Regardless of market sentiment or the pandemic, the wealth of the Indian cricket council is increasing. And, now the net worth of the Cricket Control Board of India (BCCI) is a colossal crore of Rs.18,011.84.
In fiscal year 2020-21, when two waves of Covid-19 crippled the country and much of the world, BCCI’s net worth increased by a staggering Rs 1,594.67 crore. It is the richest national cricket organization in the world.
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At the end of fiscal year 2019-2020, BCCI’s net worth was Rs 16,417.17 crore and at the close of fiscal year 2020-21 when Corona hit businesses and jobs all around hard. , the board of directors broke new ground and crossed Rs. 18,000 crore mark, according to the 2020-21 balance sheet, accessible by NewsClick.
Of BCCI’s net worth of Rs 18,011.84 crore, as of March 31, 2021, “general fund” was Rs 4,329.57 crore, “restricted fund” stood at 3,558.20 crore of Rs and “current liabilities and funds” was Rs. 0.1124.07 crore.
Overall, in 2020-2021, BCCI earned an income of Rs 2,658.20 crore (the corresponding figure in 2019-20 was Rs 3,366.11 crore) and its expenses were only Rs. Rs 808.06 crore (compared to Rs 2,176.77 crore the previous year). While the BCCI made 707.91 crore rupees less in 2020-2021, its spending has also declined significantly.
The difference was in large part due to the pandemic which prevented the organization of many national tournaments, apart from several other cricket activities. This has saved the BCCI a lot of money. In addition, the IPL has been moved to the country due to the Corona pandemic raging in India and staged in the United Arab Emirates (UAE). The move of the league has resulted in huge savings for the board.
As in previous years, BCCI’s most fertile and consistent source of income in the 2020-21 fiscal year has also been the Indian Premier League (IPL). The 2020 edition of the tournament, played between September 19 and November 10 in the United Arab Emirates, brought the board a surplus of Rs 1,522.01 crore.
Interestingly, when the 2019 IPL was held in India, it had generated a smaller surplus – only Rs 1,239.18 crore. One of the main reasons for the 2021 tournament’s revenue increase was that there were only three venues in the UAE compared to at least eight in India. This meant less travel – the teams traveled by road to Dubai, Abu Dhabi and Sharjah in the United Arab Emirates – and other expenses associated with the trip.
The income from the granting of media rights is the other major source of income for the BCCI. However, unlike the IPL, the Council in 2020-2021 earned less than half of what it generated in 2019-2020. While in 2019-2020 it was rupees 1,128.29 crore richer, in 2020-21 the income was only Rs 558.43 crore due to fewer international matches played at home .
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Since BCCI has a lot of money parked in term deposits in other accounts, it collects a lot of money from interest – another great source of income – every year. In 2019-2020 he earned Rs 322.16 crore in interest and the corresponding figure in 2020-21 was Rs 232.80 crore.
BCCI’s “balance” also increased according to 2020-21 data. It is now Rs.3.977.05 crore while in 2019-2020 it was Rs.3.906.88 crore.
Tax matters have been a constant thorn in the side for the BCCI. Despite a recent ruling by the Income Tax Appeal Tribunal that the board of directors was entitled to a tax exemption under Section 12AA of the Income Tax Act 1961 and that IPL income was not commercial, several other tax issues need to be resolved. According to the 2020-21 balance sheet, the BCCI has so far paid Rs 9,246.58 crore in taxes. This figure was entered under the heading “tax withheld at source receivable / tax paid under reserve”. At the end of the 2019-2020 fiscal year, the corresponding figure was Rs 8,175.80 crore. The balance sheet also lists Rs.6,833.97 crore as “cash and bank” for 2020-2021; the figure for the previous year was Rs 6,905.83 crore.
Although its income remains high, the BCCI also spends a certain percentage on cricket and other activities, such as revenue sharing with affiliated state associations. In accordance with income tax rules, BCCI must declare as expenditure 85 percent of its revenue each year. The board spent 286.97 crore rupees on cricket activities in 2020-21, excluding senior men’s international tours / tournaments. The figure for the previous year was Rs. 723.07 crore. In 2020-2021, BCCI distributed 369.35 crore rupees to government units; The previous year the figure stood at Rs 1,169.77 crore.
Thanks to media rights, a fertile source of income, BCCI collects Rs.60.18 crore per home game, whether it is a test match, an International for a day or an International T20. So when there are more home games, the BCCI wins more. And the 2021-22 home season will be exceptional, if Corona / Omicron allows it, as 16 international matches are scheduled. Following the just concluded five-game streak against New Zealand, the West Indies will travel to India for three ODIs and three T20 internationals in February, followed by Sri Lanka, who will play two tests and three T20 internationals. This will mean the BCCI would do another murder in 2021-2022, provided the pandemic does not respond.
(The author is a New Delhi-based cricket journalist who has covered the sport for over three decades)
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