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IPL 2020 cancellation could hit broadcaster hard if BCCI uses force majeure clause

  • If IPL 2020 is cancelled, the broadcaster has to pay only 50% to BCCI, as per a specific clause in the contract.
  • The BCCI management is still hopeful that IPL 2020 will take place in the October-November window.
EXPERT COLUMNIST
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Modified 07 May 2020, 08:51 IST

If IPL 2020 is cancelled, it would dampen the sports economy
If IPL 2020 is cancelled, it would dampen the sports economy

The Board of Control for Cricket in India (BCCI) are reportedly in two minds regarding the 'force majeure' clause with the broadcaster, in the event the Indian Premier League (IPL) is called off for the year.

Sources say there is a clause in the contract between BCCI and the broadcaster that only 50 per cent is payable to the former upon cancellation of the IPL. Moreover, the broadcaster stands to get the insurance payout that would emerge through a cancellation.

However, whether the insurance money comes through or not is still up in the air. And if it doesn't, the broadcaster would be hit hard.

If BCCI retains the advance payment of Rs 1,500 crore paid by the broadcaster, the latter might end up being forced out of the market during subsequent tenders.

BCCI on its part is giving out feelers that it is not completely comfortable charging the broadcaster for a cancelled event, despite having the force majeure clause. But there has been no final decision on the matter yet.

IPL 2020 could still happen in October-November

There are many within the cricket fraternity who believe that the IPL could still happen in the October-November window. Member of Parliament and former Indian cricketer Gautam Gambhir said that the IPL would lift the mood of the nation at the time of the coronavirus pandemic, and a few others have share similar sentiments. 

Sources say that several members in the BCCI are advising the top brass against using the force majeure clause.

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"There is plenty of hope among the BCCI management that IPL is going to happen. There isn't a single team on the circuit that believes IPL isn't happening," the source said. They also added that the partial relaxation of the lockdown has been taken as a positive sign by BCCI.


Published 07 May 2020, 02:14 IST
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