The aggregate value of all transactions that took place as a direct, indirect or induced effect of the economic activity of the 2015 matches is estimated at Rs 26.5 bn
BestMediaInfo Bureau | Delhi | November 4, 2015
The Indian Premier League continues to be a money spinner not just for the Board of Control for Cricket in India (BCCI), but the cash-rich T20 league also contributes substantially to the Indian GDP, according to a survey carried out by KPMG.
KPMG, a global network of professional firms providing audit, advisory and tax services, has revealed some interesting findings with regard to IPL. The League contributed Rs 11.5Â billion ($182 mn) to Indiaâs GDP.Â BCCI has published this report on its official website.
BCCI undertook an assessment of the economic impact generated by IPL 2015 season on the economy. BCCI appointed KPMG Sports Advisory Group to undertake this survey.
IPL is an annual event with the 2015 season consisting of 8 franchises featuring 193 cricketers. During IPL 2015, 60 matches were played over a 44-match day period with 1.71 million spectators spread across 12 cities in the country.
IPL matches directly affected the economy in a variety of ways. Various stakeholder groups like participating franchises, organizers and spectators contributed in different ways through employment and purchasing.
The total economic output associated with IPL matches in 2015 is estimated at Rs 26.5 billion ($418 million). This is the aggregate value of transactions that took place as a direct, indirect or induced effect of the economic activity of the 2015 matches. Hosting an IPL match also adds value and revenue to the economy of the state.
The 2015 season saw around 20 per cent of attendees visit from cities other than the host city. Also notable were international visitors primarily from the United Kingdom, Australia and South Africa.
The study also highlights the impact on India beyond economic impact that is generally measurable in financial terms. The key benefits and opportunities identified were employment generation across sectors, tourism development to ensure India maintained its position on the global sporting map, key media exposure and development of cricket and sport participation across India.
Commenting on the KPMG report, Chairman of IPL, Rajeev Shukla, said, âIt is inspiring to know that IPL has had such a positive impact on Indiaâs economy. The contribution of Rs 11.5 billion to Indiaâs GDP through a 60-day event is a testament to the tournament's success. We look forward to redefine these benchmarks through the upcoming seasons of the IPL and empowering the nationâs economy through our future endeavours.â
Addressing a press conference, Anurag Thakur, Secretary, BCCI, said, âKPMGâs economic impact study highlights not only IPLâs significant contribution to Indiaâs GDP but also the positive effect on employment generation across various sectors, tourism development and uplift of tier 2 cities through media exposure and development of cricket and sports participation across India.â
While IPL is a great money spinner for the board, players and the economy, the brandâs image has taken a beating in the wake of the spot-fixing and betting scandal a few years ago.Â In addition to players, franchise officials, too, were accused of illegal betting. Following an investigation by the JusticeÂ RM Lodha Committee, two franchisees, Chennai Super Kings (owned by former BCCI chief N Srinivasan)Â and Rajasthan Royals have been suspended for two years.
Recently, BCCI suffered a jolt when global giant PepsiCo India pulled out of IPL as the title sponsor.Â According to reports, the five-year deal with BCCI was worth Rs 396 crore. PepsiCo pulled out two years before the expiry of the deal, reportedly unhappy with corruption scandals involving IPL.
A few days back, BCCI threw a surprise by pulling in Chinese mobile manufacturer Vivo Mobile India as the new title sponsor for two years.
BCCI Secretary Â Thakur acknowledged that brand IPLâs image did take a beating, but reminded that the reforms undertaken by the new regime have helped in restoring its image.