BCCI Makes Cost- Cutting in IPL 2020 - Insides of IPL Finances!

There is no doubt that the Board of Control for Cricket in India (BCCI) is the richest cricket body in the world. The reason behind the BCCI’s financial strength is IPL, which is the most lucrative cricket tournament in the world. Indian and international cricket players love to participate in the league because of the sport and whopping prize money.

With a lot of consideration and cost-cutting this year, the BCCI has finally announced the IPL 2020 season. But, as the pandemic is unpredictable if at all this season gets cancelled, then the BCCI has to bear a huge loss of Rs. 4000 crore.

The on-going Coronavirus also largely affected the overall Economy, which has led to many changes in IPL travel policies, prize money, venue cost, etc. Read on to know about the insides of IPL 2020 finances!

The IPL 2020 will begin from 19 September 2020 to 10 November 2020 in the United Arab Emirates. The IPL matches will be played in Dubai, Sharjah & Abu Dhabi.

IPL Value & Earnings

In 2017, the valuation was $5.3 billion, which increased to $6.3 billion in 2018. In 2019, IPL has seen a growth of 7% as compared to 2018. The IPL value increased from Rs. 41,800 crores to Rs. 47,500 crores.

The BCCI earns huge money from the media rights contract. Star TV has already paid Rs. 2000 crore in advance. Vivo has been a sponsor for a long time, but due to tensions on the Indo-China border, the BCCI has paused the Vivo’s sponsorship.

The IPL 2020 is sponsored by Dream11 with a whopping amount of Rs. 222 crore for a period of 4 months and 13 days.

What does BCCI do with the Money?

The money earned from the IPL matches is being used to pay salaries of Indian cricketers. And, a fair share goes to domestic cricket in India. Also, it is used to organise over 2000 domestic matches every year.

Not only men, but women also embrace the same interest in cricket, so the BCCI spends money on women’s cricket and other sporting activities.

IPL Prize Money (50% Decrease)

The BCCI has sent a circular to all the eight teams stakeholders that the play-off standing fund is reduced and there would be no opening ceremony. The prize of the winning team has decreased in IPL 2020. Due to the pandemic, BCCI has to bear a loss and the game will be played without the audience.

The winning price has been reduced this year by 50%. The franchisee will receive Rs. 1 crore per IPL match. The details are as follows:

Cost-cuttings in IPL 2020

This season, the game had to go with a lot of cost-cutting. BCCI announced that they will not host the IPL opening ceremony, which costs approximately Rs. 20 crore. Also, the IPL winning prize has reduced by 50%.

In the new travel policy, business class will be given only for senior employees for 3 hours+ travelling hours. Rest others will have to travel in economy class if the flying hours are less than eight hours.

Venue Cost Hike

In COVID 19, the BCCI venue agreement says that the franchise will have to pay their state association Rs. 30 lakh to host each IPL match. The fee has been hiked by Rs. 20 lakh and the franchises have to pay Rs. 50 lakh for each match. The BCCI will also have to pay the state association the same money. The state association will earn Rs. 1 crore per IPL match.

Capped players loaned

In 2019, there was a rule - that uncapped Indian players can be taken as a loan from one franchise to another during the IPL season. In IPL 2020, the restriction has been raised and overseas players and capped Indian players can be loaned.

BCCI has told that, players who have played less than two complete matches can be taken as a substitute during the season. The loan can be availed for the 28th match of the season and will start at 9 am or once all teams have played 7 matches each whichever is later.

IPL Sold Players List

IPL 2020 has a bunch of sold players wherein, 29 players are overseas and 33 are Indian players. The total money spent on players is Rs. 1,40, 30,00, 000.

The IPL sold players list are as follows:

1 .Chennai Super Kings

2. Delhi Capitals

3. Kings XI Punjab

4. Kolkata Knight Riders

5. Mumbai Indians

6. Rajasthan Royals

7. Royal Challengers Bangalore

8. Sunrisers Hyderabad

Top Buys of IPL 2020

Among 8 IPL teams, only 6 teams have one or two expensive players in their squad. The most expensive player in IPL 2020 is Pat Cummins.

The Top IPL buys of IPL 2020 are as follows: