IPL ..... Bucking the trend

I thought I would throw some statistics at you this week. The reason for my sudden obsession with economic data and other information will become clearer as you read on and will therefore further amplify a venture that is proving to be a beacon of note.

It is widely accepted that the United States of America is the most influential and most powerful country on the planet. They say if the US sneezes, the world catches a cold. Right now I suspect that severe bouts of pneumonia are paralyzing continents if that is true. America is on life support although its heart beat is slowly becoming more stable and regular.

In the US the official unemployment figure is 9.7%. However if you factor in those poor demoralized souls who have given up looking for jobs due to continuous rejection, it skyrockets to 16.9%.

One in four families in America, or approximately 12 million homeowners, have a mortgage that is underwater. That means that they owe more on their loans than their property is actually worth. Throughout the country property values have dropped en masse between 30% and 45%.

Astonishingly, 43% of workers in the States have less than US$10,000 saved for retirement.

A lot of people are haemorrhaging badly and many simply can't stop the bleeding. In a nutshell, America is getting messy. I have no doubt that other countries are experiencing a similar state of affairs.

The politicians are spouting false positives and frankly very few are buying it.

So why have I bombarded you with the current depressing state of affairs of a normally vibrant nation. Well, without in any way trivializing a nation’s economic woes when making a sporting comparison, I wanted to accentuate something significant.

I leave this week to commentate on the IPL. Whichever way you look at it, Lalit Modi and the Indian Premier League have delivered something quite remarkable. Although a slight delay in the auction bidding and announcement date for the newest two franchises has caused some confusion, there is no denying one astounding fact. Whilst Rome is burning, the IPL is thriving.

When the Rajasthan Royals franchise was bought for US$67 million two years ago some thought it astronomical. It has clearly proved a sound investment, emphasized by the fact that as recent as February 2009 a stake worth 11.7% was sold for US$15.4 million. That sale then put the valuation of the franchise at about US$140 million. Those are good numbers and reflect a significant increase in IPL team value.

Come March 21st when the two new IPL owners are announced and their bidding numbers are disclosed you will be amazed, given the world economic climate. It’s tough to make a buck anywhere these days.

It is expected that a figure of somewhere between US$225 million and US$300 million will secure the newest additions. That will reflect around a 400% increase in value since the 2008 version of the IPL.

Remarkable isn't it?