rahul1117kumar
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Of the recommendations made by the Justice Lodha panel to reform BCCI, the proposed restructuring of advertisements during live telecast of international matches has the potential of leaving far reaching consequences. Though it is aimed at giving the viewers more of what they deserve, it’s impossible to overlook that revenue earned through TV deals can suffer a blow if this is implemented.
On the financial front, the BCCI estimates to lose around Rs 1600 crore per year if the recommendation is implemented. If one goes by the BCCI’s balance sheet, its annual operational revenue is around Rs 2000 crore thanks to the money that TV deals bring in. If advertisements are aired only during drinks, lunch and tea breaks in Tests and innings breaks in ODIs, this figure will come down to the region of Rs 400 crore.
Then, as per the existing deal with Star Sports, the broadcasters pay around Rs 43 crore per match day. If ads are taken off, deals have to be renegotiated — as specified in the clause — and it could come down to Rs 8crore per match day.
“The revenue BCCI gets out of advertisements in essential because a significant part is spent on conducting domestic tournaments. India has the best age-group tournaments in the world and no other country has so many matches for under-16, under-19 or under-23 which act as feeder system for future cricketers. Without money, it will be tough to organise these matches. And let’s not forget that these kids get the best of infrastructure because the board generates so much revenue,” pointed out former India captain Ajit Wadekar. It’s a valid argument that different age-group tournaments will suffer if revenue dries up.
As per BCCI insiders, the board hosts nearly 2000 domestic matches including various age-group and women’s tournaments other than Ranji Trophy. Organising these games costs between Rs 300-350 crore. Match fee for players and officials account for Rs 450 crore more.
“It’s not that money is splashed on unnecessary things. I agree that ads shouldn’t disturb the TV viewer. At the same time, without this money, the game will suffer and maybe it will become like hockey. They should strike a balance as it’s not about commercial elements alone,” said Wadekar.
Though the IPL can continue to have ad breaks, if broadcasting deals are renegotiated, the BCCI’s revenue through commercial deals would become far less than what the boards of Australia and England generate.
There is also the matter of the pension scheme — praised in various quarters — where the board pays between Rs 20,000-50,000 to international and domestic players. Rs 25 crore is spent per month on pensions and many former players are dependent on it. “The BCCI isn’t taking all the money and pension is the best example. How many boards do this?” said Wadekar from Mumbai.
The public might also suffer, if to make up for the lost money, broadcasters increase subscription rates.
“Most sports channels charge very less as subscription except for the ones who don’t televise cricket. So if ads are banned, then they have to increase it and that will affect the public’s pocket. In UK, they charge TV viewers pay per view (per match) and you can see a similar thing in India where an individual will have to spend Rs 50 per match to watch live cricket. That’s too much from a common man’s perspective,” pointed out a source involved in broadcasting.
Money Matters
The BCCI’s annual operative revenue is approx Rs 2000 cr. Bulk of it comes from broadcast rights and advertisement. If the recommendation comes into effect, it would come down to Rs 400 crore, estimates BCCI.
Star Sports, which holds broadcast rights of BCCI’s matches, currently pays Rs 43 crore per match day and the proposed rule could see BCCI getting around Rs 8-10 crore per day, or around 20-25% of the current figure.
Apart from the Rs 750 crore (approx) on subsidies to state associations, BCCI also spends Rs 400-450 crore (approx) on player fees (U-16 to senior teams). Rs 350 crore (approx) is spent on conducting matches (around 2000), from U-16 to Ranji Trophy. All this could be hit, say sources.
For bilateral series, a 10-second ad slot could cost around Rs 3-3.5 lakh. IPL rates are usually between Rs 5-5.5 lakh. For WT20, rates were reportedly around Rs 5.5-6 lakh for India matches.
Star Deal
2012-2018: Rs 3851 crore
From 2012-14, Star paid Rs 32.2 crore per match day. From 2014-18, it has agreed to Rs 43.20 crore per day.
How you’re affected
If recommendations are implemented, viewers won’t be disturbed by ads after every over and dismissal. But they may have to pay more to subscribe to the channel because fewer ads will increase the burden on broadcasters. So watching live action may cost around Rs 50 per day.
http://www.newindianexpress.com/cricket/news/Lodha-Panel-reforms-suggest-restricting-commercial-ads-during-live-matches/2016/05/10/article3424439.ece
On the financial front, the BCCI estimates to lose around Rs 1600 crore per year if the recommendation is implemented. If one goes by the BCCI’s balance sheet, its annual operational revenue is around Rs 2000 crore thanks to the money that TV deals bring in. If advertisements are aired only during drinks, lunch and tea breaks in Tests and innings breaks in ODIs, this figure will come down to the region of Rs 400 crore.
Then, as per the existing deal with Star Sports, the broadcasters pay around Rs 43 crore per match day. If ads are taken off, deals have to be renegotiated — as specified in the clause — and it could come down to Rs 8crore per match day.
“The revenue BCCI gets out of advertisements in essential because a significant part is spent on conducting domestic tournaments. India has the best age-group tournaments in the world and no other country has so many matches for under-16, under-19 or under-23 which act as feeder system for future cricketers. Without money, it will be tough to organise these matches. And let’s not forget that these kids get the best of infrastructure because the board generates so much revenue,” pointed out former India captain Ajit Wadekar. It’s a valid argument that different age-group tournaments will suffer if revenue dries up.
As per BCCI insiders, the board hosts nearly 2000 domestic matches including various age-group and women’s tournaments other than Ranji Trophy. Organising these games costs between Rs 300-350 crore. Match fee for players and officials account for Rs 450 crore more.
“It’s not that money is splashed on unnecessary things. I agree that ads shouldn’t disturb the TV viewer. At the same time, without this money, the game will suffer and maybe it will become like hockey. They should strike a balance as it’s not about commercial elements alone,” said Wadekar.
Though the IPL can continue to have ad breaks, if broadcasting deals are renegotiated, the BCCI’s revenue through commercial deals would become far less than what the boards of Australia and England generate.
There is also the matter of the pension scheme — praised in various quarters — where the board pays between Rs 20,000-50,000 to international and domestic players. Rs 25 crore is spent per month on pensions and many former players are dependent on it. “The BCCI isn’t taking all the money and pension is the best example. How many boards do this?” said Wadekar from Mumbai.
The public might also suffer, if to make up for the lost money, broadcasters increase subscription rates.
“Most sports channels charge very less as subscription except for the ones who don’t televise cricket. So if ads are banned, then they have to increase it and that will affect the public’s pocket. In UK, they charge TV viewers pay per view (per match) and you can see a similar thing in India where an individual will have to spend Rs 50 per match to watch live cricket. That’s too much from a common man’s perspective,” pointed out a source involved in broadcasting.
Money Matters
The BCCI’s annual operative revenue is approx Rs 2000 cr. Bulk of it comes from broadcast rights and advertisement. If the recommendation comes into effect, it would come down to Rs 400 crore, estimates BCCI.
Star Sports, which holds broadcast rights of BCCI’s matches, currently pays Rs 43 crore per match day and the proposed rule could see BCCI getting around Rs 8-10 crore per day, or around 20-25% of the current figure.
Apart from the Rs 750 crore (approx) on subsidies to state associations, BCCI also spends Rs 400-450 crore (approx) on player fees (U-16 to senior teams). Rs 350 crore (approx) is spent on conducting matches (around 2000), from U-16 to Ranji Trophy. All this could be hit, say sources.
For bilateral series, a 10-second ad slot could cost around Rs 3-3.5 lakh. IPL rates are usually between Rs 5-5.5 lakh. For WT20, rates were reportedly around Rs 5.5-6 lakh for India matches.
Star Deal
2012-2018: Rs 3851 crore
From 2012-14, Star paid Rs 32.2 crore per match day. From 2014-18, it has agreed to Rs 43.20 crore per day.
How you’re affected
If recommendations are implemented, viewers won’t be disturbed by ads after every over and dismissal. But they may have to pay more to subscribe to the channel because fewer ads will increase the burden on broadcasters. So watching live action may cost around Rs 50 per day.
http://www.newindianexpress.com/cricket/news/Lodha-Panel-reforms-suggest-restricting-commercial-ads-during-live-matches/2016/05/10/article3424439.ece
