At Rs 222 crore, BCCI’s dream shatters with a loss of 30-40% in central pool revenue

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Updated: Aug 19, 2020 7:00 PM

The Board of Control for Cricket in India (BCCI) has signed a five month sponsorship deal with gaming firm Dream11, valued at Rs 222 crore

BCCI is expected to post a 30-40% decline in central pool revenue to Rs 3,700 crore this season as compared to Rs 5,000 crore, last season. BCCI is expected to post a 30-40% decline in central pool revenue to Rs 3,700 crore this season as compared to Rs 5,000 crore, last season.

The Board of Control for Cricket in India (BCCI) has signed a five month sponsorship deal with gaming firm Dream11, valued at Rs 222 crore. According to sources, the deal is valid till end-of-the-year (EoY), that is till December, post which Chinese handset manufacturer Vivo will come back as a principal sponsor. Vivo which bagged the lead sponsorship in 2018 for Rs 2,190 crore. As part of the sponsorship deal Vivo pays Rs 440 crore to BCCI every year.

Assuming the next season of IPL will be held between the usual period of April-June in India, Vivo if it comes back will pay Rs 440 crore to the sporting body, as part of the on-going deal. However, sources revealed that if Vivo refuses to return and the two parties mutually agree to end the contract, then BCCI will have to float a fresh contract of five years.

Despite getting Dream11 as the lead sponsor, BCCI is expected to post a 30-40% decline in central pool revenue to Rs 3,700 crore this season as compared to Rs 5,000 crore, last season. The central pool revenue consists of money earned from sponsorships including on-ground activation and from sales of tickets. While Star India will pay Rs 3,269.5 crore to the BCCI, it will earn Rs 222 crore from Dream11, and another Rs 150 crore from Tata Motors. Two new sponsors — associate in this case, with the deals being valued Rs 80 crore in total – are expected to join the league by the end of this week. Add to this, loss of another Rs 400-500 crore which the BCCI earns from the sale of tickets. However, the sporting body will be able to adjust the losses against the expenses born for maintenance of stadiums. This year, the matches will be held in the UAE, where the BCCI is expected to get rebate when it comes to paying to hold matches in stadiums.

Subsequently, IPL franchises are expected to incur 30-40% loss in revenue, due to decline in earnings from BCCI’s central pool revenue. BCCI shares 50% of the revenue with the franchises, who in turn contribute 20% of their total revenue back to BCCI at the end of tourney.

Read Also: IPL 2020: Star India guns for a bigger IPL this year; to cash in on festive season

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