The discontent among the Indian Premier League (IPL) team franchisees and the broadcaster at the Board of Control for Cricket in India's (BCCI) snapping ties with event manager International Management Group (IMG) shows how little faith they have in the cricket board's ability to run IPL. BCCI's caprice and internecine battles warrant an external specialist to conduct IPL.
When IMG was hired to create IPL, BCCI insisted on paying 10 per cent of IPL revenues instead of a fixed fee as IMG had wanted. So, IMG's share worked out to about Rs 60 crore for the first IPL. It seems IPL's success has made the BCCI realise the folly of percentage system. It now wants to pay less.
Not much is expected from BCCI's attempts to renegotiate the contract under the influence of former BCCI president Sharad Pawar as IMG has threatened to move court. It could block future IPL events till a resolution is reached.
Another worry for the IPL stakeholders is the BCCI politics. IPL Commissioner Lalit Modi's stature in BCCI has fallen since his defeat in Rajasthan Cricket Association elections earlier this year, and his detractors see an opportunity to whittle him down further by voiding the contracts and relationships he initiated.
(This story was published in Businessworld Issue Dated 14-09-2009)