Not a pretty picture...

Source: SRK packed off from the Cricket arena. IPL franchisees' Deccan & Royals - selling stake

It is lot of restructuring at BCCI. Ever since the ICC pushed for an early resolution with ICL and the Essel groups’ response to failed negotiations with strong legal actions have caused a lot of concern for the BCCI. The IPL cash-cow too has left a lot of loop holes in the second season.

The announced deal and revised hike by IPl broadcaster Sony; is not all black and white. According to sources it seems that Sony will not part with cash and some parts of the revised hike, is in format of barter to the IPL & its franchisees- in terms of free air time for promotion.

Tickets are being sold at a low rate of only about Rs 100. Even this low rate is not educing full houses and false propaganda of sell-out matches have become part of the IPL fictional folklore. This has left the franchisees with lot of heartburn; the central revenue (largely coming from the Bradcaster fee) may not see a hike in actual cash-flow as is being proclaimed by IPL officials. Gate receipts are a long foregone history making the red on franchisee balance-sheet’s far more prominent and dark.

SRK ill- advised to drop his city loyalty base and reposition his team into a pan global identity has met with dust. Latest reports that the Bollywood Badshah is on his way out of the IPL circus, further compounded by his teams’ disastrous cricket performance.

Despite better cricket performances Rajashtan Royals & Kings 11 Punjab are financially bleeding and are looking for stake holders to keep the ship floating. The only way IPL franchisees’ can be bailed out is in form of additional central revenue from IPL.

However that seems a distant reality with Sony officials admitting that offering additional broadcast fees was a mistake, especially after learning that the competitive suitors NDTV & ESPN were never serious about paying the revised rates demanded by the IPL body.

Sony now has offered the IPL and its franchisee a strict part payment in barter (free air time for promotion) that results in lack on additional cash revenue from the central revenue system offered by IPL to its franchisees.
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These look interesting times for the BCCI president Shashank Manohar. His dislike for Lalit Modi is well documented by his absence at both the first and second seasons of IPL. His boss and mentor Sharad Pawar too has distanced himself from Lalit Modi in season-2. Srinivasan, Rajeev Shukla and Niranjan Shah ( BCCI powerbrokers) are fence sitters and waiting for the election results. Rumors are also afloat that if the congress returns to power Lalit Modi’s stint in Indian cricket would be history.

If the ICL issue was not enough then the BCCI also has to content with the APL ( American Premiere League). The BCCI wants to monopolize the game but an over priced IPL has broadcasters and prospective sponsors looking at private leagues like the ICL & upcoming APL as a more value for money proposition. These are interesting times in cricket Will the monopoly of BCCI continue or will it have to share space with ICL & APL? It’s an answer that only time will tell.