IPL 2021 Suspended: From BCCI to cricketers, assessing the financial implications
The Indian Premier League (IPL) 2021 campaign had to be suspended after 29 games were played in the season due Covid-19 outbreak. A number of players, support staff and coaches tested positive for the virus, sending shockwaves in the Indian cricketing spectrum. The situation forced the Board of Control for Cricket in India (BCCI) to take the big call but it now has to bear the financial implications too.The IPL remains the most profitable business of the BCCI. Even for the players participating in it, the T20 league brings about the sort of financial deals that remain unparalleled all across the world. But what happens now, since the second half of the league isn't expected to resume for months?BCCI: The Indian board gets INR 54.4 crore from broadcaster Star Sports for every match that takes place. But with the remaining 31 matches of the league suspended, the BCCI will lose approximately INR 1600 crore in revenues. The board's revenue from the title sponsor, VIVO, and other partners will also be halved since only 50% of the tournament has been completed so far.Franchises: The franchises and BCCI earn on a revenue-sharing model, with both earning 50% from the central pool. This reduces the money that the franchises will get by half too.Players: The franchises pay their players match-on-match basis but most franchises remain generous in terms of payouts to their cricketers. Although contractually the franchise bosses aren't supposed to pay the players full fees, they might not cut players' wages.State Associations: State bodies earn INR 1 crore for every match, of which INR 50 lakh comes from franchises while the BCCI pays the rest. 20 percent of the topline revenue of all franchises also comes to the state associations but now that would be halved.A senior BCCI official had even said that the BCCI will incur a loss between Rs 2000 to Rs 2500 crore for the midway postponement of the league. The said losses will likely be borne by all participants - BCCI, franchises, sponsors, broadcaster, state bodies, etc.In a scenario where the BCCI is unable to find a window to organise the second-half of the league in India, the option to host it in UAE also exists. The chances of taking such big losses, hence, are slim.For now, all payments are likely to be made on a pro-rata basis.