IPL 2020 Cancellation Could Mean Millions In Loss
Every Indian cricket fan realizes how important and popular IPL 2020 is for players and the BCCI. They know that millions of dollars are on the line. However, the average fan does not have a precise idea in terms of what exactly is on the line; especially in terms of revenue each season.
IPL 2020 Cancellation Will Cost $500 Million
India entered lockdown 4.0 this week after Prime Minister Narendra Modi extended the lockdown. India continues to witness an increase in COVID-19 cases. The BCCI was hoping that things would settle by May 5; it would have allowed them to sneak in a mini-IPL that would be finished in June.
Lockdown 4.0 has effectively cancelled those plans and as of now the BCCI is not in a position to confirm if the 2020 IPL is postponed or cancelled for this season. BCCI treasurer Arun Dhumal is one man who knows the numbers and has gone on record to claim that is the 2020 IPL gets cancelled, the BCCI could end up losing over 40 billion rupees which is around $530 million.
The IPL has been around for over a decade and continues to get popular with every passing season. The BCCI is trying to their best to keep the 2020 IPL alive as they know just how much money is at stake. However, as the year progresses it becomes very difficult for the BCCI to be able to find a suitable timeframe when overseas and Indian players will be free to play in the IPL.
The IPL generally takes place over a period of 6 weeks and a season has never been cancelled in the history of the tournament. The BCCI is also open to staging a mini IPL or cramming in two games per day to get in as much cricket as possible. Dhumal said that if the BCCI manages to get in a mini IPL in 2020, the financial losses will have to be ascertained based on the number of games lost or cancelled.
IPL Rated As A $6.7 Billion Brand
Financial consultancy Duff and Phelps evaluated the IPL brand and determined that it was worth $6.7 billion in 2019. The IPL generates a significant chunk of the BCCI budget every year. It also generates over $11 billion for the Indian economy. A cancellation of the IPL in 2020 will hurt a number of stakeholders; they include the domestic and overseas players, the IPL franchises, the BCCI, broadcaster Star Sports and the Indian economy.
Star Sports spends extensive time on the IPL each season with pre and post-match shows. The broadcaster ended up paying $220 million to secure a 5 year deal to broadcast that IPL. While that is a lot of money, Star Sports expected to bring in over $400 million for 2020.
While the IPL 2020 has a lot of implications for stakeholders, the BCCI and franchises have decided against rushing things. The final consensus is that if there are health concerns surrounding the staging of the 2020 IPL in India, then the tournament will be cancelled for this season.
The England and Wales Cricket Board has announced cuts to player salaries; Cricket Australia has sacked a number of their staff in order to keep the costs down. The BCCI is yet to make any decision as to whether it will reduce salaries. It looks like the BCCI will wait to see if IPL 2020 gets cancelled before making any decisions.