BCCI set to lose over Rs 2,000 crore
The BCCI stands to lose over Rs 2,000 crore of broadcast and sponsorship money after the IPL was suspended. “We would be losing anything from Rs 2,000 crore to Rs 2,500 crore for the midway postponement of this season. …something in the range of Rs 2,200 crore will be closer to accurate estimation,” a senior BCCI official said.
The 52-day, 60-match tournament could complete only 24 days of cricket, with 29 completed games.
The biggest loss for the BCCI is the money it gets from Star Sports for the broadcast rights. Star has a five-year broadcast contract worth Rs 16,347 crore, ie Rs 3,269.4 crore per year. If there are 60 games in a season, the valuation per match is approximately Rs 54.5 crore.
If Star pays BCCI for the 29 completed matches, it would amount to Rs 1,580 crore out of Rs 3,270 crore for the full tournament — a loss of Rs 1690 crore. Mobile phone 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.
There would also be revenue losses from associate sponsors like Unacademy, Dream11, CRed, Upstox, and Tata Motors, who pay in the range of Rs 120 crore each. The tournament has some subsidiary sponsors as well.
“Slash all the payments by half or a bit less and you will be reaching a loss in the range of Rs 2,200 crore. The actual losses could be much more but this is a back of the hand calculation,” the official said. — PTI