KSCA to suffer over 35 crore loss due to IPL postponement
Karnataka State Cricket Association will suffer a loss of around 35 crore this year due to the postponement of the Indian Premier League as the nation is currently under an extended lockdown. As a matter of fact, KSCA depends on the IPL revenue to conduct its cricket activities in the State.
The postponement of the Indian Premier League has not only brought a screeching halt to the sportspersons major source of income but it has also brought about a huge halt in the funding programme for the staging associations. As an example, the Karnataka State Cricket Association (KSCA), which hosts Royal Challengers Bangalore (RCB) matches at the M. Chinnaswamy Stadium in Bengaluru, will have a major financial loss due to the postponement.
“We generally receive a broadcast-related revenue (distributed by the BCCI to State associations) of ₹20-25 crore per IPL season. This is the biggest earner. Apart from this, we get ₹7 crore as stadium rent. With the IPL now suspended, this revenue is down to zero. There are other business and trade elements associated with the IPL too which have been affected. Overall, there is no doubt that the KSCA will be affected very, very badly,” KSCA Hon. Treasurer Vinay Mruthyunjaya told Sportstar.
Apart from broadcast benefits, KSCA earns around ₹7 crores as stadium rent and extra income from their trade activities inside the ground during matches. All in all, this amounts to a minimum of 35 crores which will be lost if the IPL gets cancelled for the entire year.
“There are certain expenses that simply must be met. For example, employee salary wages, umpire and scorer fees, ground maintenance costs and so on are fixed costs. The KSCA also rents grounds to conduct certain matches. This is also a fixed cost. To compensate, we may have to cut back on aspects like scale and duration of tournaments that we conduct. But we don’t know when we will be able to hold the meeting. We are all on lockdown now, so we have to wait for things to normalise first,” Mruthyunjaya said.
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