The biggest loss for BCCI is the money it gets from Star Sports for the broadcast rights of the tournament
Topics
IPL 2021 | Indian Premier League
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. 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.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
First Published: Wed, May 05 2021. 00:57 IST
read the full story about BCCI set to incur losses of over Rs 2,000 cr due to IPL 2021 postponement
#theheadlines #breakingnews #headlinenews #newstoday #latestnews #aajtak #ndtv #timesofindia #indiannews