The IPL’s Potential Loss of ₹2400 Crore Annually from a Reduced Tournament Duration

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Former IPL commissioner Lalit Modi has highlighted a revenue shortfall of approximately ₹2400 crore per season, linking it to the league’s shift away from a complete home-and-away format in recent years.

Since the introduction of two new franchises, Lucknow Super Giants (LSG) and Gujarat Titans (GT), in 2022, the IPL has continued as a 70-74 match tournament, rather than expanding to a structure exceeding 90 matches which a 10-team home-and-away format would necessitate.

“(For) every game, the BCCI receives 50%, with the other 50% distributed among teams. Thus, teams are currently missing out on 20 games. It’s a contractual obligation for the fees they pay to ensure home and away games,” Modi stated to Sportstar.
“Home and away games are where the value lies. If your calendar can’t accommodate the time, then don’t increase the number of teams. It’s that simple. That’s not what was agreed upon. Has everyone signed off on this? I can assure you they have not,” he continued.

Each IPL match generates an estimated media rights value of around ₹118 crore, with revenues shared equally between the BCCI and franchises. By not hosting the extra 20 matches necessary for a complete double round-robin system, the league is potentially forfeiting ₹2400 crore annually, with ₹1200 crore directly impacting franchises.

This results in an approximate loss of ₹120 crore per team each season.

Modi believes the original IPL model was designed to maximize inventory through reciprocal matches, where home advantage, ticket revenues, and local fan engagement were critical to the business model. He contends that the current format undermines this promise.

However, IPL chairman Arun Singh Dhumal recently suggested that the league might consider extending its season after 2027, as he perceives a decline in demand for certain bilateral matches in international cricket, potentially allowing for a longer window for the lucrative league.

“If you observe the changes over the past few years, there’s certainly a decrease in interest for some bilateral games,” Dhumal mentioned to The Financial Times.

“The bilateral calendar is set until 2027. Yet, post-2027 planning will involve discussions. The IPL not only benefits India and Indian players; it also adds value to global cricket. Therefore, all these players will seek more. We hope to create a larger window during the next cycle to extend beyond 74,” he added.

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