BCCI has informed the IPL franchises to prepare for suffering losses financially in respect of IPL 2020 taking place abroad amidst the global pandemic COVID-19. The owners, most of whom are associated with the league from the start of IPL’s 13 years, have agreed that safety and security of those participating in IPL will not be compromised with despite suffering loses financially.
BCCI has conveyed to the franchises that the withdrawal of Vivo as the title sponsor means a minimum of Rs. 25 crore loss to each of them. The money involved is divided between BCCI and teams equally after all expenditures are taken out. It is to be noted that Vivo was paying per season a sum of Rs 440 crores. BCCI have conveyed to the owners that a Request for Proposal will be floated, but it will be difficult to assume the number of bids due to short time and economic condition.
Lower Revenue Income in IPL 2020
With no guarantee in ticket revenue, team owners are prepared for low income this year. Also, every franchise is having issues with individual sponsors who are looking for discounts. Since the last couple of years, after a $25 billion broadcast deal was signed in 2017, teams are earning a surplus of about Rs 200 crore each. The expenditure of BCCI will increase as the league will be held in UAE under the biosecure environment with extra health measures and strict protocols.
“The health and safety of the players, all stakeholders is paramount, even if it meant a loss in our incomes. We’re strongly behind the BCCI on this. We’ll cooperate.” said an owner seeking anonymity.
All of the owners have also been advised not to speak to the media. Hence, IPL owners will support BCCI fully despite suffering losses in revenue in IPL 2020 in providing safety and security of the players and team members in IPL this year 2020. It is to be noted that IPL will be held from September 19 to November 10 after it was postponed from March to the coronavirus pandemic which witnessed global deaths and lockdowns imposed across the world, resulting in the postponement of T20 World Cup, Olympics and Wimbledon among other sporting events.