The Board of Control for Cricket in India (BCCI) will incur huge losses if the 13th edition of the Indian Premier League (IPL 2020) gets canceled.
The IPL 2020 was scheduled to start on March 29,2020. However, the BCCI decided to postpone the tournament till April 15 after the government denied issuing visas to the foreign players due to the coronavirus outbreak.
BCCI was preparing to start the cash-rich league from mid-April but India is undergoing a lockdown period of 21 days. With the lockdown ending on April 14, the IPL 2020 seems highly unlikely.
The suspension of the tournament will have a major monetary impact on the franchises, cricketers and the BCCI.
In 2018, Star India had won the bid for the IPL sponsors for five years for Rs 6138.1 crore ($944 million approx). Along with that, Star also has worldwide TV and digital rights for 5 years from 2018 to 2022. They paid a massive amount of Rs 16,347.50 crores ($ 2.55 billion) for this.
VIVO holds the title sponsorship of the IPL for a tenure of 5 years. BCCI has sold this for Rs 2,000 crore to VIVO.
Therefore for any reason, if the tournament stands canceled this year, BCCI will lose ₹400 crores to VIVO. Subsequently, the board and its stakeholders will incur a loss of a whopping Rs 3,869.50 crore.
One worst thing about this scenario is that the BCCI and the franchises weren’t able to secure insurance cover for the tournament.
The Supreme Court lawyer Rajat Mishra informed about the things which are involved in the insurance covers. According to him, Insurance includes, “event insurance, professional indemnity, commercial general liability, kidnap and ransom cover, D&O (Directors and Officers liability) for IPL owners, business interruption, medical and accidental covers,”
The eight IPL franchises will also lose sponsorship and advertisement money of about Rs. 400-500 crore. Also, they will not be getting money from ticket sales which are estimated to be about 250 crores.
Along with the franchises, players will also be at losing in case the IPL 2020 does not take place. The franchises run on a simple formula- No match, No money.
The cancelation of the league will hurt the Indian economy too. IPL gives a much-needed boost to the Indian economy every year. This time, the total economic output expected from the tournament was Rs. 2,650 crore.
The annulment of the IPL 2020 will affect a lot of bodies in India monetarily.