Water, IPL and the ease of doing business

The latest controversy surrounding the just-about-to-start ninth edition of the IPL (a court case challenging its staging in Maharashtra while farmers are dying in Vidarbha) is a clear illustration of why the ease of doing business in India doesn’t look like it will improve.

At the bottom of it, the IPL is a business, with the IPL and teams having invested heavily in team building and marketing and infrastructure. They have made these investments so far hoping to recover them through the tournament, by way of television rights, gate receipts, etc.

Now if the courts were to suddenly decide that the IPL should not take place in Maharashtra, it will mean that alternate arrangements will have to be found in terms of venues and logistics, teams which have prepared grounds in Nagpur, Pune and Mumbai will have to recalibrate strategies, and most importantly, the people of these cities who have bought tickets (they clearly believe that the value of these tickets is higher than the price) will also end up losing.

Farmers dying for lack of water is a real, and emotive, issue. Yet, to go after a high-profile event such as the IPL while not taking other simpler measures to curb fresh water wastage is a knee-jerk reaction which will at best have optical effects, while curbing the ability of businesspersons to conduct legitimate business.

There has been much talk about how policy measures such as the retrospective taxation on Vodafone or Cairn have been detrimental to investor sentiment and curbed fresh investments in India. This court case against the IPL days before it began is no different, and a strong signal that India’s policy uncertainty is not going away quickly.

Unless the political class manages to fix this, and provide businesses more stable environments to operate in, it is unlikely we’ll see significant increase in investments into India.

Foreign Policy Should Be National

So we might have this weird situation in the forthcoming IPL where Sri Lankan players are not allowed to play in Chennai. While the merits of whether India should continue to have diplomatic relations with Sri Lanka in view of the alleged genocide is debatable (I personally think we should continue to have these relations), I think the “solution” of giving visa to Sri Lankan players and then not allowing them to play in a particular city shows India in bad light.

Regional leaders are entitled to, and should, have their opinions when it comes to foreign policy. However, these opinions should be discussed in Parliament or Cabinet or some similar forum, and as far as the outside world is concerned, India should have a single foreign policy. It might be in the Tamil Nadu politicians’ own political interests to take a hard stand on this Sri Lanka issue, but it is the job of the Union Government (and the Prime Minister) to hear these voices, debate them and make a decision which the regional leaders are bound to obey.

It is well known that Tamil Nadu politicians don’t want the Sri Lankans to participate in the IPL, and this might be a corollary of their stand that the Indian government should not engage with the current political establishment in Sri Lanka. Taking that into consideration, the Union Government should do one of two things – accept the stand of the TN politicians and deny work permits to the Sri Lankan cricketers, or allow the Sri Lankans to participate in the entire tournament, including in Chennai.

It is important that India presents a coherent face when it comes to foreign policy. We have already seen one international deal (on the Farakka barrage, with Bangladesh) being scuttled at the last minute because of last-minute reservations expressed by regional politicians. If we present a divided stance on this IPL issue, it could send out a signal that Indian foreign policy is hostage to regional leaders, and that it is difficult to do business with India (since that entails doing deals with regional leaders also).

At a time when doing business with other countries is paramount (given our energy security concerns) , it is important that we send a signal that we are easy to do business with. And for that, we need to signal that we have one foreign policy.

Tailpiece: I wonder whether under their current stance the TN politicians will allow Muthiah Muralitharan, a Tamil Sri Lankan who is married to a Madrasi, to play in Chennai.

Sponsorship Cannibalism

Back in 2004 Shamanth, Bofi, Anshumani and I started the IIT Madras Open Quiz. In some ways it was a response to critics of IITM quizzing, who blamed our quizzes for being too long, too esoteric, too disorganized and the likes. It was also an effort to take IITM quizzing to a wider audience, for till then most quizzes that IITM hosted were limited to college participants only. An open quiz hosted by the institute, and organized professionally would go a long way in boosting the institute’s reputation in quizzing, we reasoned.

Shamanth had a way with the institute authorities and it wasn’t very difficult to convince them regarding the concept. We hit a roadblock, however, when we realized that organizing a “professionally organized” quiz was a big deal, and would cost a lot of money, which means we had to raise sponsorship. And this is where our troubles started.

The first bunch of people we approached to help with sponsorship were the Saarang (IITM Fest) sponsorship coordinators, who had so successfully raised tens of lakhs for the just-concluded Saarang. Raising the one lakh or so that we needed would be child’s play for them, we reasoned. However, it was not to be. While the coordinators themselves were quite polite and promised to help, we noticed that there was no effort in that direction. Later it transpired that the cultural secretaries and the core group (let’s call them the Cultural Committee for the purpose of this post)  had forbidden them from helping us out. Raising sponsorship for an additional event would cannibalize Saarang sponsorship, we were told.

When we needed volunteers to run the show, again we found that the Saarang “GA Coordinators” (GA = General Arrangements; these guys were brilliant at procuring and arranging for just about anything) had been forbidden from working with us. The Cultural Committee wanted to send out a strong signal that they did not encourage the institute holding any external “cultural” events that were outside of its domain. It was after much hostel-level bullying that we got one “GA guy” to do the arrangements for the quiz. As for the sponsorship, we tapped some institute budget, and the dean helped us out by tapping his contacts at TCS (for the next few years it was called the TCS IITM Open Quiz).

One reason the quiz flourished was that in the following couple of years, the organizers of the quiz had close links with the cultural committee – one of the quizmasters of the second and third editions of the quiz himself being a member of the said committee. This helped the quiz to get a “lucrative” date (October 2nd – national holidays are big days for quizzing in Chennai), and despite being organized by students, it became a much sought after event in South Indian quizzing circles. Trouble started again, however, after the link between the quizmasters and the cultural committee were broken.

The Cultural Committee once again started viewing this quiz as a threat to Saarang, and did their best to scuttle it. The quiz was moved around the calendar – thus losing its much-coveted October 2nd spot, and soon discontinued altogether. Despite significant protests from the external quizzing community and alumni, there was no sign of the quiz re-starting. Finally when the cultural committee accepted, it was under the condition that the quiz be a part of Saarang itself. After significant struggle, finally a bunch of enterprising volunteers organized the quiz this year after a long hiatus. It is not known how much support they received from the cultural people.

The point I’m trying to make is that when you have one lucrative product (in this case Saarang), it is in your interest to kill all products which could potentially be a competitor to this product, which explains the behaviour of the IITM Cultural Committee towards the Open Quiz. And it is the same point that explains why Test cricket in India is languishing, with bad scheduling (Tests against the West Indies started on Mondays), bad grounds, expensive tickets and the likes. The Board of Control for Cricket in India (BCCI) now has one marquee “product”, the Indian Premier League (IPL). The IPL is the biggest cash cow for the BCCI, and the board puts most of its efforts in generating sponsorship for that event. And as a side effect, it does its best to ensure that most of the premium sponsorship comes to the IPL, and thus the stepmotherly treatment of other “properties” including domestic cricket.

Last evening, I was wondering what it would take for the BCCI to make a big deal of the Ranji trophy, with national team members present, good television coverage and the kind of glamour we associate with the IPL. And then I realized this was wishful thinking, for the BCCI would never want to dilute the IPL brand. Have you heard of a tournament called the Syed Mushtaq Ali Trophy? It is the domestic inter-state T20 competition. A potential moneyspinner, you would think, if all national team members are available. But do you know that last year the final stages of this competition coincided with the World Cup? I’m not joking here.

I’m sure you can think of several other similar examples (Bennett Coleman and Company’s purchase and subsequent discontinuation of “Vijay Times” also comes to mind). And the one thing it implies is that it’s bad news for niches. For they will begin to be seen as competition for the “popular” brand which is probably owned by the same owners, and they will be discouraged.

 

What the hell was Vettori thinking?

I’m writing this post in anger. In disgust. At the sheer lack of strategic vision shown by Royal Challengers Bangalore captain Daniel Vettori. What the hell was he thinking when he threw the ball to Virat Kohli for the 19th over, with 43 required off two overs? Yes, there had been a miscalculation earlier which meant that one of the last five overs had to be bowled either by part-timer Kohli, or by Raju Bhatkal who had been torn apart in his earlier two overs. While it is hard to pardon miscalculation in a twenty over game, it is nothing compared to the strategic error of the 19th over.

When overs sixteen to eighteen were bowled by Zaheer, Vinay and Zaheer respectively, I thought it was a tactical masterstroke by Vettori to keep the one extra over to the end. Given the skyrocketing required run rate, I thought it was a great idea that he was trying to put the match beyond Chennai Super Kings by the 19th over itself. And it worked well. From 75 needed off 5 overs, the equation was brought down to 43 off the last two overs (now, it is reasonable to expect Zaheer and Vinay to go at around 10 an over in the slog overs). And then what happened?

You have two overs left, 43 runs to win. You have a reasonably experienced medium pacer who is generally good at bowling at death, but is also prone to buckling under pressure. And you know you can’t trust whoever the other bowler is going to be. What you want is to have your good bowler bowl without any pressure on him. Without any pressure, you can expect him to go for about 10-15 in the 19th, leaving the batsmen to score nearly 30 off the last over – which would tilt the odds significantly in favour of the part timer who would bowl that over, since the pressure would be on the batsmen.

Instead, what do you do? Give the part timer the 19th over. He has no answers for Morkel’s slogging and edging, and goes for 28, leaving Vinay to defend 15. Now, it is Vinay (who is vulnerable under pressure) who has to bowl under pressure, and the batsmen know that. It is a miracle that the match went down to the last ball.

Of course you might say that I wouldn’t have reacted so angrily had either RCB won or Kohli had gone for less in his over. That’s not true. The match was in RCB’s pocket, to be won. The probability of victory reduced significantly the moment the ball was thrown to Kohli (for the 19th over). The ultimate result doesn’t matter. I would have blasted Vettori even if we had won.

Now, there is another uncharitable explanation that comes to mind, and I’m not very proud that this comes to mind. Was it mere incompetence or some sense of malice on the part of Vettori to give the 19th over to Kohli? I’m not talking about bookmakers here, I respect him too much for that. But think about it. Just yesterday, both Mint and Cricinfo ran articles talking about IPL 5’s poor TV ratings so far. The BCCI Chairman N Srinivasan (who not so coincidentally owns CSK) said that the answer to increasing TRPs was to play on batting-friendly high-scoring pitches, and to have close games.

The first wish was answered, when RCB set a target of 206. I wonder if there were some kind of instructions from “big brother” instructing that the game go into the last over, as a means to increase flagging TRPs. If Vinay had bowled the 19th and gone for 10 (say), that would have left a near-impossible 33 off Kohli/Bhatkal’s over. Match over by over 19. One more match that is not “close”, which will do nothing to boost TRPs. But keep the contest alive till the last over, TRPs would be boosted?

As an RCB fan, I hereby call for the immediate sacking of Daniel Vettori as captain and his replacement at the helm by one of Kohli or AB De Villiers  (maybe even Vinay Kumar or Zaheer Khan). Maybe I should create an online signature campaign for this purpose, and use my contacts to get the results through to Anil Kumble and other powers-that-are at RCB.

 

Big Bash

Half an hour back, I moved from my room/office to the hall to catch what I thought will be five minutes of Big Bash (Australia’s version of the IPL). I ended up staying there for half an hour. I don’t know if the quality of cricket was decidedly superior to that of the IPL, a tournament I hardly watched in its latest edition (I keep forgetting who won, even). It was the quality of broadcast that had me hooked.

I must mention here that I was watching the broadcast on Start Cricket HD, but even the IPL was telecast on SetMax HD this year. And there was simply no comparison in terms of the quality of pictures. I don’t know if it has something to do with the nature of floodlights at the Gabba (maybe it does), but the pictures from the Big Bash were so significantly superior to that of the IPL (tough to explain this objectively, so you should watch and see for yourself). And then there was the commentary. Again, I don’t think any of the famed Channel Nine line-up was involved (the broadcast is by Fox Sports, and I didn’t hear any familiar voices), but the commentary was good while not being too intrusive. Again, there was no idiotic playing up of the sponsors (DLF maximums and the like), and then they had wired up Shane Warne as he thought aloud as he plotted Brendon McCullum’s dismissal.

There is something about the overall sound of the Big Bash telecast that the IPL misses out on. It probably has to do with the way they capture the crowd noise, but it does make one feel like one is in the stadium. Of course, I must mention here that of whatever bits of IPL I watched this year, I watched most of it on mute thanks to the insufferable commentary.

And then the ads. The IPL simply doesn’t seem to have figured out an effective ad model. They stuff the viewer with so many ads that there is little brand recall, and people mostly react to these brands with a sense of irritation. The Big Bash, on the other hand, seems to have figured out the model of fewer and shorter ad breaks, which will still keep people in their seats. I hope they are being compensated for it with higher revenue.

There is a lot that the IPL has to learn from the Big Bash. Hopefully the low TRPs of the last edition will mean that they will be open to innovation and improvement. I surely won’t mind watching the IPL if it is produced with the same quality as the Big Bash. Maybe I’m being too hopeful here..

IPL Fixing

If Chennai  beat Punjab today, then both RCB and DC will go through to the semis. Right now all three teams (Punjab, Bangalore, Hyd) are on 14 points and Punjab has a significantly lower NRR than the other two. So irrespective of who wins tomorrow’s game, it is likely that both are going to go through.

If Punjab lose tonight, then Kumble and Gilly can sit down and “cut the IPL melon” and decide among themselves who wants to face Chennai and who wants to face Delhi. And fix tomorrow’s match accordingly. As long as either RCB wins or if DC doesn’t win by a big margin, both go through. Splendid stuff.

Which is why, in football, in all leagues all last round games are played simultaneously. This happened after in the 1982 world cup, Germany and Austria figured out that as long as Germany would win 1-0, both would go through to the quarters ahead of Algeria. So Germany scored quickly, and then both they and Austria just passed the ball around for the rest of the game and chucked out Austria Algeria.

however, the iPL is more about money and about TRPs than about real competition so we are unlikely to see the last four games being played simultaneously.

Update

Ok so through some expert analysis I’ve come to the following conclusion after yesterday’s games.

1. Deccan Chargers are through irrespective of today’s result

2. Royal Challengers Bangalore can also be through even if they lose. All they need to make sure is that if Deccan bats first, then the margin of victory is not more than 75 runs. If Bangalore bats first, they need to make sure that Deccan takes at least 10 overs to reach the target.

Note that these numbers are approximate and will vary with the exact score that is made. But these two numbers can be taken as a ballpark.

Bottomline is that unless RCB mess up royally, Punjab are on their way home.

Needed: An Indian Plate League

The problem with the IPL is that there is little disincentive for doing badly. There are a total of eight teams. Each of them has a reasonable number of saleable cricketers. These cricketers’ salaries are orthogonal to their skills, and their expected contribution to the game. Irrespective of how badly a team does, the one-team-per-city rule means that there are enough people who will support it. That there is only one game at a time means that everyone will watch it, irrespective of how you do.

(I had writtne a lot more but for some reason it didn’t get saved due to some connection issues. so re-writing; may not come out too well)

The argument here is that there is no disincentive in the IPL for not doing well. However badly you do, you get the same television audience (maybe slightly lower). You get in crowds for your home games. You have a natural support base which is sticky. The players want to do well, yes. But from the point of the team owner, revenue maximization is not really correlated with performance.

Hence we need an Indian Plate League. 8 more teams slugging it out in a division below. Every year bottom 2 teams of Premier and top two teams of Plate swap places. Plate games happen on same days as Premier, maybe at a less attractive time. The 8 Plate teams that will be initially sold can evven be from the same cities as the existing Premier teams (not all of them of course – some of the larger hitherto unrepresented cities – such as Ahmedabad – deserve teams) – and that will put more pressure on teams to do well – since there is no guaranteed support base.

Existence of a Plate League, and the concept of relegation will mean huge losses for a team that goes under. Obviously not as many people will watch Plate games compared to Premier. Gate receipts might also be lesser – but it need not be since some cities which are still not served by the IPL will come into the picture then. Merchandise sales for the plate teams will also be much lower – kids wouldn’t want to run around wearing jerseys of “loser” teams. And there is also the reputation risk for the owners if their teams go under.

All in all, the existence of a second rung and the concept of relegation and promotion will definitely increase the quality of cricket on offer. Team owners will now suddenly have to make sure their teams perform, and greater care will be taken in team selection, strategy, etc. Quotas will go, and players will come in on merit (the <=4 foreigners rule should remain, though – thatz the only way Indian youngsters will be able to benefit from the IPL). Ridiculous concepts such as picking teams based on talent hunts will go. Teams will become more serious about the whole tournament.

Of course there will be opposition from the owners of the existing teams, since the threat of relegation will automatically reduce all of their valuations. However, for the sake of quality of cricket, and to make the event more sustainable, the BCCI would do well to create a plate league – after all, that is going to bring in more money also, right?

(once again i apologize for the quality of writing in this post. The original that I’d written got wiped out due to a horrible netwrok (some problem wiht my wifi). This is the recreation of what I intended to say. The thought remains, but not the expression.)

IPL

It’s day one of the second edition of IPL and I’m already loving it. As has already been said by several people several times on Twitter today, it’s quite fitting that the three best performances of the day have come from Tendulkar, Dravid and Kumble. The second match was extremely strong, even from a neutral perspective, and was very refreshing after the batfest that had been the first edition of the IPL.

One major blessing in disguise of moving the tournament to South Africa is the change in conditions – which is likely to lead to better cricket – in the sense of a better contest between bat and ball. Last year’s tournament was a joke in terms of the quality of cricket. There was absolutely nothing in it for the bowlers, and then they put NED after that and made things worse for themselves. Hopefully this promising start will lead to a better effort by bowlers this time round and we’ll have more games like the second one.

I’ve always maintained that the best ODIs are defences of low to moderate scores. The ideal ODI, in my opinion, will have the team batting first making 200-225, taking early wickets and putting pressure on the second team so that it ends up as a tight game (don’t care who wins). Sadly, the pitches they have been making nowadays seem to be creating 300+ games only which is why I’ve stopped watching ODIs.

Coming to the games today, the main mistake that Chennai Super Kings made was with respect to their batting order. A lot of people maintain that they messed up their team selection, and I agree with them – I would definitely have put in Vijay and Balaji instead of Parthiv and Joginder. But even the team that they started off wiht wasn’t too bad, where they messed up was in the chase.

When you are chasing a reasonably moderate total like 166 (equivalent to 250 in ODIs), you don’t need to pinch hit. I know Sri Lanka did that when they won WC96, but I’m more of a fan of Pakistan’s method in WC92 which is to first build a base and then have hitters coming in lower down the order to capitalize. Similarly, chasing 166 with Hayden at one end, what was required was a proper batsman at the other, and Dhoni sent in Flintoff. I think the match might have been sealed there.

It is all about slotting people into the right roles. Having Badrinath and Flintoff in the same team makes sense, but the role for each needs to be well-defined. Badrinath is an excellent “holding batsman” (the same role in which Dravid and Tendulkar excelled in today – and the role that Tendulkar plays in ODIs nowadays) – someone to hold one end up and rotate the strike while batsmen at the other end go for it, but he is incapable of slogging if he comes in with a large required run rate and not much time. And CSK didn’t desperately need to slog when Raina got out – all they needed was some consolidation and for one guy to stay while Hayden accelerated.

Similarly, when you look at Rajasthan’s lineup, you will notice that there are very few “proper batsmen” in the line-up, and a large number of “hitters”. How many people in the Rajasthan XI would you count on batting for you within the first 30 overs of an ODI? I can count Smith, Asnodkar and NK Patel, and maybe Ravindra Jadeja. The rest of the “batsmen” in their lineup (Pathan, Henderson, Mascarenhas) are all essentially hitters. And when conditions are not ideal for hitting, you can come unstuck.

If things continue to go the way they did today, teams will need to re-think their strategies. The slam-bang approach of last year won’t work and they will need to move towards “proper cricket”. Have proper batsmen and proper bowlers and proper keepers rather than having bits and pieces guys, and fill-in guys. Let’s see how things pan out.

I hereby predict that if things continue to go this way, Rajasthan Royals will recall Mohammed Kaif. Also, you might have noticed Uthappa shouting out to Kumble in Kannada about what to bowl (he frequently shouted “kaal muri” which literally translates to “leg break”). And that the Bangalore team has 5 guys from Bangalore – which perhaps enables them to indulge in this kind of “cipher”.

IPL Structuring

I remember that this time, last year, I was eagerly looking forward to the IPL auctions. It also happened to be a time when I was actively looking out for a new job (i wasn’t going to find one till about six months later). And I was secretly hoping that one of the IPL franchises would employ me as a game theory and structuring consultant in order to help them out with the player auctions. While I tracked it online, I imagined myself sitting in the bidding room at the Trident, showing my excel sheet to the franchise owner and captain, and watch Preity Zinta enhance her Mata Amrita Index.

It was also a period of extreme NED, due to which i didn’t bother looking out actively to try consult for an IPL franchise. It was a period of low confidence, so I assumed I wasn’t good enough for this kind of work, and didnt’ bother doing anything in this direction. Frankly, I didn’t have a clue how to proceed, else i might have put SOME effort at least. A few months later, when the IPL was well underway, I figured out that one of my cousins is a big shot with Bangalore Royal Challengers, and he was among the people at the Trident who picked the Test XI to represent BRC. I wanted to kick myself, but for some reason I didn’t.

Currently, I’m comfortably employed, and so far have been happy with this job. Else I might have wanted to throw my hat into the ring. Once again, IPL team formation season is on. A few transfers have gone through already, and a few are currently in limbo. Bidding will happen next season for people who are joining the league this year. It promises to be an interesting time. And so far I’ve been deeply unhappy with the way the franchises are going about their business.

I’m especially upset with BRC, and have half a mind to call up my cousin who consults for them and give him a piece of my mind. How the hell could they let go of Zaheer Khan in exchage for Robin Uthappa? Yes, the latter is from Bangalore, and has that local pull factor. He has batted quite well this Ranji, though not anywhere close to what he played like 2 seasons back when he topped the batting charts. But he is supposed to be paid twice of what Zaheer was being paid! Is he really worth that much? I’m sure that BRC missed a trick here. I’m sure that had the BRC asked for a fee from Mumbai Indians in order to release Zaheer in exchange for Uthappa, the Indians would’ve definitely paid up. When Chelski can reportedly offer Anelka, Malouda, Alex and 15 million pounds in exchange for Robinho, Mumbai could definitely part with Uthappa and maybe a million dollars in exchange for Zaheer.

There were rumours of the Mumbai Indians negotiating a swap with Kings XI Punjab for a swap between Powar and Harbhajan, which reportedly got stalled because Harbhajan earns so much more than Powar. Once again, what if the Mumbai Indians paid a fee along with Harbhajan for Powar? I know it is ridiculous that Powar is worth Harbhajan plus a fee, but given their disparity in income, this is the only way that this deal is possible. And I’m sure that there is a particular fee, which if paid along with Harbhajan in exchange for Powar, will leave all the interested parties (Punjab, Mumbai, Harbhajan, Powar) better off. It seems like people are too lazy to find it.

The opportunities like this are endless. All that the franchises need is someone who has sufficient knowledge of game theory, coase theorem, a decent knowledge of cricket (interest in domestic cricket is a desirable quality) and who understands how to structure deals. I don’t know if franchises have already recruited such people but if they haven’t, they should try and recruit. The most obvious choice of person that I can think of who possesses all the above skills (including interest in domestic cricket) is me. Unlike last year, I’m not in the job market right now, but don’t mind doing some part-time stuff. I may not get paid, but I’m willing to work for a few IPL tickets and maybe invites to some parties with cricketers.

I’m also wondering if cricketers’ pay will go down starting the 2011 season onwards. The IPL auctions happened just before the downturn was to begin, and I’m sure that franchises have overpaid for most players. Since players have all signed three year contracts, their pay till the 2010 season is safe. Beyond that, I’m not sure if franchises will offer them fresh contracts at higher or equal salaries.

It would also be interesting to see if some version of the Bosman ruling is to operate in the IPL. We can only wait and see.