Perhaps, this is an apocryphal tale. Not that there is any reason to doubt its authenticity. But then, the way things are, there is no way to authenticate it either. The story goes like this. Before the Indian Premier League’s (IPL) third season took off, Lalit Modi, former commissioner of the league, made a close friend of his an offer, Modi thought was irresistible.
To understand how, you ought to first turn your gaze at Modi’s inspiration — the National Football League (NFL) in the US. He loves the way it operates, the glamour and buzz it generates and how every opportunity is monetised. To anybody who cared to listen, Modi pleaded that with the kind of passion cricket generates here, it was entirely possible to transplant the model into India and create a league that equals the NFL in size, if not bigger. Sources: NSHIE, NCAER/ FCR Analysis
To understand how Modi pulled it off, a bit of economic theory becomes essential. In the world of sport leagues, how a team is valued is based on a few parameters. These include the population of the city a team is attached to, the sport infrastructure available there and average household surplus among other variables. For instance, the higher the household surplus, greater the chances for long term growth in ticket sales and merchandise.
(This story appears in the 21 May, 2010 issue of Forbes India. To visit our Archives, click here.)
With the economics attached to the IPL, IIM should surely invite Mr.Modi to lecture. He sure knows how to make a game being played since years to a Game talked about across the world for Money and Entertainment -and the kool part, with half the world sinking with recession. <br /> <br /> It's all about marketing and he suerly has been the best seller..Kudos..! I always belive Indians have the best brains just tht we need to adapt a pinch of altruism.
on May 18, 2010Once again it goes to show how the politicians have taken over almost everything in the Indian society and they don't want anyone other than themselves to be given merit for anything good that happens to this country! The way Mr.Modi was growing itself meant he was bound to fall. This once again shows/proves "What TATA's could achieve in a 100 years, Reliance achieved in just 10 to 15 years", type of businessmen are still seen as a threat in this country.<br /> The only Mistake Mr. Modi did was, he should have registered the IPL as a "Cayman Island company" and run the IPL out of South Africa permanently, it would have made him and everyone else more money and fame without bothering about "Killer" Indian politics.<br /> This I guess should now be a case study in Indian 'B' schools for future entrepreneurs not to commit the same mistake.<br /> Thanks<br /> Augustine R.
on May 6, 2010A good entrepreneur's story--common place in India except for the magnitude. The arrogance is hallmark of success. i worked as one, for seven years, and met more businessmen with hot air than talent !
on May 6, 2010Hats off to Modi! He did a absolute fantastic, mind blowing job as IPL chairman. Tha article though makes it look like a ponzi kinda scheme. Had he not rubbed the ministers on the wrong side, all were happy with their share of the pie including the BCCI. Anyways, you will always have plenty of issues where such gigantic amounts of money & big shots are involved.I believe he re-injected all the excitement in cricket. Our sports ministry should look at similar sporting models for football,hockey & Domestic cricket. Corporates will always have plenty of money for sponsorships.<br /> <br /> Again, Mr. Modi - You are simply too good! Just relax a bit & try n control your nerve.Best of luck.
on May 4, 2010