Taking Guard in a Downturn ; Pay Top Dollar for the Best, and Go Easy On the Rest That Seemed to Be the Motto at the Player Auctions for the Second Season of the Indian Premier League.

Summary

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Can the shortest version of the game of cricketand arguably the most popularprove an antidote to the downturn blues that have spooked urban India? Or has the game itself become a victim of a sputtering economic engine? Last fortnight, when auctions began for players for the second series of the Indian Premier League (IPL) that's set to begin from April 10, the signals were mixed. True, Vijay Mallya, the owner of the Royal Challengers, and the India Cementsowned Chennai Super Kings (CSK) were liberal with the purse strings, coughing up record-breaking sums for two English cricketers. But the action down the line wasn't that electrifying. If you compare the top 10 bids of last year and those of this year, the difference between the two is a cool $2.42 million. Last year, Chris Gayle was the 10th most expensive player, with a bid of $800,000. For the second season, Jesse Ryder, who is at #10, could attract just $160,000. From a pool of 50 cricketers, only 17 were picked, with 33 remaining unsold. In the inaugural season, only two players out of 80 remained unsold (this, however, may not be strictly comparable as the first season was when teams formed for the first time, and teams had little choice but to bid). Clearly, cash conservation was the mantra, with the eight teams in the fray spending just $7.5 million of their total auction kitty of $13.95 million.

But there was money streaming into the IPL from other directions. Raj Kundra, a London-based entrepreneur and business partner of starlet Shilpa Shetty, put up Rs 77 crore for 11.7 per cent stake in last year's champions, Rajasthan Royals (RR). Says Manoj Badale, Chairman and Joint Owner, RR:The selling of a stake is a part of our long-term strategic approach to build the Rajasthan Royals into a global sports brand. This investment enhances the off-field commercial potential of a brand that is already recognised.The franchisees, for their part, are moving full steam ahead with their marketing and promotional plans. Mohit Burman, Co-owner of Kings XI Punjab, says:We have set aside approximately Rs 3 crore as our marketing budget for the second season (last year's budget was Rs 4 crore). This season we are more focussed on promoting the team in all our catchment areas such as Himachal Pradesh and J & K.

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Taking Guard in a Downturn ; Pay Top Dollar for the Best, and Go Easy On the Rest That Seemed to Be the Motto at the Player Auctions for the Second Season of the Indian Premier League.

Revenue streams are also being maximised. RR and CSK are banking big time on their fan clubs. The latter pockets a membership fee of Rs 1,000 per member...

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