Cricket is the most popular sport in India. Overall, it is a festival that is celebrated across the globe, in every nook and corner of the streets. It is not only popular among adults but also among children, whom we can see wandering with bats and bowls on the empty grounds to the streets and ending up in international cricket stadiums. But do you know a fact that cricket contributes a significant amount of money to the country’s growth and development, which no industry can match? I know you might be wondering about where all this money comes from. The answer is that there are several ways through which the business of cricket is not only fueling the sporting passion of the players but also making huge money. And all that we’ll discuss here in this blog. Read the blog further to know more!
Contents
- 1 Sources of Money
- 2 Cricket- A Billion Dollar Industry
- 3 Role of the Indian Premier League
- 4 Sponsorships and Brand Collaboration
- 5 Media and Broadcasting
- 6 Merchandise
- 7 Frequently Asked Questions about The Business of Cricket
- 8 How does cricket contribute towards the growth of the Indian economy?
- 9 Is the IPL a business success?
- 10 From where do players generate money?
Sources of Money
Cricket drives money from various sources, so no matter if it is the Indian Premier League, high-profile sponsorships, or expressive broadcasting rights, there are several ways to earn a significant amount of money. Not only this, but it also creates jobs, boosts tourism, and fuels India’s economy in ways that many people don’t realise. Apart from this, there are also several ways through which cricket generates money, like media rights, merchandise, ticket sales, sponsorships, and player transfers.
Cricket- A Billion Dollar Industry
And why is cricket the billion-dollar industry? The BCCI (Board of Control for Cricket in India), which is the control board of cricket, is the richest cricket board in the world and has enormous revenue coming from broadcasting rights, sponsorships, ticket sales, and merchandise.
Another reason for this massive income is the attraction it gets from worldwide fans visiting stadiums and also billions to their TV screen, which makes it a prime advertising platform. Several brands spend millions to feature their ads during live matches, knowing that cricket has one of the highest viewerships in India.
A perfect example is that the broadcasting rights for the IPL 2023 season were sold for ₹48,390 crore ($6.2 billion) to companies like Viacom18 and Star Sports. This money is higher, which even the European football leagues don’t probably earn. Behind all these, the game of cricket also boosts tourism, where fans from all over the world increase hotel bookings, transportation, and local business revenues. From young players in domestic leagues to star cricketers like Virat Kohli, everyone benefits from cricket’s financial success.
Role of the Indian Premier League
Obviously, the role of the Indian Premier League is much more significant in enhancing the role of cricket, and it is also the world’s richest sports league. Not only as a sport, but the IPL has been more of a business, since its inception in the year 2008. However, the IPL of today has grown into a billion-dollar industry by attracting the world’s best players and also global sponsors.
Talking about the working model of the IPL, the working model of the IPL is the franchise system, where businesses and individuals buy teams. Popular teams like Mumbai Indians, Chennai Super Kings, and Kolkata Knight Riders are some of the most profitable teams with a net worth of over $1 billion each.
Every year, there is an auction conducted, where the franchises spend crores to acquire top players. In that some players fetch record-breaking bids, making the IPL auctions a high-stake business event. And all these activities continue to benefit the economic condition of the country by creating jobs in the sectors like media, hospitality, and tourism. The city which hosts the IPL generates massive income by increasing hotel bookings, and travel and also guides the local business activities.
Sponsorships and Brand Collaboration
Sponsorships and brand collaboration play a vital role in the generation of revenue through the IPL. Through the title sponsors, the BCCI sells the sponsorship rights to the Byju’s, Vivo, and Tata, which pay hundreds of crores to have their name associated with Team India.
Title Sponsors: The BCCI sells title sponsorship rights to brands like Byju’s, Vivo, and Tata, which pay hundreds of crores to have their name associated with Team India.
Player Endorsements: Players like Virat Kohli, Mahendra Singh Dhoni, and Rohit Sharma earn millions through endorsement deals with several popular brands like Adidas, Puma, and Pepsi.
Team Sponsors: There are several teams as well which have multiple sponsors who appear on the jerseys, training kits, and also stadium advertising boards. Brands like Dream 11, Paytm, and Jio spend tons and tons of money to associate their names with the top teams.
Media and Broadcasting
Cricket has reached a significant place to date due to the advancement in broadcasting and digital media. Millions of fans watch television and streaming platforms, which makes the cricket game one of the most watched sports in the world.
Digital Platforms such as the Disney+ Hotstar, JioCinema, and Amazon Prime Video have transformed the way fans consume cricket. Live streaming has brought in younger audiences and also increased viewer engagement.
Merchandise
The sale of the merchandise is another source of revenue in the business of cricket. Fans love to wear items like jerseys, caps, etc. Companies such as Nike, Adidas, and Puma manufacture official kits, generating huge revenues from merchandise sales.
The following are the ways by which cricket is expanding more and more in our country by alleviating the financial condition of the country.
Frequently Asked Questions about The Business of Cricket
How does cricket contribute towards the growth of the Indian economy?
Events like the IPL generate thousands of jobs and also boost businesses like hospitality, travel, and media.
Is the IPL a business success?
Yes, the IPL is indeed a business success where companies and celebrities own the teams. It attracts huge sponsorship deals, expensive broadcasting rights, and also massive viewership, which makes the Indian Premier League the richest sports league in the world, attracting a huge fan base worldwide.
From where do players generate money?
Players generate money from various other sources apart from playing. They earn sums through brand endorsements, sponsorship deals, social media promotions, and also participating in several international matches in IPL, whose participation is in the global T20 leagues. Players also invest in several businesses and become brand ambassadors for several products.
Cricket is no longer a sport in India, but it is an economic powerhouse that fuels businesses, creates jobs, promotes entertainment, and acts as an all in one. As the game of cricket continues to enter a new era of technological advancements and global reach, which remains the heartbeat of India’s sporting culture.