Money grubbing
Some very interesting news is coming out of India regarding the Indian income tax department’s assessment of the BCCI’s tax status.
The tax department has looked at the BCCI’s returns and has confirmed what many of us have been suspecting of the BCCI, that they are much more concerned about their bottom line than they are about advancing cricket. They have determined that the BCCI are “totally commercial” and that “cricket is only incidental to its scheme of things.” Despite pulling in 2.7 billion rupees in 06-07, the tax department has noted that the BCCI has not developed any infrastructure or constructed any facilities.
All power to the BCCI for making so much money out of cricket. However, that profit is only a good thing if it is used for the promotion of the game. So it is a crying shame that the BCCI are treating their surplus as a profit.
It is of vital importance to the game that the various cricketing boards operate as charities (or not-for-profit). Profiteering is simply incompatible with developing the game. Developing the game requires investing in youth cricket, improving facilities and promoting the game globally. None of which will draw short-term profit, or even long-term monetary profit necessarily. Running cricket as a business will push the game towards the lowest common denominator.
Also, if the BCCI are conducting their operations on a purely commercial basis, that casts an unpleasant light on their ICL bashing activities. If the BCCI trying to quash the ICL was simply the action of one commercial entity against another, then it looks awfully like uncompetitive activity. And involving other cricketing bodies such as NZC in this looks potentially like a cabal.
But even if you are happy with the BCCI making money and comfortable with cricket being run on a commercial basis, there is still the issue of the BCCI’s tax status. Until it was revoked by the tax department, the BCCI had charity status, presumably meaning its revenue is tax exempt. But if it is operating commercially, it should be paying tax. From its income of 2.7 billion rupees for 06-07 (pre-IPL it should be noted), it owes 1.2 billion rupees in tax.
In my view – much worse than a charity chasing profit, much worse than leveraging your size and influence to stifle competition – the filthy rich not paying taxes is the fricken’ worst.
