The biggest money-spinning machine of the cash-rich Board of Control for Cricket in India has come to a screeching halt. Suspension of the Indian Premier League will cost BCCI a whopping ₹ 2,000 crore.
The speculation about resumption of the league after the ICC T20 World Cup, also to be hosted by the BCCI, appears far from realty. There remains no hope of the league being competed this year.
The board will have to forego sponsorship, franchisees’ revenue share and media rights revenue of 31 of the 60 games, including the high value knockout matches and the final.
Media rights formed the biggest pie as the IPL Host broadcaster Star Sports had committed ₹ 16,347 crore for the five-year rights period – an average of ₹ 3,269.4 crore per annum. The board will be compelled to forego more than 50% of this revenue even as Star Sports had given a nod to halt the league after Covid-19 cases were reported among the players, team management and ground staff.
“Star India supports BCCI’s decision to postpone IPL 2021. The health and safety of players, staff and everyone involved in the IPL are of paramount importance,” Star India has stated in a Press note.
The board will also have to forego more than 50% of the IPL title sponsorship. Vivo were to pay ₹ 440 crore to the BCCI as the IPL title sponsor.
The board last year had to incur a major loss on this head as the IPL when the IPL was shifted to the UAE. Vivo had opted out of the deal. The BCCI was compelled to negotiate a one-year contract with e-education portal Byju’s for a mere ₹ 222 crores.
Co-sponsors’ commitments for the IPL will also be reduced accordingly. Since the franchisees revenues will be compromised, the Board’s share in that chunk will also be affected.
According to a BCCI official, quoted by national news agency PTI, overall losses may reach up to ₹ 2,500 crore. “We would be losing anything between Rs 2000 to Rs 2500 crore for the midway postponement of this season. I would say something in the range of Rs 2200 crore will be closer to accurate estimation,” the official is quoted by the BCCI.
LEAGUE SUSPENDED UNDER ‘GOVERNMENT PRESSURE’
Sources privy to the development have confirmed to The Sporting Hub the BCCI was considering halting the games for a week and then consider a rescheduling with double headers to finish the tournament in time.
However, there was an “unofficial” strong indication from the Government. The State was already drawing flak for allowing the league to go on despite the acute health emergency in the nation.