Five thoughts

	How much does Modi know about the new franchise owners? © AFP

Following this blog’s credo, a few random thoughts and stray questions on the IPL franchise news.

1.First up, it is a staggering amount by any standards. US$700 million for two franchises trumps, as Lalit Modi trumpeted, more than the cost of all eight franchises at the inaugural auction two years ago. Even if the recession is all but over, this is a phenomenal achievement.

2.However, I do believe – purely as a lay person in financial matters – this is as much of a gamble as was the money paid by the first group of franchise owners. Yes, the product is up and running, the sponsorship deals are flooding in and the IPL is firmly entrenched in the public consciousness. But it is still a work in progress, and, given that it depends almost entirely on eyeballs and on an intangible resource called creativity, both on the field and off it, it is hostage to fickle human nature. And that’s even before we discuss what buying an IPL franchise doesn’t get you: No stadium, no fixed assets, no players, no training ground. Just a slice of the pie and the chance to make it big on your own steam.

3.Kochi is a surprise – and a delightful one for Keralites everywhere – but it’s easy to see what prompted the bidders: the huge expat Gulf community and all that it entails. Money, sponsorships, a fan base; it’s all there. And, given that Kochi is yet to boast a world-class cricket stadium, could we see the first off-shore franchise base, even if temporary?

4.Two new franchises means around 70 extra players – 20 international and 50 Indian. To me, that represents a dilution of the existing talent pool, especially among Indian players. Though there is a limit to the number of stars, there is still a fairly large untapped pool of competent foreign players – Bangladesh, for one, and Pakistan may finally get a look-in, and the likes of Netherlands and Ireland. And could we see some from Afghanistan? Yet the concern is in the domestic segment, especially since Modi reiterated today that the four-player limit on foreigners will remain. This IPL has already seen a gulf between the best and the rest, which explains spikes in runs and wickets – a top batsman feasting off one over from an average bowler, or a quality spinner running through a weak middle-order. That could, though, add to the unpredictability Modi seeks from the tournament.

5.One final thought – It doesn’t seem as though any due diligence was carried out on the bidders. What was disturbing from the brief press conference was Modi’s apparent lack of familiarity with the Kochi consortium (in fact even the representative fumbled through the list of investors and had to consult his crib sheet). The money’s great but perhaps a closer scrutiny on the bidders, their aims and plans, their suitability to the IPL, even a familiarisation meeting over a cup of coffee, wouldn’t have been out of order. Or this being too naïve?