Hurriedly arranged Lanka tour may fetch BCCI Rs.60 crores
(EXCLUSIVE)
By Qaiser Mohammad Ali
New Delhi: The recent One-Day International series in Sri Lanka not only provided Indian cricketers an opportunity to earn a few lakhs more, but it also came to the aid of the Indian cricket board in a big way – financially. The series is estimated to fetch the board a profit of up to Rs.60 crore.
The Board of Control for Cricket in India (BCCI), the world’s richest organisation in the game and the numero uno amongst all sports federations in the country, had expected a surplus of well over Rs.235 crore for the financial year 2008-09. But the cancellation of the two home one-dayers against England last year and the tour to Pakistan this January threatened to dilute this projected figure. A hurriedly-arranged tour to Sri Lanka comprising five One-Day Internationals and a Twenty20 International, however, helped the board recover about half of the Rs.120 crore that was estimated to have been lost due to the two cancelled events, according to the BCCI treasurer.
“Now [after the tour of Sri Lanka], the loss will not be of Rs.120 crore as expected. The series in Sri Lanka has helped us recover 40% to 50% of that projected loss. Although the final figures are being calculated, it’s my guess that about 40%-50% of that amount will be recovered,” BCCI treasurer M.P. Pandove told me.
The BCCI had projected an income of Rs.882.57 crore and a surplus of Rs.2,353,541,212 from 2008-09. The cancellation of the Pakistan tour and the Guwahati and Delhi ODIs against England, following the Mumbai attacks, left a bit of a dent. But the board will be able to end the financial year with a surplus of Rs.1,753,541,212, thanks to Sri Lanka Cricket agreeing to host the Indian team for the ODIs and the Twenty20 International. Actually, the surplus could look still healthier when the profit from the 2008 Indian Premier League (IPL) and the extended tour of New Zealand in February-March is taken into account when books for 2008-09 are made.
The BCCI budget shows a projected income of Rs.514,801,409 from the maiden edition of IPL held in April-June 2008. Pandove, however, says that the eventual profit would be over Rs.100 crore. If that actually happens – and there is little doubt that it will be not be so -- the BCCI could well end up earning more than its budgeted surplus of Rs.235.35 crore in 2008-09.
The BCCI had expected a net profit of Rs.1,682.77 lakh from the Pakistan tour, comprising three Tests and five ODIs scheduled to start on January 4. The squad would have comprised 25 people, including 15 players, manager, coach, bowling coach, fielding coach, physiotherapist, physical trainer, computer analyst, masseur and travel assistant.
For this tour, the BCCI would have received Rs.1,617,28 lakh from the team sponsor Sahara alone and Rs.400.50 lakh from the team kit’s sponsor Nike. Out of the tour’s total income of Rs.2,017.78 lakh (this was before deducting the expenditure of Rs.335.01 lakh), the board would have distributed Rs.238.25 lakh as players’ fee, given Rs.10.50 lakh to the managers, travel assistant and masseur as their fee and Rs.1.26 lakh as entertainment allowance to the captain, coach and managers. The expenditure would have included Rs.30 lakh on travelling, Rs.25 lakh on officials and selectors, Rs.25 lakh on the extra member and Rs.5 lakh under ‘miscellaneous’ head.
The board has projected an income of Rs.432,133,600 from England’s recent tour of India, Rs.172,077,000 from the Test and ODI tour of Sri Lanka in July-August, Rs.164,465,200 from Australia’s tour to India in October-November, Rs.134,040,000 from last year’s Asia Cup held in Pakistan, amongst other heads for 2008-09.
India will now tour New Zealand – their last international fixture of the 2008-09. A Test match and a Twenty20 International were added to the tour schedule to somewhat make up for the cancelled Pakistan tour following attacks on Mumbai. This tour initially consisted of two Tests and five ODIs, from which the BCCI had estimated to earn a profit of Rs.1,441,86 lakh. This figure will now shoot up with the two additional matches, including the solitary but lucrative Twenty20 International.
The earnings of BCCI, worth Rs. 17,147,155,393 on March 31, 2008, broke the Rs.1,000-crore barrier in 2007-08 as it recorded an overall income of Rs.1,000.41 crore. This showed an increase of 46% over the previous year’s income of Rs.651.83. In 2006-07, the corresponding amount was Rs.430.05 crore.
This remarkable growth was possible mainly due to sale of media rights that fetched a whopping Rs.5,593,135,185 crore -- an increase of Rs.245.69 crore over 2006-07, when it earned Rs.3,136,284,351. In 2005-06, the corresponding figure was Rs.430.05 crore.
The second biggest source of income in 2007-08 was the surplus from tours/series, amounting to Rs.2,267,332,191, followed by the interest amount accrued (Rs.761,544,104) on a total fixed deposit of Rs.11,955,609,449. The increase in fixed deposits interest over the previous financial year was to the tune of Rs.25.84 crore. In 2006-07, the BCCI had Rs.745 crores in fixed deposits and Rs.545 crore in 2005-06. Indeed, the rise in BCCI stocks has been astonishing, to say the least.
During 2007-08, the International Cricket Council (ICC) gave the BCCI Rs.468,812,958 as its share from the 2007 World Cup, in which India crashed out in the first round itself. The BCCI also received from ICC Rs.18,599,707 as its share from the Champions Trophy that it hosted in October 2006.
During the financial year, the BCCI benefited from being recognised under Sec.12 A, allowance of exemption under Sec.11 and completion of assessment under Sec.143 (3) for financial years 2002-03, 2003-04, 2004-05. The board also made good progress in the unending income tax related matters arising out of the 2006 World Cup held in India, Pakistan and Sri Lanka. One big success was that the BCCI managed to convince tax authorities that PILCOM, the joint body that organised the World Cup, was “not an agent of foreign boards/players”. Obtention of Service Tax judgement in BCCI’s favour saw the entire demand of Rs.33 crore being deleted.
In the expenditure column of 2008-09, the board proposes to distribute amongst its affiliated units the TV subsidy money of Rs.3,590,330,189 (in 2006-07 it had distributed Rs.3,718,946,858), spend Rs.531,516,536 on the 16 national tournaments that it organises, will give Rs.90,000,000 as retainership to international players, has earmarked Rs.16 crores for the Platinum Jubilee Benevolent Fund (monthly gratis, or pension) for retired men and women players, umpires, and widows of umpires, and has set aside Rs.220,863,686 as TV production cost.
Rs.66 crore were distributed among the international players, as against Rs.43 crore in 2006-07 and Rs.31 crore in 2005-06 and Rs.26 crore in 2004-05. The domestic players’ share too was Rs.66 crores in 2007-08. A total of 26.5% of the total income that the BCCI makes every year is distributed among players.
Amazingly, despite boasting so much money, the BCCI does not have its own building. If its headquarters are housed in a leased/rented space it mainly due to disagreement between the two prominent groups, led by Jagmohan Dalmiya and IS. Bindra/Sharad Pawar. While Dalmiya/Ranbir Singh Mahendra wanted the BCCI offices to be shifted to Delhi, the Mumbai lobby in the board wanted it to remain in Mumbai.
The BCCI offices had been housed in a dilapidated, congested corner of the plush Cricket Club of India’s Brabourne Stadium in Mumbai for decades. Finally, when the Mumbai Cricket Association’s (MCA) all-glass building came up inside the Wankhede Stadium – a stone’s throw from Brabourne Stadium -- the BCCI leased rented two floors in 2006. In 2006-07, it paid MCA Rs.179,360 but the expenditure shot up to Rs.8,183,293 in 2007-08. In addition to the two floors, the BCCI has also leased rented the fourth floor of the same building for IPL offices. Like every year, the board has earmarked Rs.1 crore in its budget for the headquarters’ lease.
These huge figures, however, do not reflect in the board’s manner of working, which still remains amateurish and secretive in many areas. Till last year the BCCI did not have its own website. A few years ago, the BCCI hired Tata Consultancy Services, but decided not to implement all of its recommendations. At its own slow pace, the BCCI expanded its staff, seemingly reluctantly bringing in a few former cricketers on its rolls.
By Qaiser Mohammad Ali
New Delhi: The recent One-Day International series in Sri Lanka not only provided Indian cricketers an opportunity to earn a few lakhs more, but it also came to the aid of the Indian cricket board in a big way – financially. The series is estimated to fetch the board a profit of up to Rs.60 crore.
The Board of Control for Cricket in India (BCCI), the world’s richest organisation in the game and the numero uno amongst all sports federations in the country, had expected a surplus of well over Rs.235 crore for the financial year 2008-09. But the cancellation of the two home one-dayers against England last year and the tour to Pakistan this January threatened to dilute this projected figure. A hurriedly-arranged tour to Sri Lanka comprising five One-Day Internationals and a Twenty20 International, however, helped the board recover about half of the Rs.120 crore that was estimated to have been lost due to the two cancelled events, according to the BCCI treasurer.
“Now [after the tour of Sri Lanka], the loss will not be of Rs.120 crore as expected. The series in Sri Lanka has helped us recover 40% to 50% of that projected loss. Although the final figures are being calculated, it’s my guess that about 40%-50% of that amount will be recovered,” BCCI treasurer M.P. Pandove told me.
The BCCI had projected an income of Rs.882.57 crore and a surplus of Rs.2,353,541,212 from 2008-09. The cancellation of the Pakistan tour and the Guwahati and Delhi ODIs against England, following the Mumbai attacks, left a bit of a dent. But the board will be able to end the financial year with a surplus of Rs.1,753,541,212, thanks to Sri Lanka Cricket agreeing to host the Indian team for the ODIs and the Twenty20 International. Actually, the surplus could look still healthier when the profit from the 2008 Indian Premier League (IPL) and the extended tour of New Zealand in February-March is taken into account when books for 2008-09 are made.
The BCCI budget shows a projected income of Rs.514,801,409 from the maiden edition of IPL held in April-June 2008. Pandove, however, says that the eventual profit would be over Rs.100 crore. If that actually happens – and there is little doubt that it will be not be so -- the BCCI could well end up earning more than its budgeted surplus of Rs.235.35 crore in 2008-09.
The BCCI had expected a net profit of Rs.1,682.77 lakh from the Pakistan tour, comprising three Tests and five ODIs scheduled to start on January 4. The squad would have comprised 25 people, including 15 players, manager, coach, bowling coach, fielding coach, physiotherapist, physical trainer, computer analyst, masseur and travel assistant.
For this tour, the BCCI would have received Rs.1,617,28 lakh from the team sponsor Sahara alone and Rs.400.50 lakh from the team kit’s sponsor Nike. Out of the tour’s total income of Rs.2,017.78 lakh (this was before deducting the expenditure of Rs.335.01 lakh), the board would have distributed Rs.238.25 lakh as players’ fee, given Rs.10.50 lakh to the managers, travel assistant and masseur as their fee and Rs.1.26 lakh as entertainment allowance to the captain, coach and managers. The expenditure would have included Rs.30 lakh on travelling, Rs.25 lakh on officials and selectors, Rs.25 lakh on the extra member and Rs.5 lakh under ‘miscellaneous’ head.
The board has projected an income of Rs.432,133,600 from England’s recent tour of India, Rs.172,077,000 from the Test and ODI tour of Sri Lanka in July-August, Rs.164,465,200 from Australia’s tour to India in October-November, Rs.134,040,000 from last year’s Asia Cup held in Pakistan, amongst other heads for 2008-09.
India will now tour New Zealand – their last international fixture of the 2008-09. A Test match and a Twenty20 International were added to the tour schedule to somewhat make up for the cancelled Pakistan tour following attacks on Mumbai. This tour initially consisted of two Tests and five ODIs, from which the BCCI had estimated to earn a profit of Rs.1,441,86 lakh. This figure will now shoot up with the two additional matches, including the solitary but lucrative Twenty20 International.
The earnings of BCCI, worth Rs. 17,147,155,393 on March 31, 2008, broke the Rs.1,000-crore barrier in 2007-08 as it recorded an overall income of Rs.1,000.41 crore. This showed an increase of 46% over the previous year’s income of Rs.651.83. In 2006-07, the corresponding amount was Rs.430.05 crore.
This remarkable growth was possible mainly due to sale of media rights that fetched a whopping Rs.5,593,135,185 crore -- an increase of Rs.245.69 crore over 2006-07, when it earned Rs.3,136,284,351. In 2005-06, the corresponding figure was Rs.430.05 crore.
The second biggest source of income in 2007-08 was the surplus from tours/series, amounting to Rs.2,267,332,191, followed by the interest amount accrued (Rs.761,544,104) on a total fixed deposit of Rs.11,955,609,449. The increase in fixed deposits interest over the previous financial year was to the tune of Rs.25.84 crore. In 2006-07, the BCCI had Rs.745 crores in fixed deposits and Rs.545 crore in 2005-06. Indeed, the rise in BCCI stocks has been astonishing, to say the least.
During 2007-08, the International Cricket Council (ICC) gave the BCCI Rs.468,812,958 as its share from the 2007 World Cup, in which India crashed out in the first round itself. The BCCI also received from ICC Rs.18,599,707 as its share from the Champions Trophy that it hosted in October 2006.
During the financial year, the BCCI benefited from being recognised under Sec.12 A, allowance of exemption under Sec.11 and completion of assessment under Sec.143 (3) for financial years 2002-03, 2003-04, 2004-05. The board also made good progress in the unending income tax related matters arising out of the 2006 World Cup held in India, Pakistan and Sri Lanka. One big success was that the BCCI managed to convince tax authorities that PILCOM, the joint body that organised the World Cup, was “not an agent of foreign boards/players”. Obtention of Service Tax judgement in BCCI’s favour saw the entire demand of Rs.33 crore being deleted.
In the expenditure column of 2008-09, the board proposes to distribute amongst its affiliated units the TV subsidy money of Rs.3,590,330,189 (in 2006-07 it had distributed Rs.3,718,946,858), spend Rs.531,516,536 on the 16 national tournaments that it organises, will give Rs.90,000,000 as retainership to international players, has earmarked Rs.16 crores for the Platinum Jubilee Benevolent Fund (monthly gratis, or pension) for retired men and women players, umpires, and widows of umpires, and has set aside Rs.220,863,686 as TV production cost.
Rs.66 crore were distributed among the international players, as against Rs.43 crore in 2006-07 and Rs.31 crore in 2005-06 and Rs.26 crore in 2004-05. The domestic players’ share too was Rs.66 crores in 2007-08. A total of 26.5% of the total income that the BCCI makes every year is distributed among players.
Amazingly, despite boasting so much money, the BCCI does not have its own building. If its headquarters are housed in a leased/rented space it mainly due to disagreement between the two prominent groups, led by Jagmohan Dalmiya and IS. Bindra/Sharad Pawar. While Dalmiya/Ranbir Singh Mahendra wanted the BCCI offices to be shifted to Delhi, the Mumbai lobby in the board wanted it to remain in Mumbai.
The BCCI offices had been housed in a dilapidated, congested corner of the plush Cricket Club of India’s Brabourne Stadium in Mumbai for decades. Finally, when the Mumbai Cricket Association’s (MCA) all-glass building came up inside the Wankhede Stadium – a stone’s throw from Brabourne Stadium -- the BCCI leased rented two floors in 2006. In 2006-07, it paid MCA Rs.179,360 but the expenditure shot up to Rs.8,183,293 in 2007-08. In addition to the two floors, the BCCI has also leased rented the fourth floor of the same building for IPL offices. Like every year, the board has earmarked Rs.1 crore in its budget for the headquarters’ lease.
These huge figures, however, do not reflect in the board’s manner of working, which still remains amateurish and secretive in many areas. Till last year the BCCI did not have its own website. A few years ago, the BCCI hired Tata Consultancy Services, but decided not to implement all of its recommendations. At its own slow pace, the BCCI expanded its staff, seemingly reluctantly bringing in a few former cricketers on its rolls.
