West Indies Pro League

THE FORMATIOM OF A West Indies Professional League (WIPL)


Background
It is now widely accepted that the formation and operation of a professional cricket league in the Caribbean is of vital importance to the success of West Indies cricket. Against this background, a special committee has been established by the West Indies Cricket Board to create the framework for a professional cricket league with the following objectives.

OBJECTIVES
L Improve the standard and quality of the game on a sustained basis
L Revitalize domestic cricket in the West Indies

Mission Statement
To create a profitable professional cricket league with players and teams that are competitive, that aids in player development in the caribbean AND TO provide affordable family entertainment.

Situation analysis - league cricket worldwide

¨ Australia
¨ governance structure has some elements of and closely resembles the franchise business model (see below)
Cricket Australia is the governing body for professional and amateur cricket in Australia. Cricket Australia operates the Australian cricket team, organising Test tours and one-day internationals with other nations. It also organises domestic cricket in Australia, including the Pura Cup first-class competition and the Ford Ranger One Day Cup domestic one-day competition. Australia's two major domestic first-class competitions. Six teams take part in these competitions. In the Pura Cup Each of the six state teams play in a round-robin series of home and away 4-day matches against every other team. Teams are awarded points based on the results of the match, and after each pair of teams have played each other twice, the two highest ranked teams play a 5-day final. The Ford Ranger Cup limited overs competition runs concurrently.

¨ England
¨ governance structure has some elements of and closely resembles the franchise business model (see below)

There are eighteen professional county clubs, seventeen of them in England and one in Wales. All seventeen English counties are named after, and were originally representative of, historic English counties.
Each summer the county clubs compete in the first class County Championship, which consists of two leagues of nine teams and in which matches are played over four days.
The same teams also play the one day National League, a one day knock out competition called the Friends Provident Trophy, and the short-form Twenty20 Cup. These clubs are heavily dependent on subsidies from the England and Wales Cricket Board, which makes its money from television and endorsement contracts and attendances at international matches.
The Minor Counties Cricket Championship is a season-long competition in England for county clubs that do not have first-class status. There are nineteen teams representing historic English counties along with a Welsh minor counties team.

¨ South Africa
¨ governance structure has some elements of and closely resembles the franchise business model (see below)
Cricket South Africa is the governing body for professional and amateur cricket in South Africa.
South Africa's two major domestic competitions are the SuperSport Series (four day first class competition), the MTN Domestic Championship (List A one-day competition) and Standard Bank Pro20 Series (domestic Twenty20 competition). Generally encompassing more than one provincial associate team, six first-class teams take part in these competitions

¨ League cricket in the West Indies

The West Indies Cricket Board (WICB) is the governing body for professional and amateur cricket in the West Indies (a sporting confederation of over a dozen mainly English-speaking Caribbean countries and dependencies that formed the British West Indies). It also organises domestic cricket in West Indies, including the Carib Beer Cup first-class competition and the KFC Cup domestic one-day (List A) competition which are the two major domestic competitions and more recently the Stanford 20/20 (domestic Twenty20 competition - mainly funded and organzied by Sir Allen Stanford). Other domestic competitions include the TCL Under-19 West Indies Challenge (three-day first class competition), TCL Under-19 West Indies Challenge Limited Overs Series (one-day limited overs competition).
The domestic competitions operated by the WICB are different from those operated by the other test playing nations above in terms of the duration of the competitions. The domestic cricket competitions in the Caribbean are of a shorter duration than those in the other test playing nations. This likely attributable to the unique circumstances faced by the WICB i.e. it being composed of individual territories. Each of these territories through its own cricket association is responsible for cricket development in its geographical area. From competitions organized by each territorial association they then select a team to participate in the WICB organiszed domestic competitions. These competitions are generally seen as a means of selecting players for the West Indies senior and ‘A’ teams and not significantly contributing to development, which is left to the territorial boards.
A pro league it is proposed would seek to address this situation and bringing domestic cricket in the Caribbean in line with other test playing nations.

Core Areas
The following core areas have been identified as critical to the success of any professional cricket league in the caribbean.

1. Ownership Structure/BUSINESS MODEL
The ownership structure of the WIPL can also be structured based on the following models:
¨ Franchise Model - North America
L closed League
L teams are owned by individuals/groups of investors
L teams assigned to specific geographical regions
L team owners sit on board of league
L select a commisioner to oversee day-to-day operations of league on their behalf
L commissioner reports to owners.
L teams generally share revenues generated by league
L players come from mainly draft system or through supplemental league
L no promotion and relegation of teams

¨ Corporation Model - Europe
L open League
L teams in league own at least one share in the league
L if a team is relegated, share(s) are transferred to promoted team
L team owners sit on the board of league
L governing body for particular sport also has a seat on the board
L main sponsorship revenue share among teams (for operations) and governing body (for development)
L teams responsible for generating other revenue
L players come from other leagues or team academies
L no affiliation with other teams
L Promotion and relegation of teams

¨ Single-entity - North America
L closed League
L governing body grants right to establish/operate pro league to single –entity
L entity must comply with poicies as established by governing body
L single-entity owns all shares in league
L ownership then creates franchises/teams
L each owner may have at least one franchise
L number of franchises based on ownership share
L owners appoints/hires general managers (gm) to manage day-to-day operation of teams
L Gm reports to league owners
L Matters of finance, marketing, revenue generation etc. rests with league owners
L players come from draft system, other leagues or developmental leagues
L affiliation with other leagues
L no promotion and relegation of teams

2. Governance Structure (See Competition sturcture – below)

Of the models set out above two are most suited to the governance structure for cricket exisiting in the caribbean. these are the corporation model and the single-entity model. these models would allow the wicb to have a say in how the league is operated and affects or contributes to the overall development of cricket in the region. through affiliation with other LEAGUES, SCHOOLS or grass roots development in general.
If it is proposed that the league be composed of club teams instead of regional TEAMS AND since there is also likely to be no promotion & relegation system then THE SINGLE-entity model would be seen as a desireable option for organizing the ownership structure the WIPL. IT would allow the WICB to have a say in the leagues operations but more so to focus on grassroots development across the region (see ownership structure –ABOVE).
L Governing Council – WICB
L Single Entity Board – Stanford or new private sector entity (or the wicb could be granted a seat on single-entity board)

if it is decided that the league be composed of regional teams then the corporation model would be ideal and this model would be a natural fit. in the last domestic competition organized by the wicb there were regional teams, a combined universities team and a youth team. using this composition format along with the corporation MODEL WOULD see each regional team being granted one share of the league ownership. If the wicb(directly or through a subsidiary) were to say sponsor the youth team then they too would be given a share of the league ownership.

3. Competition Structure

In deciding on the competition format that should be adopted for a professional cricket league in the caribbean there are some factors that need to be considered. the format chosen had to fit in with the objectives set out for the establishment of the league i.e. generates commercial opportunities, entertains fans and promotes player development.
also the current governance structure of cricket in the region would also affect the competition structure of the league as the wicb presently runs first-class cricket competitions primarily to aid in the selection of players for the west indies senior cricket team.
two options for the competition structure of the WIPL are likely available in this case i.e. (1). turn the wicb first-class competitions into a pro league, and use this for development and as the selection process for the west indies team; or (2) establish a separate pro league alongside the existing structures but with a different playing format.
the competition format chosen is going to be crictical especially as it relates to funding (see below) and other objectives of the league such as entertainment value.
· There are varying options that exist as regards the playing structure of WIPL:
L 4-day cricket (first class) – Most suited to the player development objective.
This format is popular in most ICC test playing nations. Though these contests closely resemble the oldest version of the game (test cricket) and can provide excitement to cricket enthusiasts it can be very tedious for those new to the game.
L 3-day cricket – Most suited to the player development objective
This format is not very popular in test playing nations. It is used in the West Indies for youth cricket competitions.
L 2-day cricket – Most suited to player development and entertainment objectives
this format is very popular in most of the leagues organized by the regional cricket boards in the Caribbean.
L 50-over cricket – Most suited to player development, entertainment and commercial objectives
This format is usually used as a marketing tool for the main competition which is usually the 4-day first class competition. Used by and large to attract non-diehard fans to the game.
L 20/20 cricket – Most suited to entertainment and commercial objectives.
Typically viewed as a promotional/marketing tool for main cricket league. However, this format would have to merit serious consideration if as proposed teams from North America are going to be included in any pro league established in the Caribbean.

TEAMS

The composition of the WIPL can also be organized using different models:
L Six (6) regional teams eg. Jamaica, T&T, Barbados etc.
L Six (6) regional teams eg. Jamaica, T&T, Barbados etc. plus the USA team or other national teams.
L Eight (8) club teams from territories eg. Kingston Cricket Club, Queens Park Cricket Club plus 2 teams from USA/.

FORMAT

¨ straight league format
L teams play each other once or twice (home and away)
L team with most points wins league
¨ league format with playoffs
L teams divided into zones or divisions
L teams play each other once [inter-zone] &/or twice [intra-zone] (home and away)
L teams with most points wins respective zone/division
L zone/division winners enter playoff for championship

4. Funding
At the completion of the analysis of the core areas a costing must be ascertained for the project over the medium to long term. Once this exercise is complete then a strategy to obtain the required funding must be constructed.

¨ Sponsorship
L league named after sponsor (dependent on ownership structure)
L other sponsorship
¨ television rights
¨ gate receipts (dependent on playing structure)
¨ licensing & merchadising
¨ refreshment concession

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.