BCCI will lose Rs 1,000 crore under new ICC revenue model

NEW DELHI: The Board of Control for Cricket in India’s revenue will take a major hit if the new International Cricket Council revenue model is implemented, according to a PIL filed in the Madras High Court by former CBI director RK Raghavan and others.
The petitioners submitted that BCCI, which is entitled to 21 per cent of gross revenue of ICC for the cycle broadcast 2015-23, will be receiving at least Rs 1,000 crore less due to Manohar’s “unilateral offer” for a six per cent cut in the revenue-sharing model. They said they have filed the petition based on newspaper reports and details furnished by Tamil Nadu Cricket Association (TNCA), a member of BCCI.
When the matter came up before a bench comprising Chief Justice Sanjay Kishan Kaul and Justice S Vaidyanathan, the Judges questioned whether the petition could be entertained as a PIL since it was a private agreement between two parties.
The bench then asked the counsel for the petitioners whether he would like to withdraw the petition or want the court to pass orders.
After the counsel said he would get instruction from his client, the bench posted the mater to April 20.
According to the former CBI director, the broadcast revenue to ICC was estimated to be in the range between $900-925 million for the Rights Cycle 2007-15 and sponsorship revenue was estimated between $600-650 Million for the same period.
He further said that the Media Rights Income for 2015-23 has fetched $1.9 billion and that the broadcast rights for the cycle has more than doubled from the previous cycle.
He submitted that the sum total revenue for the cycle 2015-23 will exceed $2.5 billion at current conversion rate comes to more than Rs.16,750 crores.
The petitioner submitted that the sum due to BCCI is 20.3 per cent for its participation in the ICC events for the cycle and it worked out to Rs.3,400 crores.
It is the Indian market and sponsorship which contributes more than 80 per cent of the revenue generated by world cricket, the PIL said adding it was in this background all the members of ICC, the test cricket playing nations agreed in February 2014 to pay a per centage of ICC revenue to BCCI.
The petitioner claimed that present BCCI chief Manohar, who took over as Chairman of ICC with effect from November 9, 2015, obtained a general body approval to ‘negotiate downward revision’ of BCCI’s revenue from the world body.
TNCA first wrote to BCCI complaining that the mandate given by its chief would result in a loss of more than Rs 3,000 crore to the board till 2031, the PIL claimed.

Leave a Reply

Your email address will not be published.