CAN faces questions over NPL accounts as third edition targets NRs 1.5 billion in turnover

The Cricket Association of Nepal (CAN) expects the Nepal Premier League to generate around NRs 1.5 billion in business transactions in its third season, as questions over the disclosure of the tournament’s financial accounts and the association’s decision-making process return to the fore.

At a press conference in Kathmandu on Sunday, CAN president Chatur Bahadur Chand defended the arrangement under which an empowered governing council handles operational decisions for the franchise-based T20 competition. He said decisions requiring immediate action could subsequently be presented to CAN’s board for consideration and approval.

Chand also said the league was not established as a separate legal entity, requiring its financial transactions to be incorporated into the association’s accounts and audit process.

The explanation followed questions about the publication and approval of the financial statements from the tournament’s first two editions, which generated hundreds of millions of rupees in revenue.

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CAN secretary Paras Khadka said the association submitted its financial details to the National Sports Council, the concerned ministry and the government. He acknowledged that the media had a role in examining CAN’s work and said the association would address identified weaknesses.

What the accounts show

CAN reported revenue of NRs 276.96 million from the inaugural NPL season, with tournament expenditure of NRs 201.57 million. After expenditure and distributions to other parties, the association retained NRs 24.65 million.

The first season’s financial statement became public nearly seven months after the tournament ended. The delay drew attention because preparations for the following edition were already under way.

The accounts for the second season showed a substantial increase in revenue. CAN reported earnings of NRs 473.60 million and expenditure of NRs 219.60 million. The difference, approximately NRs 253.99 million, represented the amount remaining before revenue sharing. After distributions, CAN retained NRs 92.12 million.

The second edition’s accounts were made public reportedly after approval by CAN’s central working committee.

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These figures describe the association’s reported finances, not the total value of transactions involving CAN and the eight franchises. They also do not, by themselves, establish how much of the league’s revenue was reinvested in cricket development.

Chand said the governing council needed sufficient authority to respond to operational requirements without waiting for a board meeting on every decision. He maintained that the council’s decisions could subsequently go through the association’s approval process.

Secretary Khadka said CAN was open to scrutiny and would work to correct shortcomings in its procedures.

A larger commercial operation

CAN treasurer Padam Bahadur Khadka said the third edition is expected to generate around NRs 1.5 billion in turnover over the month-long competition.

The estimate includes activity involving CAN and the franchise owners. Of the projected transaction amount, CAN is expected to spend around NRs 300 million on tournament operations, including the introduction of the Decision Review System (DRS) and expanded marketing, promotional and branding activities. The franchises, meanwhile, are estimated to spend a combined NRs 1.2 billion in the tournament.

Meanwhile, Khadka said CAN expected to receive around NRs 200 million from sponsorships and NRs 700 million to NRs 750 million from its broader commercial operations, including ticketing and other revenue sources. CAN has already secured NRs 326.8 million from the sale of television and over-the-top (OTT) broadcasting rights for the upcoming season. The eight franchises are also expected to incur substantial costs in assembling and managing their teams.

The projection is however not equivalent to CAN’s net income. The association’s revenue, tournament expenditure, payments to franchises and other parties, and the franchises’ own spending represent different parts of the league’s financial activity.

The tournament’s commercial expansion is also reflected in its prize structure. The champions will receive NRs 15 million this season, compared with NRs 10 million in each of the first two editions. The runners-up will receive NRs 8 million, while the third- and fourth-placed teams will receive NRs 4 million and NRs 3 million, respectively.

The third edition begins on October 26 at the Tribhuvan University International Cricket Ground in Kirtipur and runs until November 21. The tournament has received International Cricket Council sanction, giving its matches official T20 status (List A), and introduces the decision review system (DRS).

As the NPL grows, timely publication of audited accounts, clear documentation of governing council decisions and transparent reporting of revenue distributions will be important in establishing how the league’s commercial success contributes to the wider development of Nepali cricket.