The International League T20 (ILT20) finds itself in troubled waters shortly after its inaugural edition in early 2023. All six franchises and broadcaster Zee Entertainment Enterprise have expressed their concerns and written to the Emirates Cricket Board (ECB) requesting a renegotiation of the current deal and a revision of the league’s business model.
Let’s have a look into the details surrounding ILT20’s challenges and the demands of the franchises and broadcasters: ILT20 Faces Challenges
Ownership and Financial Setbacks
ILT20 is owned by three IPL team owners, the Glazers Family, and the Adani Group. While the league successfully attracted top cricketers with lucrative deals, it has struggled on the financial front. The main issue lies in the 10-year lock-in period for franchises, which has resulted in financial losses for them.
Franchise Grievances
Franchises have incurred losses due to the current revenue model, which allows them to receive a share of the central pool only after 10 years. To address this issue and mitigate further losses, the franchises are seeking a revision of the deal. They aim to start receiving a portion of the revenue from ILT20 2024, instead of waiting for the 10-year mark.
Broadcaster Zee’s Concerns
In addition to the franchises, broadcaster Zee Entertainment Enterprise is also unhappy with the current arrangement. Zee had paid over Rs 800 crore for the global media rights (TV and digital) for ILT20. However, the lackluster returns from the first season have prompted Zee to consider renegotiating the deal.
Future Negotiations and Challenges
The coming weeks will prove crucial for ILT20 as both franchises and broadcasters exert pressure on the organizers. The demands for changes to the revenue model and potential renegotiations will shape the league’s future. Organizers will need to address these concerns to ensure the sustainability and success of ILT20.
ILT20, in its inaugural edition, has faced setbacks with franchises and broadcasters seeking renegotiations and revisions to the current deal. The franchises are keen to alter the revenue model to mitigate losses and receive a portion of the revenue from 2024 onwards. Similarly, Zee Entertainment Enterprise aims to renegotiate the existing broadcast arrangement due to financial considerations. The next steps taken by the league’s organizers will determine the path ILT20 takes in the coming seasons.
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