ICC could move 2023 World Cup outside of India: Details
In a major development, the International Cricket Council (ICC) could move the 2023 World Cup outside of India. The news comes after unresolved tax-related issues between the Board of Control for Cricket in India (BCCI) and ICC. ICC are yet to receive tax solutions from the BCCI for the 2023 event. The premium 50-over tournament is slated to take place in October-November. Here's more.
Why does this story matter?
- India got the hosting rights for the 2016 T20 World Cup only after ICC received an interim tax benefit from the Indian authorities.
- ICC surcharged 10.3% of India's revenue share at the time.
- BCCI are still involved in a legal battle for it.
- It looks unlikely that BCCI will offer the tax solutions, given the huge amounts deducted from their profit by ICC previously.
Here's what BCCI said
As per News 18, BCCI informed ICC that nothing can be done in this regard, meaning, that the tournament could be shifted somewhere else. "It's BCCI's money. If the ICC can't settle this issue before the World Cup arrives and end up deducting it from India's revenue share from the ICC, even this will end up in a legal battle," according to News 18.
ICC raised a tax bill of $116mn
As per the reports, ICC raised a tax bill of 21.84% from the broadcast revenues for the 2023 event, which amounts to around $116 million (a tax liability of Rs. 900 crore). Back in 2016, BCCI had asked for a tax exemption but the government didn't agree to it.
BCCI paid a hefty price in 2016
In 2016, the BCCI said the ICC deducted "nearly $23.5 million" from the central revenue pool after the Indian government had charged Star India, owning the rights for ICC events, 10.92% in taxes.
BCCI could lose $58-116 million
It was earlier reported that BCCI could lose US$58-116 million because of the tax imposed by the Indian government on the global cricket body for hosting the 50-over event in India. The BCCI were originally meant to secure an exemption 18 months before the 2023 WC. The Indian governing body had asked ICC to extend the deadline to May 31 this year from April.
BCCI obligated to help the ICC
The tax exemption was something the BCCI signed with the ICC in 2014. Back then, three tournaments were awarded to the BCCI - 2016 T20 World Cup, 2018 Champions Trophy, and the 2023 ODI World Cup. As per the agreement, the BCCI was "obligated" to help the ICC secure the tax waiver. The Indian government hasn't yet ruled out the tax exemptions this time.