IBL: Whether Individual and Doubles Sport has chance of success in League Format?

Arjun J Chaudhuri

Post Player Auction for Six Franchisees, the qualitative verdict for the First Edition of Indian Badminton League [IBL] 2013 is, it is below par, and may not match pre-launch expectations. However, the question is not the bid value of players or players expected to participate that meets expectations of their projected performance in IBL when it rolls out in August 2013, and their Advertising & Promotional [A&P] Value from endorsement contracts, but whether a predominantly Individual and/or Doubles Sport of Badminton has a greater chance of success in domestic tournament play as compared to team sports such as I-League Soccer which is in dispute with its Clubs, and IMG-Reliance Sports Management Group looking to re-format the league to suit consumer preference, in what could be categorized as second-tiered sport in India, after Cricket.

The measure of success or failure of IBL also differs from stakeholder to stakeholder. From player perspective, it is a potential performance boost playing with and against the level of competition on a regular basis whether standard of completion is below par or above par, rise in pay packet which may or may not be performance-linked, visibility and recognition which translates into greater Advertising & Promotional [A&P] Value for Sportspersons whose casual or fixed contract and prize money is supplemented by endorsement income such as the case.

From Federation perspective, it is a broader pool of players to watch compete, and select from for the national side, and international representation in seeding based tournaments, such as the case with IPL T20 Cricket wherein players are picked for the national side on the basis of their performance for their franchisees.

From Promoter perspective, it is an uncertain investment into a projected outcome that does not have a successful case study to follow for Individual and Doubles Sport such as Badminton, but borrows more from the success of a Team Sport like Cricket and IPL T20 which has acquired annual attendance and viewership benefitting onsite gate receipts, and broadcasting coverage, with advertisers in tow. It is this stakeholder’s capacity to reinvest back into the sport of Badminton year in-year out from revenue generated from selling advertising time & space, broadcasting rights, merchandising goods, and onsite gate receipts from tiered cities that will determine the success or failure of IBL. Simply explained, the Business Model of Sport of Badminton in IBL, and its ability to compete effectively against Cricket and Soccer in taking a slice out of the Advertising Budgets of Companies will determine the continuity of this league format. Because of the  intangible nature of Sports Properties as hereinabove mentioned, it is difficult to get credit from Banking & Financial Institutions whose traditional lending practices aim to secure their mortgage with adequate collateral which could be sold off or liquidated during foreclosure proceedings is not met such as the case of Deccan Chronicles Holdings, owner of Deccan Chargers Franchise in IPL Cricket.

According to latest reports, 36 Indians attracted a total of $861,000 USD in bid money during the auction which may or may not be repeated a year from now. Focus has been to attract foreign players from China and Europe to pull in greater attendance and viewership to convince advertisers to pay more in adverting after the recent spot fixing allegations and investigations therein to by Delhi Police questioning the competitiveness of T20 Cricket, a key ingredient to following sport by fans.
This edition of IBL 2013 will be keenly watched by analysts, and time will tell whether it is economically sustainable over a 3 year period.