Adding a new IPL franchise 2021: IPL 2020 is over and the Cricket Control Board of India (BCCI) is already preparing to implement plans for IPL 2021. News that BCCI seeks to increase teams (1 or 2), on IPL 2021 is circulating – But how feasible is it for all concerned? How comfortable are current stakeholders with the idea?
InsideSport reached out to some of the stakeholders to verify their reaction on the development. Of the 8 IPL franchises, InsideSport spoke with the management of 3 franchises and the 3 were of the opinion that such a move should not be made for the next IPL in 2021. According to them, this not only damages their interests, but the timing is not right . for IPL to absorb someone else sooner.
“We have not been informed of any increase in the number of franchises. Any information we have is through media reports. You see, BCCI has every right to increase teams, but at this stage, when all stakeholders have suffered something due to Covid-19, our personal opinion, the addition should only happen in 2022 when the new media rights agreement will be in operation “, said owner of one of the IPL franchises.
“Where is the time for such a move”, another franchise representative replied ? “All the franchises that he will speak to will be of the same opinion. IPL has to expand one day, it can’t be an 8-team affair forever, we understand that, but my personal opinion is that BCCI should let things settle for some time before making such a move. ” said the franchise officer.
InsideSport tried to contact the official broadcaster Disney Star India as well to get their official opinion on the possible increase in the number of teams, but did not get any response from them.
Adding a new IPL franchise 2021: How can the new addition affect existing franchises and broadcasters?
New onboarding can have a huge impact on existing stakeholders – see how
Existing IPL franchises – All IPL franchises obtain participation from BCCI’s Central Pool, which is currently distributed equally among the 8 franchises. With the addition of 1-2 franchises, your revenue share will decrease. From a franchise point of view, the BCCI must ensure that with the increase in the number of franchises, its existing revenues increase. If that is not happening, they will lose the current portion.
Another concern existing franchises have is: how will the Mega Auction take place? They are of the opinion that they currently have their kernel in place and it will not be correct to replace that kernel with only four months to go for the next IPL edition.
Broadcast partner – IPL’s official broadcaster, Star India, will also be affected by the increase in the number of franchises. Star is already losing out due to the high license fee for IPL. As per InsideSport’s understanding, according to BCCI’s contract with Star India, Star will be charged pro rata in case the number of matches increases in IPL 2021. Star India, as estimated by Pro-Rata, is spending 54 , 5 Cr per game IPL and if one follows the logic of the Pro-RATA base, Star will be asked to shell out very considerable amounts.
In the existing IPL format, if the teams increase to 9, the number of matches will be expanded to 76, that means 16 additional matches and 872 Cr of additional license fee for BCCI.
Will Star agree to such a walk? Only time will tell.
Adding a new IPL franchise 2021: challenges also for BCCI
BCCI IPL owners – BCCI undoubtedly wants to broaden the horizon by increasing the number of teams for the next edition. They have had some losses at IPL 2020 due to reduced title sponsor values and additional expenses rather than holding IPL 2020 in the UAE. It has not yet been determined whether the BCCI will launch the tender for one team or immediately launch two teams. The truth is that the BCCI desperately wants to increase the teams and is likely to decide the way forward after Diwali.
But they also have challenges on hand: the biggest of all is the time constraint. In 4 months from now, the IPL 2021 is due to take place. If BCCI has to include a new team, they will have to complete not only the bidding process for the new addition, but they are also expected to hold a mega auction for IPL 2021 before January.
