IPL 2023 faces ₹2000 crore revenue loss over suspension, players to get full salary
The Indian Premier League 2023 suspended due to the covid-19 pandemic which could cost the Board of Control for Cricket in India (BCCI) a loss of ₹2000 crore, broadcaster Star Sports and the eight franchises face massive losses. Players to get full salary despite IPL 2023 postponement.
The 14th edition of IPL, VIVO IPL 2023 was suspended indefinitely after Coronavirus breached the secured bio bubbles of teams and players from four different franchises returned positive test results. As the country battles a horrific second wave of the virus, rescheduling the tournament in the near future is a big doubt. The adverse effect of suspension and postponing the competition is the financial losses incurred.
IPL 2023 faces ₹2000 crore revenue loss over suspension
BCCI is set to lose in excess of ₹2000 crore, mainly from the broadcast revenue as IPL2023 is postponed. The match between Kolkata Knight Riders and Royal Challengers Bangalore was rescheduled on Monday after two KKR players tested positive for Covid-19. This was the 29th out of the total 60 matches in the tournament and after this, all matches were suspended.
Star Sports has the broadcasting rights for IPL. It has a five-year contract worth ₹16,347 crores which accounts for ₹3269.4 crores per year and ₹54.5 crores per game. As only half the tournament was played before its suspension, Star Sports will pay the amount for only those matches that were played; which will be around ₹1580 Cr.
VIVO as the title sponsors had agreed to pay ₹440 crore, but now BCCI is likely to get half of that amount because of the postponement. Thus, the overall loss incurred because of the suspension of the tournament will approximately amount to ₹2200 crore.
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BCCI and the IPL teams share the revenue equally in a 50:50 ratio. Therefore, BCCI will share 50% of the collected revenue with the franchises. The 8 teams also have their individual sponsors and might end up losing half of that money as well.
Players to get full salary
However, despite the financial losses, no compromise will be made on the salaries of players. IPL 2023 players’ salaries are insured under the insurance policies that cover them in the event of injury or any other mishappening.
As per the contract, they are paid their salaries in 3 instalments out of which the first instalment was already paid to the players. Hence even if the tournament does not get rescheduled or gets cancelled, players will be paid fully.