Decision on IPL venue after poll schedule

Shift in venue might raise costs for franchises 25 per cent, cut revenues up to 40 per cent

The Board of Control for Cricket in India (BCCI) on Friday said it would decide the venue of this year’s Indian Premier League (IPL) tournament after the schedule for the general elections was announced.

The annual twenty-20 league will have to be shifted abroad (at least in part) due to the clash with the polls -- the government has said it can’t provide the required security, since the elections have priority.

“The working committee was of the view we (BCCI) should first wait to find out the programmes of the elections and after that a decision could be taken,” said N Srinivasan, president of BCCI. If necessary, part of the tournament could be held abroad, he added.

South Africa, Bangladesh and the Emirates Cricket Board had expressed support and interest in hosting the tournament, IPL chairman Ranjib Biswal told the committee. BCCI secretary Sanjay Patel said the board would ensure the costs incurred by all parties were minimal.

On the recent reports of spot-fixing in the IPL, in which Srinivasan’s own son-in-law, Gurunath Meiyappan, was allegedly involved, the BCCI chief said, “The matter is sub judice (in court). I cannot go into it. As far as BCCI is concerned, necessary steps will be taken to protect the sport.”

On the Mukul Mudgal committee report on allegations of spot fixing and betting in IPL, Biswal said 70 per cent of the panel’s suggestions had already been implemented. To keep IPL matches free from these, officials of anti-corruption units would accompany the teams and monitor them, he added.

GAME OF MONEY

COSTS INCURRED BY FRANCHISES

• Franchise fee which is 10 per cent of the total bid amount
• Player cost
• Stadium contracts on home ground
• Marketing and promotions
• Miscellaneous expenses including travel and accommodation of team and support staff

REVENUE STREAMS

• 60% of IPL sponsorship (to be distributed equally among the franchises)
• 72% of media rights revenue (to be distributed equally among the franchises)
• Gate collections on home ground (80% of total collections)
• Franchise sponsorship money
• Prize money

Shifting the IPL abroad might hit franchises of the cash-rich cricketing event hard, in terms of cost and revenue.

Franchises stare at increased costs due to travel and accommodation of teams abroad. Sector estimates peg the rise in costs at 20-25 per cent, depending on the venue, size of the team, etc. The BCCI, however, might arrive at an arrangement with franchises through which the cost is shared between the board and teams. On the revenue front, franchises stand to lose up to 40 per cent, including loss in gate collections, in-stadia advertising and team sponsorship revenues.

Experts believe the shift in venue might also hit franchise sponsorships. “Commercial partnerships will be affected by the IPL’s move to a foreign venue, as sponsors are looking at connecting with their target audience in India. If the IPL is conducted abroad, they will not have the Indian pull and, therefore, will to be able to carry out on-ground promotions effectively. The fact that part of the IPL will happen in India will only mitigate the loss,” says Amrit Mathur, advisor to the GMR Group-owned Delhi Daredevils.

The impact on sponsorships might be more for the two teams under a scanner on match fixing and betting charges, Rajasthan Royals and Chennai Super Kings (CSK). “With CSK, there are two things: They have star players such as Dhoni who attract a lot of audience attention, and they have long-standing deals with most of their partners. Rajasthan Royals, however, does not have the star power of CSK,” says Indranil Blah, chief operating officer, CAA KWAN, a sports and celebrity management company.