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The IPL has now become an Indian ‘positive’ league. The league had to be suspended after several players came back positive. The positive entry of players in IPL will prove to be negative for BCCI and sponsors. The Board of Control for Cricket in India (BCCI) was expecting to earn more than Rs 700 crore from the sponsorship of IPL this time, but now these earnings are seen hanging in the balance. Not only this, the BCCI has got the IPL insured, but it will not get the claim even after it is postponed. Let us know how much money the board was going to earn and what solution can come out of it after the league has been postponed…
50% earnings were reduced in the year 2020
Last year IPL was held outside the country in the UAE between September and November due to Corona. Last year, BCCI’s earnings from sponsors declined by 50%. According to reports, the board received a sponsor revenue of Rs 400 crore. But this time the board was expected to earn double than last year. The BCCI could have earned Rs 708 crore from sponsors this time.
This year, BCCI made digital brokerage firm ‘Upstock’ an official partner. In 2021, 4 official partners were added to the IPL as compared to the previous 3. At the same time, Vivo received the title sponsorship in place of Dream 11.
Franchises expect earnings to grow by 25-20%
The double of earnings from the title sponsorship of the IPL means that the earnings of the franchisees also increase. Actually, there is a revenue sharing agreement between the board and the franchisee. At the same time, the franchisees themselves have different earnings. These earnings come from different team sponsors. This time, franchises expected to earn 25–30% of earnings from team sponsorship. The earnings of the 8 teams included in the IPL were expected to be more than Rs 550 crores. Some of the big teams earn Rs 75-80 crore and the smaller teams earn up to Rs 40-45 crore.
BCCI expected to earn Rs 3500 crores from advertisement
This year, BCCI was expected to earn Rs 3500 crores from advertisements appearing on TV and OTT platform Hotstar in IPL. According to reports, Star India increased the on-air package by 15-20% this time. In the last year’s IPL of 2020, he was charging 8-10 lakhs of rupees every 10 seconds for advertising. This time it was increased to 9.5-12 lakhs per 10 seconds. At the beginning of IPL 2021, Star Sports executive vice president Anil Jayaraj had said that this time there is a strong demand from brands. Almost all our advertising slots have been booked. According to industry estimates, advertising in the 2020 IPL was 2600 crores.
No insurance related to Kovid
There is insurance for IPL, but there is also a screw in it. It does not include Kovid-19. According to a report, the insurance company will not pay for delays or cancellations caused by Corona. The insurance cover of the IPL is about Rs 3500 crore. Claim will be given only if the League is canceled due to terrorist event or natural calamity like landslides, cyclones, earthquakes. Even a player going out of the team or postponing the match is not a part of the insurance claim. This insurance includes broadcast and team cover. New India Insurance mostly has policies. However, sources are suggesting that companies are definitely considering a way to include an epidemic like corona in such a policy.
Will have to settle in half
The sponsors are definitely upset after being stopped in the middle of the IPL. According to experts, the companies will have to settle the earnings on half the amount after the league is averted. On the other hand, brand experts believe that the IPL will stop the financial loss, but there will not be much impact on the brands. Due to Corona, there was already opposition to the IPL in the face of deteriorating conditions. In such a situation, avoiding the IPL was a very important step to save credibility. Anyway, due to Corona, the impact is already being seen on sales and demand, in such a situation, there will not be much impact on the sponsors’ brand image of IPL being avoided.