Not cost cutting! IPL Chairman reveals the main reason behind reducing prize money

The Indian Premier League is one of the biggest global cricketing events to take place every year. The glamour and the cash involved is also one of the major aspects of the tournament. This season the franchises were put into a spot of bother as the BCCI decided to reduce the prize money.

In a circular sent last week to the franchises, BCCI proposed reducing the ‘playoff standing fund’ by half. Effectively, IPL winners will get 10 crores, having received Rs 20 crore last year. The runner-up will now receive 6.25 crores (down from 12.5 crores) and the third and the fourth-placed teams will get 4.375 crores each (8.75 crores earlier).

However, the chairman of the league, Brijesh Patel clarified that it isn’t a cost-cutting move that has been taken by the board. “In 2013, the franchises had requested saying they were not making money in IPL. So, BCCI thought we will also contribute so that player payments do not become an issue. Now, they are earning profits. It’s just loss in profit,” he said as quoted by Times Now.

A BCCI official also clarified the move, suggesting there hasn’t been any change in the prize money for the players but only the extra fund that was initiated in 2013-14 to give the franchises some financial leverage that has been cut.

This move from the BCCI will affect the franchises since they will also have to bear is the extra Rs 20 lakh they have to pay as staging fee to the home association per game. The association would get Rs 50 crore in all. The BCCI would also be paying the association Rs 50 lakh, from Rs 30 lakh earlier.

“The staging associations’ costs have gone up. Even BCCI is paying them more. For an international match, the association costs go over 1.5 crores. Here, they would now get Rs. 1 crore” a BCCI official said.

IPL franchises under pressure

The lack of prior information to the franchises disappointed them, “None of these moves were discussed with us. We being stake-holders, BCCI should involve us before making these decisions,” a top franchise official said.

IPL 2020 will start with defending champions Mumbai Indians taking on Chennai Super Kings on the 29th of March at the iconic Wankhede Stadium.