STOCK MARKET BSE NSE

BCCI set to incur losses of over Rs 2000 crore due to COVID-forced IPL postponement

The BCCI was forced to postpone the IPL after multiple cases of COVID-19 among players and support staff emerged from Ahmedabad and New Delhi in the past couple of days.

Published: 04th May 2021 08:02 PM  |   Last Updated: 04th May 2021 08:02 PM   |  A+A-

Sanju Samson and Shivam Dube of Rajasthan Royals chat during their IPL 2021 match vs Kolkata Knight Riders in Mumbai

Sanju Samson and Shivam Dube of Rajasthan Royals chat during their IPL 2021 match vs Kolkata Knight Riders in Mumbai. (Photo| ANI)

By PTI

NEW DELHI: The BCCI stands to lose over Rs 2000 crore of the broadcast and sponsorship money earmarked for this year's Indian Premier League which was indefinitely postponed on Tuesday due to COVID-19 cases in its bio-bubble.

The BCCI was forced to postpone the IPL after multiple cases of COVID-19 among players and support staff emerged from Ahmedabad and New Delhi in the past couple of days.

"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," a senior BCCI official told PTI on conditions of anonymity.

The 52-day 60-match tournament would have concluded in Ahmedabad on May 30.

However, only 24 days of cricket was possible with 29 completed games before the virus halted proceedings.

The biggest loss for BCCI is the money it gets from Star Sports for the broadcast rights of the tournament.

Star has a five-year contract worth Rs 16,347 crore which is Rs 3269.4 crore per year.

If there are 60 games in a season, the per match valuation comes to approximately Rs 54.5 crore.

If Star pays per match, then the amount for 29 matches would be Rs 1580 crore approximately out of what would have been Rs 3270 crore for a full tournament.

ALSO READ | IPL cancellation fallout: T20 World Cup set for UAE shift with third COVID-19 wave expected in November

This means a loss of Rs 1690 crore for the Board.

Similarly, mobile manufacturers VIVO, as tournament's title sponsors, pay Rs 440 crore per season and BCCI is likely to get less than half of that amount because of the postponement.

Add to it, associate sponsor companies like Unacademy, Dream11, CRed, Upstox, and Tata Motors, who pay in the range of Rs 120 crore each.

Some subsidiary sponsors are also there.

"Slash all the payments by half or a bit less and you will be reaching a loss in the range of 2200 crore. The actually losses could be much more but this is a back of the hand calculation for the season," the official said.

The loss of a substantial amount of money will also reduce the central revenue pool for the season (the money that BCCI distributes among eight franchises) to nearly half.

The official, however, didn't divulge how much each franchise would lose due to the suspension of the tournament.

"It is difficult to say what kind of sponsorship and co-sponsorship money they earned this season as the economic climate has been pretty hostile," he said.

Players' payment would be based on duration rather than pro-rata 

In case players are available only for a part of the tournament, the salaries are paid on pro-rata basis which means "assigning an amount to one person according to their share of the whole".

However, a senior player said that pro-rata is only applicable when a player voluntarily makes himself available for only a part of the tournament based on the matches available.

In this case, the organisers have halted the event so the franchises are likely to pay for at least half of the season.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp