Did you know that despite India not being in International Cricket Council world cup?
The Indian cricket team will get prize money of $120,000 from the International Cricket Council. Have you actually wondered whenever this T20 World Cup takes place? Who earns the most money?
The team that will win this T20 World Cup will get a cash prize of $1.6 million. The losing finalist team will get a cash prize of $800,000. And two semi-finalists, losing team will get the money of $400,000. In addition to this, every team in the super 12 stage, that wins any match, will get a prize of $400,000 for winning each match.
This is the reason why despite India being out of International Cricket Council the world cup, since India won 3 matches, $400,000 per match, the Indian team will get a cash prize of $120,000. In total the prize money amounts to $5.6 million that will be given in this tournament.
Who will bear the cost of this prize money?
ICC the international cricket council.
The international governing body of cricket. Apart from this, there will be several other expenses to be borne by the ICC. The salary of the umpire. The salary of the commentator. ICC has to pay for all of this. Because this entire tournament is organized by the International Cricket Council.
International Cricket Council has formed an elite panel of umpires and has classified the commentators into 3 categories. The annual salary of an umpire can be in the range of $35,000 to $45,000.
That is approximately 2.4 million to 3.1 million rupees. In addition to it, for every match, the umpire gets a fee. For a t20 match, the average salary of an umpire is about $1,000 but,
From where does International Cricket Council get funds for these expresses?
The primary source of income for them is broadcasting rights. That is sold to TV channels and streaming services. Basically, the permission to stream this match on their channels.
Through which you can watch the match. In exchange the channels and streaming services, pay the International Cricket Council.
Star sport this deal will be in effect until 2023. As consideration star sports paid ICC $1.98 billion. Almost 140 billion rupees. And additionally, ICC gets money from their sponsors. Nissan, oppos, MRF tires, booking. Com, byjus and Emirates are the global partners of the t20 world cup 2021.
It is and for the company for this sponsorship, they pay the International Cricket Council. There are various types of sponsors and they are divided into categories as well. Like the global partners, category partners, and social media partners.
The exact amount that International Cricket Council gets from this sponsorship is not publicly available.
What does the host country get?
Now let’s understand the things from the perspective of the lost country. The country where the tournament is organized, there are many indirect benefits that are difficult to be calculated.
The country that hosts this world cup is visited by foreigners that want to watch the match in the stadium. And when there is an influx of tourists in the country, then obviously tourism brings in money as well. In short term, a lot of employment is generated.
Because of the huge influx of tourist in country. See lot of growth. The hotels get booked out. And you get to see full House in all the restaurants. Obviously the economy of the country, the GDP of the country, undergoes a potentially positive impact.
The soft power of the country increases. Because of this more people would want to invest in the country. Leading to a growth in foreign investments. And during the preparation for the world cup,
The infrastructure needs to be upgraded; good roads need to be built. Cleanliness has to be maintained. Like the 2010 commonwealth games held in Delhi, saw a major change in the infrastructure of the entire city.
What is the biggest expense for the country, apart from this?
When a world cup is hosted. Tax exceptions. During the t20 world cup, often the country hosting it, gives tax exemptions to the International Cricket Council. And it isn’t for cricket only. It’s the same during the FIFA World Cup as well.
The hosting country for the FIFA World Cup, declares itself to be a tax free zone for FIFA. India’s most trusted tax filing platform. Tax buddy, more than 200,000 users use this. If you need any tax advice.
BCCI has its own source of income; first they get a broadcasting revenue share from ICC. International Cricket Council does so for every cricketing board; it appropriates a part of its revenue to the other cricketing boards. But BCCI main source of revenue is sponsorships.
The main kit sponsor of BCCI is MPL sports. Their deal was made till 2023. BCCI gives them the right to sell merchandise.
The base price of MPL for this is 6.5 million rupees per match. And 30 million per year. That is paid to BCCI.
The merchandise partner and the Jersey sponsor aren’t the same?
The Jersey sponsor is the one whose name is printed across the Jerseys of the Indian cricket team. In this case it is byjus.
There’s an interesting history of the Jersey sponsors of the Indian cricket team. The company that was the Indian cricket teams Jersey sponsor for the longest time was Sahara.
They started in 2003 and remained the Jersey sponsor till 2013. In the 2003 cricket World Cup, there was no Jersey sponsor for the Indian cricket team then.
This is because there is a rule by International Cricket Council, that the company’s from which International Cricket Council gets sponsorship, the other cricket boards, cannot get sponsorships from any competitor company.
The main sponsor of ICC at the time was South African airlines. And the company Sahara was also involved in the airlines business.
This led to a conflict of interest and so there was no sponsor on the Jerseys of the Indian team, Sahara remained the sponsor till 2013. After that star India became the sponsor for 3 years. Then Oppo for 2 years, and now byjus.
Overall according to the reports it is being estimated that from this t20 world cup alone, the BCCI will earn around $12 million. Till now you’ve looked at this business model from the perspective of the International Cricket Council, the hosting country and the BCCI.
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The broadcasting the TV channels that broadcast the matches. For us the TV channel is star sports. Star sports have paid millions of dollars to International Cricket Council to get the broadcasting rights.
What is star sports source of income?
The answer to this to, friends, are the sponsor. For this present t20 world cup the main sponsors of star sports are byjus, dream11, vimal and coca-cola. An interesting thing here, 2700 seconds of commercial airtime is allotted for one t20 world Cup cricket match.
Meaning that fir the one World Cup match that you watch, you watch 2700 seconds of advertisement. But in IPL this is increased to 3000 seconds.
If you’ve noticed there are more ads on TV channels in IPL, as compared to the t20 world cup.
What is the exact rate of sponsorship?
It is reported that for this world cup, it is around 1 million to 1.1 million rupees for every 10 seconds of ads if a company wants to play a 10 second ads
If a company had to co- presents this tournament, it is estimated at 550 million rupees to 600 million rupees. And for associate sponsorships, it is estimated at 300 million rupees to 400 million rupees.
It is estimated that in this case the broadcaster can expect to earn 12 billion to 12.5 billion rupees in ad revenue from this specific International Cricket Council t20 world cup.
Since the TV channel is star sports, the rights for online broadcasting has been given to Disney + hot star streaming app. Here you can clearly see why IPL is more profitable.