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  1. #1
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    BCCI likely to invoke MPA right if revenue model not revised


    The Board of Control for Cricket in India (BCCI), backed by the Supreme Court-appointed Committee of Administrators (CoA), shot an 11-page, 24-point letter to the International Cricket Council (ICC) on Sunday (March 19) clearly stating that India is not in agreement with the changes proposed in the finance and governance models of the sport's parent body.

    "We draw your attention to the Members Participation Agreement (MPA) dated 12th October 2014 entered into between BCCI and ICC Business Corporation, relating to ICC Events between 2015 and 2023.The proposed new ICC constitution and financial model will, if adopted, entitles us to exercise certain rights under the MPA and also to avail remedies under applicable law," the BCCI wrote in the letter, a copy of which is with TOI.

    In layman terms, what the BCCI has essentially conveyed to the ICC is that since there happens to be no scientific formula behind the figures mentioned in the new financial redistribution model proposed by the governing body, and since there is no logic in the proposed voting system other than the potential risk of curbing India's global dominance of the game, India will not agree to the amendments. Should the ICC continue to persist with the proposed policy changes, India will invoke the MPA, which fundamentally means they reserve the choice to move out of the ongoing eight-year bilateral cycle.

    The letter, in many ways, is also a hint as to why ICC's independent chairman Shashank Manohar who was at the forefront in pushing the reforms quit office last week.

    Calling the move to change the finance model of ICC an arbitrary one, BCCI's letter further reads: "The ICC is seeking to change the existing financial model without having any scientific formula or technical analysis behind the proposed changes. It is a fundamental attribute of any resource allocation system to first collect information and then allocate resources based on the information, priorities and a defined methodology.

    "Since no methodology has been articulated in support of the proposed new financial model, we are unable to evaluate the same on any recognized and or accepted parameters. Any discussion on the proposed new financial model has to be based on clearly articulated and acceptable principles which recognize the relative contribution of BCCI to the revenues of the ICC. For the above reasons, we are not agreeable to the proposed new financial model."

    BCCI's stated logic is that the move to include Ireland and Afghanistan as full members and chart out their revenue allocation from funds generated by Indian cricket is an irrational one.

    The methodology of payment of a participation fee (called `Contribution Cost') to all members to secure their participation in ICC events and compensate them for the opportunity cost incurred on account of blocking portions of their cricketing calendar in order to participate in ICC events is one that isn't based on a sound scientific formula either.

    Outlining this, the Indian Board says: "The model treats Afghanistan and Ireland as Full Members without reducing the funds allocated to them from Associate Members' share.

    "The proposed model seeks to introduce a contingency fund and contemplates transfer to ICC reserves without any explanation."

    Even if the ICC member board members decide to vote on the proposals, it will come up for a final ratification at the ICC's annual conference in June. Interestingly, the Champions Trophy, which has been an immediate threat in the backdrop of the ongoing tussle, is also scheduled for June.

    BCCI's objections on revenue model

    BCCI has listed out a four-pointer to ICC on the financial redistribution, which reads as follows:

    A) As per ICC Board resolutions dated February 8, 2014 & April 9, 2014, levels of event cost expenses were approved corresponding to gross revenue levels and it specified that for gross revenue between US$ 2.5b & US$ 2.74b, event cost expenses would be US$ 550m whereas for gross revenue of 2.75 or higher, expenses would be US$ 600m. As per Revised 2014 model, expenses have been increased to US$ 610m despite gross revenue remaining same.

    BCCI: There is no explanation for this increase.

    B) As per the 2014 resolutions, levels of admin cost central expenses were approved corresponding to gross revenue levels and it was specified that for gross revenue between US$ 2.5b to US$3.24b, the admin cost central expenses would be US$ 250m whereas for gross revenue of US$3.25b or higher, expenses would be US$ 275m. As per the revised 2014 model, expenses have been increased to US$ 320m despite the gross revenue remaining the same.

    BCCI: There is no explanation for this.

    C) The revised 2014 model introduces a contingency fund of US$ 40m which is not envisaged under the existing financial model.

    BCCI: There is no explanation for why this is necessary.

    D) The revised 2014 model contemplates US$ 25m being transferred to ICC reserves which is not envisaged under the existing financial model.

    BCCI: We need to understand why transfer of funds to ICC reserves from out of ICC's operating funds is now being contemplated.
    http://www.cricbuzz.com/cricket-news...t-reconsidered

  2. #2
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    Atleast we are performing consistently and are on fire off the field.


    Tum mujhe bhaga sako aisa ho nahi sakta aur tum mere begair bhaago yeh main hone nahi dunga - Viru

  3. #3
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    Looks like BCCI not liking its hold slipping away.

    "In layman terms, what the BCCI has essentially conveyed to the ICC is that since there happens to be no scientific formula behind the figures mentioned in the new financial redistribution model proposed by the governing body, and since there is no logic in the proposed voting system other than the potential risk of curbing India's global dominance of the game, India will not agree to the amendments. Should the ICC continue to persist with the proposed policy changes, India will invoke the MPA, which fundamentally means they reserve the choice to move out of the ongoing eight-year bilateral cycle."

    Yep nailed it.


    For the latest updates on Cricket, follow @PakPassion on Twitter

  4. #4
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    The ICC should call its bluff...having said that, what even is the ICC? If it's the collection of other member boards, they should just tell India to go ahead ad rescind their bilateral duties. Let's see how much money or "global dmonance" they will have when teams aren't touring the country or playing them away.

    Then again, the ICC itself is not a governing body. it is made up of various sections which have self serving interests.

  5. #5
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    Quote Originally Posted by dildildalwalla View Post
    The ICC should call its bluff
    Or alternatively, the BCCI should call ICC's bluff. You do understand that if BCCI pulls out the other boards lose boatloads of money. That is precisely where BCCI's power comes from.

  6. #6
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    Quote Originally Posted by Napa View Post
    Or alternatively, the BCCI should call ICC's bluff. You do understand that if BCCI pulls out the other boards lose boatloads of money. That is precisely where BCCI's power comes from.
    Only so long as the other boards lose 2 boatloads of money under the existing financial model.

    The other boards have to choose whats best for their interests, just as the BCCI is pursuing its.

  7. #7
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    Quote Originally Posted by Napa View Post
    Or alternatively, the BCCI should call ICC's bluff. You do understand that if BCCI pulls out the other boards lose boatloads of money. That is precisely where BCCI's power comes from.
    Not really. How will other boards lose money? The ECBs biggest bilateral series is the Ashes, same goes for CA, with the PCB they have made big somes via the PSL and with bilateral series with CA, ECB, SA, WICB etc etc etc. The cricket world functions beyond India. Does England v India in England really make all that much more across london, Birmingham and elsewhere than say England v SA or Pakistan? I don't think so.

    Meanwhile, the BCCI will have nothing but the IPL and...well, no bilateral series so money from the international circuit.

    But like I said, the ICC functions differently to FIFA, which is an actual governing body. The ICC is not.

  8. #8
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    The letter, in many ways, is also a hint as to why ICC's independent chairman Shashank Manohar who was at the forefront in pushing the reforms quit office last week.

    Concerns are raised by supreme court appointed officials (Not the corrupt ones), Looks like Shasank manohar failed to convince them, So so called saviour of game finally exposed ? Tbh I never doubted his intentions.

  9. #9
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    actually, its fair enough - the issue isn't whats happening now, its how the hell the icc allowed the agreements to happen in 2014. whoever was in charge then and the other two of the big three bear all the responsibility of this together with the other minion boards who agreed to it.

    after it was agreed, india have every right to buy the global sport since they have already been allowed to.

    its an absolute disgrace.

  10. #10
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    I know ppl here hate bcci so we will see a lot of anti bcci stuff, but when you read it objectively the questions raised are fair.
    How do Afghanistan and Ireland receive money from both associate related funds and as full members, how is that correct or even logical. You are either associate or full member can't be both.

    How does expense suddenly go up with no change in revenues.

    The $40mn thing is the most wierd one, it is a paltry amount in given case, the no. sounds low and pulled out of air for a contingency fund.

  11. #11
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    Quote Originally Posted by Bhaag Viru Bhaag View Post
    Atleast we are performing consistently and are on fire off the field.
    Rankings do show that.

    Glad that the new BCCI regime is not taking things lightly and showing the ICC why the idea of hitting BCCI when it was fighting court battles wasn't a well thought out one. ICC's reading (Shashank manohar's thought process) was that the new regime will not do anything against ICC (Manohar). Thankfully Vinod Rai and Co. realized the massive blow to BCCI's finances and have reacted swiftly. ICC honchos will soon realize the earlier BCCI regime was better to deal with than the current one.

  12. #12
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    Quote Originally Posted by dildildalwalla View Post
    Not really. How will other boards lose money? The ECBs biggest bilateral series is the Ashes, same goes for CA, with the PCB they have made big somes via the PSL and with bilateral series with CA, ECB, SA, WICB etc etc etc.
    You need actual numbers rather than your beliefs for answering these questions. Just make a comparison of how much players earn from playing county cricket and BBL versus from playing in the IPL to understand how much more money is generated in India. Not only is the size of the Indian economy much larger but cricket is the #1 sport in India compared to football being the #1 sport in Australia and England. I won't even get into Pakistan and Bangladesh whose economies are 1/9th and 1/12th the size of the Indian economy.

  13. #13
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    Quote Originally Posted by Napa View Post
    You need actual numbers rather than your beliefs for answering these questions. Just make a comparison of how much players earn from playing county cricket and BBL versus from playing in the IPL to understand how much more money is generated in India. Not only is the size of the Indian economy much larger but cricket is the #1 sport in India compared to football being the #1 sport in Australia and England. I won't even get into Pakistan and Bangladesh whose economies are 1/9th and 1/12th the size of the Indian economy.
    None of whta you have said is A - entirely true (football number one sport in Australia lol) and B - got anything to do with the simple point that I raised. If India is not playing bilateral series on an international level, where does its revenue come from? Is the BCCI simply going to make money by marketing Kohli to watch companies?

  14. #14
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    Quote Originally Posted by dildildalwalla View Post
    None of whta you have said is A - entirely true (football number one sport in Australia lol)
    Educate yourself a bit about what the word "football" means to an Aussie.

    and B - got anything to do with the simple point that I raised. If India is not playing bilateral series on an international level, where does its revenue come from? Is the BCCI simply going to make money by marketing Kohli to watch companies?
    It is a bargaining situation. That is what BCCI is trying to do, bargain. And it knows that if it breaks away, soon other boards will come to private agreements with it.

  15. #15
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    Quote Originally Posted by Napa View Post
    Educate yourself a bit about what the word "football" means to an Aussie.



    It is a bargaining situation. That is what BCCI is trying to do, bargain. And it knows that if it breaks away, soon other boards will come to private agreements with it.
    Aussie rules football is still not the biggest sport in Australia, especially not at an international level. So your point is what?

    And why do you think other boards will come to a private agreement with the BCCI when the yare the ones set to beenfit from the BCCI leaving the financial pie? You're making no sense but like I said, the ICC will not call this bluff because it is not a governing body, while teh BCCI itself is never going to drop out of bilateral series because unlike you, they understand how much of a financial drop it would be for them.

  16. #16
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    Good to see the BCCI wanting the growth of Cricket to exceed their annual budget revenue [sarcasm alert].

    Seriously what's the use of having other sides, just have Australia, England and India play each other...year-in-and-year-out.


    "When You Have Eliminated The Impossible, Whatever Remains, However Improbable, Must Be The Truth!

  17. #17
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    Quote Originally Posted by Napa View Post
    You need actual numbers rather than your beliefs for answering these questions. Just make a comparison of how much players earn from playing county cricket and BBL versus from playing in the IPL to understand how much more money is generated in India.
    Not exactly disagreeing, but it's not exactly the best logic to use when Australian and English players receive hugely higher international salaries than Indian cricketers.

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