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Two young men versus the BCCI

POINTS FOR CONSIDERATION

A. DISCREPANCIES IN SALE OF T.V. RIGHTS BY BCCI.

· That a close scrutiny of the accounts of BCCI would reveal that there are legitimate grounds for believing that the issue of sale of TV Rights has not been handled in a transparent manner and under a consistent policy. There is absolutely no transparency in the manner in which the bids are invited, received and the contracts awarded. BCCI at its own sweet will, has earlier in the past awarded the TV rights to broadcasters / middlemen / marketing companies / sports production companies without having any production house.

(i) As per an article in Business World dated 23.08.99, in 1994 BCCI awarded the contract for TV rights to TWI for five years for a total of $20 million. Since TWI was not a broadcaster, the rights were further sold to ESPN. BCCI annual statement of 1998-99 shows the total telecast rights fee received by BCCI for the Australian tour to India from 1-14 April, 1998 as only Rs.36 lakhs. This is a remarkably low figure as can be seen by comparing it with the figure at which the telecast rights have recently been sold by BCCI to Prasar Bharati for the next five years which is Rs.230 crores. (Rupees 46 crores per year) Even if we assume 6 tours to India per year, the telecast rights average to about Rs.8 crores per tour. It is astounding that while the sponsorship money received by BCCI from Pepsi Foods Limited for the aforesaid tour was Rs. 3.15 crores, the income from TV rights for the same tour was only Rs. 36 lakhs. There is no doubt that TV Rights are the biggest revenue generator for the Cricket Boards worldwide. The sale of TV rights should be the biggest revenue earner, more so for the BCCI.

(ii) BCCI has constituted a five member marketing committee which awards the TV rights. Former President Mr. Jagmohan Dalmia was / is a special advisor to this marketing committee. It may be mentioned that the 1996 World Cup, which was held in India, Pakistan and Sri Lanka had PILCOM as the organizing committee. PILCOM had awarded the TV rights for the 1996 World Cup to WORLDTEL, a company floated by Mr. Mark Masceranhas. Incidentally, it is learnt that it was realized later by PILCOM that WORLDTEL did not have television production facilities and WORLDTEL had to engage a British Television Company GRANDSLAM to do telecast for WORLDTEL. It was reported that GRANDSLAM had threatened to withdraw just before the World Cup was to start due to payment issues with WORLDTEL. Incidentally, WORLDTEL is alleged to have been involved in bribery scandals in Sri Lanka as per Newspaper Report dated 26.10.97

(iii) In 1997, for the four-nation Independence Cup, BCCI is reported to have sold the TV rights for the event to Doordarshan for Rs. 6 crores. The newspaper report dated 21.3.1997 in the Indian Express gives an indication of the manner in which BCCI allegedly pressurized Doordarshan to award a contract to WORLDTEL for the Production Rights for a sum of Rs. 3 crores in spite of Doordarshan having its own production house.

The above mentioned facts sufficiently indicate that an investigation into the award of TV rights by BCCI in the last five years would be quite revealing as BCCI is reported to have been handling the sale of TV rights in a non-consistent and non-transparent manner. It may be pointed out that these TV rights have not always been given on the basis of open tenders but have sometimes reported to have been privately negotiated. It may be pointed out that the accounts of BCCI are not subject to any kind of independent audit of an independent auditor and there has never been any transparency in the finances of BCCI.

B. GUARANTEE MONEY

The above figures relating to sale of TV rights shows the massive amount of money that the organizers / organizing country Cricket Board earns by charging huge amounts for the sale of TV Rights for the Indian audience due to large viewership and the popularity of the game in India. However these amounts are earned by these foreign organizers / organizing country Cricket Boards only when Indian Cricket team participates in their events. In case in place of Indian Team there is any other team the earnings of the organizers are much lower. BCCI charges the organizers "Guarantee Money" for Indian team's visit or participation abroad. It is worth noting here that virtually half of the total revenue of the Cricket industry of the world comes from India. This is by virtue of the fact that there are at least twice as many persons watching Cricket in India alone as they are in the rest of the world put together. That is the reason why the TV rights of matches and tournaments (where the Indian Team is participating), for Indian territory are presumably more than the TV rights for the rest of the world put together. Thus, the BCCI should have a tremendous clout in the world of cricket internationally.

Unfortunately, however, this clout has not been used to ensure that the BCCI gets a commensurate return from the participation of the Indian Cricket Team in the form of Guarantee Money. For instance, for the Wills ICC Knockout tournament held in Bangladesh in 1998 it is learnt that over Rs. 35 crores for TV rights for India alone were paid to the organizers. However, BCCI received a guarantee money of mere Rs. 46 lacs from the organizers of this tournament for the Indian Team's participation. Similarly, for the World Cup held in May 1999, it is reported that Doordarshan paid more than Rs. 26 crores for TV rights. The event was also telecast by ESPN-Star sports channel, which too would have paid substantial money to the organizers. However as per the information available, the Guarantee Money received by BCCI was only about Rs.1.5 crores.

Similarly, in Coca Cola Cup held in Nov 1998 at Sharjah, amount paid for purchase of TV rights for Indian Territory is known to have been Rs. 17 crores and the Guarantee money received by BCCI from the Sharjah Cup organizers was only Rs. 68 lacs.

This issue of why the Guarantee money charged by the BCCI is so low in comparison to the revenue earned by the organizers of the matches played by the Indian Team has been raised in the Working Committee meetings of the BCCI by the representatives of the Member Associations, but has been brushed aside by the Working Committee. For example, in the minutes of the meeting of the Working Committee of BCCI held on 20th August, 1999, the following had been recorded:

"Mr. Bindra, however, observed that since major revenue was going to CBFS (Cricket Benefit Fund Series) organizers of Sharjah tournament because of the participation of the Indian Team for their tournaments by way of greater attendance by Indian expatriates, TV rights, in stadia advertisement rights, etc., the Board should consider signing a profit sharing agreement with CBFS like the Sahara Cup in Toronto".

This was, however, over-ruled by the majority of the Members on the ground that the CBFS had contributed a lot towards the cause of Cricket! Thus, even though BCCI gets only a pittance by way of Guarantee Money from such tournaments on account of the participation of the Indian Team, the tournament organizers earn huge revenues. It is therefore leading to a situation where the BCCI has been subsidizing the cricket associations of other countries at the cost of the development of cricket in the country. The amount of money being forgone in the form of lost Guarantee Money can well be appreciated by having a look at the above-mentioned figures.

The following are some of the issues which highlight the actions / inaction's of BCCI which are in non-conformance with its stated objects:-

A. EXCESSIVE PRIVATISATION / COMMERCIALISATION OF THE SPORT OF CRICKET UNDER THE GARB OF GLOBALISATION.

BCCI, for the past few years, appears to have been working largely for commercial gains. In its pursuit for the same it has forced the Indian Cricket Team to play one of the largest number of One Day International Matches and Test Matches almost round the year. India set a record last year by playing 40 One Day Internationals and is scheduled to play 53 ODI in the first 13 months of this Century. Of course more number of matches means more money for the BCCI.

Moreover, BCCI in its pursuit for Privatization, Commercialization and Globalization has made the Indian Cricket Team play in Non-Test Playing Countries like UAE, Singapore, Canada, Nepal, Kenya, etc. Incidentally, at the International level, Indian Cricket Team is the only team, which is involved in playing at such places regularly. The current ICC President Mr. Jagmohan Dalmia has been spearheading the globalization of cricket and is reported to have proposed to take cricket to Disney World (USA), Gibraltar, etc. If BCCI continues on its current course, it is feared that Indian Cricket would be the greatest sufferer in this globalization effort.

Statistics prove that a short trip of Indian Cricketers to play a few matches at Singapore or Sharjah is more rewarding to the BCCI than a long trip. Therefore, in spite of the latter being much better in terms of Quality of cricket played and also in terms of learning, improving ones skills and experience gained by the players, it is these shorter trips which are given precedence over the longer ones. This meaningless overdose of cricket is giving little time to the players to rest and recharge themselves which in turn affects the performance of the players considerably. Additionally, it is public knowledge that a One-Day game is physically and psychologically as taxing as three (3) Tests. Therefore, this overdose also results in endangering and reducing the entire cricketing career of the players. To quote from an article appearing in the Times of India:

"For many years, BCCI was easily the most professionally run sports association in India. Giants like MA Chidambram, S. Sriraman and M. Chinaswamy are all conspicuous by their absence now. The vast amount of money that have come into BCCI coffers when cricket value as a product for entertainment television was realised at the turn of the nineties appears to have led to a quick degeneration of the Board. If Indian Cricket Inc is more a nightmare now than a dream, the mandarins who rule BCCI can take a bow."...

"For years, the Board has swept all dirt under the carpet. What does it care? Thanks to the national obsession with cricket, which is both fuelled and fed upon by the TV Networks , the moolah continues to pour in. Meanwhile, the Indians get thrashed 3-0 Down Under."

B. POLITICISATION OF THE GAME OF CRICKET AND OF BCCI

BCCI for the last so many years, has come to be dominated largely by people who have been allegedly working for their individual and personal interests, with little regard to the stated objects of BCCI. The politics prevailing in the BCCI has almost led to seriously harming the entire selection process of the National Cricket Team. It is reported to have resulted in ruining the entire career of some capable cricketers. It has been learnt that due to personal rivalries of the members of BCCI, many capable and extremely talented cricketers get ignored.

To quote Mr. I.S. Bindra, former BCCI President from an article dated 07.02.2000 in Hindustan Times:-

"But this time some of the boys, including, Harbhajan Singh and Pankaj Dharmani have been told by some selectors that they would be deliberately kept out as long as they played for Punjab."……… "Our boys are suffering not for cricketing reasons, but due to politics in the Board (BCCI)."

Additionally, to quote from another article published in the Times of India, Editorial Column dated 26.11.99:-

"As convenor of the Selection Committee, Mr. Lele is privy to confidential information and party to all decisions. Any criticism coming from him can have a debilitating effect on the morale of the team. Moreover, only a Astrologer or a Sorcerer could make the kind of predictions he has made - That India will be wiped out 3-0 by Australia........... These comments betray an arrogance that comes from officials assuming the mantle of infallibility, which makes them perceive themselves as indispensable to the future of the activity they are administering. In Mr. Lele's case this could also be a reflection of the factional politics that has plagued Indian Cricket for a long time. This happens when organizations like the BCCI become a bastion for power mongering amongst various interests groups. Regionalism in Cricket has brought untold misery and ignominy to the game. All said and done, the BCCI has to do a bit of explaining to the Public."

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