Indian terror attacks could affect cricket economyNovember 28th, 2008 - 9:25 pm ICT by IANS
London/Sydney, Nov 28 (IANS) The terror attacks in India can have serious repercussions on world cricket’s economy because India generates 70 percent of the game’s revenues.England cut short their seven-match ODI series in India, leaving their next month’s two-Test series in doubt. The Twenty20 Champions League has also been postponed after the Mumbai mayhem.
England’s decision not to play the last two one-dayers may trigger a compensation issue.
“If you look at Pakistan and Sri Lanka, they quite clearly have their own political difficulties. India has always floated just below the surface,” Jonathan Ticehurst, a sports insurance expert and director of Long Reach insurers, was quoted as saying by The Times.
“I think what the last 24 hours has shown us is that, all of a sudden, India is right in the frontline when it comes to terrorism. As a consequence, the insurance market will significantly increase the premium rate they require to cover the cancellation of sporting events in India.”
The revenue of the postponed Champions League was estimated at $15 million and one Indian insurance company won the bid to insure the tournament for a meagre $30,000.
“The London market quoted $60,000 for the abandonment for the entire tournament. That shows you how they regarded the Indian risk. It isn’t going to be $60,000 next year,” Ticehurst said.
The cancellation of the league has also burnt a hole in Australian cricket’s pocket.
Western Australia and Victoria will miss out on the minimum $250,000 for competing teams, while Cricket Australia (CA) - a 25 percent stakeholder in the tournament - estimates that its losses are in the millions. The winners would have bagged a whopping $3 million.
“CA is losing quite a lot. It’s millions of dollars. Again, this whole issue and all of the problems in Mumbai are bigger and greater than cricket. We fully understand that these things happen. Unfortunately that’s how it is. There are a lot of people worse off than us,” CA chief executive was quoted as saying by the Sydney Morning Herald.
Andy Sutherden, managing director of sports marketing and sponsorship for Hill & Knowlton, said sports tourism will be hit hard.
“The loss of revenue for those staying at home will be significant. I think there will be a crisis of confidence in attending sport in this part of the world and confidence is quite a difficult thing to win back at speed,” Sutherden said.
Andrew Wildblood, a senior vice-president and corporate director for India at IMG and one of the architects of the Indian Premier League (IPL), hoped that things would return to normalcy.
“It’s too early to say but generally when these things happen, the world returns to normality, otherwise the world would stop. But normal now is not what normal was pre 9/11. These circumstances cannot be planned for,” he said.