BCCI is set to suffer a financial loss to the tune of Rs 1,600 crore if lodha Panel’s recommendations on curtailing the advertisement breaks during the matches is implemented.
It is feared that in the wake of loss of revenue not only the smooth functioning of country’s richest sporting body will be hit. According to BCCI balance sheet, the operative revenue currently is approximately Rs 2,000 crore, a large chunk of which comes from broadcasting and advertisement.
But if lodha Panel recommendation, which wants the advertisements only during “lunch, tea or drinks break”, then it would come down to Rs 400 crore.
According to a reliable source in the board, the Star Sports, which has the broadcasting rights of BCCI’s matches, currently gives Rs 43 cr per match and such a rule could see BCCI earning as less as Rs 8-10 cr per match.
“Yes, it is true that we are facing a situation which could lead to a revenue loss of Rs 1,600 cr. Star Sports will renegotiate their deal and may be pay us only 20-25 percent of the amount that we get currently per match. Ditto for IPl broadcasters,” a source said.
The far-reaching implication of this could mean that during India’s away tours, the hosts countries such as England, New Zealand or Australia will earn more than India. According to insiders, there are chances that BCCI’s age-group structure, which is one of the most robust in world cricket, will be badly hit if this recommendation comes to effect.
BCCI spends around Rs 750 crore (approx) on subsidies to state associations, Rs 400-450 crore (approx) on match-fees and allowances of players right from U-16 to the senior teams.
Save this, another Rs 350 crore (approx) is spent to conduct around 2000 BCCI matches from U-16, U-19, U-22 to Ranji Trophy. The former first-class cricketers and international cricketers get monthly pension for which another Rs 25 cr is spent by board.