BCCI staring at $270 million loss due to IPL suspension

The amount is just a ballpark figure and the board is yet to arrive at an actual number considering its contractual obligations, said BCCI Treasurer Arun Singh Dhumal

e4m by exchange4media Staff
Updated: May 7, 2021 1:29 PM
IPL

The Board of Control for Cricket in India (BCCI) is staring at a loss of $270 million due to mid-way suspension of Indian Premier League (IPL) 2021. The cash-rich tournament was suspended following bubble breaches in two venues. 
"The ballpark figure for revenue loss would be to the tune of Rs 2000 crore rupees ($270 million)," BCCI Treasurer Arun Singh Dhumal told a news agency. "Given all our contractual obligations, we are yet to find out what would be the actual figure," he said, adding that the governing body's immediate priority was to ensure the league's foreign players returned home safely.

As reported by exchange4media, BCCI was expected to collect Rs 744 crore from the title and other on-ground sponsors. This included Rs 484 crore from title sponsor Vivo and an estimated Rs 200 crore from the five on-ground partners - Tata Safari, Dream11, Unacademy, Cred, and Upstox. Umpire partner Paytm and Strategic time-out partner were expected to pay Rs 60 crore.

The biggest revenue stream for BCCI is the media rights income. Star India is the official media rights holder for IPL till 2022. The broadcaster had paid Rs 16347.5 crore to acquire IPL media rights for five years.

As per the contract between BCCI and Star, the board had received 25% (Rs 4086.87 crore) of the media rights payment in FY19 and will receive 18.75% (Rs 3065.15 crore) each in the subsequent years.

Thus, the BCCI was expected to earn Rs 3809.15 crore from on-ground sponsorship and media rights income. The BCCI also earns revenue in the form of franchise fees from IPL teams. Beginning with IPL 2018, the franchises have to pay a consideration equivalent to 20% of the yearly revenue

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