Doubts arise about new T20 league
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Cricket Australia is set to continue negotiations with state cricket representatives about how a proposed new Twenty20 league would work commercially, but some potential investors have already expressed doubts about the suggested model, according to the Sun-Herald, claiming it gives them no incentive to invest their money
Andrew Fraser, a representative for a consortium interested in the Sydney Sixers franchise, told the Sun-Herald that several interested parties had ''agreed that it's not a good business model''.
''There's a plethora of unanswered questions within it and it offers nothing for investors,'' Fraser said. ''It's simply not a way to get people to put in millions of dollars. If they come back to us on Tuesday and say no changes have been made then [the consortium] will be out. There won't be any interest.''
Fraser did not name the members of the consortium, but said that ''it's a group of highly respected and successful businessmen from Australia and India'', who could provide money for investment quickly if the model was right for them.
''There's difficult decisions ahead for CA,'' Frasier said. ''But they need to be made otherwise the potential levels of investment are going to decrease rapidly. It's an opportunity that can't be missed. There needs to be a more open-minded approach. Twenty20 is here to stay and if it can generate millions of dollars of funding, then it's a brilliant result. The states are bleeding at the moment. Here's a chance for them to generate real revenues.''
However, a CA spokesman told the paper that there was no rush to attract private investment. "There is no critical date for that. It could be resolved next week, it could be resolved next month, it could be resolved next year. There's been no indication from investors that it's time critical. So, it's not a do-or-die meeting on that front.''
CA's approach has attracted criticism from other corners, though. Former Test wicketkeeper Greg Dyer, an expert in business development, said it was surprising that investors were still interested. ''We should be treating these people as kings because they're the future of Australian cricket,'' Dyer said. 'It's an unbelievable opportunity because these investors have seen the success of the IPL and they're willing to contribute on that basis alone. It's an opportunity that's fallen in the lap of our cricket administrators and, frankly, they're like rabbits in the spotlight.
"I honestly think that unless we take this chance, cricket will continue to wither - there is one Test series that turns a profit. We need cricket to be financially strong and even though T20 might not be real cricket, it could be real cricket's saviour.''
Dyer, who has written an on the subject on the paper's website, is worried that CA is trying to ensure that they retain control over the T20 game.
''Real cricket is run by the states,'' he said. ''They do the work, train the juniors, run all the activities that centre on growing the game. CA doesn't do that. The benefits from T20 need to go to the states directly. But CA's business model seems to suggest they want the franchises to run at a loss so they remain dependent. It defies logic. They're trying to keep control of T20 as though it were a core part of the game. But it's not a core part of the game. It's an entertainment tool that can be used to bolster the rest of the game.''
Neil Maxwell, former CEO of Kings XI Punjab, the IPL franchise, is in favour of privatising the T20 game and has called for CA to be bold. ''India took the initiative with T20 and, while they made some mistakes along the way, they now have a competition that within five years is generating billions of dollars,'' Maxwell said. ''They're about to start IPL four and we still haven't got our competition off the ground. There is significant investment waiting to be kicked in. They're waiting for a decent proposal to be presented and if it doesn't come soon I fear they will be lost to the game.''
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