The Board of Control for Cricket in India (BCCI) on Tuesday has called off the Indian Premier League (IPL) 2021 indefinitely after several players and support staff of various franchises tested positive for Covid-19. The IPL is the biggest money generator for the BCCI and the teams. The IPL being canceled or being postponed indefintely would be a huge financial setback for all involved.
Financial impact of IPL being canceled
The IPL in 2020 was held in the UAE, behind closed doors. Despite a lack of public attendance, the IPL had generated for the BCCI ₹4,000 crores. Even in 2021, the IPL was held behind closed doors, and a similar amount of revenue was expected to be generated. The BCCI on an average earns around ₹67 crore for every match being broadcasted.
Potential loss this year
With 31 of the scheduled 60 matches being completed, the BCCI looks set to lose around ₹2000 crores from the IPL being canceled. This is bad news not just for the BCCI but also for all the franchises involved.
The money reeived by the BCCI from the IPL is generally transferred to a central reserve pool. This is then shared between the BCCI and the teams equally. In 2021, the teams were expected to share a pot of ₹2,000 crores. However,now this amount may fall down to ₹1,000 crores.
The franchises will be hit harder than the BCCI as they have sponsorship contracts with several companies. These contracts would be revisited and re-negotiated. The sponsorship logo earns the team anywhere between 1 and 40 crores depending on their placement. The teams put together had earned close to ₹500 crores from sponsorship the last year. This number was expected to go up to ₹600 crores on account of higher digital rights sales.
This pain is shared by the BCCI too, as it would have to negotiate with its sponsors such as Dream11, Paytm and others.
The way forward…
The BCCI has not yet come back with any firm date on when the tournament would be resumed. A few players too had stepped out of the tournament earlier to be with their families in these tough times. An email sent by BCCI’s interim CEO Hemang Amin read: “When you all walk out on to the field, you are bringing hope to millions of people who have tuned in. If, even for a minute, you can bring a smile on someone’s face, then you have done well. While you are professionals and will play to win, this time you are also playing for something much more important… humanity.”