The BCCI will suffer a loss of more than Rs 2000 crore due to the indefinite postponement of this year’s Indian Premier League. This is the amount of broadcast and sponsorship fixed for this year’s IPL. IPL 2021 has been postponed on Tuesday due to the increase in the cases of Kovid-19 in its bio bubble. The BCCI was forced to take this decision after several cases of Kovid-19 were reported between players and support staff from Ahmedabad and New Delhi in the last few days.
Loss in most broadcasting rights
A senior BCCI official, on the condition of anonymity, said that they will suffer some loss of between Rs 2000 and 2500 crores due to the postponement in the middle of this season. They will say that something in the range of Rs 2200 crore is accurate. Will be close to guess. The 52-match and 60-match tournament was to end on May 30 in Ahmedabad. However, only 24 days of cricket was possible, with 29 matches completed, when the tournament has been halted by the virus.
The biggest loss for the BCCI is the money it had to get from Star Sports for the broadcasting rights of the tournament. Star has a five-year contract worth Rs 16,347 crore, which is Rs 3269.4 crore per annum. If there are 60 games in a season, then the valuation per match comes to around Rs 54.5 crore. If Star pays per match, that would be around Rs 1580 crore for 29 matches, which would have been Rs 3270 crore for the entire tournament. This means the board has to suffer a loss of Rs 1690 crore.
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Big loss of sponsorship amount
Similarly, the mobile manufacturers Vivo, the title sponsors of the tournament, will pay Rs 440 crore per season and BCCI is expected to get less than half of this amount due to the postponement. Associated sponsor companies such as Unacademy, Dream11, CRed, Upstox and Tata Motors pay in the range of Rs 120 crore each. Some subsidiary sponsors are also present.