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We could afford to take the WPL punt thanks to the new IPL media rights cycle: DC CEO
Delhi Capitals CEO and IPL’s first tournament director Dhiraj Malhotra dissects the heavy interest in buying WPL teams.
The significance of last year’s IPL media rights revision cannot be emphasised enough. On the face of it, the Indian cricket board – BCCI began reaping three times more benefits from the league.
Additionally, it is on the strength of that revenue working as a safety valve for the IPL teams and attracting the non-IPL aspirants, that BCCI had a big pay day at the Women’s Premier League (WPL) franchise ownership auction.
Seven of the existing IPL teams posted bids and three of the winning five will have IPL teams running the show. “We could afford to take the punt (in WPL) thanks to the new IPL media rights cycle. We know that we have the backing of the central pool from the BCCI (over ₹450 crore annually) which allows us to take a slightly bigger risk than people who are not part of the IPL,” said Delhi Capitals CEO Dhiraj Malhotra. DC bid ₹801 crores for ten years.
Malhotra was also IPL’s first tournament director back in 2008. “If you look at men’s IPL, for the first 7-8 years people did not make money. But the road map was very clear. We knew that you would end up breaking even and making money. Although this kind of revenue rise was expected by no one, it has happened. We are hoping that it is the same curve for women’s cricket. But as of now, it is a punt…a hope.”
The only unknown when IPL began was whether the franchise model would work. The T20 format had kicked in with the success of the first World T20, which was won by India. All the participating cricketers had a huge star appeal.
In women’s cricket, the Indian team hasn't won the big trophies yet but the most watched women's matches are still when India competes in the knockout rounds of ICC world events.
“It was not just a business decision. We went with eyes open, fully aware that it will be tough to break even in the first five years. But we think it is worth the risk,” said Malhotra. “We are looking at the ten-year media rights cycle.”
TWO MOST VALUED LEAGUES, INDIAN
The head start WPL has got from market forces could also help the BCCI keep competition completely at bay. “WPL is now the second most valued league in the world after IPL,” BCCI secretary Jay Shah said. The Indian board can now once again relay a message to IPL franchise owners -- ‘focus on the IPL, not other T20 leagues'.
Four of the five team owners in WPL (owners of MI, DC, Adani Group and Capri Global) also have investments in competing T20 leagues of other boards. A lot of their focus could now shift to the WPL, not just to meet the potential of the league but also to recover high team acquisition costs.
The money splashed on WPL bidding day (Adani’s highest bid was ₹1289 crore) may not be anywhere close to what it takes to win an IPL team (Lucknow Super Giants’ top bid was ₹7090 crore), but it’s significantly higher than investments in other leagues (MI’s top bid in SA20 is known to be around ₹225 crore).
DC co-owned by JSW and GMR have teams in both the ILT20 and SA20. Asked if the WPL was more attractive, Malhotra agreed.
“…because it is Indian. That’s our core. We are privileged to be part of it,” said Malhotra. He was quick to add, the other leagues help them market the DC brand. “What we have done is converted a lot of fans in South Africa and Dubai to support us with Delhi. So, there is a synergy there.”
But the absence of crowds in ILT20 with the missing Indian player presence and even the absence of Pakistani players to cater to the sub-continent diaspora has left the stakeholders worried. This is something Royal Challengers Bangalore may have considered before saving all their money for the WPL bidding.
WAY FORWARD
With the WPL media rights share only amounting to around ₹150 crore per team in the first five years and sponsorship money expected to be limited, to begin with, franchises are happy that the first edition is being held in Mumbai and run by the BCCI.
“We are lucky that this year the BCCI is running the league. So, we don’t have to get involved in operations… the running of the matches, the stadiums etc. Also, this year is the first time in four years that the IPL is coming back to being home and away after Covid. We need to get the fans back,” Malhotra said. “Going ahead, we all want home and away. They have said that will happen. Otherwise, it will not have the same spirit.”
