BCCI is not in favour of offering compensation to IPL stakeholders: Reports

According to a report in Times of India, the BCCI and the IPL Governing Council may not be in favour of providing any sort of compensation to either the franchises or the stakeholders for the 2020 season of the IPL.

The BCCI of the opinion that “had there been no IPL this year, there would’ve been no earnings whatsoever. So, the fact that the IPL will be held this season assures the league’s stakeholders some revenue as against no revenue at all.”

The report further claims one of the franchises had suggested that "the BCCI should do away with the 20% share of franchises' top-line revenue that they are contractually obliged to receive every season."

“That 20% — from all eight franchises’ top-line — goes to the members of the BCCI and is part of the revenue corpus that state associations depend on. Every year, the association hosting an IPL match receives Rs 50 lakh from the franchise and Rs 50 lakh from the BCCI as hosting fee — totalling to Rs 8 crore per venue and Rs 64 crore across all franchises per season. Since this year’s edition is shifting to UAE, that revenue is already out of the window, so the 20% will stay,” say those sharing BCCI’s perspective.

In the meantime, Times of India has been able to have a word with 13 state cricket associations and they have no objection to this whole perspective. What is the estimated revenue that the franchises will earn from this year’s edition of the 53-day T20 carnival?

The income breakdown comes with 50% of the revenue from the broadcaster, i.e. INR 200 crores per franchise. Besides title sponsor, the official sponsors constitute INR 200 crores a year, divided into INR 12 crores a franchise. 

“Add the local revenues like jersey sponsorship and other partners to that and the franchises are going to earn in excess of Rs 250 crore.” 

“Deduct the player fees and operating costs, franchisees will still earn in excess of Rs 100 crore in the middle of a pandemic. Now, how’s that compared to no IPL this season?” say those tracking developments.

On 6 August, the BCCI stated in a release that they have officially suspended the partnership with Vivo Mobiles India Pvt Ltd for the 2020 season of the IPL.  

“The Board of Control for Cricket in India (BCCI) and Vivo Mobile India Pvt Ltd have decided to suspend their partnership for Indian Premier League in 2020,” the release stated.

Currently, the Board is looking for a title sponsor to replace Vivo for this year's tournament. They are even considering options that are ready to make a deal that could be 50% lesser than what Vivo had been paying for, which could mean that if everything goes right, a franchise can earn up to INR 230 crores.

[With TOI inputs]