IPL Auction Expenditure by teams and True Value of players

Naavi had during 1999 cricket world cup promoted a concept of “Naavi’s Cricket Rating” which was designed with many innovations not otherwise available at that time. This was originally developed to assist advertising cients with a  tool to promote their brand around a public promotion scheme involving a scientific identification of the “Player of the Tournament”.  A revised version was also used during the 2007 world cup successfully.

Since the creation of IPL, the undersigned has been thinking about how to create a system of true valuation of a player based on performance as against the prices paid by different teams for different players.

Now with the completion of the recent auction for IPL 2014, the undersigned is trying to develop a new system where the performance based rating would be used along with the price of each player at the time of action to develop a “Value Index” for the players.

Apart from developing the value index for the sake of following the cost linked performance of the players, it is also envisaged that a collateral system where by the teams can develop a system of monetizing the player cost into a derivative instrument and raise finance either for  a temporary period as working capital or for a longer period.

This scheme would provide a different dimension to the player valuation in which public will provide their own perception of the value of the player. This may help teams when they need to trade the player between teams or when their contracts are to be renewed in future. Additionally, funds raised may help in optimizing the resources so that the team can reap a benefit on their investments.

The grand scheme drawn up requires complete cooperation from BCCI since there could be legal issues involved in the successful running of the scheme. However limited use of the rating system for evaluating the investments made on the players and using the information as part of the brand promotion and marketing activities of a large corporate entity would be feasible outside the BCCI regulations.

The scheme would require running of a software application and ability to invest in marketing and also harness the benefits.

The undersigned would be happy to discuss possibilities with interested companies who may contact the undersigned at naavi@vsnl.com


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