If Lodha Panel's recommendations on curtailing the advertisement breaks during the matches is implemented as planned, BCCI is expected to suffer a financial loss worth Rs. 1600 crore.
Due to this loss, along with the functioning of BCCI, even the development of junior cricket in India gets affected majorly.
The current operative revenue as per BCCI balance sheet is approximately Rs 2000 crore, where the broadcasting rights and advertisement revenues forms the major portion.
But the Lodha Panel recommendation proposed to allow advertisements, only during"lunch, tea or drinks break", which would show a very great impact, as the revenues are expected to come down to Rs. 400 crore.
As per the sources, currently, the Star Sports, possessing the broadcasting rights of BCCI's matches, is offering Rs 43 crores per match. But after the Panel recommendation’s implementation, it is expected to be less than Rs. 10 crores.
“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,” sources said.
Initiatives like these, further implies that, during outside tours, the host countries like England, New Zealand or Australia will earn more than India, out of the broadcast deals.
Along with the above effects, another major impact would be on BCCI's age-group structure, which is one of the most robust in world cricket, if Lodha’s recommendation gets implemented.
Approximately BCCI spends Rs. 750 crores on the subsidies to state associations, about Rs. 400-450 crores on match fees and allowances of players, right from U-16.
Not stopping there, BCCI spends around Rs 350 crores on its matches, starting from U-16, U-19, U-22 to Ranji Trophy across the country.
The former first-class cricketers and international cricketers get monthly pension for which another Rs 25 crore is spent by the board.
By Phani Ch