Decision to play IPL in UAE is a big deal

The central government last week gave clearance for the IPL to be held, albeit outside India, ending months of suspense. The BCCI had been on tenterhooks since late March, when the league was first indefinitely suspended.

Several lockdowns beause of Covid 19 almost scuttled prospects of the tournament being played this year. As weeks flew by, the powers-that-be in the

Indian cricket establishment were left wringing their hands in anxiety.

Finally, it came to the stage where the only possibility for IPL2020 to be played this year was if the T20 World Championship, scheduled in Australia in October this year, was scrapped. Not an easy matter considering the strained relations between the ICC and BCCI.

Strong behind-the-scenes negotaitions over a protracted period of time finally forced the ICC and Cricket Australia to take this decision which opened up the window of opportunity for the IPL between late September and early November.

While the fact that IPL2020 will be payed is major relief to the BCCI, it has come accompanied with complications. To conduct a tournament of this magnitude overseas (UAE) in such a short time and in the times of Covid is a logistical nightmare. And that’s only one of several problems.

Largely, these are to do with money. Last week, title sponsor Vivo pulled out of the tourament following a backlash in India over the face-off with China at the LOC in Ladakh. The BCCI was receiving a whopping Rs 440 crore per year from the Chinese cellphone maker over a five-year deal.

Interestingly, the BCCI put out an official release stating Vivo would not be associated with the IPL for this year only. This leaves the gate open for the Chinese company to return as title sponsor next year, which has raised eyebrows in several quarters.

Insiders in the cricket establishment and those from industry claim this was a decision taken jointly by the BCCI and Vivo. Neither wants to lose out. The money is excellent for the former, while the latter would be loathe to surrender a hot property like the IPL.

Both parties will likely test the waters in the coming months.

If the current acrimonoy between India and China cools off, Vivo should be back within seven-eight months when the next edition of the IPL is due. For the moment, though, the BCCI has to make a lastminute scramble for finding a title sponsor.

Given the bleak economic outlook which has forced deep financial setbacks to companies, it seems extremely difficult that a substitue sponsor would cough up `440 crore. That said, finding a sponsor at a discounted rate should not be very difficult considering the allure of the IPL.

Money matters have also made relations between the BCCI and IPL franchisees fraught currently. With the tournament being played in the UAE and in stadia spectatorship either non-existent, or vastly reduced if permitted, gate money will take a big hit.

So too team sponsorships and merchandise sales. Usually, companies would queue up to sponsor IPL teams, but this time around its lukewarm at best: due to the late call to play the tournament, as well as company balance sheets lacking heft because of the pandemic.

Lower disposable income will also mean merchandising will take a hit. Taken together, this means less income for the franchises. This has led to some grievances, and disagreements with the BCCI on share of profits and distribution.

From a wider perspective, however, a recalcitrant approach — on both sides — is unwarranted. The broadcast fee itself is so high that in itself it leaves profit for the BCCI and franchises. While the overall income will undoubtedly reduce, both parties still stand to make decent money.

In such hard times, this is a big deal!