web analytics

Star India’s compensation to three boards for scrapping Champions League T20

MUMBAI: The BCCI, Cricket Australia
and Cricket South Africa combine will
earn $330 million from Star India for
exiting the Champions League
Twenty20 midway, according to a
report in Mumbai Mirror.
The Champions League T20 commercial
rights owner Star India, which had
acquired the rights (along with then
JV partner ESPN) for $975 million in
2008, was in favour of scrapping the
tournament as it was not garnering
enough viewership. Six editions of the
event have been played.
The BCCI’s share of that
compensation is estimated to be about
$190 million. The Australian board
will pocket $80 million and the South
African board’s share is expected to
be around $60 million.
These numbers were apparently
arrived at after calculating what the
three boards would have earned in the
remaining four years. Star, it is
learnt, was paying the three boards
close to $119 million for one season.
In four years, the three boards’
income would have been $476 million.
The expenditure per year is believed
to be somewhere near $35 million a
year and that would add up to $140
million in four years. If the expenses
were taken off the estimated income,
the three boards would have earned
somewhere close to $336 million.
The report said that the three boards
were constantly in discussion about
ways to scrap the tournament and the
final decision was made on the
sidelines of the annual conference of
the International Cricket Council
(ICC) in Barbados recently.
The decision of the Board of Control
for Cricket in India (BCCI) to scrap
the Champions League Twenty20
(CLT20) has not gone down well with
the Indian Premier League (IPL)
franchises, which is understandable.
After all, that event offered the top
three IPL teams participation money
in addition to prize money.
The franchisees are determined to
voice their concerns with BCCI
officials, said a report in Mumbai
The franchises are upset that their
views have not been considered. “It
was a major business opportunity for
us and we cannot have been kept in
dark about such an important decision.
It is not cricket in China. We are
living in democracy,” a franchise
owner told the daily.
Team owners have been constantly
interacting with the board officials
after the decision was made public by
a BCCI media release on Wednesday.
They are in informal discussions on
how to address the matter although
no concrete decision has been made
yet. It is likely that a meeting or a
teleconference will take place among
the owners before the governing
council meeting of the IPL on Sunday.
The report added that efforts are on
to contact the owners of the six IPL
teams, excluding Chennai Super Kings
and Rajasthan Royals, who have been
suspended by the Lodha Committee. It
is understood that quite a few owners
are overseas and their availability is
being ascertained. If they cannot
attend the meeting, a conference call
is likely.
As is widely reported, the tournament
was scrapped following a request from
its broadcaster Star, which was
incurring heavy losses. In a
statement, the BCCI, along with
Cricket Australia and Cricket South
Africa, the other partners of the
tournament, thanked those who have
participated in it. However, the IPL
franchises have objected to the way
they were kept at bay. “They have
thanked us but did not inform us.
When a business model is tampered
with, the stakeholders have a right to
know. The tournament was an avenue
for us to monetise. There is no
concern for our concerns,” said a
franchise official.
The Champions League had been
staged for six years since its
inception in 2009.

Leave a Reply

Your email address will not be published.

a © 2017 Frontier Theme