BCCI or the Board of Cricket Control in India is the governing body responsible for the administration, promotion and development of the game of Cricket in India. You would have heard that the BCCI is the richest Cricketing Board in the world! But what makes the BCCI so rich?
In this post we look at how the BCCI makes money.
BCCI makes money from the following sources:
Cricket is by far the most popular and the most watched sport in India. Its not just a sport, it is a religion here in India. Indians settled in other parts of the globe are also ardent followers of the sport. Given its huge viewership, global media rights (television as well as digital) for India matches could sell at a huge price.
Media Rights for matches hosted by the BCCI in India are generally sold to the highest bidder through an auction process.
To give you a prospective into how large the revenue from the sale of media rights could be, note that Star India won the consolidated broadcasting rights for matches hosted by the BCCI for the 5 year period ending on 31st March 2023, for a whopping INR 6138 Crore. This literally means that the BCCI would earn an average of INR 60 crore for each International match hosted by it during this period!
2. Sponsorship Fees:
Sponsorship Fees form another significant source of revenue of the BCCI. Again, similar to the auction of Media Rights, Sponsorship rights are also sold to the highest bidder through the process of an auction. It is generally the sale of ‘Team Sponsorship’ rights and ‘Title Sponsorship’ rights that brings in the most dollars for the BCCI.
3. Revenue from IPL:
IPL or the Indian Premier League – the most popular T-20 league in the world is hosted by the BCCI and is one of the most significant sources of revenue for the Board. The BCCI makes money from the hosting of IPL matches from the following sources:
A. Sale of broadcasting rights to the IPL Matches:
To put numbers into prospective, Star India won the Global Broadcasting rights for the Indian Premier League for a period of five years, starting from 2018 till 2022, for a sum of INR 16,347.50 crores ($ 2.55 Billion). Now that is a serious sum of money!
B. IPL Title Sponsorship Fees:
Being the most popular Cricket league in the world, IPL Title sponsorship fees can be quite hefty. Again to quote some numbers, VIVO Mobiles won the IPL Title sponsorship rights for the 2018 to 2022 season for a sum of INR 2,199 crores.
C. Share of revenue from the sale of tickets to the venue:
BCCI also make money from the sale of tickets to IPL venues which it shares with the IPL teams.
D. Annual Franchise fees:
This is an annual fee paid by the teams for participating in the IPL.
4. Revenue From Hosting of ICC Events
The BCCI also earns fees from the International Cricket Council (ICC) for hosting of ICC events like the Cricket World Cup in India.
5. Participation Fees:
The BCCI also makes money from the participation of Team India in ICC events or International bilateral series. The participation fees are paid by the ICC or the respective Country Cricket Boards to the BCCI to ensure the participation of Team India in such series.
Hope you liked our presentation on revenue sources for the Board of Cricket Control in India. Keep visiting FinMint for more.
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