The cost of not having IPL this year....
A lot has been happening during the past fortnight. Many countries have gone into lock down, economic activity has come to a halt and where as sport is concerned many events including “The Olympics” have been postponed. IPL is also no different, the most coveted T20 tournament which was scheduled to be started on March 29 was postponed to April 15 2020. But, considering the current situation it is very unlikely that BCCI might be able to start the IPL on the 15th. Even though there are media reports that IPL might get postponed to August, there has been no official confirmation from BCCI. But, what if the IPL doesn’t happen this year? What might be the economical consequences of this? Read on to know more:
The first would be money from Broadcasters, the broadcasters Star pay BCCI around 4000 crores and from this half of the amount is payed to franchises. If the tournament stands cancelled then, BCCI might not receive this amount and also the validity of the broadcasting rights are upto 2022. But, if IPL gets cancelled this year then BCCI might have to extend the agreement by one year.
You might want to read: https://www.sportzian.com/post/5-forgotten-yet-epic-encounters-in-ipl-history
BCCI might also lose on the sponsorship money which constitute to chunk of the IPL generate revenue. Franchises earn from a pool of about 300 crore INR. Most of this is contributed by sponsorships. And also franchises loose from the ticketing revenue as well. And respective State boards loose on the money they get paid by franchises and that total stand at a total of around 60 crores INR. Cricketers also will not be paid their fees and that amount totals upto 700 crores.
You might say this is just BCCI’s loss. But, hold my sanitizer, you know whatever economic activity happens in this country gets added to the Gross Domestic Product aka GDP. According to a report published by KPMG, In 2015 IPL directly contributed about 11.5 Billion INR to Indian GDP. And also it should be noted that IPL season is when most of the foreigners visit India and they in turn contribute to the revenue. So, the total economic output in association with IPL is 26.5 billion INR. But, this data is from 2015, now we have as many fantasy leagues as we have panipuri stalls in our localities. These fantasy league app might loose a lot of revenue if IPL gets cancelled this year.
So, cancelling IPL might lead to too much economic strain on all the stake holders involved with this cash rich league. We at Sportzian sincerely hope that we get to see some live action! Until then stay home stay safe!