Tax exemptions from government and covid-19 pandemic are key factors
Why does BCCI want more time?
There are two reasons. The Covid-19 pandemic has added another layer of complexity to an already knotted issue of tax exemption that the ICC wants BCCI to sort with the Indian government. The ICC has said it needs a complete tax waiver for it to maximise on the profits derived from running a global tournament.
At the SGM, it was informed to the members that the BCCI would end up paying the Indian government close to 46% of the estimated total revenue for hosting the T20 World Cup. That amount, an official who attended the meeting, said was close to INR 900 crore (US $ 125 million approximately).
The tax exemption has been ICC’s longstanding request to the BCCI, who were named hosts for two world tournaments in the current commercial cycle: the men’s T20 World Cup (October-November 2021) and the 2023 men’s ODI World Cup slated for October that year.
Members have been informed the board’s talks with the Indian government have been encouraging, with a solution likely to be found.
The second significant challenge for the BCCI is to see whether all 16 participating teams would want to travel to India during the pandemic. The second wave of the pandemic has brought the country to a near standstill, with several states in the midst of lockdown. The governments of several countries have red-listed travellers from India, in some cases even their own citizens, like Australia has.
However, ICC had to cancel a routine inspection in April after India was put on the red list by the UAE, where the global cricket body’s headquarters is based.
Internally, the BCCI has acknowledged the concerns players and their respective countries will have about travelling to India. These include: a probable third wave coupled with the challenge of creating a tournament bubble across multiple venues, which would entail a lot of travel.
How long can the ICC wait?
After the ICC Board’s June 1 meeting, the global body’s annual conference is scheduled from July 18. Usually the ICC sets up a local organising committee comprising its own officials as well as those from the host board at least a year before the event.
One significant concern for the ICC will be procuring the clearances from the governments including the host country for the 16 teams to arrive in time for the tournament. That would also include the necessary quarantine period as well as putting together bio-secure bubbles. That travel is one key area where teams can get exposed was identified as an area of concern by the BCCI once the IPL had been postponed at the mid-way stage.
Nagraj Gollapudi is news editor at ESPNcricinfo