Competition in cricket

There is a basic theorem in micro-economics which says that when a firm begins to make super-normal profits, unless prohibited by law or protected by very high entry barriers, it should expect competition. The Board of Control for Cricket in India (BCCI), which has had a monopoly over the game in India and whose annual revenues are so far ahead of expenses that it earns super-normal profits, is about to find out how true this is. A rival body, called the Indian Cricket League ((ICL), has been sponsored by a major television company. In 1977 the Australian media tycoon Kerry Packer, who owned Channel 9 in his country, had done just that. Like Subhash Chandra of Zee, who has formed ICL, he too set out to challenge the monopoly of the Australian cricket board. Naturally, there was a period of vituperation and turbulence. But when things settled down a few years later, Australian cricket emerged the better for it and "pyjama cricket" was here for keeps. Of the eight World Cups played since then, Australia has won four, including the last three. Its Test record too is superb.

Most people attribute this success to the competitive structure of domestic cricket in Australia. That structure treats the game primarily as a domestic entertainment and not, as the BCCI has been doing, as primarily an international contest. This is based on the common-sense premise that any game becomes more entertaining when competition and quality thrive. Both have been missing for close to two decades from domestic Indian cricket "" that is, ever since the BCCI began to see the game as a milch-cow and focused only on international tournaments. But now it is time to restore the balance. If the ICL succeeds it will improve India's performance in international games as well. Since the BCCI alone has the right to field India teams, it will gain as a result.

Before that happens, there are a few things that the ICL needs to watch out for. One is that money alone may not be enough to attract the best cricketers, as Kerry Packer discovered. Second, getting retired players from abroad may not work because, all said and done, they are past the high levels that international cricket, with its emphasis on youth and fitness, requires. Third, the ultimate aim of any cricketer is to play for India in the World Cup. So it will have to devise a way of keeping a way open for players to be selected for India's World Cup team. Fortunately, the next one is four years way and things should settle down by then. Most importantly, the ICL will need stadia. Although it has got one in Mumbai, the rest are controlled by state associations, which are funded by the BCCI.

It is also useful to learn from other sports. In European football, they have the English premier league, the Spanish and Italian leagues, and so on. In the US, they have competing tournaments in some of their premier sports. Tennis too went through its upheavals once the players got organised. In short, as in other businesses, competition is good for the sports business also and sports organisations that are a throwback to the days of amateur sport will have to adjust to a more commercial environment.