File image of a fan holding a ticket for a 2012 IPL match between Chennai Super Kings and Mumbai Indians (TOI …Read More
MUMBAI: The BCCI and the Indian Premier League (IPL) Governing Council are putting their foot down on giving any compensation to the franchises or any of the stakeholders ahead of the 13th edition of the IPL in UAE starting next month.
The board’s view on the matter is based on the perspective 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”.
One IPL franchise, in particular, had suggested in the run-up to the team owners’ meeting on Thursday that “the BCCI should do away with the 20% share of franchises’ top-line revenue that they are contractually obliged to receive every season”. Most of the other franchises, however, haven’t been particularly demanding in this aspect.
The BCCI, nevertheless, is about to convey a firm “no” to the said franchise on the stated request, with an explanation on why it is not possible to do away with the key 20% share.
“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 — totaling 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.
TOI spoke with 13 state associations and none have disagreed with the view.
The 20% share aside, BCCI will not compensate the franchises for the loss of this season’s gate money either.
So, how much is a franchise expected to earn this season on an average? Here’s a math: 50% of broadcaster’s revenue will be shared among eight teams, so that’s an approximate Rs 200 crore per franchise. There are five official partners – other than Vivo – who bring an approximate Rs 200 crore every season, so that’s around Rs 12 crore per franchise.
BCCI is floating a replacement for Vivo and looking to bring in additional partners on board. Even if it raises 50% of Vivo’s value this year, that’ll mean another Rs 12-14 crore per franchise. A franchise will end up earning around anywhere between Rs 220 to 230 crore only from the central revenue pool.
“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, franchises 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.
TOI had reported on Friday about the possible companies – Amazon, Byju’s & Dream 11 – who are already showing interest to replace Vivo for this year.
“The deal will be closed in a week from now. Let’s hope for the best,” sources say.