CRICKET CONTRACTS

There is a proxy war going on between Indian players and BCCI over new contract system. Let me compare the contract system in Australia and India.

CRICKET AUSTRALIA
Here is the payment structure for CA contracted players. (Source: http://cricket.com.au/_content/document/00000085-src.pdf)

RETAINERS
The minimum retainers for CA contracted players:
2005/06 - $145,000 (Rs.59, 45, 000)
2006/07 - $150,000 (Rs.61, 50, 000)
2007/08 - $155,000 (Rs.63, 55, 000)

There are no graded retainers for CA contracted players. Instead there are different retainers for individual players based on performance (not on seniority) of the previous year. Currently Ricky Ponting is the leading contracted player of CA.

HOME MATCH FEES
Test Match Fees
2005/06 - $12,250 (Rs.5, 02, 250)
2006/07 - $12,250 (Rs.5, 02, 250)
2007/08 - $12,750 (Rs.5, 22, 750)
ODI Match Fees
2005/06 - $4,900 (Rs.2, 00, 900)
2006/07 - $4,900 (Rs.2, 00, 900)
2007/08 - $5,100 (Rs.2, 09, 100)

OVERSEAS MATCH FEES
Test Match Fees - 40% Extra
2005/06 – Rs.7, 03, 150
2006/07 – Rs.7, 03, 150
2007/08 – Rs.7, 31, 850
ODI Match Fees – 20% Extra
2005/06 – Rs.2, 41, 080
2006/07 – Rs.2, 41, 080
2007/08 – Rs.2, 50, 920

ENDORSEMENTS
1. A CA contracted player shall not endorse a product, which is a competitor to sponsors of CA. (For e.g. If NIKE is the sponsor of CA then its contracted players shall not endorse ADIDAS and REEBOK)
2. CA should inform contracted players before the start of the season who their sponsors are. So that players can adjust their endorsements obligations.


BOARD OF CRICKET CONTROL IN INDIA

OLD CONTRACT

RETAINERS
The graded retainers for BCCI contracted players:
Grade A – Rs.50, 00, 000
Grade B – Rs.35, 00, 000
Grade C – Rs.20, 00, 000

MATCH FEES
Test Match Fees
Rs. 2, 50, 000
ODI Match Fees
Rs. 1, 50, 000

WHAT WE INFER
1. CA is paying more money in terms of match fees and retainers amount than BCCI. CA shares 25.5% of its gross revenues with its players.
2. But ultimately Indian players and BCCI are richer than Australian players and CA.
3. Indian players earn more through endorsements. Their endorsement fees are many times higher than Australian players.
4. Bone of contention in proposed new contracts are retainers amount (Flat Rs.5 lakhs for all), match fees and cap on number of endorsements. Also on sharing of gross revenue of BCCI, which was previously 26% on all gross revenues including media rights.

WHAT SHOULD BE DONE
1. BCCI should remove the cap on endorsements. Players also should not do any endorsements for products that are competitive to the BCCI sponsors. (Dravid, Dhoni and Yuvraj should not endorse REEBOK and Sachin should not endorse ADIDAS. REEBOK and ADIDAS are competitors to NIKE, which is the official sponsor of BCCI. Naturally part of sponsorship money from NIKE should go to players.)
2. Retainers should be neither same for all as in proposed new contract nor graded as in previous contract. It should be based on individual performance of the player in past season. (For e.g. If Robin Uthappa scores more runs and win more matches for India in a season he should be India’s number one contracted player in next season irrespective of his seniority level. On other hand if Dravid performance in a season is lower than Uthappa he should get less retainers amount than Uthappa for next season. This is how contract retainers are paid in Australia.) A formula can be worked out to determine the retainer amount based on number of runs/wickets scored, number of match-winning efforts, the toughness of opposition and pitches, abroad or home, consistency etc. Minimum retainers should be atleast 25 lakhs rupees. (CA pays approx Rs.60 lakhs as minimum retainers.)
3. Performance based incentives should be followed in determining match fees. If team wins matches they get higher match fees. It sounds nice. This is a positive clause from the proposed new contract.

NOTE: There is no official website for BCCI. It is very shame on richest cricketing body in the world. But there is an unofficial website for BCCI created by someone outside BCCI.