The Hindu : Sport : IPL subvention to increase

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Friday, Aug 20, 2010
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IPL subvention to increase

Special Correspondent

MUMBAI: With the central sponsorship revenue whittled by several crores because of failed contracts, the IPL season 3 accounts is reported to have taken a big hit to the tune of Rs. 40 crore. The IPL had posted a surplus of Rs. 51 crore in season 1 in 2008 and Rs. 15 crore in season 2 in 2009.

The season 3 deficit matters little though to 25 (eligible) of the 30 full member associations of the Board of Control for Cricket in India (BCCI).

They will still receive their share of Rs. 202 crore which will take the IPL subvention total to Rs. 606 crore in the first three seasons of IPL.

The eligible members will receive varying sums, with the IPL match-staging associations being placed in a higher band of around Rs. 8 crore each and the others around Rs. 7 crore.

Windfall

From IPL 2011, each of the eligible members will receive upwards of Rs. 14 crore, thanks to Sahara's bid to own the Pune franchise at $ 370 million and Rendezvous Sports World's bid for the Kochi franchise at $ 333.33 million for ten years. Cricket Club of India, Mumbai, National Cricket Club, Kolkata, Railways, Services and the All India Universities, though full members of the BCCI, do not receive IPL and television subvention.

Three years ago, the BCCI decided that 70 % of the franchise consideration will be disbursed to the eligible full members. In 2008 the successful bids of the first eight franchises assured the BCCI a sum of $ 723 million for a period of ten years. This worked out to a franchise consideration of Rs. 289 crore (ten per cent of their successful bids) for each of the ten years.

From the 2011 IPL season, the franchise consideration would more than double, with the Pune and Kochi owners contributing $ 70 million (Rs.325 crore) for each of the next ten years. The eligible members will then receive 70 % of a sum in excess of Rs. 600 crore.

The same group of 25 full members will also receive a television subvention, a high percentage of the money received from BCCI's media rights partner (Nimbus Communications).

This has increased considerably over a period of ten years. Now each of them receives an IPL-television subvention between Rs. 20 crore and Rs.30 crore in a year. From the 2011-12 fiscal, each association will see a substantial increase, thanks to the high bids by the Pune and Kochi franchisee owners.

Governing Council meeting

The IPL accounts for 2010 will be placed before the Governing Council meeting at the Cricket Centre here on Friday. The GC will also discuss the observations made by the auditor with regard to certain happenings in the IPL 3 season and also discuss and decide on the number of matches to be played from next season. Informed sources said after a two-group round robin league between ten teams, a super league may be played before the semi-finals and final.

The marketing committee will also meet here to award the title rights for home international matches and domestic matches for three years (2010-2013).

According to a BCCI release, 10 corporates had picked up the Invitation To Tender (ITT) and that Airtel, Idea Cellular, Karbonn Mobile and MicroMax made the financial bids by 5 P M on Thursday. The BCCI's finance committee will also meet on Friday and make recommendations to the Working Committee scheduled to be held here on August 28.

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