Monopsony - Reason for lower wages in Domestic Cricket

Domestic cricketers in India can be labelled as poorer cousins of their counterparts in countries like England, Australia. Mulling into the reasons I came across an article sometime back which I tried to link with concepts of Microeconomics. One of the reasons is Monopsonic market for Cricket in India.

Monopsony referred to a market in which there is a single buyer. A monopsonist has the market power to set the price of whatever it is buying unlike a perfect competition where no individual buyer is big enough to affect the market price of anything. It is a buyer's monopoly (on the demand side). A common theoretical implication of monopsony is that the price of the good is pushed down near the cost of production. The price is not predicted to go to zero because if it went below where the suppliers are willing to produce, they won't produce.

A monopsony producer has significant buying power in the labour market when seeking to employ extra workers. A monopsony employer may use their buying-power to drive down wage rates.
Examples of monopsonic employers might be employer in a small town (a car plant, a major supermarket or the head office of a bank), nursing homes as employers of care assistants. The government also has monopsony power as the major employer in the teaching profession.
Another example in Indian context of a monopsonic employer would be the Indian Cricket Board – Board of Control for Cricket in India (BCCI). Playing cricket in India as a full time profession involves very high risk. Perhaps there are thousands of talented cricketers who struggle through life, while the money that can be earned from playing the game gets concentrated with a few dozen cricketers who make it to the international level. This market is made special is because there is only one buyer of their skills. The BCCI is a part of buyers' cartel. In a monopsonic market of BCCI you either are selected to play for the national team or you are confined to play domestic cricket in India where the money earned by players is much below what they should get to consider cricket as a full time profession. A cricketer not selected to play for any of the associated clubs of BCCI has no choice available. Whereas any attempt to provide competition is dealt with hostility as seen in the ICL–IPL face-off.