BCCI, IPL franchises set for ₹5,000 crore loss due to fatal insurance error: Report

The coronavirus outbreak has massively impacted the lives of people across the globe. All the major sporting competitions have come to a halt, which is why sporting organizations, leagues and teams alike, have suffered huge losses. The much-anticipated IPL 2020 has been postponed indefinitely by the BCCI currently as the situation in the country doesn't look promising. If the IPL 2020 stands cancelled due to the coronavirus crisis, the board is looking at a humongous financial loss.

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According to a research report by the Howden Insurance Brokers, a private organisation that brokers insurance deals for several IPL teams, they had removed coronavirus from their coverage clause by the time BCCI contacted their insurance company.

Besides BCCI, various IPL franchises also buy insurance policies in case of any contingency. According to a report by Hindustan Times, the IPL franchises also began approaching their respective insurance companies only by February-March and by then, the World Health Organisation (WHO) had announced the coronavirus crisis a pandemic. Subsequently, the cover was unavailable and the cost increased massively.

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The report also said that chief executives of two IPL teams (names not disclosed) confirmed that they aren’t covered under insurance. The official said that they checked with their insurance company and added that it’s too late now as the cancellation clause does not cover the pandemic. Reportedly, the total loss for the stakeholders could be around ₹5,000 crore.

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Coaching staff's salaries won't be affected even if IPL 2020 is called off

Players' purses are set to take a major hit if the IPL 2020 gets cancelled altogether. But that won't be the case with the coaching staff of IPL teams as they won't be severely affected by it. A contingency plan is already in place for their payments. According to sources, each team's coaching and support staff are qualified to receive a salary of ₹8-10 crores. All the personnel that have been working behind the curtains since the IPL 2020 auction are set to receive compensation for their work. Ricky Ponting and Brendon McCullum are two big names, who are coaches of DC and KKR respectively. 

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