Franchises Afraid of Heavy Losses if IPL Is Held Abroad

Franchises Afraid of Heavy Losses if IPL Is Held Abroad

The Indian Premier League (IPL) moving out is not good news for the teams. This is a situation they don’t want because it hurts them where it hurts most — in the pocket.

With the election dates expected any day, all factors point to the event being held abroad. It could be South Africa, Sri Lanka, Bangladesh or UAE. The additional logistical costs and the spectre of losing revenue in terms of sponsorship and gate receipts are something that the teams are finding difficult to accept. None, however, are willing to object as it would amount to ruffling feathers in the corridors of power.

Talking to TNIE on condit­ions of anonymity, a team of­­ficial said there are at least th­ree areas where the teams wi­ll suffer in this eventuality. 1. Additional logistic­al expenses. 2. Poor resp­o­n­­­­se from the sponsors. 3. L­oss of revenue from gate re­­­ceipts and corporate boxes.

There are other practical headaches, which become part of the deal if the IPL goes international. “Big teams can afford these. It’s the smaller teams that suffer. But nobody will complain because the stakes are higher. All will say yes,” said the official who was part of his team when the IPL went to South Africa in 2009.

“In 2009, the teams were promised full travel and lodging expenses. It was not completely fulfilled which meant a substantial loss for several teams. Because everyone wants to be part of this show, nobody said anything,” explained the official, who is part of the IPL since its inception.

The other concern is sponsorship. Playing in front of a packed house in India and playing in some other country means a big difference in visibility and interest. In other words, a sponsor will not get the same mileage if the IPL is played abroad.

Another team official said the sponsors will suffer in intangible ways as well. “Th­­e­re are activities around the product which are not visible on TV. For example, Ultratech Cement is the sponsor of Rajasthan Royals and they have built their business around the state. They will not get the same mileage if the IPL is held abroad, which might lead to a lack of interest on their part,” he said.

Then, seven home matches for each team translates into a significant amount in terms of gate money. “Stadiums in India are bigger and a sellout crowd ensures a lot of money. Plus, there is income through selling corporate boxes. Who will guarantee this if we play abroad?” said another official.

There are other headaches like insurance for injuries which vary from country to country and all in all, playing abroad isn’t a happy proposition for the teams, who in the end have no choice but to comply.

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