Looking beyond contracts: Need for educating domestic cricketers on financial management

In a country where the Covid-19 pandemic has raged with much ferocity, it was a given that Cricket, a contact sport, would be one of the affected casualties. The domestic cricketers in India, many of whom are without an Indian Premier League (IPL) contract, have seen their income for the past year shrink by an alarming percentage owing to the cancellation of the Ranji Trophy, which forms a major portion of their yearly income.

They are yet to be compensated by the Board of Control for Cricket in India (BCCI) and the clamor for contracts to be made for each domestic team, on the lines of BCCI’s annual contract system for the national team players, has been raised by many cricketers- both current as well as former. ^[1] While the demand is justified and requires BCCI’s urgent action, something more ought to be done by the cricket associations in the country – helping these cricketers manage the money they receive.

BCCI reserves 10.6% of its income every year for the domestic cricketers. Alongside the match fees, they also stand to get a share of the yearly revenue of the BCCI through the gross revenue sharing (GRS) system. ^[2] Ignoring the GRS payment, which has been pending for the past few seasons, the match fee itself results in, by a conservative estimate, a gross income of over 10 Lakh Rupees a year. ^[1-2] The amount, of course, is not as significant as an IPL contract, whose minimum value itself is 20 Lakh Rupees, but still remains lucrative enough.

Many cricketers who step into the domestic fold have to focus incessantly on cricket throughout their formative years to stay at the top of the fierce competition in their age group, often at the expense of their education. Suddenly finding yourself playing at an elite level, with a good sum of money in the pocket, the allure of a fancy lifestyle, and the absence of proper awareness and guidance can result in an inability to manage finances well.

For example, few years back, one U-19 World Cup winning bowler purchased an SUV after his return by utilizing the earnings from the successful campaign for the down payment. Later, when he failed to play Ranji Trophy as he had envisioned and through which he was supposed to pay the loan installments, he struggled to make ends meet. This certainly isn’t a singular instance, there are others on the domestic circuit who prioritize expenditure before savings- foreign trips, fancy cars, expensive cellphones, these are just some of the prominent avenues where earnings are spent.

The need for financial education

The situation for the domestic cricketers is, in comparison to their IPL-playing counterparts, unique, for their paychecks are not as substantial, so the prudence in watching over expenses, which is generally a necessary trait irrespective of profession, becomes even more critical. An inability to sensibly manage their finances may see them go through hardships not just during the course of their career, but, more concernedly, after retirement from the game when the flow of income abruptly stops.

This is not to imply that they should wish themselves away from a good lifestyle. Every individual deserves to have the best for themselves and their loved ones, as do the cricketers who play a pivotal role in the growth of the sport in the country. However, the concept of spending after saving needs to be communicated for their own betterment such that their financial needs are well managed throughout their lifetime, not just during the cricketing days.

What is heartening to see is that the point is gradually beginning to be given attention by some cricketing bodies. Madhya Pradesh Cricket Association (MPCA) recently conducted a seminar on the topic of financial management for its players.

“We have often seen players splurge after getting match fees from the BCCI. They spend unnecessarily on costly mobile phones and fancy cars. Not many realize the importance of saving and investing properly, having insurance,” said MPCA Secretary Sanjeev Rao.

Elaborating further on the importance of the topic for the players, he stated, “Players come from all parts of MP, including rural parts. When they get substantial amounts, they tend to splurge. This initiative will help them think again before spending unnecessarily and encourage them to save and invest properly. Many players solely depend on match fees. It’s a performance based sport. One ordinary season and you are out of the team. If they learn to save money and know how to increase it by investing properly, they can get settled. We have seen only those who have settled in life have prospered in the game. We want our players to play freely without worrying about external factors. From that perspective, it was important to organize something like this.” ^[3]

It can only be hoped that more and more associations as well as the BCCI, follow in the footsteps of MPCA to ensure a sustainable future for the cricketers.

References:

[1] Press Trust of India. (2021). ‘Without State Contracts, It’s Impossible to Pay Domestic Players In Such a Situation’, accessed 5^th June 2021.

[2] Mukhopadhyay, A. (2018).  BCCI confirms raise for domestic players. New Indian Express, accessed 5^th June 2021.

[3] Mishra, R. (2020). MPCA conducts financial planning seminar for players. Times of India, accessed 5^th June 2021.