INDIAN PREMIER LEAGUE

Indian Premier League

Table of Contents

Chapter 1: Introduction: The Indian Premier League3

Cricket3

Test Cricket3

ODI3

Cricket in India4

Research Question5

Chapter 2: The Backdrop of IPL7

Rules of the Auction7

Chapter 3: The Current Scenario10

Literature review10

Competitive Balance in Sports11

The economic Framework For Professional Sports12

Sports and Competition Law: An Indian example14

The Competition Debate between IPL and ICL15

Salary Caps and Competition Law16

The pros:18

The cons:19

Chapter 4: Methodology24

Chapter 5: Findings and Discussion26

Key Issues26

Twenty20 Here to stay26

Global Appeal27

Tournament Location27

Building a Global Sports Franchise27

Local Community27

Galacticos28

Media Exposure28

Success29

Factors that Didn't Matter31

Test match experience and performance31

Missing games31

Percentage of runs in 4s and 6s31

Actual valuations vs. Our predictions32

Valuations For English Players32

Chapter 6: Conclusion34

Experience matters36

Strike rates matter, for batting and bowling36

All-rounders are valuable37

There is a premium on being Indian37

There was an extra premium for “Icon” players37

Special cases37

Bidding frenzy38

References39

Chapter 1: Introduction: The Indian Premier League

The Indian Premier League (IPL) is a new “Twenty20” cricket league which completed its inaugural season in 2008. In a new departure for the cricketing world, players were assigned to teams primarily through an auction, which makes it possible directly to observe the valuations placed on individual players. Using this data, plus information on the previous performance, experience, and other characteristics of individual players, we are able to explore the determinants of valuations and investigate a number of hypotheses related to the design of the auction.

The inaugural Indian Premier League (IPL) Season of 2008 marked arguably the biggest business revolution in the sport of cricket in the 130-year formal history of the game. Its formation was an attempt to capitalise on the financial windfall being generated by the explosive growth in demand arising from the new, shorter form of the game (known as 'Twenty20') in just the last few years at the expense of the traditional Test Match format (Jarque, Bera, 1980).

Cricket

Many different sports and games have been invented and started in england. Many of these are still played and remain very popular to the people of that country. The game of cricket is a very complicated sport to those who have never played with all of the rules (Hill, 2004)

Test Cricket

Historically, cricket has been a game played over several days. Test cricket, generally seen as the pinnacle of the game by purists, takes five days, and even then may end in a draw.

ODI

In response to changing lifestyles and customer demands, the cricket authorities have gradually introduced shorter versions of the game. One day international cricket, which as the name suggests takes a full day, was introduced in the 1970s.

Cricket in India

The Board of Control for Cricket in India (BCCI) is the apex governing body for cricket in India. It is a private body registered in 1929 under the Tamil Nadu Societies Act, yet, such is the pull of cricket in the subcontinent that the BCCI rakes in profits of thousands of rupees every year from sponsors. With the Indian Premier League (IPL) that has been structured as a special purpose vehicle of BCCI, the game of cricket has got a shot in its arm in the form of corporatisation (Goddard, Wilson, ...