Day Light Robbery
By Guest Blogger at 29 March, 2010, 10:58 pm
As per the latest figures, IPL player salaries are second only to NBL. Well in the third season itself the IPL franchise is worth around $.4.1 billion. The most favourite soap operas are witnessing a steady decline in their TRPs due to IPL. No producer wants to risk releasing his blockbuster movie during IPL season. Every marketing head is trying to associate his brand to IPL in some form or the other (even the official chewing gum rights are sold).
Seeing the popularity of the event, already two new teams will be joining next season and the number of matches will increase further. All the great minds in the media industry are working overtime to produce content around IPL. It does not take much effort to understand why it has become such a big phenomenon.
IPL has given everyone something to cheer about. It has become a money spinner for BCCI. The players are making 10 times what they would have made playing 20 years in the national teams of their country. Advertisers are getting all the eyeballs they can desire of for their brands. The local cricket board bodies are also making money. The common man is getting to watch something other than the Saans Bahu episodes. So all in all it seems to be win win situation for everyone involved
But if you look at closely, how can such extravaganza be justified in a third world country like ours?
Government is not even levying entertainment tax on this event. All the matches (with few exceptions may be) are being played under floodlights notwithstanding that more than 50% of the population is facing power cuts on daily basis. In a country where basic life necessities are not being provided, players are being called from all over the world and given world class facilities.
Wherever the matches are played, the local police are working overtime to provide security cover. Why should the state police be used for such an entertainment show? Don’t we have better use for them? Public facilities are being provided to support this event. Isn’t it a misuse of the tax payer’s hard earned money?
How much the country going to get benefitted out of this?
This seems to be the modern day version of the Gladiator games, which were used as a potent political tool to engage people, to make them forget the real issues and gain advantage of it.
But when you look at a man who does not mind standing in a queue at 3.30 pm for a match scheduled for 8.30 pm, you cannot really blame him. After all this man is spending his life searching for roads in the potholes , travelling in trains with 500 people in compartment meant for 50 , he has to work 12/13 hours a day to get a raise enough to adjust the inflationary prices
He needs a break from all this, and Mr.Modi has provided him just that. A three hours show full of glitz, glamour and slave fights (you can’t call it cricket can you?). He will not mind this daylight robbery.
The author of the post, Nirman works as a Business Analyst in an MNC and is a reluctant capitalist at heart!
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I’m always surprised by such posts often written by people who confess to being ‘reluctant capitalists’. The IPL franchise is a business albeit a monopolist one but still at heart remains a commercial venture. It has not only opened up business opportunities for the players which otherwise is open for only 11 players in a nation of a billion but also has opened the floodgates on other ancillary commercial ventures. Money, like energy, isn’t wasted but often converted from one form to another i.e. exchanges hands.
The author fails to explain why IPL is the reason for potholes on the roads, power cuts, or crowded trains. I’m sure we had all those things before IPL. Or perhaps IPL is the latest whipping boy for the reluctant capitalists. I’m sure the IPL is paying for the power it consumes and security is a public good which I’m sure you will be accorded to if you hold a public event.
Hey Nirman,
Thats an interesting take and am sure you will find a lot of company especially from the leftist and socialist. But wouldn;t you be proud if India wins to host the Olympics. So the money that Indian govt would pump into Olympics or is now pumping into Commonwealth, how is it any different than IPL. Except that IPL is a business venture but it still serves the purpose of showcasing India as a sports destination. Atleast I can say for myself, that I feel extremely proud when Aussies talk about IPL excitedly.
And if cricketers should not be making money because India is a third world country, then what will you say to the other billionaires of Indian society. All the participants of IPL make money in a legal way just like the others industry do. Then probably we shud question the establishment of 5 star hotels too. Its all about demand and supply and the money will float as long as Indians have an insatiable appetite for cricket.
Every One , has a right to make money. And every one is doing that via IPL except the really poor or deprived. The Governments are supporting these events for showcasing the Power of India.
Well I have a question here for the author. If he was in any industry or alliance industry .Then would he be writing the same article. I am not too sure about that.
As a business model and that too an entertainment business model , we need to understand that any event like this boost economy in a significant manner.
I completely feel that showcasing of an event like IPL has nothing to do with India being a third world country. It is only about dishing about what people want to see; it may be right or wrong. Being judgemental can be harmful.
Hey,
Thx Patrix/Ritika/Akhi for ur comments.I’d just like to try & answer some of the points,
1. As Patrix rightly said, its a commercial venture at heart..then y it is not being treated as one and not taxed accordingly? ( only the Punjab state is charging entertainment tax ).
2. Here unlike in case of commenwealth ..Goverment need not do anything to promote IPL,which is already enjoying such a huge fan following and sponsors support ,and as Ritika pointed out,the money will flow because of the huge demand,so there is no reason y the tax payers money should be utilized for this, the money which is desperately reuquired to improve basic infrastructre in this country.
3. Since the Organizers are selling tickets for this event it can not be categorized as a Public evnt hence the Security is chargeable ( again only Punjab state is doing so )
I’m sure many will nt agree ,but the way I see it ,IPL is akin to a big Avatar of a commercial reality show and don’t c any reason y it should nt b treated so…
At times you have to let a business flourish before you tax it to death. The government’s role is to help foster business and not treat it like a cash cow. When government provides incentives and tax breaks to a commercial venture, it is counting on it’s success and hoping that it leads to spillover economic benefits for the public. After IPL is established like it seems now, the government may contemplate imposing the entertainment tax (I oppose it fundamentally because IPL organizers will simply pass on the burden to the consumers in form of higher ticket prices)
Any event organized in a public setting or involves a large number of people in attendance is a public event, ticketed or not. I say this in terms of security. IPL pays taxes in various forms so it deserves security. The government failed to do so last year and South Africa reaped the economic benefits.
There are plenty of things to be said about how IPL conducts its business and maintains a monopolist attitude but your complaints of being a entertainment show is hardly a big concern. Remember, ODI under lights was considered pajama cricket and derided by purists until it became the defacto popular form of cricket. Cricket, like other sports, has to keep evolving to maintain audience interest.
This article on the economics of IPL is a must-read.