The Board of Control for Cricket in India (BCCI) might be the richest cricket body in the world, but it may not withstand the blow which might come from the cancellation of Indian Premier League's 13th edition.
The IPL 2020 was postponed from March 29 to April 14 due to the spread of Coronavirus pandemic and rising cases of positive cases in the country. As per the metrics of worldometers.info, India is nearing 6,000 positive cases and has experienced 178 deaths so far.
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The BCCI had not expected the PM Modi to put India under a 21-day lockdown. The Indian cricket board was expected to have the tournament from April 15, but with the extension of lockdown almost inevitable; the start of the tournament looks bleak.
In 2018, Star India had won the bid after cracking a five-year deal worth a staggering Rs 6138.1 crore ($944 million approx). They then shelled out a whopping Rs 16,347.50 crores ($ 2.55 billion) for the worldwide TV and digital rights for a 5-year period from 2018 to 2022.
The BCCI had also sold the title sponsorship to VIVO for Rs 2,000 crore for a period of 5 years which means a loss of Rs 400 crore in 2020 if IPL is canceled. Therefore, if the tournament is canceled, BCCI and its stakeholders are set to lose Rs 3,869.50 crore.
The worst part of the whole thing is that the board and the franchises have not been able to secure insurance covers against Coronavirus. Insurance covers for the IPL include: "event insurance, professional indemnity, commercial general liability, kidnap and ransom cover, D&O (Directors and Officers liability) for IPL owners, business interruption, medical and accidental covers, “said Rajat Mishra, a Supreme Court lawyer and legal and risk management expert, told Moneycontrol.
Apart from this, cricketers also stand to lose if the matches don’t happen, as the franchise work on one simple formula- no match, no money. According to IPL insiders, players are paid 15% of their salaries at the beginning of the tournament followed by 65% during the tournament and the remaining 20% afterward within a stipulated amount of time.
Overseas players also risk losing their contracts and money if their boards refuse them permission to participate in the tournament or in case this edition is canceled.
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The eight franchises will also lose money in terms of sponsorship and advertising. It is estimated to be in the region of Rs 450-500 crore in sponsorships for all the 8 teams along with an additional Rs 250 crore (estimated) from ticket sales.
IPL 2015 had contributed Rs 1,150 crore to the Indian GDP, the BCCI had revealed while the total economic output associated with that season stood at Rs 2,650 crore. Therefore, a cancellation this year not only hurts the franchises involved and the Indian cricket board, but it also harms the Indian economy as well.
(India Today inputs)
