Lodha Panel's recommendations could cost BCCI 1,600 crores
The Lodha Panel's recommendation of restricting advertisements to only during the lunch, tea and drinks break during matches seems to have sent jitters across the lucrative cricket advertising world. If implemented, the move will significantly cut down the revenue earned by broadcasters and the BCCI.
"Yes, it is true that we are facing a situation which could lead to a revenue loss of Rs 1600 crore. 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," an unnamed BCCI source told PTI.
Curtailing the advertisement breaks can have a far-reaching effect on Indian cricket. The BCCI will have to renegotiate their deals with Star Sports and Sony for the broadcasting rights of Indian cricket team's matches and IPL respectively. Starsports, reportedly, pay 43 crores per match to the BCCI currently, and if the recommendation is implemented, they are likely to pay only 8-10 crores.
PTI's source has also claimed that a big chunk of the revenue generated from television rights goes towards the development of Junior cricket in the nation, and that will be hampered when the recommendation is implemented.
"The biggest hit could be the age-group matches, U-16, U-19s and the various camps that are organised. The money generated through IPL and international broadcasting rights is used for development of junior cricket which will not be possible then," he added.
BCCI spends approximately 750 crores on state association's subsidies, 450 crores on match-fees of U-16 to the senior players, 25 crores on former first-class and international cricketer's monthly pension, and 350 crores on conducting around 2000 U-16, U-19, U-22 and Ranji Trophy matches around the country.
The organisation's current operating revenue is approximately 2,000 crores, and the majority of that budget arrives from television rights sold to broadcasters.
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