IPL 2021 New Franchise addition : Existing franchises not too pleased with BCCI’s plans to include new franchise

IPL 2021 New Franchise addition : The IPL 2020 is over and the Board of Cricket Control of India (BCCI) is already gearing up to roll out plans for the IPL 2021. The news of BCCI looking to increase teams (1 or 2), in IPL 2021 is doing the rounds – but how feasible it is for all the concerned stakeholders ? How comfortable are the existing stakeholders with the idea ?

InsideSport reached out to some of the stakeholders to check their reaction on the development. Out of 8 IPL franchises, InsideSport spoke to management of 3 franchises and all 3 were of the view that such a move should not be made for the next IPL in 2021. According to them, this not only hurt their interests but time is not right for IPL to absorb someone else soon.

“We have not been informed anything about any increase in the number of franchises. Whatever info we have that is through the media reports. See, BCCI has all the right to increase the teams but at this stage when every stakeholder has taken some pain on account of Covid-19, our personal view the addition should only happen in 2022 when the new media rights deal will be in work”, said owner of one of the IPL franchise.

“Where is the time for such a move”, countered another franchise representative ? “All franchises you will speak to, they will be of the same view. IPL has to expand someday, it can’t be a 8 team affair forever, we understand that but my personal view is that BCCI should let things settle down for sometime before making such a move”, said the official of franchise.

InsideSport tried reaching out to official broadcaster Disney Star India as well for their official take on the possible increase in the number of teams but did not get any reply from them.

IPL 2021 New Franchise addition : How the new addition can impact the existing franchises and broadcasters ?

The new addition can impact the existing stakeholders in a big way – check how

Existing IPL franchises – All IPL franchises get Central Pool share from the BCCI which currently is distributed equally among the 8 franchises. With addition of 1-2 franchises, their revenue share will dwindle. Franchises are of the view, BCCI need to be sure that with increase in number of franchises, their existing revenue all goes up. If that is not happening, they will be losing out pie of the current share.

Another concern existing franchise are carrying is – how the Mega Auction will be conducted ? They are of the view, currently they have their core in place and it will not be right to replace that core with only four months to next IPL edition.

Broadcast Partner – The official IPL broadcaster Star India will also be impacted with the move of increase in number of franchise. Star is already losing on account of high licensing fee for IPL. As per InsideSport understanding, according to the BCCI’s contract with Star India – Star will be charged on Pro-Rata basis in case of increase in number of matches in IPL 2021. Star India according to Pro-Rata estimate is shelling out 54.5 Cr per IPL game and if one goes by the logic of Pro-RATA basis, Star will be asked to shell out very hefty amounts – Just sample this –

In the existing IPL Format – if teams are increased to 9 – No of Matches will expand to 76 – that means extra 16 matches and 872 Cr of extra licensing fee to BCCI

Will Star agree to such a hike ? Only time will tell.

IPL 2021 New Franchise addition : Challenges for BCCI as well

BCCI the IPL Owners – BCCI without any doubt want to expand the horizon by increasing the number of teams for the next edition. They have taken some losses in IPL 2020 on account of reduced title sponsor values and extra expenditure in lieu of holding the IPL 2020 in UAE. Whether BCCI will release the tender for 1 team or straightaway they will release two teams is yet to be ascertained. What is certain is that BCCI wants to desperately increase the teams and is likely to decide on the way forward post Diwali.

But they also do have challenges at their hand – the biggest of all is time Constraint. In 4 months from now, IPL 2021 needs to be conducted. If BCCI has to include a new team – they will have to complete not only the tender process for the new addition but would also be expected to conduct Mega-Auction for IPL 2021 before by January.

Cricket