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BCCI potentially faces loss of Rs 1600 crores over Lodha Panel recommendations

The BCCI could face a severe revenue reduction resulting in decreased expenditure for development of cricket in India.

Justice Lodha

The BCCI may see its revenue plummet by Rs 1600 crores if some of the Lodha Panel's recommendations are upheld. The Lodha Panel has recommended that advertisement breaks during the matches be reduced. 

The BCCI's current revenue is approximately Rs 2000 crores. A great amount of that is contributed by advertisement revenues and broadcasting rights. The Lodha Panel recommendations seek to curtail the advertisements by restricting them to appear just during "lunch, tea, or drinks break."

The BCCI's expenditure also goes towards developing junior cricket in India. If the Lodha Panel recommendations are implemented, the development and management of cricket could take a major blow. 

According to The Hindu, sources claim that Star Sports currently pays Rs 43 crores per match to BCCI for broadcasting rights. but the implementation of the Lodha Panel recommendations will see the amount reduce significantly.

A source stated, “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 maybe pay us only 20-25 percent of the amount that we get currently per match. Ditto for IPL broadcasters,”

Ironically, if this is implemented, during India's away tours the opponent countries will earn more than India from the broadcast rights.

BCCI currently spends approximately Rs 750 crores on subsidies to state associations. They also spend approximately Rs 400-450 crores approximately on match fees and allowances of players between U-16 to senior teams. Rs 350 crores approximately is being spent on conducting roughly 2000 BCCI matches right from U-16. U-19, U-22 to Ranji Trophy across India.

BCCI also pays a monthly stipend to former first-class cricketers and international cricketers. This costs them roughly Rs 25 crores.

The source claimed that “The biggest hit could be the age-group matches, U-16, U-19s and the various camps that are organised. The money generated through IPL and international broadcasting rights is used for development of junior cricket which will not be possible then.”

Some of the Lodha Panel's other recommendations included legalization of betting. That would serve to increase revenue by bringing the illegal betting money out in the open, subject to regulations. The panel also proposed that one person ought to hold only one post. 

The Lodha Panel suggested that no BCCI office bearer ought  to have more than two consecutive terms. These bearers also shouldn't be office bearers or government servents.

The Panel also recommended separating government bodies for the IPL and BCCI.

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