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Saturday 5 May 2012

To save the shires, English cricket needs to follow the IPL's franchise model - Telegraph.co.uk

The cashier was of Asian origin, and brought up the subject because he recognised me from ITV's coverage.

But though the vast majority of non-Asian UK residents couldn't give two hoots for the IPL, there is growing awareness of its importance among England's professional cricketers. More than 75 percent of over 250 respondents to an online survey believed there should be an IPL-style Twenty20 tournament based on big-city franchises in the middle of the English season.

Of course, this idea was mooted five years ago by the MCC, and backed by several of the Test match venues, but the concept raised the heckles of the ECB - who are anxious to protect their lucrative Sky TV deal - and the smaller counties. It was rebuffed at the time, but there are good reasons to look again at the plan.

According to a recent financial survey, less than half the counties made a profit in 2011. Several lost millions, and that was after the annual ECB 'gift' of £1.5m to each county.

The most important aspect of the IPL is its capacity to raise new finance. It is like a new share issue. By creating a fresh 'brand' which is linked to an existing one (eg Chennai Super Kings was born out of the state side Tamil Nadu) new investors and sponsors are attracted, and enjoy a 'share' in the brand, which is denied would-be county investors under the ECB constitution. This creates a much more dynamic financial model.

Rajasthan Royals, for instance, the cheapest IPL franchise, was bought for $67m by an English consortium. Small proportions of the franchise were resold for a significant increase and now the franchise, which turns a small annual profit, is valued at $150m. Each team attracts an average of five new investors and between five and 10 new sponsors. That is all new finance coming into the game.

The egos of some of the team owners has meant the franchises squandering all of their $10m share of the TV rights on player salaries, but still the overall entities are increasing in value and able to pull in the best players in the world.

Rajasthan is the equivalent of Gloucestershire. A useful team from a remote part of the country that occasionally wins something and gets awarded the odd one-day international.

Survival is tough. After a decent Cheltenham festival, Gloucester made a £2,000 profit in 2011 - good for them - but this year they couldn't afford a mere £10,000 (£600 a game) for the services of the Irish all-rounder Kevin O'Brien (he of World Cup hundred fame) to win a few T20 games.

You could imagine under a franchise arrangement, 'Bristol Challengers' would attract investment and sponsorship from a variety of west country institutions and would be able to afford the Morkel brothers as well as the O'Briens Kevin and Niall.

The ECB are planning to have comedians preforming at domestic T20 matches this summer. It seems a strange decision.

We should be getting serious about the format, not cheapening it, as it represents a vital potential lifeline for the survival of the professional game. The quicker everyone realises that the better.

Potential English cricket franchises
Manchester (Old Trafford), Leeds (Headingley), Nottingham (Trent Bridge), Birmingham (Edgbaston), Bristol (County Ground), North London (Lord's), South London (Oval), Southampton (Rose Bowl).


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