The BCCI has chalked out a blueprint for the 2022 edition of the Indian Premier League (IPL), which will see further expansion of the cash-rich cricket league. This includes details of the two new franchises to be introduced, players retention, mega auctions and a new tender for media rights.
The cricket board has finally made up its mind to include two new franchises in the league. As per reports, the bidding process will begin in mid-August, and the bids will open in mid-October for mandatory scrutiny.
According to media reports, interest is visible in Kolkata-based RP-Sanjiv Goenka Group, Adani Group, Ahmedabad, Aurobindo Pharma Limited, Hyderabad and Gujarat’s Torrent Group. Similarly, some other corporate entities and private equity and investment advisory firms may also participate in the bids.
To raise the budget from Rs. 85 crores to Rs. 90 crore
The BCCI is set to increase the salary budget from Rs. 85 crores to Rs. 90 crores. This means that another Rs. 50 crores will be added to the total salary pool (among 10 franchises). The franchisee will have to spend 75% of the allotted amount. The budget will increase from Rs.90 crore to Rs. 95 crore in the next three years and Rs. 100 crores before the 2024 season.
Each franchise will be allowed to retain up to four players, but with certain conditions. Franchisees can either retain three Indian and one foreign player or two Indian and two foreign players.
The salary purse of a franchise retaining three players is deducted as follows: As per the extant rules, Rs. 15 crores Rs. 11 crore and Rs. If three players are retained then 7 crore is deducted, and Rs. 12.5 crore Rs. 8.5 crore to retain two players and Rs. 12.5 crores for retaining only one player.
If BCCI now allows franchises to retain a maximum of four players with an increase of Rs. If it is 5 crores then there may be a slight change in it.
media rights auction
The BCCI is also planning to auction the major media rights later this year. The Board and the industry expect a minimum 25% increase in the value of media rights going forward. The OTT space has seen a huge growth as compared to TV broadcasting due to the pandemic and this factor could play an important role in the media rights auctions in the coming months.