Global recession was not on the agenda in Goa today. Indian investors were opening their chequebooks to secure the services of the world's best cricketers in the second Indian Premier League (IPL) player auction.

Last year a total of £386million was spent on IPL teams in the inaugural event - with more generated in TV revenues. Eight city-based teams took part in the Twenty20 competition which saw the likes of Shane Warne join other legends as well as novice Indian players.

Fears this brave new commercial world would lead to the death of Test cricket have so far proved exaggerated.

This year England stars Andrew Flintoff and Kevin Pietersen were available for hire. They each went for $1.55million (around £1.06million), topping today's acution, despite former England captain KP not being available for the whole competition which begins on 10 April.

Pietersen is meant to be focusing all his energies today on the First Test between England and West Indies in the Caribbean. But he could be forgiven for keeping an eye on events in Goa.

Last year the Indian Cricket Board (BCCI) earned more than £800 million selling TV rights and team franchises for the tournament.

Bart Campbell, CEO of Essentially Group, the sports marketing and athlete management business which numbers Australian captain Ricky Ponting among its clients, believes the IPL has been built on a sound enough business model to succeed. Because cricket enjoys the same popularity in India as football does in this country, he compares the IPL now to the English Premier League 15 years ago.

"My belief is the [IPL] owners will do well over time," said Campbell. "You only have to look at the fundamentals of the business of cricket in India. Cricket in India, given what's happening to India as a country, is a very good place to be.

"It's like joining the English football Premier League. I do believe those who invested in IPL franchises will do well over time. There is a finite number of them - they are trophy assets. The business plan is to break even in the first couple of years and make money in year three."

Campbell explains the spoils are shared, with each team run like a profitable mini-company of its own: "In terms of what's in it for the franchises, they've adopted the US model. There are salary caps for the teams so they get a reasonably even share of all broadcast and sponsorship revenues for the league. They keep their own sponsorship and own gate on top.

"The salary caps have been set at a level whereby the incomings are meant to exceed outgoings. Indeed, they own businesses of increasing value because they are profitable.

"It was a new competition last year but there will be a step up in revenues over time. If you can maintain your cost base and increase your revenues then theoretically you should have a very valuable business."

Player salaries are also likely to rise over time too, says Campbell. "Sport is about stars and personalities and in the context the more of them that participate the better the product will be."

This explains why IPL organisers were thrilled to announce this week that Bollywood actress and former Celebrity Big Brother winner Shilpa Shetty has bought an 11 per cent stake (worth $11.6million) in the Rajasthan Royals, last year's IPL winners. As Shetty said: "Cricket is not a sport in our country. It's a religion."

Indeed, those involved in the betting side of cricket see the IPL as a sound financial investment.

Robin Hutchison, a spokesman for bookmaker Ladbrokes, said: "Like going to the cinema or a football match, Twenty20 takes just two or three hours and can also be put on in the evenings and at weekends when people are not at work.

"It's fantastic as a betting product because we take most of our money in play [during the match]. Bets like 'Which batsman will be out next?', 'Will he hit a six?'.

"The way gambling is going is 'instant-win'. People want that type of roulette betting when it's spin and win. Cricket is absolutely set up for that. From a betting point of view we're expecting it to be more vibrant than last year because it's had a year to bed in. The razzmatazz that goes with it has brought in a younger market."

If the IPL does live up to the hype, the only question that remains is how much longer can the English cricket authorities resist the potential riches on offer?