Sport is the most difficult business to run
Cricket is staring at a possible standoff between the BCCI, ICC and the UPA government over tax issues likely to gather steam in the weeks ahead. Sharad Pawar, who once headed both the ICC and BCCI, had agreed to a condition before the World Cup whereby BCCI agreed to pay any tax the government levied on the ICC for staging the competition. Pawar, a key member of the Union cabinet, may have overestimated his ability to seek a tax waiver from the government if the issue turned problematic. However, under the ambit of the new sports policy legislation being pushed through by the sports ministry, such a tax exemption appears unlikely and the BCCI might soon be faced with a Rs 100 crore-plus tax burden, one that the board will desperately seek to avoid.
While confronting Pawar for agreeing to such a clause in the first place, the BCCI and ICC are seeking refuge in the tested IOC policy demanding 'no state intervention in the functioning of an autonomous sports body'. Under its guise any form of government intervention can be deemed unacceptable, allowing the BCCI to stave off further attempts by the sports ministry to bring its functioning under the tax ambit.
Interestingly, all of these cases stem from the inability to deal with the ill effects of excessive commercialisation. None of the problems cited above will ever affect a sport or a mega event that continues to be unattractive to the market. While monetisation is central to the success of modern sport and large sporting spectacles, the need to strike a balance between the requirements of the market and that of 'pure sport' is at the root of good governance.
Unless the interests of the ordinary sports fan - currently the most neglected constituency across all commercially successful sport and mega events - is made a priority, problems such as the ones mentioned will only escalate. Extraordinary sporting performances too, it can be conjectured, will fail to stop such escalation for otherwise the Commonwealth Games 2010 would have been remembered for the 101 medals India won and not for all the corruption and malpractice surrounding the event. Not without reason is it being said in management circles that 'sport' as 'business' is the most difficult of all businesses to run.
Cricket is staring at a possible standoff between the BCCI, ICC and the UPA government over tax issues likely to gather steam in the weeks ahead. Sharad Pawar, who once headed both the ICC and BCCI, had agreed to a condition before the World Cup whereby BCCI agreed to pay any tax the government levied on the ICC for staging the competition. Pawar, a key member of the Union cabinet, may have overestimated his ability to seek a tax waiver from the government if the issue turned problematic. However, under the ambit of the new sports policy legislation being pushed through by the sports ministry, such a tax exemption appears unlikely and the BCCI might soon be faced with a Rs 100 crore-plus tax burden, one that the board will desperately seek to avoid.
While confronting Pawar for agreeing to such a clause in the first place, the BCCI and ICC are seeking refuge in the tested IOC policy demanding 'no state intervention in the functioning of an autonomous sports body'. Under its guise any form of government intervention can be deemed unacceptable, allowing the BCCI to stave off further attempts by the sports ministry to bring its functioning under the tax ambit.
Interestingly, all of these cases stem from the inability to deal with the ill effects of excessive commercialisation. None of the problems cited above will ever affect a sport or a mega event that continues to be unattractive to the market. While monetisation is central to the success of modern sport and large sporting spectacles, the need to strike a balance between the requirements of the market and that of 'pure sport' is at the root of good governance.
Unless the interests of the ordinary sports fan - currently the most neglected constituency across all commercially successful sport and mega events - is made a priority, problems such as the ones mentioned will only escalate. Extraordinary sporting performances too, it can be conjectured, will fail to stop such escalation for otherwise the Commonwealth Games 2010 would have been remembered for the 101 medals India won and not for all the corruption and malpractice surrounding the event. Not without reason is it being said in management circles that 'sport' as 'business' is the most difficult of all businesses to run.
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