Jagmohan Dalmiya - The man who monetised Indian cricket

Jagmohan Dalmiya (1940-2015) changed the face of Indian cricket

When India became world cricket champions in 1983, the popularity of the sport was at a soaring peak. However, the game was yet to create a self-sufficient financial structure for itself. The current glamour and big money were non-existent then, with players just about earning sustainable livelihood salaries.

It was around this time a relatively young Jagmohan Dalmiya took over as treasurer of the BCCI. The move marked Indian cricket's baby steps into developing a basic monetisation model.

Dalmiya, who recently passed away, was one of the finest sporting administrators India has ever seen. During a time when cricket in India has often been an epicentre to various corrupt practices, Dalmiya stood out as a unique, well-respected entity.

If Kerry Packer was the man who gifted structured cricket to Australia, it is fair to say Dalmiya is the Indian equivalent.

Beginnings in Bengal cricket and meteoric rise as an administrator

Dalmiya's 35-year stint in cricket administration started in 1963, as a working committee member at an amateur cricket club (Rajasthan Club) in Kolkata. He slowly graduated to the Cricket Association of Bengal (CAB) from there.

Once there, Dalmiya swiftly climbed the CAB hierarchy, becoming their treasurer and eventually the Secretary in 1978. During his tenure, Bengal cricket rejuvenated itself from the fringes of domestic cricket to lifting the title in 1989/90. They were also runners-up during the 1971/72 season. Dalmiya held the CAB President’s position till 1993.

The progression to BCCI was a natural one. In 1979, Dalmiya joined the BCCI as a working committee member. His ideas and financial models stood out among a set of administrators who were just getting to know the bearings of international cricket.

Within three years, Dalmiya became the BCCI treasurer, highlighting a meteoric rise within India's newly developing administrative structure.

As the right hand of then BCCI President NKP Salve, Dalmiya became increasingly influential within the ranks. He was widely credited for managing cricket's first foray into the sub-continent. Along with I S Bindra, the Kolkata-based administrator set up a structure that would see India monetise cricket for the first time.

Dalmiya’s masterstroke and the TV revolution in India

The entry of Reliance into sports sponsorship saw the board capitalise on cricket graduating to a mass sport. Dalmiya ensured a clean distribution of sponsors, with various companies attempting to have a bite of the cherry, thus increasing the sport's visibility and monetary gain.

Another example of Dalmiya’s rising influence within the BCCI was highlighted when he was appointed the chief tournament organiser of the 1987 Reliance World Cup. He also convinced NKP Salve to shift the final from Mumbai's Wankhede stadium to Kolkata's Eden Gardens.

The tournament's successful completion saw Dalmiya and Bindra being appointed as Joint BCCI President in 1990. Dalmiya was also appointed the Asian Cricket Council Secretary the very next year.

However, it was in 1993 that Dalmiya showed his true prowess by making Indian cricket an international brand. He set up a system of television rights, which would be copied by all cricketing nations in the years to come.

Prior to this, no one had even heard about TV rights a being a potential source of income. In fact, Doordarshan used to demand Rs. 5 lakh a year from the BCCI to showcase matches played on Indian soil. But Dalmiya would have none of it. He demanded that if Indian matches were to be showcased, the broadcaster would have to pay for TV rights.

In an initial quote, DD sent the BCCI a quote of Rs. 1 crore. Unhappy with the bid, Dalmiya struck a deal with Trans World International (TWI), a leading world-wide broadcaster, for $550,000. The Hero Cup would also see more money garnered from title and associate sponsors. All adverisement money belonged to the BCCI.

They had also sold the TV rights for the India-England series previously to TWI for $600,000 per game.

Little did Dalmiya and BCCI know that this was the beginning of the TV revolution in India. They had struck the nail on the head at the perfect time, when the Indian economy had just opened up to foreign investment. This particular move saw a consistent influx of money towards the BCCI every year, which would eventually see them become the richest sporting governing body in the world.

World cricket is doing well because of Dalmiya’s idea of TV rights: IPL Chairman Rajeev Shukla

Current Indian Premier League (IPL) Chairman Rajeev Shukla has said about Dalmiya, “He is one of the biggest contributors to the sport of cricket. He conceived the entire idea of TV rights and now world cricket is doing well because of him. Without this particular model, there is no guarantee whether Indian cricket would have the kind of money it has. Who knows, we could have been a much smaller cricketing nation.”

Former Indian cricket captain Kapil Dev said, “I remember him during that time, he was working 20 hours a day and I had no idea why he was doing that. But now if you think of it, those 20 hours a day gifted Indian cricket sustainability. His loss is a loss to world sport.”

The 1996 World Cup would prove to be yet another turning point for Indian cricket. Now that a monetisation model was in place, the addition of a World Cup would be a massive boost for the Board. Dalmiya was quick to realise that and along with Bindra, made sure India earned the hosting rights.

This would also usher in BCCI's biggest financial boost yet. Dalmiya and Co. convened PILCOM (Pakistan India Lanka Commission), which would end up selling the 1996 World Cup TV rights for a whopping $10 million to Marc Mascarenhas' WorldTel group.

In a letter directed to Jagmohan Dalmiya in 1995, Marc said, “We are interested in the worldwide television rights for the 1996 World Cup and would like to submit the following proposal for your consideration: US$9.5 million minimum guarantee for exclusive worldwide television rights to the competition, with a 75-25 split in favour of the World Cup committee on additional revenues. Or USD 10.5 million for the outright purchase of the exclusive worldwide television rights to all matches in the competition.”

ICC Presidency and later years

This was cricket's biggest financial victory so far. Dalmiya took a board which had to pay to showcase its matches earlier, to earning multi-million dollar deals, within a span of just four years. To add to it, Wills went on to buy the sponsorship rights for $12 million USD that year.

However, it was this very deal which would lead to Dalmiya's downfall.

In 1997, Dalmiya would go on to fulfill his self-proclaimed dream. He was appointed as the ICC President after a unanimous vote, serving the role for three years till 2000. Here too he made the ICC a profit-driven organisation; he would go on to sell the 1999 England World Cup rights for yet another record fee of $19 million.

Dalmiya gave up the post after eventually falling out with the establishment. This particular moment would begin a downfall of sorts for Dalmiya's administrative career.

In 2001, Dalmiya was re-elected as BCCI President, after 20 years away from the post. In 2005, Dalmiya's faction would go on to lose the elections to Sharad Pawar. Dalmiya was banned from attending BCCI meetings for misappropriation of funds and failing to provide financial evidence in certain cases like the PILCOM deal as Convenor in 1996. He resigned as CAB President for the same reason.

That very year, he was bestowed with the administrative excellence award by the International Journal of the History of Sports Achievement.

In 2010, the BCCI revoked the case against Dalmiya, allowing him to attend BCCI meetings. Earlier in March this year, Dalmiya was unanimously re-elected BCCI President as the successor to N Srinivasan. However, ill-health wouldn't allow him to attend meetings regularly.

Dalmiya's contribution to world cricket cannot be quantified. He successfully applied his real life business and financial skills to a sport which had captured a country's imagination. Dalmiya set up a skeletal model that generations of cricket administrators can follow in the years to come.