The recession looming large in every sector, all eyes will be on just how big the bucks get this time around. Already, people are speculating that this year's mini-cricket gala could be low on enthusiasm.While everywhere else in the world belt tightening is the order of the day, India’s Twenty20 premier cricket league splurged mega bucks on strategic buys.
But after the buzz surrounding the auctions Indian Premier League is setting it up for a huge marketing campaign from March. Mint reports on how together, BCCI, Sony and the teams are likely to spend around Rs160 crore on promoting IPL across various media platforms, including television channels, newspapers, mobiles and the Internet.
We thought India was in the grip of recession?I don't think so there is any negative Impact of Economic Downturn on IPL
But seeing the amount paid to the player who will say India is under recession.Think about those two English cricketers paid over US$1.55mil (RM5.58mil) for the second season of the Twenty20 Indian Premier League,than at time the economic slowdown could not have been uppermost on their minds.
IPl is full of glamorous Bollywood stars and corporate biggies vied with one another to bid big for key players on offer at the Great Indian Auction.than at that time nobody thought about recession.
The first February weekend in the languorous beach resort of Goa, film stars Preity Zinta and Shilpa Shetty, with her new London-based beau Raj Kundra on her side, and Neeta Ambani, wife of the richest Indian, Mukesh Ambani of the Reliance conglomerate, and that aging playboy-beer king, Vijay Mallaya, were among the bidders.
Time was not long ago when ranking Indian players would give their right arm to be contracted by one of the minor teams in English county cricket, the main attraction being the fees that they earned playing for a Lancashire or a Sussex side.
Now, nobody in the cricketing world can match what IPL pays to star cricketers for a mere six weeks’ work, or shall we call it play? Such was the lure of big bucks that the English had rescheduled their own cricketing calendar to accommodate IPL.
Yet, the record US$1.55mil paid to Kevin Pietersen and Andrew Flintoff by Mallaya’s Bangalore-based Royal Challengers and Chennai-based Super Kings, respectively, was way out of all proportion.
Shah Rukh Khan’s Kolkata Knight Riders picked up Mashrafe Mortaza, an all-rounder, for US$600,000 (RM2.16mil), a price 12 times his annual earnings from Bangladesh Cricket Board. It was a strategic buy by Khan with an eye on expanding the Bangla appeal beyond national borders.
Shetty was new on the IPL scene, having picked up a 12% stake in the Rajasthan Royals, winners of the inaugural edition of Twenty20 last year, for a whopping US$16.38mil (RM59mil) with new partner Raj Kundra.
The Rajasthan Royals was one of the cheapest franchises last year, having been bought for a mere US$67mil (RM241.3mil). After the 12% stake sale to Shetty and Kundra, it is valued at nearly US$140mil (RM504.3mil), a huge appreciation in under a year.
Not withstanding Modi’s personal fortunes, there is no doubt that come April 10, the second season of IPL would rivet the nation to its television sets as multi-lingual, multi-national teams vie for the cricketing world’s richest trophy over the next 45 days and nights.
In that reality show players will be kitted in multi-coloured team uniforms, serenaded by frenzied crowds and scantily-clad cheerleaders, would compete to prove that they were worth every penny that was paid to make them play for their respective franchisees.
Telecast rights being the main driver of the IPL economy, the glorious uncertainties of the game, holding in thrall a whole nation, are set to win over purists caviling at the shortest version of the game or pajama cricket.
After all, a handful of purists, decrying the abuse of the gentlemen’s game, can have no hope when the masses vote with their feet in favor of the Twenty20 circus cricket.
Thus ,Recession have a little effect on the IPL event.
No doubt the market is down and recession is at its worst. It is going to affect IPL plans upto some extent?
But i think every business has to adapt to its external environment without compromising on quality or delivery.
Recession will impact IPL. IPL is a business and it is unlikely that it will remain unaffected by the economic situation. I expect franchises to be restrained in their spending and show-casing of the event.
Franchises think that they are still in the early stages of investing. They are not immune to recession, which will affect sponsorship and financing capacity; but we should not forget that over 80% revenues are guaranteed.
Hence we can say that" IPL is least effected by recession."