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IPL auction was a defining moment: Modi

G. Viswanath

‘We are here to stay and we will make sure we do it right’

— Photo: Vivek Bendre

MAN WITH A PLAN: Lalit Modi, seen here at a press conference with Shah Rukh Khan, says he hopes to use the IPL to market domestic cricket too.

Mumbai: In a little over two years, Lalit Kumar Modi, wearing different hats — BCCI’s Vice-President and marketing man and the Indian Premier League’s chairman and commissioner — has raised enough money to make the BCCI, its member affiliates and a large number of cricketers the super rich of world cricket.

“I have never seen cricket being so aggressively marketed like this. Mr. Modi does his home work, market research and uses his contacts. He even changed the marketing strategy for the home series title sponsorship. The India-Australia T20 match at the Brabourne Stadium fetched the BCCI Rs. 3.3 crore. Mr. Modi knows the market well and has raised funds for the cricket community,” said Prof. Ratnakar Shetty, Chief Administrative Officer, BCCI.

In an exclusive interview (via email) to The Hindu, Mr. Modi talks about T20 cricket and the recent developments in connection with the IPL league.

Q. Nearly three years ago, the BCCI was vehemently opposed to the Twenty20 format of cricket, reasoning that it would affect the development of young cricketers. Things have changed dramatically since.

A. We were never against it. In fact, we knew three years ago that we needed to do a lot work and also understand what this format was all about. That is why we explicitly kept Twenty20 out of our entire commercial contract, whether it was Nike, Sahara or Nimbus.

Q. Then, Sunil Gavaskar said international teams would ignore Twenty20 at their own peril. Was it this statement that changed the mindset of the BCCI or had the previous regime made commitments to the ICC?

A. None of the above. As I said, we needed to understand how to implement this format. We have won the ICC T20 World Cup and we have launched the IPL, the rest is behind us. We are here to stay and we will make sure we do it right.

Q. After the T20 World Cup win, it is said you did not want to waste time in honouring the cricketers in Mumbai, especially the grand reception from the airport to Wankhede.

A. As soon as India won, we wanted to ensure that we honoured the team. There was no reason to delay the same. So, it was best that the team be honoured by the entire country, and that the fans could also interact with the team.

Q. It seems the BCCI clearly wants to exploit the market with India’s success in the T20 in South Africa.

A. India is the World champ in T20. There is no reason we should not be proud of that.

Q. The base price was $50 million to own a franchise. Were you and the BCCI surprised at the response from the parties that successfully bid for the teams, with three companies going over the $100 million mark?

A. We have always said that there is value to owning a team. People who understood the model are obviously happy about the fact that they own a team. And, people who did not now do. And for most of them it’s too late now. But I am sure when we go for expansion in the future the demand will be much more.

Q. Were the BCCI affiliates taken into confidence with regard to the revenue model because there were issues before the Champions Trophy — Mumbai (Wankhede) could not stage a match.

A. It was approved by the working committee and at the AGM. Every member was part of the success we have achieved.

Q. You must be delighted with the completion of the IPL auction with franchise owners committing themselves to almost $40 million.

A. In my view this was a defining moment for us all.

Q. Are you seeing the three IPL seasons (2008-10) as ideal build up for the 2011 World Cup in India?

A. I could not agree with the view more. We think this will help us build a perfect setting for the World Cup.

Q. Would you say the Corporates have the ability to spend more money on cricket?

A. So it would seem. The response is evident all around us.

Q. Do the eight franchises have a realistic chance to get returns much earlier than expected — say in the second or third year?

A. I think very much so. But it’s not being in the black. When you go out to set up a business, it takes you a few years to plan the same, then build the factory or outsource the product or service, as the case may be. Then one needs to spend in marketing and promoting the same. Then one looks at making profit. Here, the franchisees have bought a team, which is an asset for life. If they build it correctly, the sky’s the limit.

Q. The ICC has refused to create a window for the IPL.

A. We have a window. Most international cricket ends in March. So, we have a natural window.

Q. Any plans to find sponsors for the domestic events?

A. We hope the IPL will help us easily market that too.

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