Coronavirus Likely To Reduce IPL's Valuation By Whopping USD $1 Billion: Report

Cricket News

The BCCI will be hoping that the Coronavirus pandemic can be curbed in time so that IPL 2020 can be held in some way, shape, or form. Here are the details.

Written By Mrigank Pandey | Mumbai | Updated On:

The coronavirus epidemic currently has India on guard as the nation tries to curb the spreading of the potentially deadly virus. Multiple media reports have claimed that India currently has 260 confirmed cases of coronavirus infection at the time of writing this report and what that means is that any public gathering could prove to be highly risky. The BCCI has already had the IPL postponed to a date beyond April 15.

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IPL may lose a billion dollars in valuation if IPL 2020 gets cancelled

The chances of the IPL 2020 happening look slim as the novel coronavirus seems to be tightening its grip on India. According to multiple reports that cite a financial consultancy firm, it is being predicted that the IPL may lose up to a whopping USD $1 billion in valuation if the IPL 2020 ends up getting cancelled. The firm had valued the IPL at $6.8 billion last year and it assumed two scenarios for the financial future of the IPL. In the first scenario, the firm assumed that the IPL would go through no losses if it does not happen as it can be assumed that the tournament was not supposed to happen.

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However, this assumption would not be immune to the fact that the BCCI and the franchises would have to make some payments for the services. which have already been rendered to them. In the second scenario, not only does the IPL go through a financial setback but its sponsorship deals would also not grow as projected and therefore a bigger loss would be faced by the brand in the long run. This loss in valuation could be estimated to be around $700 million to $1 billion. If the league gets reduced to half its length (i.e. only 7 league matches per team), the brand is still estimated to lose around $200-$300 million.

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IPL postponed: Sourav Ganguly's BCCI to decide on the fate of IPL 2020

After the situation around the novel coronavirus started getting serious in India, the BCCI was quick to announce that the IPL was being pushed back to at least April 15 from its original starting date of March 29. The possibility of the IPL happening will highly depend on how India is able to curb the coronavirus pandemic and the timeframe that the BCCI is left with. It is being reported that the BCCI is considering at least seven alternate schedules that will allow them to make IPL 2020 happen.

ALSO READ | IPL 2020 UPDATE: BCCI, franchises to decide event's fate on Tuesday via conference call

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