New Delhi: BCCI is expected to lose over Rs 2,000 crore [20 billion] From broadcast and sponsorship money earmarked for this year’s Indian Premier League which was postponed indefinitely on Tuesday due to COVID-19 cases in its bio-bubble.
BCCI has been forced to postpone the IPL after multiple cases of COVID-19 emerged among players and support staff from Ahmedabad and New Delhi in the past two days.
A senior BCCI official told PTI on terms of anonymity: “We will lose anything between Rs 2,000 crore and Rs 2,500 crore postponed midway for this season. I would say something in the Rs 2,200 crore range would be closer to an accurate estimate.” .
The 52-day, 60-match tournament was due to end in Ahmedabad on May 30. However, it was only possible 24 days of cricket with 29 matches completed before the virus halted measures.
BCCI’s biggest loss is the money it gets from Star Sports for the rights to broadcast the tournament.
Star has a five-year contract of Rs 16,347 crore which is Rs 3,269.4 crore per year. If there were 60 games in a season, the rating per match would be roughly Rs 54.5 crores.
If Star were to pay per match, the sum of 29 matches would be roughly Rs 1,580 crore from Rs 3,270 crore for a full tournament. This means a loss of Rs 1,690 crores for the Board.
Likewise, VIVO handheld manufacturers, as champions of the championship, pay 440 crores per season and BCCI is likely to receive less than half of that amount due to the postponement.
Add to that, affiliated sponsors like Unacademy, Dream11, CRed, Upstox and Tata Motors, who pay in the range of Rs 120 crore each. Some sub-sponsors are there too.
The official said, “Cut all payments in half or a little less and you will arrive at a loss in the range of Rs 2,200 crore. The losses may actually be much more, but this is the back of the manual calculation for the season.”
Losing a large amount of money would also reduce the season’s total central revenue (the money that BCCI distributes between eight franchises) by nearly half.
However, the official did not disclose how much each franchise lost due to the tournament suspension.
“It is difficult to determine what kind of care and co-sponsorship money they have received this season because the economic climate was so hostile,” he said.
Players will be paid on a term, not proportionate, basis
In the event that players are only present for part of the tournament, salaries are paid on a pro-rata basis which means “an amount is allocated to one person according to his share of the whole”.
A senior player, however, said that proportionality only applies when a player voluntarily makes himself available for only a portion of the tournament based on available matches.
In this case, the organizers suspended the event so the franchisees are likely to pay for at least half of the season.