Ahmedabad:Non-cricketing attributes of players could contribute to fetching maximum deals during the bidding of the Indian Premier League (IPL), according to a study conducted by the Indian Institute of Management (IIM) here.
"It appears that apart from their cricketing excellence, players get hefty premium for their non-cricketing attributes, for they are instrumental in pulling big crowds and viewership for IPL business," IIM-A Professor, Economics Department Satish Deodhar said.
"Out of the total price of $1.5 million and $1.12 million received by Mahendra Singh Dhoni and Sachin Tendulkar, the value of their cricketing attributes is $705,420 and $622,213 respectively, and, their net crowd pulling business value is about $794,580 and $499,037 respectively," Deodhar said.
"Dhoni is an outstanding cricketer and also famous for his personal charisma and association with film stars... Thereby he fetched $1.5 million during last bid. His value of non-cricketing attributes is much higher than that of Sachin," he said.
The study based on a unique 'econometric' model developed by the IIM-A economic department to analyse the process of valuation that might have occurred in deciding final bid prices of the players has evoked response from some universities abroad.
Australian University La Trobe has evinced interest in the econometric model based study done at IIM-A.
"The economic department of La Trobe University in Australia has approached us and is keen to know how this model of threadbare analysis of an event has been made possible," Deodhar said.
However, the captaincy skill of Dhoni was not factored in the study which is based on benchmark estimates, Deodhar said.
Andrew Symonds, who got $1.3 million during bidding in IPL last year, had said he was surprised that he got more than his captain Ricky Ponting, Deodhar said, adding, "the reason I found to his query was that he was a big crowd puller."
Symonds became popular in the wake of the monkey gate controversy, he added.
The IIM-A study also suggests that Indian players command premium over foreign players in the bidding.
"Among the foreign players, none receives any premium for their nationality, however an Indian player, on an average, controlling for other attributes, is likely to receive a premium of $203,156 over non-Indian players," Deodhar said.
The other important attributes of players found during the course of study are that an Indian player on an average fectches a premium of $203,156 over foreign players, besides the other parameters in an ICC approved matches such as a half century fetches $2683, one more stumping fetches $2596, and an additional wicket fetches $377.
"An increase in Twenty20 batting average by one run fetches him $4658, and as the player get older by a year he looses $30,000," Deodhar said.
Thus, premium for being younger in a Twenty20 IPL tournament is established in this study, he added.
In fact, we hope that this kind of research would facilitate better understanding of player price formation, Deodhar said.