BCCI’s net surplus jump by a whopping Rs 192.63 crore in 2011-12
(EXCLUSIVE)
By Qaiser Mohammad Ali in New Delhi
BCCI, the richest cricket board in the world, has exceeded its own expectations for 2011-12 and registered a whopping increase of Rs 192.63 crore, or a jump of 101.53 per cent, in net surplus over the previous year.
The Board of Control for Cricket in India, which is now
worth a mind boggling Rs 3,308.31 crore, had budgeted for a surplus of Rs296.31
crore for 2011-12, but ended up earning a massive Rs382.36 crore, according to
its latest balance sheet.
In 2010-11, the Board earned a net surplus of Rs189.73
crore. The different between the amount budgeted for 2011-12 and the actual surplus
earned is Rs86.05 crore – or an increase of 29.04 per cent.
Overall, the BCCI earned a gross income of Rs849.44crore and
spent Rs467.08 crore, for a net surplus of Rs382.36 crore.
The main source of BCCI’s income has been the media rights
and it earned Rs437.75 crore from this category in 2011-12 while in 2010-11, it
earned Rs 388.56 crore -- a significant increase of Rs 49.19 crore over the
previous year -- as per its latest balance sheet.
The income from the Indian Premier League (IPL) has been another
major avenue of income, and here too the BCCI books show a colossal raise of Rs
146.38 crore over the previous year. The BCCI earned Rs 265.14 crore from
fourth edition of the IPL in 2011 while it garnered Rs 118.76 crore in 2010.
Since the IPL is always played in April-May, the income from
its 2011 tournament it is shown in the latest balance sheet and the figures
from the 2012 competition will be shown next year.
The other most significant income in 2011-12 was the
interest accrued from banks, and again the Board recorded a handsome jump over
the previous financial year, of Rs 23.79 crore. This year it received Rs97.47
crore as interest while it was Rs 73.68 crore in 2010-11.
“The interest income has increased in spite of the fact that
the interest rates came down [recently]. This was mainly possible because of
effective utilisation of available cash flow by investing the available float in
short term deposits from time to time,” writes BCCI treasurer Ajay Shirke, who
took over the reins from MP Pandove in September last year, in the BCCI annual
report.
Also during the past financial year, the BCCI received Rs
62.65 crore as its share from the surplus that the International Cricket
Council distributes to its member countries annually. This amount includes Rs
61.54 crore in relation to the 2011 World Cup, hosted by India, Sri Lanka and
Bangladesh, and Rs 1.11 crore from the annual ICC ranking awards.
Last year, the Board had received Rs23.81cr from the ICC, meaning
an increase of Rs 38.84cr. This raise was possible as India won the World Cup
and with it handsome prize money besides the tournament hosting fees.
Shirke, also president of the Maharashtra Cricket
Association, is naturally elated to be part of the BCCI’s continued financial growth.
“...am pleased to report that in spite of the various issues that the Board faced
from time to time, our financial performance has been satisfactory...,” he writes
in the BCCI annual report 2011-12.
He was clearly referring to the various government tax
agencies re-opening of the many old BCCI/IPL tax assessment cases that had been
settled long ago.
They have particularly targeted the Board, ironically, after
it changed its objective in 2006 and contributed Rs 50 crore to the National Sports Development Fund of
the sports ministry. This has caused a lot of consternation among the
Board officials and they have appealed against the government decisions in
several cases.
The only category in which the BCCI earned slightly less
than 2010-11 was through the royalty from sponsorship. It earned Rs 14 crore this
year while in 2010-11 the corresponding figure was Rs 14.63 crore.
Shirke is grateful to all his colleagues, particularly
Pandove, for helping him settle down his treasury office in his home city Pune.
“I’m extremely grateful to our president N Srinivasan for is
valuable guidance and support from time to time, the secretary [Sanjay
Jagdale], the joint secretary [Anurag Thakur], and all the office bearers for
guiding me...,” he writes in the report.
“...and I place on record my sincere appreciation of the
efforts put in by all the staff of not only the treasury office, but officials
and staff of the entire Board, along with the various experts and professionals
who have advised the Board from time to time,” he says. “I’d also make a
special mention of thanks to my colleague MP Pandove and his colleagues for
assisting me and helping the new treasury office to be set up in a smooth
manner.”
(This story first appeared in Mail Today on September 24, 2012)