Friday, April 07, 2006

BCCI's revenue overdrive

The BCCI management, driven primarily by its vice-president Lalit Modi comes up with innovative revenue generation moves.

Until now, cricket boards organized matches in their home countries and generated Television revenue, Tournament and ground sponsorship revenue, ticketing revenue and so on. When they toured abroad, they were paid a guarantee money by the host country.

When ICC started organizing world cups and other tournaments, they paid the particpating countries a decent share of the overall revenue generated.

In between, companies like IMG or CBFS of Sharjah organized tournaments in Toronto and Sharjah. They entered into arrangements with Indian, Pakistani and other cricket boards, paid some monies to the boards and pocketed the rest.

Now, Lalit Modi wants to organize India-Pakistan matches in neutral venues with large expatriate Indian (and Pakistani) population. Besides Pakistan, it looks like other countries may also participate. There are a couple of matches to be held next month in Abu Dhabi between India and Pakistan - back to back.

BCCI has sold the global broadcast rights to these matches to Zee Sports. For a minimum of 25 one-day Internationals, the cost of the global rights comes to a whopping US$ 219.15 million! This number looks like complete madness to me.

But then, all the monies BCCI has been getting in the last few weeks seems to be sheer madness.

Admittedly BCCI will have costs - revenue sharing with other touring teams (or at least some guaranteed money), stadium rentals (which could be offset with the gate collections), cost of creating television footage for the events and so on. Despite all this, BCCI will be left with a sizeable chunk of money.

A sponsor for these tamasha matches will pour further monies in. There will be other merchandising opportunities.

One can't appreciate the smartness of Mr. Modi enough, but for his arrogant attitude. From all accounts I hear, the man is a thorough pest and unmanageable. He throws temper tantrums and acts in the most despicable manner. Even in the recent Zee's winning bid, Zee is talking about filing a defamation suit against Lalit Modi for using intemperate and abusive language at Zee's CEO.

I am glad that I got out of the cricket business before coming face to face with Mr. Modi!

At least on the inter-personal relationship angle, Lalit Modi makes Dalmiya look like an angel.

1 comment:

  1. sir ,i have taken admission in m. pharmacy in deemed university and my course is not approved by AICTE. My course valid or not in india & abroad. can i do job in abroad.....