Coronavirus has hit every industry globally and sports is one area that is badly hit by the lockdown scenario.
Among other global sports organizations, BCCI is facing the intense of the situation with its short-format event IPL subjected to cancellation.
The board is now looking at a huge financial loss with the cancellation of IPL 2020.
A research report from Howden Insurance Brokers, a private firm that does insurance brokerage for several IPL teams, informed that they had excluded coronavirus from insurance coverage clause by the time BCCI contacted.
As the sources say, many IPL franchise companies have approached their respective insurance firms only in February-March, 2020.
WHO had already declared coronavirus as the pandemic by then and led to the exclusion of the pandemic from insurance cover, thus leading to rise in costs.
Chief executives of two IPL teams confirmed that they were excluded from insurance cover.
Overall, this situation is likely to cause a total loss of around Rs.5,000 crore for all the stakeholders involved.
Meanwhile, coaching staff’s salaries are going to remain unaffected despite cancellation of the IPL event.
However, players’ payments will take a hit in the process.
As the sources say, now every team’s coach and supporting staff will be eligible for the salary of Rs 8-10 crores.
Besides, all other staff who have been working behind since the IPL auction will also receive their payments.
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