Cricket is not just a game but also one of the biggest events among all games. Cricket is one of these kinds of games that brings all sports fans under one roof. Cricket is the heart of the capitalism model, which turns everything into a business. Fans get profit through thier knowledge of cricket by various methods.
In this article, we will focus on the cricket industry and its financial side:
Models that is Business of Cricket:
Cricket Sponsorships :
Sponsorships play an essential role in cricket. There are many different big companies that fund the whole championship. These sponsorships advertise themselves through the championships. Indian Primer League is also the fortune of the publicity. It attracts a huge population that is interested in the IPL; that is why businesses want to take sponsorships of the IPL. Championships like Indian Primer League not only bring money but also attract new sponsorships from the whole world.
Broadcast Rights:
Broadcast rights and television shares are the two main factors of cricket’s income.
Streaming channels that wish to acquire the rights to broadcast live matches make billions of dollars from tournaments like the IPL and Cricket World Cups. Star Sports, Sony, and digital platforms like Jio-Cinema or Hotstar are the top broadcasters who make money from broadcasting live matches. Broadcasters make money through advertisements, sponsorships, and subscription-based plans. This is the main reason that streaming has become the highest domain of revenue.
Ticket sales and match revenue:
Ticket sales also generate a large amount of money. Along with that, fan hospitality services, premium fan seating areas, and corporate seating areas are also highly paid for in a cricket match. After the COVID pandemic, fans are breaking records in the stadiums.
Merchandising and licensing:
Cricket caps, jerseys, and limited-time items also play roles in generating revenue in cricket matches. Manufacturers of fan products play an essential role in contributing to generating money for cricket matches. The manufacturer needs a license to make or sell the products. Licensing is also paid for the manufacturer. Cricket also generates revenue through merchandising and licensing.
Betting revenue:
Cricket betting is illegal in some countries; that is why it is going to be an underground revenue generator. Online fantasy league platforms like Tigerbook, Dream11, MPL, etc also contribute money to cricket matches. Platforms like Tigerbook make millions of dollars through IPL betting and also Tigerbook is the most trusted platform. These online fantasy platforms also contribute to cricket matches through sponsorships.
BCCI and ICC:
BCCI and ICC also play a major role in cricket sports and generate income. ICC distributes its earnings from the global tournament to smaller nations where cricket is in the initial stage. BCCI is also powerful and holds a huge amount for the development of cricket. They are helping to improve cricket in India and outside India. BCCI also contributes to the revenue of cricket.
In the last years, Indian Primer League (2023) generated 11,769 crore rupees in total revenue. It has increased approximately 78% over the year. The main sources of this revenue are media rights and sponsors. This is genuine and larger growth of cricket. BCCI earned 5120 crore rupees the past year, which was an increase of 116% from the past year. Disney Hotstar and Viacom18’s jio-cinema acquired last year digital media and TV rights; they contributed in this league around 8744 crores.
IPL and Cricket World Cup are now the biggest cricket’s business landscape. These two leagues are most profitable in cricket which makes billions of dollars in revenue for the cricket. From local clubs to international championships of cricket, all are the way to make money in cricket. Now cricket is one of the major businesses among the games. After basketball and football, cricket is the third largest business game that makes giant revenue during their matches.