The suspended IPL chairman got many things right as he designed the IPL but his controversial style caused him to fall faster than Lucifer
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.)