There's no doubt that people are crazy about cricket in India. It is one of the most celebrated sports in our country. The Board of Control for Cricket in India (BCCI) is the richest cricket governing body in the world. One of the reasons behind BCCI's success would be massive fans of cricket in India. The fact that BCCI does not depend on the Government of India for its finances is truly surprising.
India's tour of Australia is just around the corner and cricket fans can't wait to watch their favorite players play against Australia. One question that arises in everyone's mind is How does BCCI Benefit from India Series. Let's have a look
With Ipl closing to its final, which is happening in UAE, the Indian players aren't allowed to head back home but rather would now board the flight to Australia. Indian cricket team will arrive in Australia on 12 November and will quarantine in Sydney before the first match of the series.
Revenue model of India Series
How does BCCI Earn?
BCCI, the richest cricket body in the world but the question that arises in everyone's mind is How does this richest cricket body Earn. The different ways from which BCCI earns it is as follows
- Global Media Rights
- Official kit sponsorship rights
- Official Team Sponsor
- IPL Revenues
1. Global Media Rights
For most sports organizations including, BCCI, the sale of broadcasting and media rights is one of the biggest sources of revenue, generating the funds needed to finance major sporting events, refurbish stadiums, and contribute to the development of the sport. The royalties that broadcasters earn from selling their exclusive footage to other media outlets enable them to invest in the costly organizational and technical infrastructure involved in broadcasting sports events to millions of fans all over the world.
Broadcasters pay a substantial amount for exclusive rights to show live coverage of sports events. In 2018 STAR India acquired BCCI’s 5-Year Global Media Rights(broadcasting and digital) For Rs 6,138.1 Crore, which is It will pay Rs.60.18 crore per international in India till 2023.
2. Official kit Sponsorship Rights
Kit sponsorship is one of the most prominent forms of sports advertising. Having a brand name on the front of a team kit offers you coverage across all forms of modern media, putting you in front of hundreds of thousands, if not millions of cricket fans around the world.
Nike has been Indian cricket teams official kit sponsor since 2006. As per reports, Nike coughed up around Rs 370 crores to renew the kit sponsorship with the Indian team in 2016 that will finish on September 30 this year. It is believed that they pay around Rs 87,34,000 per game.
MPL Sports is the new kit sponsor for the Indian cricket team. In a fresh contract signed with the Board of Control for Cricket in India on Monday, MPL signed a three-year deal worth Rs 120 crores. The deal is from November 2020 till December 2023 and will see the board earn Rs 65 lakh per game over the three-year period.
3. Official Team Sponsor
Official Team Sponsor means a lot of brand exposure during Live sport. Official Team Sponsor has the right to display a commercial logo on the clothing of the men’s cricket team, the under-19 side, the men’s A-Team and the women’s squad.
Being an Official Team Sponsor gets you the perk of the prominent space in the backdrop board in the post-presentation area, the backdrop in the dugout, and boundary rope. A lot of these branding opportunities apart from digital and media opportunities are part of the official team partnership.
Byju's has taken over all associated sponsor rights of the current team sponsor Oppo Mobiles India Private Limited. Byju's logo will be seen on the Indian team jersey.
4. IPL Revenues
One of the biggest reasons behind BCCI's financial strength is the IPL - which indeed is the most lucrative franchise-based cricketing tournament in the world. The BCCI gets a whopping INR 3300 crore from the media rights holder (Star TV) per year for the IPL. BCCI also earns about Rs 170 crore from Dream11, PayTM, CEAT, etc. sponsors.
BCCI, one of the richest cricket body in the world which has already crossed the Rs 13,000 crore mark in 2019. The money earned by BCCI is spent for the conduct of various cricket tournaments, starting from District level to international championships. The officials and players are paid a salary and playing fees respectively from the money that BCCI earns.
All the credit for the success of BCCI goes to players and the Indian national team, which has not only performed brilliantly for the last few years, but also attracts sponsors with its glamour quotient. The astonishing thing about cricket sponsorship in India is, you don’t have to employ a marketing genius to bring in sponsors.