BCCI plans subsidy for IPL franchisees in phase-I

The Board of Control for Cricket in India (BCCI) is planning to provide a ‘subsidy’ to Indian Premier League (IPL) team franchisees for the phase of the seventh season’s matches to be played in the United Arab Emirates (UAE).

A member of the IPL governing council said BCCI was planning to bear some of the hotel and stadium expenses because the foreign venue would add to costs for the teams.

“The board is planning to bear the cost of some logistical requirements. Arrangements for the staff, including players, are one of the subsidies. This will provide some relief to the team owners, as they have to bear the cost of holding Phase I in Dubai, Sharjah and Abu Dhabi,” the member, who did not wish to be named, told Business Standard.

Teams are free to set their own rates for stadium tickets and some team owners might choose to raise prices to make up for the loss of revenue. Usually, about 40 per cent of game-day revenue for a franchisee comes from stadium ticket sales.

“There is an understanding between the board and teams on the pricing but franchisees are free to set charges according to their plan,” the member added.

Initially, the franchisees did not want the IPL to move out of the country but a part of the tournament had to be shipped out because of the general elections. Twenty IPL matches will be played in the UAE, from April 16 to April 30, and then the tournament will return to India.

The UAE is cheaper than South Africa, where the 2009 season of the IPL was played, with sops from the cricket board. According to reports, team owners also preferred the UAE for its geographical advantages.

The Supreme Court recently criticised the functioning of BCCI and asked its president, N Srinivasan, to step down. There was also doubt whether two teams, Chennai Super Kings and Rajasthan Royals, would play in this year’s IPL, following allegations of betting and spot fixing. But the court’s interim order allowed them to play.