06 May 2008 21:54:00

tendulkar.com

Why Indian players are worth 5x more at IPL

There are 8 teams and IPL needs 88 players. There are 7 Countries (Aus, Eng, Pak, SLK, Saf, Win/NZL, ROW) other than India to chose the players from Assume that every country has 5 great players, 5 Good players and the rest trash Due to the 4 foreign player restriction, we only need 32 Great Foreign Players and the market supplies 7*5 = 35 Great Foreign players. So, there is a supply-demand balance for foreign players However, we need 56 Great Indian Players and India has only 5. This creates a huge Supply-Demand gap, 56 slots filled by 5. Even if you take the next 5 Good players, the gap is 10 to 56. Naturally, in a free bidding system these 10 will be bid up and even the mediocre Indian players will get more than the foreign players As the market realizes this, Foreign Players will be paid less vs Indian players which may cause Foreign players to not play at IPL at all (Which In turn creates demand and increase their price. But the gap will still be substantial). This is another classic Law of Unintended Consequences occuring whenever someone introduces artificial caps and floors. Hope Lalit Modi realizes this and removes all restrictions.

06 May 2008 23:18:41

Jayen

Re: Why Indian players are worth 5x more at IPL

On May 7, 9:54=A0am, "tendulkar.com" <tendulkar....@gmail.com > wrote: > There are 8 teams and IPL needs 88 players. > There are 7 Countries (Aus, Eng, Pak, SLK, Saf, Win/NZL, ROW) other > than India to chose the players from > Assume that every country has 5 great players, 5 Good players and the > rest trash > Due to the 4 foreign player restriction, we only need 32 Great Foreign > Players and the market supplies 7*5 =3D 35 Great Foreign players. So, > there is a supply-demand balance for foreign players > > However, we need 56 Great Indian Players and India has only 5. This > creates a huge Supply-Demand gap, 56 slots filled by 5. Even if you > take the next 5 Good players, the gap is 10 to 56. Naturally, in a > free bidding system these 10 will be bid up and even the mediocre > Indian players will get more than the foreign players > > As the market realizes this, Foreign Players will be paid less vs > Indian players which may cause Foreign players to not play at IPL at > all (Which In turn creates demand and increase their price. But the > gap will still be substantial). It depends on how it works out. If the furriners are paid more than they get elsewhere, they might show up. If they don't show up, the teams might hike their price. At the moment, that seems to be the least of the problems. > > This is another classic Law of Unintended Consequences occuring > whenever someone introduces artificial caps and floors. > Hope Lalit Modi realizes this and removes all restrictions. The main challenge that IPL faces (more than getting great players into teams) is being able to make fans identify with their city's team. If you remove restrictions on getting foreign players and the team looks like a World XI, there is a good chance that the entire edifice would come crashing down. The restriction is necessary at least until the fans' identification with the team is solid. Regards, Jayen