Debate Over Taxing BCCI's IPL Profits: A Potential Boost for Education and Research

BCCI: The Wealthiest Cricket Board

The Board of Control for Cricket in India (BCCI) stands as the richest cricket governing body globally. The Indian Premier League (IPL) has consistently been a significant revenue generator for BCCI over the years. A recent report has reignited discussions about whether BCCI should be subjected to taxation like other commercial organizations.

BCCI's Impressive Earnings

According to research conducted by a professor at the Indian Institute of Science (IISc) in Bengaluru, BCCI has amassed approximately ₹15,000 crore in profits over the last three years. Specifically, for IPL 2023, the profit reached ₹5,120 crore, with total revenue hitting ₹11,770 crore, primarily from media rights. Projections suggest that IPL revenues for 2024 and 2025 could range between ₹12,000 and ₹13,500 crore annually.

Tax Exemptions for BCCI

Despite generating substantial profits, BCCI does not pay income tax. It operates as a registered charitable organization, claiming its mission is to promote cricket in India. This charitable status allows it to avoid taxes, even on significant earnings from a commercial venture like the IPL.

Potential Funding for Education

The IISc professor posited that imposing a 40% tax on BCCI's IPL profits could have generated ₹15,000 crore over three years. This funding could support the establishment of 10 new Indian Institutes of Technology (IITs) or enhance financial backing for scientific and technological research in India.

If the profits from IPL teams, estimated between ₹800 and ₹1,200 crore annually, were also taxed, an additional ₹320 to ₹480 crore could be raised each year. This means that approximately ₹6,000 crore could be allocated annually for research and development solely from IPL profits.

Insights from Mayank Shrivastava

Mayank Shrivastava, the IISc Bengaluru professor, shared on LinkedIn:

"Consider the numbers. In IPL 2023, BCCI earned a record Rs 5,120 crore surplus, with total income reaching Rs 11,770 crore, driven largely by media rights. Projections for IPL 2024 and 2025 estimate annual revenues at 12,000–13,500 crore. And that's just one part of the larger earnings ecosystem. Yet, BCCI enjoys income tax exemptions under charitable status.

If a simple 40% tax applied just on BCCI's IPL profits, nearly Rs 15,000 crores could have been raised over three years — enough to fund 10 new IITs or a national deep-tech innovation corpus. Add franchise profits (Rs 800 to Rs 1,200 crore/year), and another Rs 320 to Rs 480 crores could be collected annually. In total, nearly Rs 6,000 crores per year could be redirected into research, just from the IPL ecosystem."

The Tax Exemption Debate

The main reason BCCI is not subject to income tax is its registration as a charitable trust. However, many believe that its commercial activities, especially through the IPL, diverge from its original goal of promoting cricket.

Recently, the Income Tax Department expressed concerns, suggesting that BCCI's focus has shifted from cricket promotion to profit generation. Nevertheless, in February, the Bombay High Court annulled a tax notice directed at BCCI, maintaining its tax-exempt status.

Reevaluating Tax Exemptions

The current discussion revolves around whether BCCI should continue to enjoy full tax exemptions while earning vast sums from the IPL. Experts argue that even a minimal tax on these profits could significantly benefit India's future, particularly in the realms of science, research, and sports infrastructure.