Can Pay-Cuts happen in Indian Cricket ? Can the richest cricket board in the world will give its players and staff salary cuts ? If the last two statements by two of the biggest officials of BCCI is any hint than the pay-cuts in the Indian Cricket can actually become a reality.
Will BCCI be in financial trouble ??
Days after BCCI treasurer Arun Dhumal came on record and admitted that board will go through ‘financial troubles’ if IPL 2020 does not take place, now board President Sourav Ganguly has admitted the same. Like Dhumal, Ganguly expressed his concerns about the financial conditions of BCCI if IPL does not take place this year. The former India captain said BCCI will have to incur a loss of around Rs. 4000 crore if IPL’s 13th edition does not take place due to the Covid-19 pandemic.
“We will have to examine our financial situation, see how much money we have and take a call. Not hosting the Indian Premier League (IPL) will cause losses to the tune of Rs. 4,000 crore which is huge,” Ganguly told mid-day.
Not only this, the former India captain also hinted that the board might have to go on a pay-cut if the IPL doesn’t happen this year. “If the IPL takes place, we won’t have to go in for pay cuts. We’ll manage things,” added Ganguly.
Earlier the BCCI treasurer showed his concerns over the financial situation of the board in case IPL 2020 does not take place.
“The BCCI will also be in a difficult position in case cricket does not resume soon, especially the IPL.In that case, the BCCI will also have to face a lot of financial hardships. IPL is one of the major revenue-generating tournaments’.
BCCI has got one of the most solid balance sheets in the cricket world with cash reserves which is almost close to billion dollars. No other cricket board in the world can boast of such solid financials.
BCCI BALANCE SHEET
According to the last balance sheet made public by BCCI for 2017-18 –
– its cash and bank balance, as on March 31, 2018, was ₹5,526.18 crore.
– ₹2,011.83 crore was in fixed deposits.
– ₹900 crore was kept aside in escrow accounts to deal with various arbitration proceedings.
This balance sheet would have got further boosted by the IPL media rights deal with Star India who on an average pays 3065 Crores.
How much BCCI can lose in the Lockdown Scenario
The below graphics by InsideSport can explain, how much BCCI stand to lose both from IPL and other sources of revenues they have at their disposal.
BCCI Assumed Revenues from Bilateral Home Series in 2020 – BCCI earns 60.1 Crore per game from Media Rights partner for every international game played at home. India as per the 2020 FTP was only scheduled to play 15 games this season. Out of that South Africa tour to India is already wiped out because of Coronavirus scare and India has already completed 3 match series each against Australia and Sri-Lanka. India is scheduled to play only 3T20 / 3ODI’S against England at home in October in only home series left this year. Assuming England series is lost, BCCI will lose 1080 Crore for year 2020 from the home series.
The loses will mount further If the ICC T20 World Cup gets cancelled. In that case BCCI stand to lose their shares from the ICC revenues.
IPL 2020 Without Crowds will lose its charm – GANGULY
Meanwhile as a possible alternative suggestions were also made to host the IPL behind closed doors without any spectators in the ground. Reacting on the same, Ganguly said, such a proposition looks less attractive.
“Yes, the attraction will be less. I remember playing in such a scenario [when spectators were not allowed in for the final day after crowd disturbances at Eden Gardens] at the Asian Test Championship game against Pakistan in 1999 and there was a clear lack of excitement. If you have matches with restricted amount of crowds, not only would strict social distancing rules apply, the officials would also have to be very careful about how the spectators leave the galleries for home. The policing will have to be very strict. It’s a tough call and the situation we find ourselves in, is grave,” Ganguly added.
IPL 2020 was scheduled for a March 29 beginning this year but was suspended till April when Indian government banned foreign visas. Situations became more difficult for IPL when India was sent on a lockdown. BCCI had no choice but to postpone this year’s IPL for an indefinite period.