12BET India news: IPL cuts prize money by half as part of BCCI’s austerity drive
The Indian Premier League (IPL) rewarded its champions last season with Rs 20 cr ($2.72m). This season, however, the cash-rich T20 cricket league of the Board of Control for Cricket in India (BCCI) has decided to slash the prize money for winners by half, making it Rs 10 cr ($1.36m) this season. This decision is part of the governing body’s cost-cutting measure, according to circular sent to all franchises.
“The financial rewards have been reworked as a part of the cost cutting measures. The champions will get Rs 10 crore instead of Rs 20 crore. The runners-up will get Rs 6.25 crore from earlier Rs 12.5 crore,” a BCCI statement through Press Trust of India reads. “The franchises are all in good health. They also have multiple ways like sponsorships to bolster their income. Hence the decision on prize money taken.”
The almost 50% reduction in the prize money along with the increase of fees from $27,197 to $68,119 that franchises pay to state cricket associations for hosting matches are among the major cost-cutting measures by the BCCI. Others include restrictions to avail business class flights to for mid-level BCCI employees and a possible removable of the Opening Ceremony, which is traditionally grandiose.
This move from the board received backlash from the franchise owners, with some officials expressed their resentment towards the decision. “We are unhappy that the play-off standing fund has been halved. We were not even consulted. The franchisees have been discussing it informally and will soon have a formal meeting to discuss the issue,” said an official from one franchise.
“It is a big hit. We are discussing it internally as well as with other teams. All the teams are meeting soon to discuss it,” said another anonymous official, according to HT. In 2017, Star India paid about $2.5 billion for five years of broadcast rights, the biggest TV deal seen in cricket. Last month, Sky Sports have signed an unannounced worth of three-year deal to cover IPL broadcast in England.
Interestingly, a recent survey suggests that IPL stands at an all-time high of $5.7 billion in brand value, according to Brand Finance’s report. The 2019 edition T20 league ran up to 330 billion minutes of broadcasting time where it garners a huge amount of as many as 300 million viewers log into the streaming services during the period of 44 days.
However, the two-month league remains only a small chunk of global production as football’s English Premier League and La Liga of Spain are still reigning in overall valuation. Brand Finance, a leading independent brand valuation consultancy, said that these European leagues “have benefitted from a long heritage” over the years “while the IPL will just be stepping into its 13th year in 2020.”
The IPL is considered as the largest media property in India and the most popular cricket tournament in the world. Its growing success and popularity made it one of the cash-rich leagues worldwide and it continues to grow, commencing its 13th season on March 29. Visit us at 12BET India to find out how to ensure that your ventures will turn to winnings as we give you bonuses, rewards and promotions!
