Ever wondered about the financial hit when an IPL match gets canceled in 2024? Let’s chat about it!
In IPL 2023, a big game between Chennai Super Kings and Gujarat Titans slated for May 28 in Ahmedabad couldn’t happen due to bad weather. Luckily, IPL rules allow a reserve day, so they played the match on May 29.
Recognizing the IPL’s global significance with enthusiastic participation from players worldwide, the financial scale can be gauged by considering the substantial prize money in events like the World Cup held every four years.
Now, let’s talk about how much loss one canceled IPL match would cause.
How much loss a cancelled IPL match would cause in 2024?
The financial impact is substantial if an IPL match is canceled in 2024. Consider the numerous advertising opportunities during a match, such as prominent hoardings in the stadium displaying various ads. Additionally, there are advertisement breaks after each over, lasting 10 to 15 seconds on TV or mobile apps, and strategic breaks of 2 to 2:30 minutes featuring extended advertisements.
The jerseys of IPL teams showcase various brands and trademark names, repeatedly visible in replays. The cost of airing local news during TV broadcasts in the match corner is high. IPL is a cricket festival in India, drawing enthusiastic interest, and the advertisements displayed during such a widely-watched event can cost lakhs per second, aligning with the number of active users.
Considering the substantial investments made by IPL franchises in players, it prompts the question of how much these franchises charge from their teams.
What Happens After The Match Is Cancelled?
When a match is canceled, there is no broadcast on the mobile app or TV, resulting in a lack of audience engagement and no advertisement airing. This leads to significant losses for advertising companies as their brand visibility and promotion are halted.
Interestingly, despite the advertising company’s losses, the team itself incurs no expenses. Post-cancellation, IPL franchises do not face any financial setbacks. Just like individuals secure term or health insurance for protection, IPL franchises take out insurance for themselves and their players. Even if the entire IPL season is canceled due to a national disaster, the franchise remains unaffected financially.
Reports indicate that this insurance is specifically known as Event Cancellation Insurance. All franchises, organizers, sponsors, and others involved can avail themselves of this insurance, ensuring coverage for losses in case of unforeseen disasters.
No Financial Setback for Franchise Despite Player Injuries
Even in the event of a player getting injured, there is no financial setback for the IPL franchise. To safeguard their players from losses resulting from injuries, IPL franchises opt for insurance.
This insurance covers the expenses incurred post-injury, including the entire cost of marketing transactions associated with the player. The company bears these costs, which also encompass the fees of the injured IPL player.
