BCCI on revenue sharing with franchisees
BCCI on revenue sharing with franchisees

BCCI asks franchisees to keep paying 20% of the top line avenues for IPL 2020

The country is in two minds after this season of IPL has announced that it is scheduled to start from September in the UAE. This season of IPL has been in talks due to many issues surrounding its sponsorship, franchise, and the plan of execution for the game. 

Reason for asking the franchisees to pay 20% of the avenues

Overlooking the current scenario, BCCI and the IPL governing council have asked for the franchises to pay 20% of the avenues without giving any compensation before commencing the 13th edition of IPL in UAE. The board emphasizes that stakeholders are going to generate revenues this year, which wouldn’t have been the case if there was no IPL this year. Rescheduling IPL is beneficial to all the stakeholders in this situation of a pandemic.

One particular franchisee suggested that BCCI and IPL should put their foot down this season by not asking for the share in the revenues generated from this edition of the Indian Premier League. Other franchisees had no such expectations from the board. However, BCCI is firm to refuse this suggestion of letting go of the “20%” share from the top revenues. 

BCCI’s take on the revenue

According to the reports, each year, 20% of the revenues are collected from all the eight franchisees, and it goes to the members of BCCI. It is a kind of income that association depends on every year. The association receives Rs 50 lakh from the franchise for hosting the IPL along with Rs 50 lakh from the BCCI itself as a hosting fee. This revenue sums up to Rs 8 crore per venues and Rs 64 crore across the franchisees every season. 

Now that this year’s IPL is shifted to the UAE, there is no such revenue left apart from the 20% of the franchisee’s revenue for the association. As the association will not be liable to take any hosting fees, it is firm to keep this form of revenue intact. Apart from that, the committee has also mentioned that BCCI will not be responsible or compensate the franchisee for the loss of this season’s gate money. 

How much can a franchise make this year?

As per the new guidelines, 50% of the broadcasting revenue will be shared among all the eight franchisee partners of this season, which is Rs 200 crore per franchise approximately. Apart from the title sponsor, five official partners bring Rs 200 per season, which sums up to Rs 12 crore per franchise. 

BCCI is yet to finalize the replacement deal for Vivo; however, companies like Amazon, Byju’s and Dream 11 have shown interest in replacing Vivo as this season’s sponsor.

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Priyanka Ramrakhiani

Priyanka Ramrakhiani

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