Recent reports have suggested that Star India has taken a ₹ 1,457 crore insurance cover against any potential revenue loss for all the matches during the ICC World Cup in England and Wales. The ICC 2019 World Cup is scheduled to commence on May 30 and it will conclude on July 14, will feature a total of 48 matches. ICC’s global media rights partner Star Sports has taken insurance protection for all the matches.
If India decides against playing arch-rivals Pakistan in wake of the prevailing tension between the two neighbors Star Sports will still have to bear heavy losses. The India-Pakistan match is one of the most watched games and it becomes a crucial one in terms of the broadcast and commercial perspective. According to the ICC, there have been more demands for the tickets of the India-Pakistan match on June 16 at Manchester has invoked than the England-Australia game or the final.
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India’s denial to play Pakistan will cost Star Sports an advertisement revenue loss anything between ₹ 100 crores to ₹ 120 crores. The existing insurance cover does not cover this loss. According to business daily, Star Sports will have to seek an additional protective cover as the present package does not include the cancellation of a game for political reason or terror strike.
Star India can only protect itself from future losses due to the boycott by buying other insurance policies.
Ever since the cowardly terror attack in Pulwama where more then 40 CRPF personnel lost their lives, there have been calls from various sections of Indian society, including former India cricketers, to boycott the Pakistan game even if India were to sacrifice two points. It has also further escalated further amidst the prevailing tension between India and Pakistan.
Economic Times reported that while Star India may not have to pay the license fee for one particular game, losses incurred due to boycott will have to be borne by the TV channel as the insurance policy, as of now, does not cover cancellation of a match due to withdrawals.
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ET’s report stated, “New India Assurance is the lead insurer for Star India. The policy is for ₹1,457 crore covering advertisement loss due to the cancellation of a match.”
The policy is designed in a way that will cover cancellation due to weather conditions and teams not attending due to catastrophes, but so far, the risk of boycott is not been included in the policy. Experts said with three months to go, Star India could buy a terrorism policy to cover the risk of boycotts. The reports also suggested that the crucial players are insured for as high as ₹10-12 crore.
