IPL 2021: The 2021 edition of the Indian Premier League was suspended mid-way recently because of the ongoing COVID-19 pandemic situation. The decision came after several cricketers were tested positive for Coronavirus within the bio-bubble.
BCCI president Sourav Ganguly and Vice-President Rajeev Shukla have still not cleared the air on whether the remaining tournament would be resumed in the latter half of the year.
However, with 31 games of the 60-match tournament still remaining to be played, the BCCI is staring at a loss of more than half of its revenues. This INR 2,000 crore loss to India’s cricket board could also spell a piece of bad news for IPL franchises.
The reason behind this is with half of the tournament canceled, the BCCI’s revenue loss may lead to drastic falls in contributions to the central reserve pool of the Indian Premier League.
Well, the income received by the BCCI from the IPL is transferred to the central reserve pool. Later, this amount is shared equally among the BCCI and all the IPL franchises. In the now-suspended season of IPL, all eight franchises were expected to share INR 2,000 crore in revenues.
With half of the tournament in jeopardy, all the franchises would have to suffer a loss of at least INR 1,000 crore in earnings from the central reserve pool.
But this isn’t it, another major cause of concern for all the IPL teams is that their sponsorship contracts with various companies. Each IPL franchise, based on its star power and popularity, gets several crores of rupees from sponsors. Every team earns revenue between single-digit crores to over INR 40 crore.
This year in IPL 2021 all eight franchises were expected to earn around INR 600 crore. BCCI also earns a whopping amount of 800 crores every year from this sponsorship. Each of the franchise is expected to get the amount of only half of the tournament.