BCCI Has Asked The Franchises To Pay 20% Of Their Top-Line Revenues To States From IPL 2020

The Governing Council of the Indian Premier League and the BCCI is very much trying to put their best foot down on giving some sort of compensation to any of the stakeholders or the franchises ahead of next month before the commencement of the 13th edition of IPL.

The view of the board in this particular matter is based on certain perspectives that if there was no IPL for this particular year no earnings whatsoever would have been there. So, for the very fact that IPL is going to be held for this season assures the stakeholders of the league some sort of revenue as against the fact that there would be no revenue at all.

In particular, one IPL franchise had suggested the fact that in the run-up to the meeting of the team owners that are going to be held on Thursday that BCCI is going to do away with the 20% of the shares of the franchises top-line revenue that they are obliged contractually to receive. However, a majority of the other franchises have not been demanding particularly in this aspect.

However, the BCCI is going to convey a firm ‘no’ to all those said franchises on the request that has been stated along with an explanation on why it is not going to be possible to do away with the 20% that holds the key.

That top-line 20% revenue coming from all the eight franchises will go the BCCI members and it will be part of the revenue corpus on which the state associations are going to depend upon. Those who have shared the perspective of BCCI had said that for every year the association that is hosting an IPL match generally receives Rs. 50 lakh from the BCCI and another Rs. 50 lakh from the franchise as hosting fee as it totals to Rs. 8 crores for every venue and the sum is Rs. 64 crore per season across all franchises. Since the edition for this year is getting shifted to UAE the revenue that was supposed to come is already out of the window as the 20% is going to stay.

Top news and media outlets spoke with all the 13 state associations and as a matter of fact, none of the franchises disagreed with this view.

Keeping 20% of the share aside, BCCI is not going to compensate the franchises for the loss they are going to incur this season either for the gate money.

So the question that arises is how much the franchises are expected to earn this season on an average basis? The math is very clear: All the eight teams are going to share 50% of the revenue from broadcasting so that is going to amount to Rs. 200 crore approximately, per franchise. The number of official partners is five other than Vivo which is going to bring Rs 200 crore approximately for every season, which is around Rs. 12 crores for every franchise.

BCCI is looking to board additional partners on board and is floating a replacement for Vivo. Even BCCI is going to raise 50% of the total value of Vivo this year that is going to be another Rs 12 to 14 crore for every franchise. Each of the franchises will end up earning something around anywhere between the sum Rs. 220 to 230 crore only from the pool of the central revenue.

Those who have been tracking the developments said that local revenues like the jersey sponsorship will be added and other partners will also be added to that as the franchises are going to earn more than Rs. 250 crore. The operating costs and the player’s fees will be deducted as the franchises will still return with something more than Rs 100 crore and that too in the middle of the pandemic. Now, that is a great thing in comparison to a no show in IPL this season.

Top news outlets had reported on Friday that about those possible companies who have been showing interest already to replace Vivo for this year like Dream 11, Byju’s, and Amazon.

According to sources, the deal is going to be closed in a week from now on. Everyone is just hoping for the best to happen.