IPL might lose 1 billion dollars in valuation if season is cancelled due to coronavirus outbreak
- The brand Indian Premier League could lose its $6.8 billion valuation if it chooses to play a shorter tournament
- If the tournament is abandoned entirely, IPL could lose between $700-1000 million.
The Indian Premier League might lose a billion dollars over its last year valuation of the season gets cancelled. The Board of Control for Cricket in India has already delayed the season by over half and month and with India entering the third week of its Covid-19 outbreak, it is difficult to foresee as to how it all is going to shape up in the coming weeks.
Prime Minister Narendra Modi has requested the populace on Thursday, 19 March to go into voluntary curfew so that they can curb the exposure and spread of the virus that has taken the world by storm.
According to a report by a global advisory firm Duff & Phelps, the brand Indian Premier League could lose its $6.8 billion valuation if it chooses to either play a shorter tournament or abandon it entirely.
The report said that, in case of a truncated tournament played behind closed doors (empty stadiums), IPL will lose close to $350 million in valuation, and if the tournament is abandoned entirely, IPL could lose between $700-1000 million.
The agency arrived at the numbers based on two-scenario assessment of shorter tournament with only half it's matches played in empty stadiums with no revenue from gate sales and a complete abandonment of the 2020 season.
The report further added, "the analysis does not capture a financial recession like event that may further impact the IPL value."
Previously the IPL owners have stated that no constructive solutions have been produced in their meetings with the BCCI. Publications have also quoted officials saying that the BCCI are assessing 7 possibilities for this year's tournament which include playing half the season in India and half overseas.Published 20 Mar 2020, 22:28 IST