In support of ICL and IPL

Finally, market forces are emerging in Indian sports and it bodes well for sports in India. Of late, a lot has been written and said about Indian Cricket League (ICL) and Indian Premier League (IPL). A good number of them have expressed their opposition to the "auction of humans" and the "high price".

In B-school there is question that is asked often - "What is the value of a company?” The only right answers to it other than "it depends" is "what ever the market is willing to bear. If SRK spent $80 million on his team, it is because he is hoping to make more than that. If he and other investors do not make good on their investments because of either team performance or drop in advertising revenue they are going to act on it. I am sure soon they will have NFL like trading, salary caps and scouting.

I like the idea of ICL and IPL because for  -

1. It takes cricket into realm beyond national teams. Of course, there is nothing new about that. The English cricket league already does that. However, now you have this happening where it matters. This is to cricket what the European soccer leagues are to soccer.

2. It makes compensation visible. It is to some extent "pay for performance". These people are not only paid for their skill but also their ability to bring in money. They are part salesmen, part gladiators.

The fact that the hard numbers are in the open makes it easy for everyone to compare. It is bit like "lobbying" vs. "bribe" - both may be undesirable but first one is better because information on what was paid and what was received is out in the open and is taxable. I think the numbers may come down as the talent pipeline (Point 3) increases unless ICL and IPL have a truly global following.

3. It generates new talent pipelines. We now have two new international leagues in addition to the national cricket team. And, each league has a number of teams. To fill these teams you will need talent. It gives opportunities for talented Ranji and college players to move up. And, hopefully this will improve the pool and the access to opportunities.

4. You finally have some cool names. Other than the New Zealanders who were referred to as "kiwis" (thanks to a flight less bird), none of the national teams had a cool name. Now, we have a chance for some interesting names (though, I must say I have been disappointed with the current set). My award for the best name for any sports team that I have come across goes to Mambalam Mosquitoes. I have never seen them play but growing up in Madras I had heard a lot about them. But, talk about making lemonades of lemons. So, why not Chennai Chimps? I have some nice headlines ready - "Chennai Chimps are the Champs" or "Chennai Chimps Chomp the Competition".