Friday, June 22, 2007

DESCRIPTION OF PROPOSED PRO CRICKET LEAGUE

Description of Proposed Pro Cricket league

The need for a new format is seen from informal poll results on the WICB’s website. In response to the question “Which form of cricket do you prefer?” 35% of respondents preferred test cricket, 51% preferred one-day internationals, and 13%preferred 20/20 cricket. But as mentioned in the previous section, even one-day internationals are too long and present a barrier to maintaining the interest of fans for any duration of time. The new format would entail a unique mixture of limited-overs cricket and test cricket. It is proposed that the league be called “DOUBLE WHAMMY CRICKET”.
This format it is hoped will accomplish four major objectives. One, it should aid in the development and preparation of players for both forms of the international game. Two, it should result in improved performances in the regional competitions on a gradual basis. Three, it should generate renewed interest cricket fans. And four, it should provide investors and stakeholders with a credible product that is easily marketed.
In order to generate excitement, having limited overs ensures that at the end of every match there will be an outright winner. In order to make the games not too short (as in 20/20 cricket) and not too long (as in one-day internationals etc.) it is recommended that each innings be 35-overs long (see -footnote 2). Games will be scheduled to be played over two days with each team allotted 35-overs each per inning[1]. Though not lasting as long as a five-day test match having games played over two days allows for a lot of innovation mainly on the field as teams can engage in planning and strategizing as observed in a test match and should maintain the interest of fans in games. For example, a team may make a low score in their first inning. Normally, in a one-day game the outcome of such a game would be predictable. However, with two-day limited overs cricket as with test cricket fortunes can be reversed in a second inning. This it is believed will add more excitement and also reverse the current culture in West Indies cricket where teams are not able to put together a complete match performance.
It is also envisioned that with this format being played under varying conditions, such as day games and/or day-night games that this will also provide optimal entertainment for the many fans of West Indies cricket here in the Caribbean and overseas. It is also proposed that all the rules associated with test and one-day cricket be applied, to the extent that there are no conflicts, and that a league season run for an approximate period of between 3-4 months and be scheduled to coincide with the lucrative winter tourist season so as to maximise potential earnings from tourism for the region.
In summary the proposed format of the Double Whammy Cricket is as follows:
· Unique mixture of limited-overs cricket and test cricket. All the rules associated with one-day internationals and test cricket should be applied to this league format insofar as there are no conflicts.
· Games played over two days with each team being allowed two innings to bat and each inning consisting of 35-overs per team. The follow-on rule in test cricket would be applicable in that, teams batting first and gaining a sizeable first inning lead could ask their opponents to bat a second time before using there second inning opportunity.
· The league season should last for 3-4 months and be scheduled to coincide with the winter tourist season.
The means by which a league champion will be decided for example, having a quarter-final, semi-final and a final, should be decided on when it can reasonably be determined how many teams will likely participate in the league.

Rationale for double whammy
Q Business and Economic factors
Q Fan Appeal
Q Youth Development

Business Model

There are three likely business models to be considered in establishing and operating the Double Whammy Cricket League. They are as follows:
v The franchise business model[1].
v The single-entity business model[2].
v The European model
The European structure of operating and organizing professional sports leagues characterized by its use of promotion and relegation, and where teams are part of both the league and a governing body, is not thought to be practical given the objectives and purpose of a Caribbean professional cricket league and the need for stability.
In harmony with the above a brief outline of the proposed business models for the league is explored below.
The Franchise Business Model – In this model, as used in North American sports, individual investors own separate teams in the league which operate as individual businesses, they then form an association and appoint a commissioner to oversee the day-to-day operations of the league, with responsibilities which include ensuring that teams abide by league rules etc. Generally, the structure of North American professional sports leagues is characterized by the use of franchises and closed membership. Professional sports leagues in North America are 'closed corporations' limited to a fixed number of teams, known as "franchises". Only a vote of the existing constituent franchises can admit more teams; when this is done, a new franchise place is put up for bidding among would-be owners. With a few exceptions, these franchises enjoy a geographical monopoly in a particular location. This system started with the formation of the National League in 1876, in reaction to the instability of its predecessor organizations[3].
Although league members generally operate as independent entities, separate from the league itself, they are largely creations of the league.
In the case of a professional cricket league in the Caribbean tenders would be invited from clubs backed by private enterprise to become franchisees in specified locations in the various islands based on the potential that exists for maximizing economic and social benefits. The WICB could perhaps act in place of an association in the initial phases of selecting teams for the league and thereafter hand over the day-to-day operations to an association with a management team chosen by owners of teams/franchises in the league. It is also proposed that a maximum of 10 franchises be set up in the initial phase and every year thereafter an assessment be made to determine what potential exists for the establishment of additional franchises[4]. Criteria to be used for the granting of initial franchises to a region or member state could include but is not limited to factors such as population size, potential market size i.e. the revenue that can be generated in that region. Going forward however, profitability and market potential based on forces of demand and supply shall be evaluated and franchises will either be revoked or granted.
Franchisees would need assistance to develop cricket stadia and player facilities of a high quality to facilitate the production and delivery of a world class product. This would involve the commitment of regional governments to providing incentives via tax breaks etc. to businesses and private individuals willing to undertake any such venture. Initially however, the use of existing grounds within the region that have just been either refurbished or newly built could be used to fast-track this process. Many grounds are being upgraded at the moment in preparation for World Cup 2007 and should be in a relatively good condition after the tournament has been completed. This will additionally help the owners of such facilities recoup expenditures made in upgrading or even building these facilities sooner than expected.
The Single-Entity Business Model[5] – This model retains some elements of the franchise business model with the main difference being that it has a more centralised structure and maintains ownership of all teams and player contracts. Investors, rather than franchise owners, operate and market teams. This is the business model used by US Major League Soccer[6] and they thought that its adoption would “eliminate financial disparities between large and small markets, control player costs, and offer commercial affiliates [i.e., partners] an integrated sponsorship and licensing program.”
The single entity concept as adopted by MLS, and most of the other recently founded leagues, is a radical ownership concept in professional sports. In essence, MLS brought the concept of revenue sharing, as developed by the National Football League, one step further. The league has taken on many of the primary responsibilities typically associated with franchises in other sports. The league attracts, signs, and pays players. This allows the league to establish a competitive balance among its teams. In MLS, teams may do their own scouting, and if they identify a potential signing, and MLS can negotiate a salary with the player, the discovering club will usually get that player.
One aspect of the uniqueness of the single-entity model is stated by an MLS executive in this way: “Because Major League Soccer [has] a single-entity [structure], we are able to package rights to both the league and its 10 teams into one integrated program. We have created an environment where the success of the league as a whole is more important than that of an individual team. We provide marketers the one-stop shopping that they cannot get anyplace else.” An investor in MLS further stated: “Single-entity is the best of both worlds. It puts teams on equal footing. But on the other hand, operators have the flexibility to run their own franchise and will drive the league to success through their entrepreneurial skills. In the system, team operators run their club as they see fit. They hire their own general managers, front-office staff, and coaches. In addition, they scout, draft, and trade players and market the team locally.
It is proposed that the single-entity business model be chosen as the operating model for Double Whammy Cricket. If the single-entity business model is selected it is proposed that the owners and operators of the pro cricket league (Double Whammy) incorporate it as a limited liability company in the sports and entertainment industry. Therefore, the rules and practices for normal business function should be observed.
The company should be seen as providing a product or service (i.e. entertainment) to the public and hence that product or service should be of the highest quality. It should also be anticipated that the forces of market competition will be at work in the delivery of this (entertainment) product, hence the need to use various tools such as targeted and aggressive marketing to gain a competitive advantage. There is need for transparency and accountability on the part of those charged with overseeing the leagues operation[lw1] . There is also the need to gather information so as to be able to undertake strategic planning and identify new opportunities as they may arise in order to ensure the future viability of the league. There also has to be a proper human resource management system in place to ensure the best talents are recruited into the league and are treated in a manner consistent with best practice under international labour laws and other applicable domestic laws.
To generate revenue the proposed business model for ‘Double Whammy Cricket’ would depend largely on the following revenues streams:
· ticket sales
· sale of official merchandise
· advertising and marketing
· sale of television rights on a competitive tender basis
· refreshment sales at event venues.
Of course, this list is not meant to be an exhaustive list as in the future further creative ways can and should be sought to generate additional revenues.
On the other hand, major expenditures would include salaries (especially player salaries), capital expenditures on and upkeep of facilities. It is expected that the latter expenditures will stabilize over time and should become more predictable. On the matter of player salaries, it is recommended that initially the services of a consultant expert in the field of wage negotiation or compensation be acquired to determine a minimum package to be offered to players and coaches based on experience only and that such salaries be competitive so as to attract the best available talent that may otherwise be absorbed into other career fields. As part of the business model, the league should seek to staff itself mainly through the use of a player draft system and this would ideally be modelled after the system that currently exists in North American professional sports leagues.

[1] This is the business model used for the National Football League (NFL) in North America, the National Hockey League (NHL), Major League Baseball (MLB) and the National Basketball Association (NBA) all with some variations.
[2] This is the model used by the US Major Soccer League.
[3] The National League or the National League of Professional Base Ball Clubs replaced the NA or National Association of Professional Base Ball Players because the N.A. suffered from a lack of strong authority over clubs, unsupervised scheduling, unstable membership, dominance by one team, and an extremely cheap ($10) entry fee that gave clubs no incentive to abide by league rules when it was not convenient.
[4] The National Football League (NFL) in the USA follows this model.
[5] Source: Greyser, Stephen A – Major League Soccer 1996-1998: Now, Later… Never? (2004) - Harvard Business School.
[6] Major League Soccer is technically not an association of franchises but a single business entity. The team owners are actually shareholders in the league. The league, not the individual teams, contracts with the players.

[lw1]League should become the subsidiary of a Holding Company (ERC Sports) and have with it associated companies or even its own subsidiaries to provide services it needs. Teams in the league would represent franchises.

[1] Each inning could also be 25-overs long and being played over two days this is the equivalent of a one-day game being played over two days with each team taking a break and allowing the other to bat or bowl.

1 comment:

Plex said...

That is a very good proposal. Will sponsoship then be the attraction for players to join teams. Its a concept that needs serious consideration, this could attact some serious TV revenue if the media has some input in attracting the crowds

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