IPL 2020 uncertain, are Indian Cricketers headed for pay cuts?

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IPL 2020 was suspended from May 29th to April 15th. Amidst one of the worst health crisis India has seen, is there a chance that IPL 2020 will see a light of the day. Answer would be, very unlikely. Who bears the biggest financial brunt if the 13th season of IPL does not go ahead? Without any doubt the BCCI and the players. The Board will lose the biggest source of its annual revenues and players the major source of their earnings.

All three of the above sources completely gets dried up in case IPL 2020 gets cancelled this season. For BCCI, the other big source of revenue every financial year is revenues generated through bilateral home series. All the revenues, be it media rights fees from Star India or sponsorship amounts from sponsors are paid on Pro-Rata basis to BCCI. This means, the revenues are dependent on number of matches India play on their home soil.

BCCI 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 organized without any hiccup BCCI is set to earn 1080 Crore for year 2020 from the home series. If the ICC T20 World Cup go ahead in Australia this year, BCCI will also be paid from ICC Coffers their share of revenues.

The BIG Question – Who gets hit because of hit on revenues of BCCI

The Big Question is in case the IPL 2020 does not happen, will BCCI sail through. Will the revenues earned through other sources be enough to take care of the expenses of BCCI? Who bears the brunt in case of shortfall?

BCCI distributes round about 150 Crore annually to centrally contracted and other current international players. This includes the retainer amount and also the match fees (15 lakh per test, 7 lakh per ODI & 5 Lakh per T20 game) paid for each match. Another 70 Crore is distributed as salaries for the domestic players. It is likely that the players revenues, especially the international players may take a hit as BCCI may pass some of their financial pain to the players.

Another party which can get hit is the BCCI’s member state associations. Each year BCCI pays a certain share of their revenues to the state bodies, the sources in the board tells InsideSport.co that “shares to the state bodies may also get compromised to an extent if the IPL 2020 does not go ahead and the national body sees substantial fall in annual revenues”.