"Non-cricketing traits valued in million dollars"

Hello friends...,

I came across this insight on economic valuation of non cricketing traits conducted by IIM, Ahmedabad. The study has found out that non-cricketing traits would also earn for players in IPL.

Have a look at the article...

"It appears that apart from their cricketing excellence, players get hefty premium for their non-cricketing attributes, for they are instrumental in pulling big crowds and viewership for IPL business," IIM-A Professor, Economics Department Satish Deodhar told PTI.

"Out of the total price of USD 1.5 million and USD 1.12 million received by Mahendra Singh Dhoni and Sachin Tendulkar, the value of their cricketing attributes is USD 705,420 and USD 622,213 respectively, and, their net crowd pulling business value is about USD 794,580 and USD 499,037 respectively," Deodhar added.

"Dhoni is an outstanding cricketer and also famous for his personal charisma and association with film stars. Thereby he fetched 1.5 million USD during last bid. His value of non-cricketing attributes is much higher than that of Sachin," he said.

Study based on a unique model

The study based on a unique 'econometric' model developed by the IIM-A economic department to analyse the process of valuation that might have occurred in deciding final bid prices of the players has evoked response from some universities abroad.

Australian University La Trobe has evinced interest in the econometric model based study done at IIM-A.

"The economic department of La Trobe University in Australia has approached us and is keen to know how this model of threadbare analysis of an event has been made possible," said Deodhar.

However he added that the captaincy skill of Dhoni was not factored in the study which is based on benchmark estimates.

Andrew Symonds, who got USD 1.3 million during bidding in IPL last year, had said he was surprised that he got more than his captain Ricky Ponting, Deodhar said, adding, "the reason I found to his query was that he was a big crowd puller."

Symonds had then became popular in the wake of the monkey gate controversy.

Indians command premium over foreign players

The IIM-A study also suggests that Indian players command premium over foreign players in the bidding.

"Among the foreign players, none receives any premium for their nationality, however an Indian player, on an average, controlling for other attributes, is likely to receive a premium of USD 203,156 over non-Indian players," Deodhar said.

The other important attributes of players found during the course of study were that an Indian player on an average fetches a premium of USD 203,156 over foreign players, besides the other parameters in an ICC approved matches such as a half century fetches USD 2683, a stumping fetches USD 2596, and an additional wicket fetches USD 377.

"An increase in Twenty20 batting average by one run fetches a player USD 4658, and as the player get older by a year he looses USD 30,000," Deodhar said.

"Thus, premium for being younger in the IPL is established in this study. In fact, we hope that this kind of research would facilitate better understanding of player price formation," he added.

Wasn't it interesting...??

It feels so good to share such a article with you all..

I hope it adds value to your knowledge related to IPL.