New Delhi: With Saudi Arabia reportedly expressing interest in buying a sizeable stake in the lucrative Indian Premier League (IPL), the question arises as to whether it will lead to the corporatisation of cricket in India and help the Gulf kingdom in further boosting its "sports-washing" activities.
According to reports, when Saudi Arabia’s Crown Prince Mohammed Bin Salman visited India in September, his advisers held talks with Indian officials to explore the possibility of turning the Board of Control for Cricket in India (BCCI) into a holding company worth $30 billion.
The BCCI is registered as a charitable organisation and its income is exempt from tax, subject to the fulfilment of conditions imposed under the Income Tax Act of 1961. The issue of taxing the income of BCCI was taken up by the tax authorities who sought to revoke the exemption granted to the cricket board. Whenever the receipts exceed the threshold for a charitable trust, BCCI has to pay taxes for those years.
This is something that has to be done every year, but that doesn’t take away its right of being called a charitable trust. So, BCCI has been allowed to remain as a charitable organisation. Now, according to the reports, Saudi Arabia is seeking to invest up to $5 billion in the IPL. If the proposal goes through, this might well be the first time that there will be foreign direct investment in the Indian sports industry.
The IPL’s popularity can be gauged from the fact that bidders last year pumped in $6.2 billion for the right to telecast the T20 cricket extravaganza, which comes to $15.1 million per match. This is more than the English Premier League and just behind the US’ National Football League.
“It is known for quite some time now that the Saudis see India as a partner in economic development and a vital factor in regional stability,” a former Indian diplomat who served in West Asia, told ETV Bharat on the condition of anonymity. “They have been on the lookout for big-ticket investments in India and the IPL may meet their investment models with little gestation period and steady returns.”
According to the former diplomat, if Saudi Arabia invests in the IPL, India will have to come up with a new investment policy. The Indian government and the BCCI will reportedly take a call on this proposal after the general elections to be held next year.
“It should not have any impact on India’s sovereignty in the sporting world,” the former diplomat said. “The Saudis cannot tell BCCI to take players from Pakistan in the IPL auction. Questions may also remain whether India will allow the Saudis’ IPL income from BCCI to leave the country tax-free as BCCI revenues are entitled to tax exemption in India. All in all, the matter seems to warrant a high state policy review.”
The former diplomat also pointed out that a stake in IPL comes with added soft power, prestige and profile in the cricket-playing world. And this is where the catch lies. Will India, by allowing the Saudis to invest in the IPL, help the Gulf kingdom further boost its sports-washing activities?
Sports-washing is a term used to describe the practice of individuals, groups, corporations, or governments using sports to improve reputations tarnished by wrongdoing. A form of propaganda, sports-washing can be accomplished through hosting sporting events, purchasing, or sponsoring sporting teams, or participating in a sport.
The 2018 FIFA World Cup held in Russia has been cited as an example of sports-washing to tackle the country's global reputation, which was low due to its foreign policy and the sporting event changed the focus of discussions to the success of the World Cup. Another example is Qatar, which hosted the 2022 FIFA World Cup amid criticism for the country’s records on issues such as human rights, freedom of expression, and labour rights.
In March 2021, human rights organization Grant Liberty said that Saudi Arabia had spent at least $1.5 billion on alleged sports-washing activities. “When assessing the Kingdom’s human rights record, three issues come up again and again – the conflict in Yemen, the brutal murder of (journalist) Jamal Khashoggi, and the treatment of prisoners of conscience in Saudi prisons,” Grant Liberty said in a report.
“But that’s not what the Kingdom’s rulers want you to think of when you think of Saudi Arabia. Instead, under their 2030 Vision and expensive PR, they want to reposition KSA (Kingdom of Saudi Arabia) as a tourism and leisure hub as they pivot the economy away from oil.” According to Grant Liberty’s report, central to Saudi Arabia’s plan is sport.
“The theory is simple. Sport is loved and played around the world, it is a giant unifying force, and it’s also a multi-billion dollar industry. It is young, it is fashionable and it is aspirational from the skill and fitness of the athletes to the giant rewards on offer to those at the top,” the report stated. “By associating themselves with sport, leaders are seeking to position their country in line with that magic. They want to bask in reflected glory, and thus lighten their image.”
According to the former diplomat who spoke ETV Bharat, Saudi Arabia’s investment in IPL will have an impact on the cricket-playing world with a combined population of two billion. “It will have collateral benefits. It will have an impact on youth in the cricket-playing world,” the former diplomat said.
Also read:
Indian Premier League auction in Dubai on December 19
India-Arab ties unlikely to be impacted by Hamas attack on Israel; here's what you need to know
