George Bailey at his base price. He was playing for Tasmania and had yet to make his international debut, but former India selector VB Chandrasekhar, who was then with Super Kings, was tempted to try Bailey out, having watched his penchant for hitting sixes.

By 2011, only Chennai retained most of their original squad, as they believed they had invested a lot in these players and the returns had been fair. Knight Riders disbanded their entire set-up, bringing in a new coach, new captain, new players, and a new ethos. In 2008, Royal Challengers Bangalore resembled a Test squad full of old warhorses. Three years later, only one player, Virat Kohli, the first draft pick in 2008 as an Under-19 player, was retained.

Frugal does it
How much money did Rajasthan Royals, the inaugural IPL champions, spend at the first player auction? $3.6 million. And over the years the franchise has continued to remain the most parsimonious.

"People are not spending stupid money, as in the past auctions. They are now going for high-impact players," Raghu Iyer, the Royals' CEO, explained. For Iyer and his team the strategy at the auction is to "outthink the opposition". The franchise spent $6.2 million (out of the available purse of $9m) in 2011, $1.1m (out of $2m) in 2012, and $630,000 ($1.5m) at this year's auction, where they bought three players.

Kings XI Punjab have also shown that being sparing with cash can be an effective way of making profits while retaining a healthy position on the points table. In the 2011 auction, Rajasthan Royals spent $6.2 million and Kings XI $6.9 million; the other seven franchises each spent more than $8 million of their $9 million.

Aravinder Singh, the CEO of Kings XI, said being cautious has not hurt the franchise. This year the side bought only two players: Indian fast bowler Manpreet Gony ($500,000) and Australian batsman Luke Pomersbach ($350,000). "In 2012 we missed the playoff by just one win. We won against both KKR and Chennai, the finalists last year. Chennai has not beaten us in two years; in 2012 they lost both home and away games. We beat KKR in Kolkata. So it is not that we are lacking anything by not spending big money."

In 2011, Kings XI purchased Abhishek Nayar, a quality Indian alllrounder, for $800,000. "Michael Bevan, our coach then, wanted a quality left-handed Indian batsman. So we got Nayar. Unfortunately it did not click, so we released him, thinking it is better to try somebody else," Aravinder says. Punjab played the uncapped pair of Siddarth Chitnis and Gurkeerat Mann, who were paid about $18,000 apiece and who, Aravinder said, fit in nicely.

"Over a period of time we have realised that names are not as important as much as the value a particular player brings in the specific role that you are looking for him to perform," he said.


Dinesh Karthik made a run a ball 32, Mumbai Indians v Pune Warriors India, IPL, Mumbai, April 6, 2012
Franchises are making money out of their investments, like Kings XI selling Dinesh Karthik for $1 million to Mumbai © AFP
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Iyer said it is not business but cricket that drives the decision-making. "We firmly believe that the squad we pick has the ingredients to win the IPL. Our aim is to win consistently. Over the five years our win percentage is pretty healthy."

Apart from saving money at the auctions, Rajasthan Royals have been smart traders. "For a league to be healthy, trading should exist," Iyer said. In 2011 the franchise bought Ross Taylor, the New Zealand batsman, for $1m, and before the 2012 tournament they sold him for $2.3m to Delhi Daredevils. "We had discussions with Taylor and spoke to him about him not having the kind of impact we thought he could have had." They got Owais Shah as a replacement for his base price, $200,000.
 Kings XI too, showed a similar eye for a deal when they sold Dinesh Karthik for more than $1 million to Mumbai last year.

There may be no major trends in the auction game so far, and ego and adrenaline can overpower the best-laid plans, but on the whole franchises are getting smarter with experience.

"The IPL is a very young league and it will take some more years to stabilise," Sekar said. "Owners have become prudent compared to 2008, but it can still get better."

Nagraj Gollapudi is an assistant editor at ESPNcricinfo

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Posted by   on (April 2, 2013, 18:26 GMT)

Chennai and KKR have done well to maintain their Indian captain for the 6th and 3rd year consecutively. Also, they have maintained their nucleus very well. Teams with foreign captains will always find it difficult to win consistently as they miss out on picking key foreign players best suited for specific pitches. There is additional pressure on foreign captains to perform because they themselves have to battle for 1of the 4 spots. The competition from the other foreign bench warmers is top class. However, Indian captains can be assured of their spot as they are competing for 1 amongst 7 spots in the playing 11. Also, the competition from Indian bench warmers isn't that fierce as most of the good ones are already in the playing 11. Pressure on Ricky Ponting, Angelo Matthews, Adam Gilchrist will be immense. They'll be constantly be haunted by the combinations of either of Dwayne Smith/Glenn Maxwell, Aaron Finch/Ross Taylor and David Hussey/Azhar Mahmood from across the boundry line.

Posted by Nampally on (April 2, 2013, 15:57 GMT)

There should be value for the money spent- a good basis for all expenses in any business to make it a success. In IPL the players are being picked at huge contract costs without proven record to justify the cost. Firstly, not all the foreign players are NOT as good as the lucrative contracts they are getting. Secondly, How is a Million dollar tag derived -basis? In 1968 Gary Sobers, the top most all rounder in the world, signed an English county contract for mere 5000 pounds for the whole 4 month season. According to cost of living index, most items have gone up by a factor of 7 since then. Even assuming ten fold increase, the same cost today would be 50,000 pounds or <$100,000. How can guys like Maxwell or Taylor with no credibility or record, earn $1 million & 2.3 Millions? Kallis is the closest to Sobers & his contract of 1.1 Million is the only justified one. Use this as the basis & derate others. IPL owners should "Get Real & act like businessmen" to avoid looming Bankruptcy!

Posted by JG2704 on (April 2, 2013, 9:40 GMT)

@sukuviju on (April 2, 2013, 2:41 GMT) I'd have thought it was a MAX of 4 overseas players allowed

Posted by   on (April 2, 2013, 6:12 GMT)

This time every squad is perfect.Why people are blaming RR for not spending too much?DOn't they have a good squad?Then why do they need to spend money? Rahane,Watson,Badree,cooper,binny,edwards,faulkner,perera,harmeet,hodge,shah,baby,samson,tait are either stars of their country,club or their local team. I know that sreesanth is not perfroming well since his return from injury but yet he can be threatening.

My line up will be:Rahane,Darvid,Watson,Baby,Sasmon,Owais shah,stuart binny,samuel badree,harmeet singh,shaun tait,rahul shukla/sreesanth

Posted by sukuviju on (April 2, 2013, 3:41 GMT)

Is a minimum of 4 foreign players mandatory for any team. If not, I have a funny feeling CSK can manage with less than 4 foreign players. They have 3 good spinners in Ashwin, Jadeja & Jakati. Raina & Aparajita can also spin. All they require is 2 good fast bowlers - they have one local in Imtihas. They might just go with a hilfenaus, bravo, duplessis & Hussey to fill in the quota of 4 foreign players in the playing XI.

Posted by   on (April 2, 2013, 2:46 GMT)

Maxwell is a great T20 cricketer Benny Laughlin will have a good IPL IMO

Posted by JG2704 on (April 1, 2013, 22:38 GMT)

the IPL auction mirrors Ebay in my mind. With Ebay - And I know from experience - that one week you may list something and there may not even be a watcher and you could relist the same item a few weeks later and all it takes is 2 buyers with an ego and more money than sense who are determined to but the item and the same item which recd no interest a few weeks ago goes for silly money. I've already commented on where I thought the smart money was spent - the overspends and the players who were criminally overlooked. Maxwell has a huge weight of expectation on his shoulders - let's see if he delivers. I actually wonder if the franchise who paid so much for his services is already having doubts - just like the Ebay buyer who paid big bucks for the 7" record I relisted after it recd no bids 1st time around?

Posted by Nampally on (April 1, 2013, 22:09 GMT)

I honestly feel that no player in the World is worth a Million dollars. How can IPL clubs be so dumb to pay high bucks for average players. Maxwell is unproven guy. This is not the first time that Mumbai has lashed out. The last big pay cheque was for Pollard. Was he really worth Million$? His fielding is the only reliable part. Rest is Media hoopla. I think there should be an upper ceiling of $ 200,000 + performance based bonuses. Is Taylor really worth more than $200 K? why does he get 2.3 Million? Develop the local talent like Chand, Rayudu, Rasool, Kaul, J.Singh instead of wasting money on these non performing foreign players. IPL Teams will be bankrupt at these high payouts.

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