Sharda Ugra has another notable column on how Lodha report is trying to fix the BCCI led misgovernance of Indian cricket. I mean how many sports journalists can write for EPW and do a great job.
The Lodha Committee report has been cataclysmic for the Board of Control for Cricket in India because of the precedent it has set. The highest court in the country has wrenched the BCCI’s door off its hinges and from now on, it cannot be fixed in the way the board would want it to be. The report has the power to become the lodestone through which India’s substandard sports governance can be reined in. It is also a case study of how a lack of self-regulation can lead to an independent, autonomous sports organisation mismanaging itself to within the reach of the law.
Her comments which I have emphasised are really interesting from economics point of view as well. After all, much of the discussion post 2008 crisis has been around these issues of regulation, self-regulation, mismanagement etc. It also tells you how there is no easy answer while trying to design organisations.
The usual buzzword for such institutions is to let government start them but make them independent/autonomous of the govt. In BCCI case, it did not even need any state patronage. Infact most politicians enjoyed the power and patronage of BCCI and other cricket assocuations. Such is the pull and power of Indian cricket. But this arrangement did not work.
We saw similar things in 2008 crisis as well. All these mega financial firms which should have self regulated their business were just hopeless at it. The kind of risks they took to make money is just amazing. Much like BCCI which chose to ignore corruption as the bright sun of money god was shining so brightly. No questions were raised as things were going so well for Indian cricket. The instability was settling in during the stable times. The Minsky moment applies to all situations and not just financial markets. One should always be cautious when things lok too good and question how true they are.
Barring noisy media comments, there is hardly any article/discussion on the Lodha report. This Ugra article atleast gives you some idea on the report and what all it proposes and deposes.