Reports | BCCI set to cut IPL's 20% foreign players release fee

Since 2017, India’s apex cricketing board BCCI have been paying players respective cricket boards 20% of their match fee to get them available for the entire tournament. However, reports now suggest that the board wants to cut the 20% fee to a 10% one, with the respective franchises being liable to pay to the cricketing boards to ensure the stars’ availability throughout the tournament.

In the past, the rule has undergone multiple changes, including the board suggesting that the franchises have to pay 10% to his respective board under the participation in agreement as a release fee. However, until 2017, not all franchises were making profits, which put on the onus on the cricketing board to do the needful. In 2017, it changed with the franchises needing to pay 10% of the fee after they have recovered profits to the apex cricketing board. 

"In 2017, the BCCI - under the Committee of Administrators (CoA) - had hiked the fee to 20% with the added 10% to be once again paid by the franchises," say sources, reported TOI. 

BCCI’s secretary Jay Shah, however, wants the rate down to 10%, with the franchises dealing directly with the respective cricketing boards. If the teams want their stars available throughout the tournament, they would have to pay their cricketing boards the cut. 

"The general prevailing idea is that the franchisees are making money now. So, why should the BCCI pay? It is the teams that want 100% availability. So, they need to bear the costs," adds the report. 

“The total purse to be spent on players available for a franchise is Rs 85 crore. That amount alone across players from all eight franchises - be it national or overseas - swells up to around Rs 680 crore. Now, if we take just the overseas players into account at even 30% of that salary, it roughly works out to around Rs 200 crore. IPL - BCCI & franchises put together - is paying 20% of that to other boards. Why? Who took this decision?" the report concluded.