BCCI staring at loss of half a billion dollars if IPL 2020 is cancelled

Cancelling the Indian Premier League (IPL) 2020 due to COVID-19 pandemic would cost the Board of Control for Cricket in India (BCCI) more than half a billion dollars, however, cutting players’ wage has not been considered yet by the authorities. 

The IPL is staring at a first wipeout in its 12-year history following repeated postponement of the tournament from the original starting date of March 29. Scrapping the cash-rich tournament would result in a massive financial hit for the Indian cricket board.

"The BCCI is looking at a big revenue loss. In case the IPL does not take place, the loss would be close to 40 billion rupees ($530 million), or even more," said Board of Control for Cricket in India treasurer Arun Dhumal as quoted by AFP. 

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Dhumal admitted that the authorities are not sure whether it will be possible to conduct IPL 2020. 

"We are not sure whether we will be able to have it this year," he admitted.

While the three-match ODI series against South Africa in March was cancelled after the first washed-out game in Dharamsala, it is the IPL, that generates the maximum of BCCI’s revenue and reportedly, is worth more than $11 billion a year to the Indian economy.

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"We will only be able to figure out the exact revenue loss once we are sure of how many games we have lost," said Dhumal. 

As per Duff and Phelps financial consultancy, the brand value of IPL was estimated at $6.7 billion in 2019.

While Star Sports paid more than $220 million for five years of TV rights up to 2022, the broadcaster was targeting $400 million of revenue in 2020 alone, as per reports.

Dhumal further said pay cut is the last thing the BCCI would do from their end and hence, the board is calculating how much loss they will suffer if IPL 2020 is cancelled. 

"That would be the last thing that we would want to do at our end," said Dhumal.

"That is why we are working (on) how much is the loss finally we have to pay. 

"So once we are able to assess that then we might consider it, but it will be the last thing on our agenda."