Written by Aariyan Farooqui
The ICC Men's Cricket World Cup 2023 has taken centre stage. The World Cup is famous for its incredibly elusive tickets, especially for highly-anticipated matches like India vs. Pakistan, where tickets sold out in under an hour and are going on resale for as high as 25 million rupees (USD $300,545). However, the World Cup is about more than just filling the stadiums; it's a massive cash cow for sponsors and media rights, reaping in millions worth of ticket sales, advertising, and merchandise.
The Bank of Baroda (an Indian bank) has made a bold prediction, stating that the ICC Cricket World Cup 2023 will inject a staggering Rs 22,000 crore ($2.6 billion) into India's economy.
The World Cup, commencing on October 5 and concluding on November 19, is poised to rake in a cool Rs 1,250 crore ($150 million) in sponsorship revenue. The 2019 Cricket World Cup had an astonishing viewership, with India alone contributing 552 million views, and this world cup is expected to surpass that, so along with the insane sponsorship revenue, there will be a massive amount of TV rights revenue as well, with even the most conservative estimates by the Bank of Baroda to be in the range of Rs 10,500 crore to Rs 12,000 crore ($1.25 billion - $1.75billion). The 2019 World Cup witnessed ticketing revenue skyrocket to 50 million Great British Pounds, marking a staggering 75% increase from the 2015 edition, and there’s a similarly expected increase for this year’s world cup.
The impact of the World Cup on India's economy goes beyond the matches. With the tournament being hosted in 10 cities, there's been a surge in airline ticket sales, hotel rents, and a boost in the informal sector. Economists are even foreseeing an inflationary uptick of 0.15-0.25% during the months of October and November.
Breaking down the financial intricacies, the Board of Control for Cricket in India (BCCI), often referred to as cricket's aristocracy, is set to pocket the lion's share, earning roughly 40% of ICC's annual net earnings from 2024 to 2027. Imagine a handsome $230 million per year for four years, constituting a generous 38.5% slice of ICC's projected annual earnings amounting to $600 million. This revenue-sharing arrangement takes into account cricketing history, team performance, revenue contributions, and full membership status.
To top it all off, between the financial years 2018 and 2022, the BCCI juggernaut amassed an astonishing Rs 27,411 crore ($40 billion) in revenue. It's not just about cricket; the World Cup has transformed the game of cricket into an economic force for India which will further its economy and encourage growth.
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