Qaiser Mohammad Ali
For the first in its 87-year history, the BCCI has broken the Rs 5,000 crore barrier. In its balance sheet for the financial year 2014-15, which was disclosed on Monday, the wealthiest cricket body of the world was shown further consolidating its position at the top.
The Board of Control for Cricket in India’s net worth is now a whopping Rs 5,436.897 crore. It had breached Rs 4,000 crore mark last year (2013-14).
As per its balance sheet for the 2014-15 financial year, the Board earned a total of Rs 1,348.03 crore. This figure has been arrived at by subtracting the 2013-14 gross total of Rs 4,088.94 crore from Rs 5,436.897 crore, the grand total for 2014-15.
In 2013-14, the BCCI’s income was Rs 1,139.36 crore and in 2014-15 it went up, the figure being Rs 1,266.41 crore.
The biggest source of the BCCI’s income in 2014-15 was, ironically, from the Champions League T20, a tournament that never gained as much popularity as much as the IPL, and was scrapped this year due to various reasons.
Although usually it is the media rights (from the series played in India) that fetches the BCCI the maximum revenue, this time the income from the Champions League T20 was more as the Board received a hefty compensation from STAR India Ltd., which held the media rights.
The income shown under Champions League T20 in 2014-15 is Rs 742.80 crore, which is more than the double of what the BCCI earned during 2013-14, which was Rs 327.50 crore. The difference was Rs 415.30 crore.
From the media rights, the BCCI earned Rs 30.58 crore less in 2014-15. In 2013-14, it had earned Rs 419.38 crore and in 2014-15 the corresponding figure was Rs 388.80 crore.
The revenue from the media rights, which is the income from the international matches played in India and in 2014-15, the BCCI had scheduled just one series — comprising five One-day Internationals against the West Indies. But due to differences between their players and the West Indies Cricket Board (WICB) over their payment structure, the Caribbean team did not complete the tour and abruptly left India.
The BCCI slapped a $41.97 million damages claim on the WICB. The WICB has expressed its inability to pay the amount as it is financially crippled. Now, instead of paying the amount, if the WICB agrees to play matches in India as compensation, that would help the BCCI earn some more revenue.
After the West Indies team’s pull out, the BCCI invited Sri Lanka for a five-ODI series which helped it earn some revenue.
Unlike the 2014-15 balance sheet, when the books are prepared for 2015-16, the media rights revenue would again shoot up as the BCCI has scheduled many matches at home in this ongoing financial year, 2015-16.
The scheduled includes four Tests, five One-day Internationals and three Twenty20 Internationals against South Africa between September and December, and five One-day Internationals and three T20 Internationals against Sri Lanka.
While the income from the Champions League T20 more than doubled, surprisingly the surplus from the lucrative IPL dipped by a whopping Rs 208.69 crore. In 2013-14, the IPL surplus was 334.86 crore and the next year it went down to Rs 126.17 crore.
The main reason for the dip in revenue is that the initial part of the 2014 IPL was held in the UAE. Due to this the BCCI had to pay a compensation of Rs 44.86 crores to the eight franchisees as the relocation of matches had impacted their income.
“Consequent to shifting of certain matches of IPL Season 2014 from India to the UAE, based on requests received from franchisees, the IPL Governing Council has approved an amount of Rs 44.86 crores as compensation towards loss of revenue of franchisees,” says the BCCI in its balance sheet.