BCCI's Triumph: Cricket World Cup 2023 Nets Indian Economy INR 22,000 Crore Gain

Fri, Nov 24, 2023 4:57 PM on Latest, Economy, External Media, International,

The Board of Control for Cricket in India (BCCI) stands at the forefront of this economic phenomenon, boasting impressive financial figures. For the fiscal year ending March 2022, BCCI reported total revenues of INR 4,360 crore, with the Indian Premier League (IPL) contributing 51%, and media rights contributing 28%. Over the past decade, BCCI has experienced an annual revenue growth of 18%, with media rights witnessing a remarkable 26% annual increase, solidifying its position as a global leader in this revenue stream.

The success story of BCCI is intricately linked with its management of premium cricketing events, particularly the IPL 2023 and ICC Men's Cricket World Cup 2023. As the host nation's cricket board, BCCI plays a pivotal role in organizing the World Cup, incurring costs for stadium upgrades, player remuneration, and accommodation for foreign players. The board pays a substantial host fee to the International Cricket Council (ICC) but also benefits from a significant share of ICC's annual revenue.

In the upcoming Future Tours Programme cycle from 2024 to 2027, BCCI is set to command approximately 38.5% of the estimated USD 600 million in ICC's annual earnings. This marks a significant increase from the previous cycle, reflecting BCCI's growing financial influence in international cricket.

However, the Indian government's pursuit of tax revenue from hosting the ODI World Cup presents a challenge, potentially resulting in a loss of INR 955 crore for BCCI if tax exemptions are not granted. Legal battles over extra tax burdens further complicate the financial landscape for the cricket board.

The ICC Men's Cricket World Cup 2023 has not only left a lasting impact on cricket enthusiasts but has also become a global financial powerhouse. Bank of Baroda projects an infusion of USD 2.6 billion into India's economy, benefiting stocks associated with the event. The India-Australia finals set attendance records, with economic benefits extending to accommodations, travel, fuel, and food expenses.

Broadcasting and media rights remain a cornerstone of ICC's revenue, with Disney Star securing broadcasting rights with a substantial investment. Disney+Hotstar's digital platform played a pivotal role, offering free mobile streaming and attracting a diverse audience.

Advertising revenue emerged as a key driver, with a surge in spending and consumption during the tournament. Disney+Hotstar's ad spend reached INR 900 crore - INR 950 crore, contributing to an overall positive impact on India's ad expenditure in 2023.

The success of the IPL, with a significant increase in brand value, further adds to BCCI's financial prowess. The league's various revenue streams collectively contribute to the substantial financial success of BCCI, showcasing the global appeal and commercial viability of cricket. Despite this, the article highlights the challenges and legal battles that accompany such financial success.

Source: The Economic Times