Thursday, February 21, 2008

Indian Premier League: Money Talks

The bidding for players at the Indian Premier League yesterday, along the lines of European football, has every newspaper this morning in a tizzy.

And of course, MS Dhoni being 'bought' for Rs 6 crores by the Chennai franchise is something to marvel at. But the Economic Times takes it over the top with this page 5 headline: 'Mahi stumps Mukesh at Cheque point'.

The chief executive officer of the Men-in-Blue Mahendra Singh Dhoni, who has been bagged for Rs 6 crores for the cricket league, has overtaken Mukesh Ambani, chief of India's largest private sector company in terms of compensation.

The next para goes on to say "The comparison is not apt but on a per hour basis Dhoni will be paid more than Mr Ambani.." Blah blah blah. If the comparison is not apt, why make it? Just because you have a calculator?

And by this calculation over the 44 days of the tourament in 20:20 format Dhoni will make Rs 56, 818 per hour while Mukeshji, who drew Rs 30.46 crores through salary, perks and commissions last year would have earned Rs 34, 771 per hour.

In case of Dhoni, by the way, the calculation 'discounts the actual time that Dhoni spends on the field for Chennai...". And of course the time he spends in training, sleeping, eating and merely being alive so he can play.

Not sure how Mukeshji's time has been accounted for. What part of his life is treated as being 'on the field'?

The point being that a person is the sum of his or her parts. The one hour that a cricketer or a consultant can charge is a reflection of who he is and what he can do. And that is a result of so many things... including how many hours of sleep he can get in a night!

And three paras into this oh-so-breathless story the writer drops a googly: We are, of course, not accounting for the dividend payout to Mr Ambani as the promoter of Reliance Industries... or the fact that he regularly features in standard lists of world's wealthiest tycoons.

And so it goes. There is no reason a story so bereft of purpose deserves half a page in the country's largest pink paper. At best, it could have been a small box item, a tongue in cheek kind of observation made as an aside.

The Salary Circus
Actually, the media is currently completely obsessed with salaries. The result is every employee is convinced the guy in the next cubicle or the neighouring industrial estate is earning twice as much as me.

Yes, salaries are rising and there are some folks getting paid what seem like princely amounts. And I say seem because hello, one crore buys you a flat in Ghatkopar these days.

A couple of months ago Business Standard released its anual 'Richest Indians' listing based on data from publicly listed companies. The survey noted that the number of senior executives earning more than Rs 1 crore annually increased to 576 from 442 in 2005-6.

HR consultants quoted by the paper admit this number would be twice as much if you include senior execs from unlisted companies, consultancies, foreign banks and such like. They estimate that the top salary in sectors like retail and management consulting could be anywhere between Rs 5 to Rs 7 crores.

But as R Suresh, MD of executive search firm Stanton Chase observed in BS: "The share of 'salary' as an element of the overall compensation plan is dwindling". Read the fine print. It's all about perquisites, stock options, share of profits, deferred payments and of course perfomance bonuses (esp. relevant in investment banking).

Compensation is stuctured in complex ways to beat the taxman. At the end
of the day it's the lifestyle enjoyed by the individual which matters.

To that extent there are thousansds of crorepatis who just do not get reflected in official salary statistics. From our grubby politicians and public servants with mountains of cash to the exporter in Ludhiana whose firm earned an 8 crore profit last year but whose 'salary' is something like 3 lakhs p.a.

Even the smallest businessman debits almost all his living expenses to the company and draws a relatively modest salary. And remember dividend which is non-taxableand taken full advantage of!

The other asset a smart businessman builds is valuation for the company as a whole. If you really want to be 'rich' the only way is to take the risk of building a successful, publicly listed or privately tradable company.

Coming back to IPL, sports is big business and sportsmen draw high compensations because they have a limited period of peak performance. Some may go on to become actors or commentators but most will build a nest egg which they can live off post 40.

Let's hope once IPL actually kicks off we see great cricket. Instead of calculations of how many rupees each ball bowled by Bhajji costs!

22 comments:

  1. don't have much to say abt the article, too much coverage has made me sick of the whole subject

    nice finish though " how many rupees each ball bowled by Bhajji costs!" lol... sweet

    ReplyDelete
  2. The ET article is much like an out of work copy-writer assigned to fill some column centimetres, written purely for the purpose of intellectual(!) excitement...no news or analysis value anywhere.

    ReplyDelete
  3. "Blah blah blah. If the comparison is not apt, why make it?

    Just because you have a calculator?"



    Just because you have a blog, you can write whatever you like.. can't you..??

    ReplyDelete
  4. seriously thats some cheesecake for the news channels and newspapers to go on and on about.. wonder all the more if the players are going to be interested anymore in playing cricket for the country since that would give them a lot less money then this sale that they are all a aprt off..

    commercialisation not always for the best i guess.. :(

    ReplyDelete
  5. well.. dat was again interesting. Sometimes I really wonder, how do the newspaper guys select which news should make the headline n which not.

    Hope the series will b gud !!!

    ReplyDelete
  6. Haha..reminds me of the comparisons we used to make when we were young and in college.
    Car mechanics, on an hourly basis (at $80 an hour) earn much more than I-bankers, who puts in 100 hours a week.
    Is the comparison apt? If we are comparing, yes it is :)

    ReplyDelete
  7. yeah money talks.. but hoe much would it be effective in making cricket interesting.. thats a big question mark .. nice post by the way..
    check out my blog..i have written a similar post on this...
    arvind1187.wordpress.com
    i am posting the link because ur blog doesn''t allow open user id in the url column ..

    ReplyDelete
  8. well I tried to do a small comparison of IPL and EPL on my blog.

    check that out. I basically tried to portray how EPL and IPL work and how promising is the financial future of IPL given the recent comparison between IPL and more than two decade old EPL.

    ReplyDelete
  9. We work , Blog, Comment and do most of the stuff just for money, SO there is nothing wrong is there is money involved in this. It is good that the players can be encouraged.

    Regards.

    Muthu

    Contact me for all your Tax saving, Investment and Insurance Needs if you live in and around Chennai.

    LIC of India Agent in Chennai - Ph-91-0-9841210868

    http://lic4chennai.blogspot.com/

    ReplyDelete
  10. cool content on Indian Premier League . For more information, news, contravesries, contracts about the Indian Premier League
    visit my blog at http://premierleague-cricket.blogspot.com

    ReplyDelete
  11. Should there be a Salary Cap in Football?
    Personally I think there should be! It’s just getting to be stupid money in football at the top of the premiership!
    It’s always the same teams at the top proving that football success is based purely on money which ruins the idea of it being a sport! They’ve done it in rugby, basketball, hockey and American football and it makes the sports more competitive and better to watch!
    I do a little Spread Betting from time to time and most matches don’t hold much surprise who is going to win, its boring! I want to see a team at the bottom pulling off an amazing season beating last seasons winners in a close fought battle!
    Make things fair! It shouldn’t be about money!
    Plus!
    All there is all that money in the premiership and barely any of it stays in the UK so it’s not even helping the economy!
    From my Spread Betting (or more precisely Football Spread Betting) if I ever win big (which is never, I’m unlucky) it’s still nothing compared to the average premiership players weekly wage!

    ReplyDelete
  12. http://www.indianpremiercricketleague.com - The home of indian premier league - T20 cricket. Latest news of IPL.

    http://www.giftsbuddy.com - Send gifts to your love one's in India

    ReplyDelete
  13. http://www.indian-premier-league.com/indian-premier-league-2008-live-broadcast.php

    ReplyDelete
  14. Indian Premier League(IPL) is the future of world

    cricet...I think people will even stop watching Test & One day cricket as IPL Twenty-20 cricket format is getting popular...

    ReplyDelete
  15. 明星代言 明星经纪公司
    制动单元 铝壳电阻
    modern abstract art sofa manufacturer
    净水器 开水器 净水机 净水 软水机 软水 直饮机 家用净水 家用净水器 家用净水机 中央净水 中央净水器 水家装 水家电 水卫士 混合机
    过滤机 DHL快递 俄罗斯签证 回转支承 Laser marking
    保险箱 法兰 法兰标准
    polycarbonate sheet 回流焊 波峰焊
    压球机 注册上海公司 儿童摄影
    牛皮癣 皮肤病 制氮机
    食堂售餐机 校园一卡通
    学校一卡通 ic卡售饭机
    食堂售饭机 深圳一卡通
    广东售饭机 机电设备安装
    北京发票 代开发票
    餐饮发票 住宿发票
    广告发票
    网络电话 免费网络电话
    假发 补发
    织发 植发
    压滤机 板框压滤机
    蒸馏水机 纯蒸气发生器
    上海搬家公司 上海搬场公司
    大众搬家 大众搬场
    张家界旅游 香港旅游
    深圳旅行社 打包机
    收缩机 对讲机 电源模块
    血管栓塞剂
    售饭机 水控机 水控器
    萎缩性胃炎 neoprene laptop bags
    SEO优化
    SEO优化 计量泵
    胃炎 胃病
    冷水机 冰水机
    工业冷水机
    北京特价机票 北京打折计票 北京国际机票
    北京机票预定 北京飞机票
    北京订机票 北京机票查询 饮料机械
    银杏 水培花卉 企业宣传片 空分设备
    化工泵 离心机
    电话交换机 程控交换机 集团电话 集装袋
    混合机 混合机
    混合机捏合机 捏合机
    捏合机导热油炉 导热油炉
    导热油炉 反应釜 反应釜
    反应釜 spherical roller bearing
    搬运车 搬运车 电动搬运车 油桶搬运车 堆高车 电动堆高车 半电动堆高车 堆垛车
    高空作业平台车 电动叉车 平衡重叉车 前移叉车 电瓶叉车
    韩国饰品批发 模块电源
    X架 超薄灯箱> 易拉宝 展柜制作
    代理服务器 游戏加速器 网络加速器
    网通加速器 电信加速器 电信网通转换器
    电信网通加速器 网通电信互转
    网通电信互通 网络游戏加速器
    美国VPN代理 美国独享VPN 美国独享IP
    pvc ceiling panel Spherical roller bearings
    SEO优化
    安全鞋 劳保鞋 防砸鞋 电绝缘鞋 上海安全鞋 上海劳保鞋 江苏劳保鞋
    服装软件 服装管理软件 进销存软件
    进销存管理软件 服装管理系统 服装进销存软件
    进销存系统 进销存管理系统 免费进销存软件
    吉林中医 东北特产
    打包机
    阳痿 阴茎短小 阴茎增大
    早泄 前列腺炎 阴茎增粗 阴茎延长
    国际机票 上海国际机票
    国际特价机票 国际打折机票
    砂磨机 砂磨机
    砂磨机 卧式砂磨机
    卧式砂磨机 卧式砂磨机
    三辊研磨机 三辊研磨机
    三辊研磨机 混合机 混合机
    混合机 锥形混合机 锥形混合机 锥形混合机 行星动力混合机 行星动力混合机 行星动力混合机 无重力混合机 无重力混合机 无重力混合机
    干粉砂浆设备 干粉砂浆设备
    干粉砂浆设备 捏合机 捏合机 捏合机 导热油炉 导热油炉 导热油炉 反应釜 反应釜 反应釜 搪玻璃反应釜 搪玻璃反应釜 搪玻璃反应釜
    乳化机 涂料设备 干混砂浆设备 无重力混合机 胶体磨 涂料成套设备 双螺旋混合机
    北京婚庆 北京婚庆公司
    400电话
    办证 呼吸机 制氧机
    亚都 亚都加湿器 亚都净化器
    亚都装修卫士
    饰品批发 小饰品批发 韩国饰品 韩国饰品批发 premature ejaculation penis enlargement
    安利产品 马来西亚留学
    网站优化 网站推广
    衬布
    代写论文
    代写论文
    论文代写 代写论文
    磁力泵
    离心泵
    化工泵
    隔膜泵
    螺杆泵
    潜水泵
    油泵
    耐腐蚀泵
    水泵
    拖链 防护罩 排屑机 塑料拖链 钢铝拖链
    化工离心泵
    计量加油泵
    自吸式离心泵
    管道油泵
    自吸式排污泵
    潜水排污泵
    自吸式磁力泵
    耐高温磁力泵
    不锈钢多级离心泵
    多级离心泵
    耐腐蚀自吸泵
    自吸化工泵
    玻璃钢液下泵
    液下式排污泵
    卧式离心清水泵
    氟塑料磁力泵
    磁力驱动循环泵
    耐腐蚀污水泵
    卧式化工离心泵
    玻璃钢耐酸泵
    防爆管道油泵
    不锈钢多级泵
    立式多级离心泵
    塑料磁力泵
    水泵厂
    手摇油泵
    上海水泵厂
    上海水泵
    离心泵厂家
    热水泵
    清水泵
    气动隔膜泵
    深圳装饰 深圳装饰公司 深圳装修公司
    特价机票 打折机票 国际机票
    机票
    新风换气机 换气机 立式新风换气机 风机箱 新风系统 能量回收机
    搅拌机 混合机 乳化机
    分散机
    毛刷 毛刷辊 工业毛刷 刷子 钢丝刷
    涂层测厚仪 硬度计
    兆欧表 激光测距仪
    测振仪 转速表
    温湿度计 风速仪
    超声波测厚仪
    粗糙度仪
    噪音计 红外测温仪
    万用表
    硬度计 万用表
    美容院 美容加盟
    澳洲留学 澳大利亚留学
    什么是法兰
    电烤箱
    酒店预定 北京酒店预定 北京酒店
    离心机
    nail equipment nail products nail product nail uv lamp nail uv lamp nail uv lamps uv nail lamp nail brush
    nail file nail tool nail tip nail gel curing uv lamps lights
    万用表 风速仪
    红外测温仪 噪音计
    苗木价格 苗木信息 标牌制作 深圳标牌 北京儿童摄影 防静电鞋 淘宝刷信誉
    威海凤凰湖 威海海景房 大庆密封件
    打标机 淘宝刷信誉 TESOL/TEFL国际英语教师证书 英语教师进修及培训 北京快递公司 北京国际快递

    ReplyDelete
  16. 导热油炉吴桥县导热油炉锅有限责任公司是全国最大的生产导热油炉生产基地之一,公司主要生产各种导热油炉锅,熔盐炉, 转盘轴承,管式加热炉,蒸汽发生器,一二类压力容器.徐州回转支承 公司提供转盘轴承 --slewing ring slewing bearing slewing bearings服务. automation-industrial-industrial automation-slewing bearingslewing bearings
    铁路
    轨道交通
    太阳能
    电源

    ReplyDelete
  17. ^^ nice blog!! ^@^

    徵信, 徵信網, 徵信社, 徵信社, 徵信社, 徵信社, 感情挽回, 婚姻挽回, 挽回婚姻, 挽回感情, 徵信, 徵信社, 徵信, 徵信, 捉姦, 徵信公司, 通姦, 通姦罪, 抓姦, 抓猴, 捉猴, 捉姦, 監聽, 調查跟蹤, 反跟蹤, 外遇問題, 徵信, 捉姦, 女人徵信, 女子徵信, 外遇問題, 女子徵信, 徵信社, 外遇, 徵信公司, 徵信網, 外遇蒐證, 抓姦, 抓猴, 捉猴, 調查跟蹤, 反跟蹤, 感情挽回, 挽回感情, 婚姻挽回, 挽回婚姻, 外遇沖開, 抓姦, 女子徵信, 外遇蒐證, 外遇, 通姦, 通姦罪, 贍養費, 徵信, 徵信社, 抓姦, 徵信, 徵信公司, 徵信社, 徵信, 徵信公司, 徵信社, 徵信公司, 女人徵信, 外遇

    徵信, 徵信網, 徵信社, 徵信網, 外遇, 徵信, 徵信社, 抓姦, 徵信, 女人徵信, 徵信社, 女人徵信社, 外遇, 抓姦, 徵信公司, 徵信社, 徵信社, 徵信社, 徵信社, 徵信社, 女人徵信社, 徵信社, 徵信, 徵信社, 徵信, 女子徵信社, 女子徵信社, 女子徵信社, 女子徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信,

    徵信, 徵信社,徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 徵信, 徵信社, 外遇, 抓姦, 離婚, 外遇,離婚,

    徵信, 外遇, 離婚, 徵信社, 徵信, 外遇, 抓姦, 徵信社, 徵信, 徵信社, 徵信, 外遇, 徵信社, 徵信, 外遇, 抓姦, 徵信社, 征信, 征信, 徵信, 徵信社, 徵信, 徵信社, 征信, 徵信, 徵信社, 徵信, 徵信, 徵信社, 徵信, 徵信社, 徵信社, 徵信社, 徵信, 外遇, 抓姦, 徵信, 徵信社, 徵信, 徵信社, 徵信,

    ReplyDelete

Disqus for Youth Curry - Insight on Indian Youth