‘Players’ not entitled for share in IPL revenues’

BCCI

Cricket players in India are not eligible to get a share in the BCCI revenues from the IPL. Financial services firm Deloitte has submitted in a report to the Board of Control for cricket in India.

The former Team India head coach Anil Kumble had recommended that the players get 26% share in BCCI’s all income. He wanted IPL income to be computed in the BCCI gross revenues for the purpose of players share.

However, the Deloitte report dismisses that suggestion by way of its suggestion that board’s gross revenue does not included the earnings from the IPL. The BCCI, meanwhile, has effectively discarded Kumble’s recommendation.

The Committee of Administrators had tasked Deloitte to make recommendations and create an “operating manual” for the BCCI – a draft handbook on core principles and policies for administration of the cricket board. The BCCI, meanwhile, has effectively discarded Kumble’s recommendation, Shamik Chakrabarty has reported for Indian Express.

The financial firm has been asked by the BCCI’s Committee of Administrators to make recommendations and create an “operating manual” – a draft handbook on core principles and policies for administration – for the board.

“Players Eligible Revenue Share is computed based on the Net Eligible Revenue (NER) earned by the Board. Net Eligible Revenue represents: The Total Income Earned by the Board in each financial year (April to March), excluding the revenues/surplus earned from IPL and other one-off tournaments organized by the Board, Interest and Other Income earned by the Board,” the Deloitte manual defined.

The manual states the NER is reduced by “Production Costs relating to Media Rights on International Matches” and “Amounts Due to Associations for the relevant financial year charged to the Income & Expenditure Account”. The manual also stresses on “transparency” and “fairness” with regard to players’ payments, while highlighting “Reward based on Category” and recognition for “superior performance”. It has called for prompt and direct payment and advised that the General Manager (cricket) to be the “single point contact” for the players.

“There’s no ambiguity. Deloitte hasn’t changed the gross revenue definition. The IPL is a separate vertical. Players are making huge contributions, but they are being adequately paid through their franchises for that. And you can’t be paid twice for the same thing,” a BCCI functionary is quoted as saying by The Indian Express.

“The difference between the two models (Kumble and Deloitte) is that Kumble has taken the complete top-line number based on the (BCCI) annual report. While the correct number is the revenue, where the players have their direct contributions. To implement Kumble’s presentation en toto, the BCCI would be in a loss of Rs 200-250 crore. That’s not a practical way of doing it. Deloitte knows all the numbers and their document is principles-based,” he added.

The revenues from media rights, team sponsorship rights, apparel sponsorship rights, series sponsorship rights etc. are part of gross revenue for the purpose of players’ entitlement.

However, Kumble in his presentation document to the BCCI had submitted that “there are some disconcerting aspects that needs to be addressed – deducting transfers to State units (estimated at 70% of media rights) and lack of clarity whether IPL media rights are part of the media rights income and so also BCCI’s share in ICC revenues. These elements reduce the overall emoluments amount available for distribution to players and support staff involved with international cricket. It is suggested that the Gross Revenue to be used should be all income less any direct production costs involved in realising the income.”

The Deloitte manual grants the best of the share to men international cricketers and the least to the women international cricketers. Incidentally, the matter is being reported when women cricketers are hogging unprecedented headlines in the ongoing ICC Women’s World Cup where India is all set to take on hosts England for the coveted title at the Lord’s, London.

The manual allocates the players’ revenue share as 13% for international cricketers, 10.40% for senior domestic cricketers, 1.60% for junior domestic cricketers and a mere 1% for women cricketers. In addition to that, 1% has been reserved for players’ association to be formed through a steering committee as per the Lodha Committee recommendation accepted by the Supreme Court.

The BCCI is also advised to put aside an additional 3% of the NER to reward “superlative performance of the players under various categories”, to be distributed “as per the directions of the Apex Council”. Another 10% of the NER has been earmarked for rankings.

An additional 5% is recommended for the national team in they finish the season as the No.1 Test team in the world. Report advises to reduce this to 3% if the team ends up at No.2 position. This ‘incentive for the ODIs’ is proposed at 3% and 2% for the No.1 and No.2 finish respectively and 2% and 1% for the T-20 global rankings.

There is a proposal to end ad hoc payments for performance-related incentives.

The Deloitte manual, however, is as of now a working document, which the CoA has sent to the BCCI. The final implementation will be subject to the general body approval.


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