IPL losses affected BCCI's bottom line

The BCCI is yet to submit accounts for the 2010 and 2011 IPL editions to the I-T Department AFP

By CricketCountry Staff

Mumbai: Sep 12, 2011

The Board of Control for Cricket in India (BCCI) has revealed to the Income-Tax Department that the said cash-rich Indian Premier League (IPL) is a loss-making venture.

Reports show that the second edition IPL held in South Africa in 2009 made a loss of Rs 41.9-crore, plunging BCCI’s profits to Rs 21.2 crore in 2009-10.

The I-T Department is seeking to recover tax from the BCCI fully for the 2008-09.

The Board is yet to submit accounts for the 2010 and 2011 IPL editions to the I-T Department.

IPL is considered as part of the BCCI and the committee constituted to look after the domestic tournament maintains a separate bank account, which is maintained by the BCCI treasurer.

BCCI-IPL generates revenue mainly from media rights, franchisee consideration, sponsorships, franchisee share transfer fees, and so on.

The I-T Department collects revenue from the tax deducted at source (TDS) on payment to players, and as well as many other professionals involved with the tournament. The Department is said to have earned revenues ranging between Rs 60 crore and Rs 400 crore by way of TDS in the four editions.

The I-T Department is thinks their id scope for more tax revenue from the BCCI and withdrew the tax exemption enjoyed by BCCI with effect from June 1, 2006.

The BCCI has reported that its gross revenue in the year 2007-08 was Rs 651.82 crore, which increased to Rs 1,666.84 crore in year 2010-11.