PROJECT REPORT ON

CRICKET AS A MONEY MAKER

SUBMITTED TO
THE UNIVERSITY OF MUMBAI
IN PARTIAL FULFILLMENT
FOR THE AWARD OF THE DEGREE
OF BACHELOR OF MANAGEMENT STUDIES
(BMS)
BY
MR. NIKHIL MEHTA
SEAT NO.

S. K. SOMAIYA COLLEGE
OF ARTS, SCIENCE & COMMERCE
VIDHYAVIHAR
MUMBAI - 77
2013 2014

ACKNOWLEDGEMENT
On the successful completion of my project CRICKET AS A
MONEY MAKER, I NIKHIL D MEHTA Take the opportunity to
express my deep sense towards all those
People without whose guidance, inspiration and timely help this
project would have never seen the light of the say.
First of all would like to thanks The University of Mumbai for
including such kind of project in the curriculum.
I find great pleasure in expressing my deepest sense of gratitude
Towards my college S. K. Somaiya of Arts, commerce & Science
And our Principal Dr. Sangeeta Kohli.
I am also thankful to our BMS Coordinator Prof. Aparna
Jain, for her continuous and valuable support.
I am very thankful to my guide, Prof. NITIN PAWAR
Who made me realize that each of us has the potential to work
Independently and gave us his valuable suggestions and support
Whenever required and ensured that we could do the best in the
Project.
Last but not the least my parents and friends who encourage me for
completion of this project and their blessings.

DECLARATION
I, NIKHIL D MEHTA OF T.Y.BACHELOR OF MANAGEMENT STUDIES
V SEMESTER OF S.K.SOMAIYA COLLEGE OF ARTS,SCIENCE &
COMMERCE, VIDHYAVIHAR, HEREBY DECLARE THAT, I HAVE
COMPLETED THIS PROJECT ON CRICKET AS A MONEY
MAKER FOR THE ACADEMIC YEAR 2013-2014.
THE INFORMATION SUBMITTED IS TRUE AND ORIGINAL TO
THE BEST OF MY KNOWLEDGE.
NIKHIL D MEHTA
TY BMS

Sr. Particulars
No.
1. INTRODUCTION
2. CRICKET WITH
ADVERTISEMENT
3. BCCI AND THE MONEY IT
MAKES
4. CRICKET EFFECTING
INDIAN ECONOMY
5. EARNINGS OF TOP
CRICKETERS
6. IPL INDIAN PAISA
LEAKED
7. IPL BEHIND THE SCENES
8. THE BUSINESS BENEFITS
FOR SPONSORS
9. IPL WITH CONTROVERSIES
RIGHT FROM SEASON ONE
10. CONCLUSION
11. BIBLOGRAPHY

Page No.
5
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25
29
31
43
47
49
51
52
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1. INTRODUCITION
HISTORY OF CRICKET
Origin
No one knows when or where cricket began but there is a body of evidence, much of it circumstantial, that
strongly suggests the game was devised during Saxon or Norman times by children living in the Weald, an
area of dense woodlands and clearings in south-east England that lies across Kent and Sussex. It is
generally believed that cricket survived as a children's game for many generations before it was
increasingly taken up by adults around the beginning of the 17th century. Possibly cricket was derived
from bowls, assuming bowls is the older sport, by the intervention of a batsman trying to stop the ball
from reaching its target by hitting it away. Playing on sheep-grazed land or in clearings, the original
implements may have been a matted lump of sheeps wool (or even a stone or a small lump of wood) as
the ball; a stick or a crook or another farm tool as the bat; and a stool or a tree stump or a gate (e.g., a
wicket gate) as the wicket.

Derivation of the name of "cricket"

A number of words are thought to be possible sources for the term "cricket". In the earliest known
reference to the sport in 1598, it is called creckett. The name may have been derived from the Middle
Dutch krick(-e), meaning a stick; or the Old English cricc or cryce meaning a crutch or staff. Another
possible source is the Middle Dutch word krickstoel, meaning a long low stool used for kneeling in church
and which resembled the long low wicket with two stumps used in early cricket.
According to Heiner Gillmeister, a European language expert of Bonn University, "cricket" derives from
the Middle Dutch met de (krik ket)sen (i.e., "with the stick chase"), which also suggests a Dutch
connection in the game's origin. It is more likely that the terminology of cricket was based on words in use
in south east England at the time and, given trade connections with the County of Flanders, especially in
the 15th century when it belonged to the Duchy of Burgundy, many Middle Dutch words found their way
into southern English dialects.

First definite reference

John Derrick was a pupil at The Royal Grammar School in Guildford when he and his friends
played creckett circa 1550.
Despite many prior suggested references, the first definite mention of the game is found in a 1598 court
case concerning an ownership dispute over a plot of common land in Guildford, Surrey. A 59-year old
coroner, John Derrick, testified that he and his school friends had played creckett on the site fifty years
earlier when they attended the Free School. Derrick's account proves beyond reasonable doubt that the
game was being played in Surrey circa 1550.
The first reference to cricket being played as an adult sport was in 1611, when two men in Sussex were
prosecuted for playing cricket on Sunday instead of going to church. In the same year, a dictionary defined
cricket as a boys' game and this suggests that adult participation was a recent development.

Early 17th century

A number of references occur up to the English Civil War and these indicate that cricket had become an
adult game contested by parish teams, but there is no evidence of county strength teams at this time.
Equally, there is little evidence of the rampant gambling that characterised the game throughout the 18th
century. It is generally believed, therefore, that village cricket had developed by the middle of the 17th
century but that county cricket had not and that investment in the game had not begun.

The Commonwealth
After the Civil War ended in 1648, the new Puritan government clamped down on "unlawful assemblies",
in particular the more raucous sports such as football. Their laws also demanded a stricter observance of
the Sabbath than there had been previously. As the Sabbath was the only free time available to the lower
classes, cricket's popularity may have waned during the Commonwealth. Having said that it did flourish in
public fee-paying schools such as Winchester and St Paul's. There is no actual evidence that Oliver
6

Cromwell's regime banned cricket specifically and there are references to it during the interregnum that
suggest it was acceptable to the authorities provided that it did not cause any "breach of the Sabbath". It is
believed that the nobility in general adopted cricket at this time through involvement in village games.

Gambling and press coverage

Cricket certainly thrived after the Restoration in 1660 and is believed to have first attracted gamblers
making large bets at this time. In 1664, the "Cavalier" Parliament passed the Gaming Act 1664 which
limited stakes to 100, although that was still a fortune at the time, equivalent to about 13 thousand in
present day terms. Cricket had certainly become a significant gambling sport by the end of the 17th
century. There is a newspaper report of a "great match" played in Sussex in 1697 which was 11-a-side and
played for high stakes of 50 guineas a side.
With freedom of the press having been granted in 1696, cricket for the first time could be reported in the
newspapers. But it was a long time before the newspaper industry adapted sufficiently to provide frequent,
let alone comprehensive, coverage of the game. During the first half of the 18th century, press reports
tended to focus on the betting rather than on the play.

18th-century cricket
Patronage and players
Gambling introduced the first patrons because some of the gamblers decided to strengthen their bets by
forming their own teams and it is believed the first "county teams" were formed in the aftermath of the
Restoration in 1660, especially as members of the nobility were employing "local experts" from village
cricket as the earliest professionals. The first known game in which the teams use county names is in 1709
but there can be little doubt that these sort of fixtures were being arranged long before that. The match in
1697 was probably Sussex versus another county.
The most notable of the early patrons were a group of aristocrats and businessmen who were active from
about 1725, which is the time that press coverage became more regular, perhaps as a result of the patrons'
influence. These men included the 2nd Duke of Richmond, Sir William Gage, Alan Brodrick and Edward
Stead. For the first time, the press mentions individual players like Thomas Waymark.

Cricket moves out of England

Cricket was introduced to North America via the English colonies in the 17th century, probably before it
had even reached the north of England. In the 18th century it arrived in other parts of the globe. It was
introduced to the West Indies by colonists and to India by British East India Company mariners in the first
7

half of the century. It arrived in Australia almost as soon as colonisation began in 1788. New Zealand and
South Africa followed in the early years of the 19th century.
Cricket never caught on in Canada, despite efforts by an imperial-minded elite to promote the game as a
way of identifying with the British Empire. Canada, unlike Australia and the West Indies, witnessed a
continual decline in the popularity of the game during 18601960. Linked to upper class British-Canadian
elites, the game never became popular with the general public. In the summer season it had to compete
with baseball. During the First World War, Canadian units stationed in Britain played baseball, not
cricket.

Development of the Laws

Laws of Cricket
The basic rules of cricket such as bat and ball, the wicket, pitch dimensions, overs, how out, etc. have
existed since time immemorial. In 1728, the Duke of Richmond and Alan Brodick drew up Articles of
Agreement to determine the code of practice in a particular game and this became a common feature,
especially around payment of stake money and distributing the winnings given the importance of
gambling.
In 1744, the Laws of Cricket were codified for the first time and then amended in 1774, when innovations
such as lbw, middle stump and maximum bat width were added. These laws stated that the principals shall
choose from amongst the gentlemen present two umpires who shall absolutely decide all disputes. The
codes were drawn up by the so-called "Star and Garter Club" whose members ultimately
foundedMCC at Lord's in 1787. MCC immediately became the custodian of the Laws and has made
periodic revisions and recodifications subsequently.

Continued growth in England

The game continued to spread throughout England and, in 1751, Yorkshire is first mentioned as a
venue. The original form of bowling (i.e., rolling the ball along the ground as in bowls) was superseded
sometime after 1760 when bowlers began to pitch the ball and study variations in line, length and
pace. Scorecards began to be kept on a regular basis from 1772 and since then an increasingly clear
picture has emerged of the sport's development.

An artwork depicting the history of the cricket bat

The first famous clubs were London and Dartford in the early 18th century. London played its matches on
the Artillery Ground, which still exists. Others followed, particularly Slindon in Sussex which was backed
by the Duke of Richmond and featured the star player Richard Newland. There were other prominent
clubs at Maidenhead, Hornchurch, Maidstone, Sevenoaks, Bromley, Addington, Hadlow and Chertsey.
But far and away the most famous of the early clubs was Hambledon in Hampshire. It started as a parish
organisation that first achieved prominence in 1756. The club itself was founded in the 1760s and was
well patronised to the extent that it was the focal point of the game for about thirty years until the
formation of MCC and the opening of Lord's Cricket Ground in 1787. Hambledon produced several
outstanding players including the master batsman John Small and the first great fast bowler Thomas Brett.
Their most notable opponent was the Chertsey and Surrey bowler Edward "Lumpy" Stevens, who is
believed to have been the main proponent of the flighted delivery.
It was in answer to the flighted, or pitched, delivery that the straight bat was introduced. The old "hockey
stick" style of bat was only really effective against the ball being trundled or skimmed along the ground.

Cricket and crisis

Cricket faced its first real crisis during the 18th century when major matches virtually ceased during
the Seven Years War. This was largely due to shortage of players and lack of investment. But the game
survived and the "Hambledon Era" proper began in the mid-1760s.
Cricket faced another major crisis at the beginning of the 19th century when a cessation of major matches
occurred during the culminating period of the Napoleonic Wars. Again, the causes were shortage of
players and lack of investment. But, as in the 1760s, the game survived and a slow recovery began in
1815.
On 17 June 1815, on the eve of the Battle of Waterloo British soldiers played a cricket match in the Bois
de la Cambre park in Brussels. Ever since the park area where that match took place has been called La
Pelouse des Anglais (the Englishmen's lawn).
9

MCC was itself the centre of controversy in the Regency period, largely on account of the enmity
between Lord Frederick Beauclerk and George Osbaldeston. In 1817, their intrigues and jealousies
exploded into a match-fixing scandal with the top player William Lambert being banned from playing
at Lord's Cricket Ground for life. Gambling scandals in cricket have been going on since the 17th century.
In the 1820s, cricket faced a major crisis of its own making as the campaign to allow roundarm
bowling gathered pace.

19th-century cricket

The game also underwent a fundamental change of organisation with the formation for the first time of
county clubs. All the modern county clubs, starting with Sussex in 1839, were founded during the 19th
century.

A cricket match at Darnall, Sheffield in the 1820s.

No sooner had the first county clubs established themselves than they faced what amounted to "player
action" as William Clarke created the travelling All-England Eleven In 1846. Though a commercial
venture, this team did much to popularize the game in districts which had never previously been visited by
high-class cricketers. Other similar teams were created and this vogue lasted for about thirty years. But the
counties and MCC prevailed.
The growth of cricket in the mid and late 19th century was assisted by the development of the railway
network. For the first time, teams from a long distance apart could play one
10

other without a prohibitively time-consuming journey. Spectators could travel longer distances to matches,
increasing the size of crowds.

In 1864, another bowling revolution resulted in the legalisation of overarm and in the same year Wisden
Cricketers' Almanack was first published.
The "Great Cricketer", W G Grace, made his first-class debut in 1865. His feats did much to increase the
game's popularity and he introduced technical innovations which revolutionised the game, particularly in
batting.

International cricket begins

The first ever international cricket game was between the USA and Canada in 1844. The match was
played at the grounds of the St George's Cricket Club in New York.

The English team 1859 on their way to the USA

In 1859, a team of leading English professionals set off to North America on the first-ever overseas tour
and, in 1862, the first English team toured Australia.
Between May and October 1868, a team of Australian Aborigines toured England in what was the first
Australian cricket team to travel overseas.

11

The first Australian touring team (1878) pictured at Niagara Falls

In 1877, an England touring team in Australia played two matches against full Australian XIs that are now
regarded as the inaugural Test matches. The following year, the Australians toured England for the first
time and were a spectacular success. No Tests were played on that tour but more soon followed and,
at The Oval in 1882, arguably the most famous match of all time gave rise to The Ashes. South
Africa became the third Test nation in 1889.

National championships
A major watershed occurred in 1890 when the official County Championship was constituted in England.
This organisational initiative has been repeated in other countries. Australia established the Sheffield
Shield in 189293. Other national competitions to be established were the Currie Cup in South Africa, the
Plunkett Shield in New Zealand and the Ranji Trophy in India.
The period from 1890 to the outbreak of the First World War has become an object of nostalgia,
ostensibly because the teams played cricket according to "the spirit of the game", but more realistically
because it was a peacetime period that was shattered by the First World War. The era has been called
The Golden Age of cricket and it featured numerous great names such as Grace, Wilfred Rhodes, C B
Fry, K S Ranjitsinhji and Victor Trumper.

Balls per over

In 1889 the immemorial four ball over was replaced by a five ball over and then this was changed to the
current six balls an over in 1900. Subsequently, some countries experimented with eight balls an over. In
1922, the number of balls per over was changed from six to eight in Australia only. In 1924 the eight ball
over was extended to New Zealand and in 1937 to South Africa. In England, the eight ball over was
adopted experimentally for the 1939 season; the intention was to continue the experiment in 1940, but
first-class cricket was suspended for the Second World War and when it resumed, English cricket reverted
to the six ball over. The 1947 Laws of Cricket allowed six or eight balls depending on the conditions of
play. Since the 1979/80 Australian and New Zealand seasons, the six ball over has been used worldwide
and the most recent version of the Laws in 2000 only permits six ball overs.

20th-century cricket
Growth of Test cricket

12

Sid Barnes, traps Lala Amarnath lbw in the first official Test between Australia and India at the MCG in
1948
When the Imperial Cricket Conference (as it was originally called) was founded in 1909, only England,
Australia and South Africa were members. India, West Indies and New Zealand became Test nations
before the Second World War and Pakistan soon afterwards. The international game grew with several
"affiliate nations" getting involved and, in the closing years of the 20th century, three of those became
Test nations also: Sri Lanka, Zimbabwe and Bangladesh.
Test cricket remained the sport's highest level of standard throughout the 20th century but it had its
problems, notably in the infamous "Bodyline Series" of 193233 when Douglas Jar dine's England used
so-called "leg theory" to try and neutralise the run-scoring brilliance of Australia's Don Bradman.

Suspension of South Africa (197091)

The greatest crisis to hit international cricket was brought about by apartheid, the South African policy of
racial segregation. The situation began to crystallise after 1961 when South Africa left the Commonwealth
of Nations and so, under the rules of the day, its cricket board had to leave the International Cricket
Conference (ICC). Cricket's opposition to apartheid intensified in 1968 with the cancellation of England's
tour to South Africa by the South African authorities, due to the inclusion of "coloured" cricketer Basil
D'Oliveira in the England team. In 1970, the ICC members voted to suspend South Africa indefinitely
from international cricket competition. Ironically, the South African team at that time was probably the
strongest in the world.

Starved of top-level competition for its best players, the South African Cricket Board began funding socalled "rebel tours", offering large sums of money for international players to form teams and tour South
Africa. The ICC's response was to blacklist any rebel players who agreed to tour South Africa, banning
them from officially sanctioned international cricket. As players were poorly remunerated during the
1970s, several accepted the offer to tour South Africa, particularly players getting towards the end of their
careers for which a blacklisting would have little effect.
The rebel tours continued into the 1980s but then progress was made in South African politics and it
became clear that apartheid was ending. South Africa, now a "Rainbow Nation" under Nelson Mandela,
was welcomed back into international sport in 1991.
13

World Series Cricket

The money problems of top cricketers were also the root cause of another cricketing crisis that arose in
1977 when the Australian media magnate Kerry Packer fell out with the Australian Cricket Board over TV
rights. Taking advantage of the low remuneration paid to players, Packer retaliated by signing several of
the best players in the world to a privately run cricket league outside the structure of international cricket.
World Series Cricket hired some of the banned South African players and allowed them to show off their
skills in an international arena against other world-class players. The schism lasted only until 1979 and the
"rebel" players were allowed back into established international cricket, though many found that their
national teams had moved on without them. Long-term results of World Series Cricket have included the
introduction of significantly higher player salaries and innovations such as coloured kit and night games.

Limited-overs cricket
In the 1960s, English county teams began playing a version of cricket with games of only one innings
each and a maximum number of overs per innings. Starting in 1963 as a knockout competition only,
limited overs grew in popularity and in 1969 a national league was created which consequently caused a
reduction in the number of matches in the County Championship.

Although many "traditional" cricket fans objected to the shorter form of the game, limited overs cricket
did have the advantage of delivering a result to spectators within a single day; it did improve cricket's
appeal to younger or busier people; and it did prove commercially successful.
The first limited overs international match took place at Melbourne Cricket Ground in 1971 as a timefiller after a Test match had been abandoned because of heavy rain on the opening days. It was tried
simply as an experiment and to give the players some exercise, but turned out to be immensely
popular. Limited overs internationals (LOIs or ODIs, after one-day Internationals) have since grown to
become a massively popular form of the game, especially for busy people who want to be able to see a
whole match. The International Cricket Council reacted to this development by organizing the first Cricket
World Cup in England in 1975, with all the Test playing nations taking part.

Increasing use of technology

Limited overs cricket increased television ratings for cricket coverage. Innovative techniques that were
originally introduced for coverage of LOI matches were soon adopted for Test coverage. The innovations
14

included presentation of in-depth statistics and graphical analysis, placing miniature cameras in the
stumps, multiple usage of cameras to provide shots from several locations around the ground, high speed
photography and computer graphics technology enabling television viewers to study the course of a
delivery and help them understand an umpire's decision.
In 1992, the use of a third umpire to adjudicate runout appeals with television replays was introduced in
the Test series between South Africa and India. The third umpire's duties have subsequently expanded to
include decisions on other aspects of play such as stumpings, catches and boundaries. As yet, the third
umpire is not called upon to adjudicate lbw appeals, although there is a virtual reality tracking technology
(i.e., Hawk-Eye) that is approaching perfection in predicting the course of a delivery.

21st-century cricket
Cricket remains a major world sport in terms of participants, spectators and media interest.
The ICC has expanded its development programme with the goal of producing more national teams
capable of competing at Test level. Development efforts are focused on African and Asian nations; and on
the United States. In 2004, the ICC Intercontinental Cup brought first-class cricket to 12 nations, mostly
for the first time.
In June 2001, the ICC introduced a "Test Championship Table" and, in October 2002, a "One-day
International Championship Table". Australia has consistently topped both these tables in the 2000s.
Cricket's newest innovation is Twenty20, essentially an evening entertainment. It has so far enjoyed
enormous popularity and has attracted large attendances at matches as well as good TV audience ratings.
The inaugural ICC Twenty20 World Cup tournament was held in 2007 with a follow-up event in 2009.
The formation of Twenty20 leagues in India the unofficial Indian Cricket League, which started in 2007,
and the official Indian Premier League, starting in 2008 raised much speculation in the cricketing press
about their effect on the future of cricket

15

2. CRICKET WITH ADVERTISEMENT

2.1 A 10 second Advertisement costs Rs. 35 Lakhs for Cricket World Cup
Matches
As per the current estimates, if an advertiser wants his ad to be shown in both Semi-Finals and Finals, the
price is about Rs. 35 lakh for 10 seconds slot. If a single 10 second ad has to broadcast in both semifinals, the pricing stands at 22 Lakh per 10 seconds. And, if it is for India Pakistan semi-final alone, the
price stands at 18 lakh for 10 seconds
But the question is whether it is worth? According to me, if an advertiser is willing to pay that kind of
money, I am sure it is. What better platform to announce a launch of a new product or even simply to
spread brand awareness to millions of viewers. Literally, every 2nd Indian will have his eyes glued to the
TV during the India Pakistan clash.
However, I have always had this question in my mind During such high adrenaline games, does anyone
even see or remember anything else other than the actual sport ? I tried thinking about any ad that I
remember during the matches and I could not recollect any, except probably zoozoo Ads, and that too
because zoozoo ads are very creative and you enjoy seeing them.
Its a modern day slave auction! Hardworking athletes, heroes of their nations, drawn into a hideous
human cattle market, suffering the supreme humiliation of having a price put on their talent. What is the
world coming to?
Except, of course, these so-called slaves get paid a lot of money ($42 million for 78 players), willingly
signed the contracts (and in the case of Australia, leaned on their cricket board to allow them to sign on)
and will now play games that will generate a ton of cash for themselves and their owners.
On the other hand what! Rich people getting richer ? Were all getting taken for a ride, I tell you! Sport
should be free it belongs to all of us! It is an honor to play for the nation and for our enjoyment; why do
they need to get paid more than an allowance? After all, we dont give our children money to play, do we?
Okay, fine well throw them a birthday party once a year too. And maybe buy them a doll to play with.
A fake one, that is, not
And just look at the people whove bought the teams! Filthy capitalists and dancing movie stars with
six-pack abs and dimples! How dare they? Only the people of India should have been allowed to buy these
teams! Whats that you say? These people are Indians? Nonsense! Everybody knows a real Indian is poor,
illiterate and lives in a village without
electricity and only dirt roads to walk on. Everybody else is a Western stooge out to destroy our culture
where money is simply not important.
But wait! Whats this ? The ICC says theres no place in the schedule for the IPL to stage its games? Well!
Talk about racism! Theyre all jealous of Indian ingenuity is what they are! Down with the ICC! And just
16

look where they all met in Malaysia! Who meets in Malaysia? Underworld characters, thats who.
Havent you seen Donand Gangster? Kuala Lumpur is where they all go. Theyre going to kill us all!
But what if all this money thing goes to Dhonis (those greasy locks are now worth $1.5 million eat that
Andrew Symmonds!) head and we lose all our ODI matches? After all, weve lost matches before because
our cricketers were busy making too much money by advertising stuff the talking heads on TV said so!
And they never lie! Ad-making is practically devil-worshiping, after all. Everybody knows that!
On the other hand damn, Im tired of all this outrage. How long does this news cycle last anyway? Oh,
it just goes on till I drop dead of exhaustion? You know what, Im going to conserve my energy. Ill need
it when Lalit Modi brings American style football to India and players start earning tens of millions to
mow each other down for the supreme honor of holding on to a ball that doesnt even look like a ball. Or
when Russell Crowe brings his rugby fixation to India so we can lose to the Australians at yet another
sport.

2.2 Advertisements thrive on cricket grounds

The Ferozeshah Kotla ground displayed products like A1 pumps, Apollo dental cream, Status shirts,
Rajdoot paints, Labu cycles, T-T banians, Sahu tyres. These brands obviously drum up sufficient sales in
their zonal markets to afford an occasional fling on national television.
Some stadium sites are of course more favoured than others to catch TV's eye and thus project to a
massive national audience. The most advantageous spot is that on the right of the sight screen, facing the
pavilion. Red and White Kings were the fortunate tenants. They were on-camera almost continuously and
easily out displayed Tingler (on the twin side of the screen) 100-to-1 . Yet this disparity was not reflected
in the rentals paid by the two advertisers Rs. 1,50,000 and Rs. 1,25,000 respectively.

17

3. BCCI AND THE MONEY IT MAKES

3.1 JUST HOW MUCH MONEY DOES THE BCCI MAKE ?
Seeing the quality of most cricket boards around the world, I think we ought to pay a little more attention
to the overlords who supposedly take care of our game. So, some questions and answers:
1. Is the BCCI public or private? That is, is it a government agency, or a private corporation?
Well, heres the tricky thing. For the public argument: until a few years ago, the Indian government
granted a tax exemption to the BCCI, a decision that meant the Indian government which expends
resources on cricket stadiums, security, etc. collected zilch from one of the richest sporting bodies in
the world. Then, in 2010, a government agency realized the exemption was silly because the BCCI is no
longer promoting cricket as a charitable activity and is now primarily a commercial entity. As a result,
the BCCI has paid more than 200 crore in taxes over the last couple of years, but that number may not be
even close to their actual tax bill.
2. OK. So, given that they pay taxes and the Central government treats it like a business, the BCCI isnt
public, right?
Well, yes and no. Take a look, for instance, at the people who run the BCCI. Its working committee
includes Anurag Thakur, a member of Parliament and Arun Jaitley, a leader of the federal opposition and
a former Cabinet minister ; the Finance Committee is led by J.M. Scindia, a minister of state in the central
government; and the IPL committee is led by Rajeev Shukla, a former journalist and now a minister of
state. Im sure there are other political bigwigs on the list, but I think Ive made my point: how private is
an organization that is led by so many public figures?
Now, to be fair, the list includes a fair number of businessmen and ex-cricketers. And Im sure some of
these politicians have some knowledge and ability to contribute to the BCCI, but isnt this all a flagrant

18

violation of conflict-of-interest norms? Take a look, for example, at the U.S. Senate ethics code, which
says:
A Senator and anyone earning an annual rate of pay above $25,000 and employed for more than 90 days
in a calendar year:

May not affiliate with an outside business for the purpose of providing professional services (e.g.,
consulting, medical, real estate, insurance, or legal services) for compensation.

May not permit his or her name to be used by an outside business providing professional services
for compensation.

May not practice a profession for compensation to any extent during regular office hours in the
employing Senate office.

May practice a profession during off hours as long as the individual avoids affiliating with a firm.

If you say the BCCI is a private entity, then theres no way these politicians can justify their decision to be
a part of it (even though all BCCI officer holders are honorary). If you say the BCCI is a public entity,
then it needs to be regulated better so that it is more accountable to taxpayers. And its not as if the
conflict-of-interest is an abstract issue; the question has already come up in court:

A division bench of Justices P B Majmudar and R G Ketkar, while hearing the PIL filed by Shiv
Sena leader Subhash Desai seeking a direction to the Maharashtra government to
recover entertainment tax from IPL, asked the petitioner to make Pawar a party if he wanted to make
allegations against him.
If a minister holds a post in a cricket association, and the state cabinet is to decide on granting some
exemption to the associationperhaps conflict of interest may arise, the bench observed.

19

3. So how much money does this public/private organization make?

The thing is, no one really knows. In their latest release, the BCCI said it made a profit of roughly $40
million, mostly due to IPL largesse (profit: $25 million). But the IPL finances are notoriously shady and a
Parliament steering committee has been trying to figure out how much tax the BCCI owes the
government:
The Committee has noted that the Board had been enjoying questionable tax benefits having got
exemption to the tune of Rs 225 cr before 2007 & having submitted only Rs 92 crore out of the Rs 118
crore that was demanded in 2007.
Moreover out of the Rs 375 crore Tax that that was demanded in 2 years from 2007 to 09, the BCCI has
paid only Rs 249 crore.
The Committee said its astonished that the Income Tax Department could not finalize the assessment of
income of BCCI for the last three years.

4. Where does that leave us?

Not sure. In the end, we have a bunch of political honchos running a game that makes hundreds of
millions of dollars a year and is a national passion but we dont really know how transparent their
books are; we dont know why certain states levy an entertainment tax and others dont; and we dont
know how professional the whole outfit is. The problem is that more government intervention isnt
necessarily the answer, but more transparency may be. Does anyone know, for example, if Indian MPs are
required to disclose their incomes and stock holdings? Does anyone know if the BCCI has a charter that
spells out how its possible that an office holder can also own an IPL franchise?

20

3.2 Domestic players to get at least Rs.15 lakh each from BCCI
The Indian cricket board will be distributing up to Rs.100 crore among around 200 cricketers, mostly of
the deprived previous generation, sending a wave of excitement among them.
Many of the players benefitting from this 'one-time' largesse would be the ones who slogged it out in
domestic tournaments for many years without getting matching financial rewards, and never got to play
Test matches for various reasons.
Although the details are still being worked out, officials involved in chalking out the scheme say that
players are expected to receive a minimum of Rs.15 lakh and a maximum of Rs.1crore. They say only
former first-class players and Test/ODI cricketers who played till 2003-04, when the BCCI launched a
monthly-pension scheme, are being considered for this scheme.
N Srinivasan, president of the Board of Control for Cricket in India (BCCI), made the initial
announcement about this at the Indian Premier league (IPL) opening ceremony in Chennai on Tuesday.
He said that the proceeds of the three play-off IPL games would be distributed among those who have
played both international and domestic cricket for a long time.
This benefit will be besides the BCCI's monthly gratis scheme for former players and a separate pension
scheme that some state associations like Delhi are running.

Giving a peep into the scheme, Rajeev Shukla, chairman of the IPL governing council, said that the idea
was to reward those who never got reward for toiling for years in domestic cricket.
"The modalities are still being worked out, but we have agreed to distribute between Rs.75 crore
and Rs.100 crore among the players who are very old and not financially well-off," Shukla told Mail
Today.
"However, we are yet to decide the criteria for distribution of this money, like the period for which this
scheme will be implemented and the slabs of the number of matches etc.," he said.
A senior BCCI official involved in the drawing up of the scheme said that besides the IPL, the BCCI
could also draw money from its share of profit from the Champions League T20, which is organized in
association with Australian and South African boards.
"The plan is to take roughly about Rs.18 crore from the IPL and about Rs.70 crore from the Champions
League T20 to make up the fund that would be distributed," he disclosed.
"Around 200 players who would benefit would be those who have played over 75 first-class matches but
never Test cricket, besides those who played Test cricket and One-day Internationals before 2003-04," he
said. "A player who qualifies for this scheme would receive at least Rs.15 lakh and a maximum of Rs.1
crore. The domestic limited-over tournaments like Deodhar Trophy, Vijay Hazare Trophy, and the Ranji
Trophy one-day matches will also be taken into account. Three one-day games would be constituted as
one first-class match and if someone falls short of 75 first-class-match criterion, the limited-over matches
played by him would be taken into account to see if he reaches the 75-match mark."
Former left-arm spinner Rajinder Goel, who played the maximum first-class matches in India without
getting to play Test cricket, is excited at hearing the BCCI announcement.
"It's good to hear that the BCCI also thinks about players like us who never played Test matches. I am
excited since hearing the announcement and I expect to get the benefit of this scheme. I have started
getting congratulatory phone calls from people who are saying that I would qualify for this new scheme,
though I don't know what it is," Goel told Mail Today from Rohtak home.
21

"I've played maximum first class matches in India - 157 - and 123 of them are Ranji Trophy matches.
When I used to play there was little money. When I got a job in the State Bank of India in 1963 and
shifted to Delhi, I used to get Rs.5 per day for a first class match," said the legendary spinner, who
represented Southern Punjab, Delhi and Haryana.
Rajeev Shukla said that one of the main reasons for giving this benefit to players is that the old BCCI
scheme of allotting benefit matches to deserving players had become non-functional.
"The allotment of benefit matches was an exercise that had become limited to paper. Players have been
allotted benefit matches, but many matches have not taken place. That's why we thought of giving a onetime benefit to players, many of whom don't have the resources to organize their benefit matches," he
explained.
The Board of Control for Cricket in India (BCCI), headquartered at Mumbai, India, is the national
governing body for all cricket in India. The board was formed in December 1928 as BCCI
replaced Calcutta Cricket Club. BCCI is a society, registered under the Tamil Nadu Societies Registration
Act. It often uses government-owned stadiums across the country at a nominal annual rent. It is a "private
club consortium". To become a member of a state-level association, one needs to be introduced by another
member and also pay an annual fee. The state-level clubs select their representatives (secretaries) who in
turn select the BCCI officials.

As a member of the International Cricket Council (ICC), it has the authority to select players, umpires and
officials to participate in international events and exercises total control over them. Without its
recognition, no competitive cricket involving BCCI-contracted Indian players can be hosted within or
outside the country.

'Richie Rich' BCCI clocks Rs.350-crore net income in 2012-13

The Cricket Board posted net income of Rs.350 crore, while its gross revenue stood at Rs.950 crore during
the fiscal 2012-13.
The BCCI, considered the world`s richest cricket body, has earned a surplus of Rs.382.36 crore in 201112.
Informing this today after the BCCI`s Finance Committee meeting in Delhi, Board Treasurer Ravi Savant
told PTI that the net income figure has been arrived at "provided there is no tax (levied on the amount)."
"The Finance Committee passed the accounts and they will be placed before the Board`s Working
Committee that should be meeting in the first week of September," he said.

22

3.3 BCCI net profit up by Rs.192.63 crore, 101.53 per cent more than
previous year
The Board of Control for Cricket in India (BCCI), the richest cricket board in the world, has exceeded its
own expectations for 2011-12 and registered a whopping increase of Rs.192.63 crore, or a jump of 101.53
per cent, in net surplus over the previous year.
BCCI, now worth a mind boggling Rs.3,308.31 crore, had budgeted for a surplus of Rs.296.31 crore for
2011-12, but ended up earning a massive Rs.382.36 crore, according to its balance sheet.
In 2010-11, the Board earned a net surplus of Rs.189.73 crore. The difference between the budgeted
surplus for 2011-12 and the actual amount earned is Rs.86.05 crore - or an increase of 29.04 per cent.
Overall, the BCCI earned a gross income ofRs.849.44crore and spent Rs.467.08 crore, for a net surplus

of Rs.382.36 crore.
The main source of BCCI's income has been the media rights and it earned Rs437.75 crore from this
category in 2011-12 while in 2010-11, it earned Rs.388.56 crore - a significant increase of Rs.49.19 crore
over the previous year. The income from the Indian Premier League (IPL) has been another major avenue
of income, and here too the BCCI books show a colossal raise of Rs.146.38 crore over the previous year.
The BCCI earned Rs.265.14 crore from fourth edition of the IPL in 2011 while it garnered Rs.118.76
crore in 2010.Since the IPL is always played in April-May, the income from its 2011 tournament is shown
in the latest balance sheet and the figures from the 2012 competition will be shown next year. The other
most significant income in 2011-12 was the interest accrued from banks, and again the Board recorded a
handsome jump over the previous financial year, of Rs.23.79 crore. This year it received Rs97.47 crore as
interest while it was Rs.73.68 crore in 2010-11.

"The interest income has increased in spite of the fact that the interest rates came down [recently]. This
was mainly possible because of effective utilization of available cash flow by investing the available float
in short term deposits from time to time," writes BCCI treasurer Ajay Shirke, who took over the reins
from MP Pandove in September last year, in the BCCI annual report.
23

Also during the past financial year, the BCCI received Rs.62.65 crore as its share from the surplus that the
International Cricket Council distributes to its member countries annually. This amount includes Rs.61.54
crore in relation to the 2011 World Cup, hosted by India, Sri Lanka and Bangladesh, and Rs.1.11 crore
from the annual ICC ranking awards.
Last year, the Board had received Rs.23.81 crore from the ICC, meaning an increase of Rs.38.84 crore.
This raise was possible as India won the World Cup and with it handsome prize money besides the
tournament hosting fees.
Shirke, also president of the Maharashtra Cricket Association, is naturally elated to be part of the BCCI's
continued financial growth. "...am pleased to report that in spite of the various issues that the Board faced
from time to time, our financial performance has been satisfactory...," he writes in the annual report 201112.
He was clearly referring to the various government tax agencies re-opening of the many old BCCI/IPL tax
assessment cases that had been settled long ago. They have particularly targeted the Board, ironically,
after it changed its objective in 2006 and contributed Rs.50 crore to the National Sports Development
Fund of the sports ministry. This has caused a lot of consternation among the Board officials and they
have appealed against the decisions in several cases.
The only category in which the BCCI earned less than 2010-11 was through the royalty from sponsorship.
It earned Rs.14 crore this year while in 2010-11 the corresponding figure was Rs.14.63 crore. Shirke is
grateful to all his colleagues, particularly Pandove, for helping him settle down his treasury office in his
home city Pune.
"I'm extremely grateful to our president N Srinivasan for his valuable guidance and support from time to
time, the secretary, the joint secretary, and all the office bearers for guiding me...," he writes in the report.

24

4. CRICKET EFFECTING INDIAN ECONOMY

Effect Of Monetary Policies Of India 2010-11 On Indian Economy

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POLICY ON INDIAN ECONOMY 1. Bank rate remains constant at 6%. This year RBI did not
increase the Premium

Effects On Indian Economy Due To International Economy

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labor and capital - are not fully and effectively...

Environmental Degradation And Its Effect On Indian Economy

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ECONOMY The environmental problems in India are growing rapidly. The increasing economic...

Effect Of Rising Oil Prices On Indian Economy

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country will experience the effects of an oil-price shock rising crude...

Financial Inclusion - The Scope And Effect In Indian Economy

Objective of the Paper Highlight the issue of financial exclusion Impact on Indian economy of
financial inclusion RBI initiatives & guideline Scope...

25

Effect Of Global Crises On Indian Economy

Indian economy are tied up with the global economy, the effects of the crisis left a deep footprint
on India. The areas most affected in the Indian economy included financial...

Youth Migration And Its Effects On Indian Economy

Skilled and English-speaking human resource base forms its backbone. The Indian economy has
transformed into a vibrant, rapidly growing consumer market, comprising...

Problems In Real Estate Sector In Indian Economy

Sectors development alongside Indias rising integration alongside the globe economy. .
Residential Real Estate Residential real estate industry has witnessed...

Hedge Funds & Vulture Funds - Their Existence And Their Impact

On

The Indian Economy

Their portfolios but they are very mysterious. Let us have a look in the context of Indian economy
what effects does this mysterious funds have on the country...

26

Impact Of The Agreement On Agriculture On The Indian Economy

IMPACT OF THE AGREEMENT ON AGRICULTURE ON THE INDIAN ECONOMY INDIAN
AGRICULTURAL SCENARIO Indian agriculture is characterised by a preponderant majority of
small...

Impact Of The Global Financial Crisis On Indian Economy

Which was followed by short-sighted profit oriented companies. Impact on the Indian Economy
The financial crisis in the US, slowly snowballed to an economic crisis...

Sustainable Growth Model For Indian Economy

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long-term growth without...

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Without trigging a rise in inflation arrive at figures of around 7%.but Indian economy is growing at
the rate of 8%.India is already exceeding its speed limit...

Marketing's Role In Indian Economy

Which features marketing also (Everton R. de Lins). In Indian economy, marketing changing
aspects are clearly visible...

27

Impact Of Dollar-Rupee Fluctuation On Indian Economy

Exchange rate cannot be considered beneficial or detrimental to the Indian Economy, it would
depend on how effectively the central bank can balance the Forex rates...

Recession And Its Effecton Indian Economy

Recession and its effect on Indian economy The old saying History doesnt always repeat itself,
but often rhymes, is based more on fact than fiction...

Role Of Indian Banks In The Growth Of The Indian Economy

Money lending in one form or the other has evolved along with the history of cricket...

Dry Monsoon And Its Impact On Indian Economy

This free report shows exactly how detrimental this drought will be for the Indian economy and
why investors should stay away from India. Drought V/S Indias...

Impact Of Global Recession On Indian Economy

Instruments to absorb excessive pressure had helped cushion the impact on Indian economy. The
silver lining is that since 50% of our GDP comes from the service...

Indian Economy
This was done by introducing a number of economic reforms. From that point in time Indian
economy has been growing at a steady pace. However, India's economic growth

28

5. EARNINGS OF TOP CRICKETERS

How much do top cricketers earn?
Cricket has been rocked by an alleged betting scam but how much do top class cricketers earn?

Big hitter: England's Kevin Pietersen makes a tidy sum - but many Test cricketers are paid much
less
In a world where the sports pages are dominated by diamond encrusted footballers, many people imagine
all professional sportsmen to be on easy street.
That makes events such as the alleged betting scandal involving members of the Pakistan cricket team
even harder for some to understand.
But many may also be surprised at how much some of the cricketers playing in the select few Test-class
cricket teams earn, compared to perceptions of what a top-class professional sportsman makes.
For example, did you know Pakistan's players are on roughly the UK average wage?
Despite failing to come even close to their football playing counterparts earning power, the members of
the England cricket team do much better. The central contract system is understood to give them between
250,000 to 400,000 a year about four week's wages for a top Premier League footballer.
Australia's top cricketers get a similar amount, while South Africa's players earn around 105,000 a year.
On the other side of the coin, Pakistan's players are contracted for much less, at around 22,500 a year,
while Bangladesh's players get 12,000.
Beyond their guaranteed earnings, top class cricketers will pick up extra cash in match fees, win bonuses
and sponsorship opportunities.
Those picked to play in the glitzy Indian Premier League can also substantially boost their earnings.
England star Kevin Pietersen is reported to be the highest-paid IPL player with a two-year $1.5million
(973,000) deal, according to the Daily Telegraph.

Below Daily Mail cricket expert Lawrence Booth, goes into more detail on how much top cricketers
make.
CRICKET CENTRAL CONTRACT EARNINGS
Country
Earnings
Per player, per year. Source: Daily Mail August 2010
Australia
400,000
England
400,000
South Africa
105,000
India
82,500
29

CRICKET CENTRAL CONTRACT EARNINGS

Country
Earnings

West Indies
Sri Lanka
Pakistan
Bangladesh

77,250
77,250
22,500
12,000

Cricket's great pay gap

The 4,000 cheque that Mohammad Aamer picked up at Lord's on Sunday as Pakistan's player of the
series underlined his country's status as the poor relations of world cricket.
It would be small change for most international cricketers, but is more than three times the 1,300 he
earns a month from his Pakistan Cricket Board contract.
Although the Pakistanis are thought to pick up around 3,000 per Test, that is still half as much as the
English and Australian players.
Even the more experienced Mohammad Asif - the other Pakistan fast bowler implicated in the no-ball
scandal - receives relatively little.
Despite being in the highest of the three categories used by the PCB to determine payments, Asif picks up
less than 2,500 a month - roughly the same as a young cricketer playing his first game for India. That can
rise with match fees and win bonuses, but even then the Pakistanis lag behind every other Test-playing
nation bar Bangladesh, where top players get about 1,000 a month.
England's top centrally contracted cricketers, by contrast, are understood to be paid in the region of
250,000-400,000 a year, while the top-earning South Africans are paid more than 100,000 for central
contracts. Even the best-paid West Indians, who operate under a cash-strapped board, get a retainer of
nearly 80,000. And the Pakistanis' sense of grievance may be fuelled by the riches of neighbours and
rivals India.
The best Indian players, such as Sachin Tendulkar and Rahul Dravid, earn a basic salary of more than
80,000 - a figure that soars with match and tour fees, sponsorship deals and Indian Premier League
contracts.

India's young pace bowler Ishant Sharma, who turns 22 today, earned around 4,000 for each of the 150
balls he sent down in this year's IPL - a competition the Pakistani sare banned from playing in for political
reasons.
Even more gallingly for the Pakistanis, cricketers from other nations - riding on the back of an increase in
player power - are now paid a percentage of their board's annual income.
Indian cricketers pick up 26% of their board's takings, the Australians 25% and South Africans 20%. Once
all payments and endorsements are taken into account, leading South African cricketers take home close
to 1million a year.

30

6. IPL INDIAN PAISA LEAKED

6.1 IPL, the business of big bucks and big people

The real money players here are oil conglomerates, breweries, cement, infrastructure
giants. These are serious people, with serious money

Little did Lalit Modi, chairman and commissioner of the Indian Premier League, visualize that his
disclosing of shareholders in the Kochi consortium would snowball into such a huge crisis, which has all
but ensured his ouster as the all-powerful boss of the cash-ridden Twenty20 league.
Modis disclosure of Sunanda Pushkars sweat stake in the Kochi team may have led to her close friend
and former minister Shashi Tharoors fall from grace, but the after effect of it has been equally bad for
Modi. In the aftermath of Modi-Tharoor twitter spat, an embattled and embarrassed central government is
going all out to get to the bottom of the financial mess of this franchise-model league and the skeletons are
falling out of the closet like a pack of cards. Even as the I-T raids on franchisees offices across the
country continue, the alleged proxy stakes of politicians and Modi are coming out in the open.
Of the eight franchisees in action, at least three - Rajasthan Royals, Kings XI Punjab and Kolkata Knight
Riders - appear to be under the scanner of various financial wings of the government for their money
transactions. Incidentally, all these three teams have some link to Modi. Here is a lowdown on the
ownership patterns of the eight franchisees.

31

Mumbai Indians
Owners: Indian win Sports Pvt Ltd. Though it is a well-known fact that Reliance Industries owner Mukesh
Ambani and his wife Nita Ambani own the team, their names dont figure in the list of shareholders. The
companys directors are Ashwin Khasgiwala, Ashish Chauhan and Sudhakar Saraswatula. Reliance
Industrial Investment and Holdings (RIIH), Shinano Industrial Retail and Teesta Retails hold 90 per cent
of the stakes in the franchise. But then both Shinano Retail and Teesta Retails are controlled by RIIH,
making RIL the real owners of the team.

Royal Challengers Bangalore:

Owners: As of now Vijay Mallyas UB Group has 100 per cent stake in the franchise. But the team will
soon be overtaken by the newly-formed UB Sports Pvt Ltd. I-T raid on the Group was conducted on
Thursday.

Deccan Chargers
Owners: Deccan Chargers Sporting Ventures. Deccan Chronicle Holdings Ltd owns 100% stake in the
side. I-T raid happened on Wednesday.

Delhi Daredevils
Owners: GMR Sports Pvt Ltd. Soon after the Deccan Chargers and the Royal Challengers Bangalore
declared their ownership patterns after coming under the scrutiny of government agencies, Daredevils too
revealed their details, according to which GMR Holdings Pvt Ltd owns 51% of total stakes. I-T raid took
place on Thursday.

Rajasthan Royals

Owners: Jaipur IPL Cricket Pvt Ltd. A subsidiary of the Mauritius-based EM Sporting Holdings, JICPL is
under intense scrutiny for suspected unaccounted foreign funding. The

32

RR is also under the scanner for Modis suspected benami stake in the franchise. Suresh Chellaram, who
holds just 45% of stakes in the side, is the brother-in-law of Modi (He is married to Modis wife Minals
sister Kavita), while Emerging Media (run by Manoj Badale and a close confidant of Modi) has about
12% stake. Actor Shilpa Shetty and her husband Raj Kundra also own about 12% stake. Another major
stakeholder is Blue Water Estate of Lachlan Murdoch (32%), son of media baron Rupert Murdoch.

Chennai Super Kings

Owners: India Cements are 100% stake holders in the franchise. The VC and MD of India Cements, N
Srinivasan, has been in the eye of a storm stirred by his detractors, who point out conflict of interest as he
is also the secretary of the Board of Control for Cricket in India. I-T raid conducted on Wednesday.

Kings XI Punjab
Owners: KPH Dreams Cricket Pvt Ltd. Ness Wadia of Bombay Dyeing, Bollywood actor Preity Zinta and
Colway Investment Ltd are the majority stake holders with 23% each. Mohit Burman, part owner of this
struggling team, is the brother of Gaurav Burman, who is married to Modis step-daughter Karima. The
franchise is reportedly up for sale now. I-T raid was conducted on Friday. Gaurav is also a stakeholder in
Global Cricket Venture, which has digital, mobile and internet rights of IPL.

Kolkata Knight Riders

Owners: Knight Riders Sports Pvt Ltd. Bollywood superstar ShahRukh Khan has about 55% stake in the
franchise, while actor Juhi Chawla and the Sea Island Ltd (run by her husband Jay Mehta based in
Mauritius) hold the remaining shares. After the raids on Cricket Association of Bengal and other KKR
offices on Wednesday, the tax officials claim to have found some incriminating documents that will lead
them to the source of funds from the Sea Island. Mehta also happens to be the childhood friend of Modi. IT raids took place on Tuesday and Wednesday.

33

6.2 IPL - a business model to make money by vile means

IPL- as the "Indian Preposterous League". Now,three years later IPL hits a new low with betting rackets
across the nation leading to arrests of players and bookies .What is more disgusting is even franchisee's
and umpires are involved in fixing matches. The new moral low is school students are involved in betting.
Principals of schools in Bangalore had to issue warning to students to stay away from IPL betting.IPL
betting is rampant among Bangalore school students. Children in Delhi's top school's were caught betting
through bookies. A new mobile phone app called 'bet-droid-viewer' helps students with betting rates
among teams. This android is available for free online. Teenagers are fancied by this app .After seeing
betting tips they first get in touch with punters .Punters are cricket playing students of class 11 and 12
.They in turn connect them with the bookies. It is unfortunate IPL has become a gambling den of huge
proportions. The standing committee on Finance of the GOI has gone on record that money laundering is
done through IPL . The report has highlighted financial irregularities of the IPL model, but the
government did not act. Is the government silent because Rajiv Shukla the current Parliamentary affairs
minister is the Chief commissioner of IPL ?
ICC's Anti corruption and security Unit (ACSU) head warned as early as 2008 that IPL had great potential
for betting led corruption. What all had happened in IPL since its inception . It has all the ingredients of an
Indian Masala movie. There were startling revelations about involvement of two union ministers in the
past and one of them had to resign on questions of propriety. Overseas funding through dubious deals,
embezzlement by those at the helm in IPL, failed bid documents disappearing from files, match fixing,
betting, threats from underworld, blasts engineered to shift venue of semi finals, circumventing rules to
suit personal gains, IT & ED raids, disclosing private mails to reveal mudslinging, garnering support for
council meet by opponents, awarding contracts to close relatives without bids, nonpayment of taxes, late
night parties, Charges of kickback to Lalit Modi the brain behind IPL were all witnessed in the past .
BCCI amended their rules and bye-laws to suit those at the helm from time to time .To get past the
conflict of interest clause BCCI amended its rules for the convenience of its members who were involved
in IPL. Rules were circumvented by BCCI. All these were done obviously for the high stakes involved in
IPL. Proprieties were thrown to the wind deliberately. Every deal had an hidden agenda. Even with all
these aberrations, I thought IPL provided a platform for a huge number of young Indian talents who could
not get a chance to prove. But unfortunately, these youngsters were also enticed in to making quick money
by the IPL .
IPL is a commercial venture of the BCCI. Is it not obnoxious that BCCI is still exempted from tax on
grounds of promoting cricket. WB government gave relaxation of 35 lakhs entertainment tax to KKR in
IPL5.BCCI is still a registered society under the Tamilnadu societies Registration Act. Why is the
government turning a blind eye to all these ? Why does BCCI resist the sports ministry's move to bring it
under the ambits of RTI ? Former Sports Minister Ajay Maken tried his best to make BCCI a National
Sports Federation. If BCCI becomes an NSF, it would be bound to provide information under the RTI and
would also be forced to follow the anti-doping rules as specified by the World Anti-Doping Agency.
Maken's own cabinet colleague Rajiv Shukla the present commissioner of IPL vehemently opposed the
move. Why does BCCI shy away from public scrutiny and accountability ? Maken recently tweeted "Any
organization entrusted with job of selecting a National Team can not call itself a Private Body!" Powerful
ministers like Sharad Pawar and Rajiv Shukla then made Maken redraft some provisions of the Sports bill
intended to bring transparency in sports bodies .

34

Why would celebrities and corporates vie with each other to own an IPL team ? Because the franchisees
earn huge money .A franchise normally earns revenue from a portion of the Ticket sales, Sponsorships, a
cut from the broadcasting rights sold by the Board of Control for Cricket in India. The net worth of each
IPL team would give an idea why there is great demand for IPL team ownership. Whether a team wins or
losses the IPL franchisee earns money through sponsorships and jersey branding. This money is much
more than what they pay for the players cumulatively. As many as 10 to 18 brands are sponsored on jersey
of IPL players. IPL management ties up with brands and also for media rights .The franchisee gets a share
from this money, depending on the brand and number of sponsors. This has emerged as the single largest
source of revenue for a franchisee
. At the beginning of this season the estimated brand value of IPL teams were as follows . KKR-$45
million approx, MI -$ 44.62 million, CSK -$45.28 million, RCB-$37.81 million, Kings xI -$30.78 million,
DD-$34.22 million, RR-$27.05 million, Sun Risers-$31.49 million, PW-$29.45 million.
Recent happenings reveal very clearly IPL is a business model to make money by vile means. The root
cause for all these evils is the greed for money. One might earn fast money through betting. But in the
process he or she might have lost something which money can't buy. I feel it is time for the BCCI, IPL
committee and the government to clean up the IPL mess. The SC has already pulled up BCCI and IPL for
its languid approach in cleaning up the irregularities and spot fixing. More appropriately the SC said
"Save the gentleman's game".

35

6.3 The League of Legitimate Money & Illegitimate Controversies: IPL

Cricket Facts, Statistics & Trends
While IPL 6 continues to scale new records of viewership and ad revenue, its touched new heights in
terms of scandals and controversies.

Worst things first Top cricket and business controversies IPL 6

Even as the Indian T20 league has fascinated viewers, it has had a few thorny issues too like spot-fixing,
twitter rants and sledge-fests.

Pune Warriors Pull-out: Sahara India, owners of the Pune Warriors franchise, have pulled
out of the IPL over financial differences with the BCCI stemming from the valuation of the annual
franchise fee it has to pay. The decision, came three years after it bought the Pune franchise for
$370 million the highest price paid for any of the IPL franchises. The cause was the BCCIs
decision to cash the bank guarantee from Sahara that that it was obliged, under its contract, to
furnish at the start of each season. In this case, Sahara had furnished a bank guarantee worth Rs
170.2 crore (approximately $30 million). Since the deadline for paying the franchise fees was May
2, the BCCI waited till Saharas IPL 6 commitments were over and cashed the guarantee on May
20.

3 Rajasthan Royals players, and later a fourth one (a former RR cricketer), were arrested by
the Delhi Police for spot-fixing. India fast bowler Sreesanth and spinners Ankeet Chavan and Ajit
Chandila were held by the cops for allegedly colluding with bookies to bowl badly in three games.
This is the worst scandal to hit the league.

Sreesanths Twitter (mis)adventure: The Virat-Gauti spat prompted the media to recall
the 2008 slapgate, episode involving Harbhajan Singh and Sreesanth. Sreesanth however, didnt

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find that funny. In a series of explosive tweets, which he later deleted, he claimed that there was
never a slap and that the BCCI had done a cover up job. He called Bhajji a back-stabber.

Rahul Dravid Vs Kieron Pollard: Rahul Dravid is the last person you would expect to use
harsh words. But he was driven up the wall when Mumbai Indians Kieron Pollard gave an
aggressive send-off to RRs Shane Watson after catching him. Dravid called it an act of
cowardice.

First batsman in IPL to be run out obstructing the field: Kolkata Knight Riders
Yusuf Pathan became the first batsman in the league to be run out obstructing the field when he
kicked the ball while trying to steal a quick single against the Pune Warriors. The third umpire
ruled that Yusufs kick was a deliberate attempt to prevent the bowler (Wayne Parnell) from
reaching the ball. It cost KKR the match and a berth in the playoffs.

David Warner Vs. Australian Media: Post the spot-fixing scandal, an Australian
journalist wrote a critical piece on the league which incensed David Warner. Reason? Warners
picture was used along with the article. Warner attacked two Aussie journos on Twitter, calling
them all kinds of names. He faces trouble now with Cricket Australia seeking an explanation and
calling him for a hearing.

Kohli Vs Gambhir: Its never pleasant to see two players have a go at each other; if they
happen to Team India players, and also state-mates, it looks uglier. In the RCB vs KKR contest,
Kohli and Gambhir got into a slanging match when Kohli had just been dismissed and was walking
away. At one point, they had to be separated by others. It didnt look good and both were later
warned by the BCCI.

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(The legitimate) Revenue and Soaring Viewership of IPL 6 Cricket season

Though the IPL 6 have observed a setback due to some of the recent controversies, the revenue continues
to paint a rosy picture.

The hike in ad rates has led to speculation of MSM raking in ad revenues of above Rs 800 crore

With IPL being a highly evaluated property, brands such as Godrej launched a series of new TVCs
to create maximum buzz. Though the advertising revenues have caught on towards the second half,
the starting ad rates were much lower than that of IPL 5 in 2012.

The viewership statistics and trends seen till the 38th match in IPL 6 2013 (which is fifty percent of the
IPL6) are staggering, so much so that no other live event has ever created this kind of reach in India.

IPL online across both boxtv.com & youtube.com/indiatimes combined recorded a 52% growth
viewership over 2012 (75.2M vs 49.3M last year.).

The combined viewership of users watching highlights and clips saw a whopping 480% growth in
watch hours over 2012.

Highlight and clips of Chris Gayle and Pollard seem to be attracting more netizens eyeball as the
two together saw massive 480% growth in watch hours over 2012.

In India Bangalore and Hyderabad lead the viewership with 14 % each while Delhi stood at 2 with
10% viewership. Though WAM data for April 30 (Day 28 of IPL) showed YouTube slipping next
to Espn cricinfo. Surprisingly, WAM data kept top five lists, which essentially means loss in traffic
related to IPL keywords.

Though the online viewership for IPL6 has been steadily increasing, its interesting to note that the
television consumption for IPL has been gradually slipping. According to WAM data.

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While the online viewership has been pegged at 52 per cent, the television viewership has
observed a sharp decline of around 13.6 per cent as compared to last years numbers.

According to research experts, the drop in television viewership of IPL is also contributed by
introduction of DAS.

With DAS Phase 2 coming into force in Week 14 of 2013, there has been rampant switching off of analog
signals across 38 cities, which has impacted not just IPL ratings, but ratings of other channel as well. Also
the ongoing spot fixing controversy has dented the image of the property.

How were the viewerships trends during IPL 5

During the entire IPL 5 edition, despite of lower rating on TV viewership, Times Internet Limited, official
online streamer in partnership with YouTube for IPL recorded around 113 million views, a rise of 56
percent in contrast of IPL-4 (2011) that had witnessed 72 million views.

IPL 6 2013 is here and a season of huge business spendings and earnings has begin.

The Advertising and Sponsorships Business spendings of IPL 6 2013

Rs 1500+ Crores: Advertisers have bet more than Rs 1,500 crore on Indian Premier League (IPL)
Season 6 so far.

100+ Brands: More than 100 brands riding the IPL 6 through direct advertising or sponsorships or
innovative associations with teams. This includes big as well small and even local brands such as
Raindrops basmati rice, Noida International University, Amity University, Live-In Jeans, Sheltrex,
R N Sports, Gilpin Travel Management and Sanskar School.

25%+ increase in advertising revenue for MSMPL. Last year, Multi Screen Media Pvt Ltd
(MSMPL) had managed to get only seven sponsors on board and clocked in over Rs 700 crore
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through advertising. This year, it has 11 sponsors (including Samsung, Panasonic, Karbonn
Mobiles, Tata Photon, Cadburys, Parle Foods, Usha Appliances International, Havells and Godrej)
and 90 per cent of its ad inventory is already sold and it is hopeful of closing the season with
revenues in the excess of Rs 900 crore. MSM began by selling its inventory at around Rs 4-4.5
lakh, but a new advertiser wanting to hop on to the network at this stage will have to shell out
around Rs 5.5 lakh per 10 seconds. A similar prime-time TV spot on the most popular
entertainment shows such as Bigg Boss or KBC costs around Rs 1-2.5 lakh.

Branding on Jerseys: As for the teams, even newbies Sunrisers Hyderabad and Pune Warriors
have their jerseys swamped with brand logos. Pune Warriors, for instance, has its own brand
Sahara, Finolex, Killer Jeans, Sansui, Lux Cozi among others while Sunrisers has got makemytrip,
Kingfisher, Garnier, 7UP, Manyavar and Live-In Jeans on board. This year, almost all franchisees
have sold a minimum of 10 active spots on their players attire. The active spots referred to by
Karnik include lead chest, right upper chest, lead arm, non-lead arm, back of the jersey, on cap, on
the front and the back of the helmet, lead trousers and non-lead trousers.

GroupM is the countrys largest media buying house and has facilitated deals worth Rs 75 crore
between various brands and IPL stakeholders.

Sponsorships the single-largest source of revenue. Sponsorships have emerged as the singlelargest source of revenue for IPL franchisees, following their share in the central pool (includes
media rights and the sponsorships that IPL management ties up with brands). According to
estimates gathered from franchisees, different teams have tied up anywhere between Rs 25 crore
and Rs 45 crore worth of sponsorship and partnership deals. Almost all of the old teams have close
to 20 tie-ups with different brands.

Value at which new deals have been struck has gone up by almost 100%. All of the six central
sponsorships owned by the IPL management were up for renewal this year. While the number of
sponsors came down to five, the value at which new deals have been struck has gone up by almost
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100 per cent. For instance, realty company DLF had signed a five-year title sponsorship deal with
IPL for Rs 40 crore a year whereas new sponsor PepsiCo has picked up the tab for Rs 79.6 crore
per year for the next five years. The cola company is also the pouring partner (essentially means
the players will only drink PepsiCo products on the ground) of eight teams. The other sponsors
roped in by the IPL management include Vodafone, Yes Bank, McDonalds and Star India. Each of
these is learnt to have bought the rights for around Rs 28-30 crore a year.

Player Auctions and prices for IPL 6 2013

A total of 37 players were auctioned in IPL 6 2013 and the total amount spent on them is around a
whopping $11.89 million.

With 7 players purchased, Royal Challengers Bangalore team to purchase most players in IPL 6
2013.

Sunrisers Hyderabad raked at 2nd spot with purchase of 6 players.

Mumbai Indians, Chennai Super Kings purchased 5 players each.

Pune Warriors India purchased 4 players

Rajasthan Royals and Delhi Daredevils purchased 3 players

Kolkata Knight Riders and Kings XI Punjab purchased 2 players each.

While the most expensive player in IPL 6 Auction 2013 was Glenn Maxwell who went to Mumbai Indians
for $1,000,000, the most expensive Indian player was Abhishek Nayar who was sold for $675,000. Here is
the list of top most expensive players and their final auction prices for IPL 6 2013 are as follows

1. Glenn Maxwell- $1,000,000 for Mumbai Indian

2. Ajantha Mendis- $725,000 for Pune Warrior
3. Kane Richardson- $700,000 for Pune Warriors
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4. Thisara Perera- $675,000 for Sunrisers Hyderabad

5. Abhishek Nayar- $675,000 for Pune Warrior
6. Senanyake- $625,000 for Kolkata Knight Rider
7. Chris Morris -$625,000 for Chennai Super King
8. Dirk Nannes- $600,000 for Chennai Super Kings
9. Jaydev Unadkat- $525,000 for Royal Challengers Bangalore
Well if Sunrisers Hyderabad does not sound familiar to you here, its the new kid on the block. Here is
there official video of Sunrisers Hyderabad which will look to set a mark in their debut IPL season

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7. IPL - BEHIND THE SCENES

7.1 There is a lot more of business happening behind the scenes

After receiving a fairly good response from advertisers for this years Indian Premier League (IPL6 ), Multi Screen Media (MSM), the official broadcaster of the IPL, has hiked its advertising rates
by 10%

MSM had earlier lowered rates by 10-15 % for IPL-6 and was charging Rs 4- 4.5 lakh for a tensecond ad spot.

The reduced rates had made the property attractive for many advertisers as brands made a
comeback after having given the tournament a miss last year.

MSM, which has only 20% of ad inventory left currently, may further hike rates if the tournament
kicks off well.

MSM is looking to make Rs 950 crore in advertising revenue from IPL-6, up from Rs 750 crore it
garnered last year.
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The presenting sponsors PepsiCo and Vodafone have shelled out Rs 40-60 crore each while the
associate sponsors like Tata Photon, Karbonn tablets, Godrej, Samsung Mobiles, Panasonic, Usha
Appliances, Cadbury, Havells and Parle Foods have paid Rs 25-30 crore each for being seen on
television during IPL-6.

MSM which will broadcast IPL on SET Max and Sony Six, has also struck large deals with CocaCola, Parle Agro, Marico, Berger Paints and Airtel.

Godrej will launch a brand new campaign with its new brand ambassador Aamir Khan during the
54-day Twenty20 tournament. Godrej will release as many as nine new ad films around the
masterbrand Godrej.

Soft drinks giant PepsiCo, which is doling out huge moolah around the IPL having paid Rs 396
crore for title sponsorship, bagging pouring rights for eight of the teams and signing on as a
presenting sponsor on MSM, will back this up with strategic and high-decibel marketing and
activation plans.

Coca-Cola is planning a blitzkrieg of its own despite not being an official IPL sponsor. The cola
major will be seen on the telly with campaigns for brand Coke, Limca, Sprite, Minute Maid Nimbu
Fresh and Maaza along with its Thums Up brand ambassador Salman Khan launching a new game
on the actors Facebook page.

IPL Online Viewership Facts: Statistics & Trends on Digital IPL

viewership

The 2012 IPL 5 matches were streamed online by IPL official partner, Times Internet Limited
(TIL) in partnership with YouTube.

IPL 5 2012 saw a 55 per cent increase in online viewership. In comparison with 72 million video
views in 2011, 113 million video views were generated during 2012 IPL 5 season

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Video views from India showed a strong growth of over 87 per cent from the previous year
standing at 80 million in 2012 compared to 43 million in 2011.

The final 2012 IPL 5 match on May 27 generated 7.5 million video views, making it the highest
single-day viewership during the entire season.

Facts about the IPL Business Model: How a Franchise makes money
A franchise normally earns revenue from

Ticket sales

Sponsorships

A cut from the broadcasting rights sold by the Board of Control for Cricket in India.

What did the 2012 IPL 5 Victory mean for KKR (Money wise)

Here are some real statistics about how the winner of IPL 5 benefits from the win and how it impacts the
business and money it makes

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The IPL 5 Player costs: It is estimated KKR spent about Rs 100 crore, including Rs 50 crore for
hiring players, this season. Four players Gautam Gambhir, Jacques Kallis, Sunil Narine and
Yusuf Pathan alone cost KKR Rs 30 crore.

The IPL 5 Winners Prize Money: When Kolkata Knight Riders (KKR) beat two-time defending
champion Chennai Super Kings to win their first ever title in the Indian Premier League (IPL) on
Sunday night, the Knights not only shed their underachievers tag, but also pocketed Rs 10 crore in
prize money, ensuring that the T20 cricket franchise was able to make profit this season.

Sporsorship Money: KKR, have 18 sponsors, the highest among all teams. After the win, KKR
may also increase in sponsorship rates for next year. A lot of existing sponsors have contracts
which have a mandatory 10 per cent cost increase clause in-built within the contracts, but they
might ask more of new sponsors from next year. The cost of a non-jersey partnership with KKR is
Rs 60 lakh and a jersey sponsorship is upwards of Rs 1.5 crore. This year, KKR made roughly Rs
35 crore from sponsorships. KKRs sponsors include Nokia, Birla Sun Life, DishTV, ITC Vivel,
Rose Valley, Royal Stag, Concast Steel, Bisk Farm Biscuits, Coca-Cola, Emta, Manyawar,
Freecultr and The Telegraph.

Ticket Sales Money: KKR hosts teams at the 65,000-capacity Eden Gardens. This year, revenue
from ticket sales was bolstered by the Rs 35-lakh entertainment tax relaxation that KKR got from
the state government. Eight matches were played at Eden Gardens, and KKR sold 40,000 tickets a
game at denominations of Rs 300, Rs 700 and Rs 1,500. Also, 10 corporate boxes costing Rs 10
lakh each were sold per game.

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8. THE BUSINESS BENEFITS FOR SPONSORS

The instant brand recall that the jersey logo creates works out for Rose Valley Group which paid
Rs 5 crore for a place on the KKR jersey.

KKR brand value can be considered to have more brand value since North, West and South have
more than one team to support and the East has just KKR. This means as a brand, KKR has a larger
following than any other team.

For any team to gain in brand value, three metrics have to be in place core product quality or the
quality of cricket played, marketing effectiveness, and governance. While KKR have consistently
been a brand to reckon with, given Shah Rukh Khans star power and marketing prowess, the team
has never been known for its performance, making the playoffs for the first time in the past four
seasons last year. Their win will change this, ensuring that the KKR franchises value gets a major
push. Also, the issues around governance and controversies that surrounded KKR seem to have
been sorted out.

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How much does brand value matter ? Does it actually convert to money for an IPL
Franchise ?

That performance is a key index to brand value is clear from last years team brand rankings.

The value of Chennai Super Kings which won IPL for two consecutive years in 2010 and 2011
and were the finalists this year was pegged at $75.13 million, making them the most valuable
team in the IPL.

Mukesh Ambani-owned Mumbai Indians, who have been consistent performers, were placed
second, with a cumulative brand value of $63.58 million

KKR were placed third at $57.576 million.

However these ranking and value for each team were bound to change after KKRs win in this 2012 IPL

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9. IPL WITH CONTROVERSIES RIGHT FROM SEASON ONE

All the IPL business and cricket controversies of previous IPL seasons:
IPL 1 (2008)
Mumbai Indians stand-in captain Harbhajan Singh slaps Kings XI Punjabs S Sreesanth after losing a
match in Mohali. A sobbing Sreesanth is caught on camera. After investigations, BCCI hands Harbhajan
an 11-match suspension. Sreesanth rakes up the issue in the ongoing edition only to be reprimanded.

IPL 2 (2009)
Shifted to South Africa due to general elections, the second edition is marred by allegations of Foreign
Exchange violations. The Enforcement Directorate one year later issues Red Corner in the name of
former IPL commissioner Modi. Kings XI co-owner Mohit Burman is beaten up by security guards on
allegations of improper behaviour with a lady spectator, belonging to an influential industrialists family
in South Africa. Shah Rukh Khan and John Buchanans decision of Multiple Captaincy creates rifts in
KKR team with anonymous blogger Fake IPL Player creating a flutter. Later the blogger reveals his
identity and claims that everything in his blog was fictional.

IPL 3 (2010)
The BCCI suspends Modi for misappropriation of funds. Junior foreign minister Shashi Tharoor resigns
from his post after investigations reveals his role in bringing Kochi Tuskers Kerala on board with his then
girlfriend Sunanda Pushkar also involved in dealings.

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IPL 4 (2011)
Before the start of tournament, Manish Pandey is banned by IPL governing Council for four matches as he
indulges in underhand dealings with franchises he would have got a fixed sum being an uncapped
domestic Indian player. Post fourth edition, Kochi Tuskers Kerala are scrapped from the tournament, after
they fail to pay the franchise fees. There were discrepancies found out in their ownership patterns.

IPL 5 (2012)
Before the scheduled auctions, Pune Warriors threatens to pull-out of IPL as BCCI doesnt pay heed to
their request for an additional foreign player as well as reducing the fee which would have been for 74
matches instead of 94. Their request for Open Auction with no player retention is also rejected. During
IPL, RCB cricketer Luke Pomersbach arrested by police for harassing NRI woman Zohal Hameed and
bashing up his boyfriend. Dispute settled out of court. Life ban on Deccan Chargers pacer TP Sudhindra
after being caught in a sting operation agreeing to spot-fix matches. Veteran UP pacer Shalabh Srivastava
handed five-year ban on being caught agreeing to fix matches. Mohnish Mishra, Amit Yadav and Abhinav
Bali receive one-year bans for unsubstantiated bragging. Pune players Rahul Sharma and Wayne Parnell
caught in a rave party in Mumbai. Deccan Chargers scrapped from IPL after they fail to pay up franchisee
fee to the BCCI. IPL 6 (2013) Delhi Polices Special Cell arrests India pacer S Sreesanth, domestic
players Ajit Chandila and Ankeet Chavan who have allegedly spot-fixed three of Rajasthan Royals
matches in the current edition of IPL. The trio brought to Delhi and in Police custody

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CONCLUSION
No longer is cricket the bat-and-ball recreation of the countrysides of 7th century India, Pakistan or
Persia; or even the community recreation of 10th century Europe, the hearty free-for-all of 16th century
England, or even the sport of the 18th century "gentleman amateur".
This is 1998. Cricket is a major sport, the second-most popular sport in the world after soccer...with all
that is implied in terms of money, TV coverage, politics and chicanery.
Some of the fun-and-games, and even the mayhem, of early cricket has survived into the late 20th century.
And the codes of behavior instilled by the patriarchs of the modern sport in the 1780s can still be found in
the style and nuances of todays cricket. "It is not whether you win or lose, it is how you play the game";
""It's not cricket";"The Umpire's word is final, not to be questioned"...phrases like these convey
something of modern cricket's perennial spirit, and have survived more than two centuries of change.
Much has been gained...although something may also have been lost in the protracted transition. What
does endure is the character of a game that has survived the pressures of a millenium of change, and the
demands of a dozen different cultures.
And now, the mystery. On every continent, it is the nations which have the strongest legacies of
democracy and freedom that also play cricket ! And, especially outside Europe, it is the non-cricketplaying countries which are typically totalitarian in character, and have little room in their politics for
democracy, let alone true freedom !
This can be dismissed as coincidence only by the most myopic of observers. Instead, this strange fact
should tell us what cricket may mean to the world. It is something that we, as cricketers, need to
understand....and explain.

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