The Business of Cricket World Cup 2023

The 2023 Cricket World Cup hosted by India was the first ever 50-over World Cup hosted by India on its own. The earlier world cups held in India in 1987,1996 and 2011 were co-hosted by some of her neighboring nations as well. So let us analyze the event's profits and economic opportunities. The 45-day event helped in bringing about $ 1.6 billion into the Indian economy.

Role of ICC

The International Cricket Council (ICC), is the main stakeholder of the event. The expense of ICC for the event is about $10 million. This includes the prize money given to the teams and, the remuneration of different officials including umpires, match referees, and commentary panels.

Winner of Final	$ 4 million
Runner up	$ 2 million
Losing Semi Finalists	$ 800,000
Eliminated in group stage	$ 100,000
Winner of each group stage	$ 40,000

 

At the same time, ICC has also many sources of revenue. The revenue obtained from the auction of broadcasting rights of the event is the main revenue. As we know, the event was broadcast by Star Sports. The ICC has granted the broadcasting rights to Disney Star from 2015 to 2023 events for $ 1.98 billion. And of course, these broadcasting channels can get back this capital from the advertisements. Now the ICC also gets revenue from the different sponsors of the event. The different sponsors include global, category, and social media sponsors. PhonePe, Dream11, LendingKart, Coca Cola, etc. are some of the sponsors of the event. ICC also gets 1% of ticket sales for the event.

Role of Host Nation- India

The host nation is the second stakeholder of the event. The host nation is expected to reap benefits due to the staging of such events. The hosting of ICC CWC23 has helped in boosting the Indian economy. Although exact figures are not available, the economists say that at least an amount of $ 1.6 Billion has reached our economy. The event attracted a lot of foreigners to our country and this has certainly helped our tourism and hotel industry. Is not only foreign, but domestic cricket fans have also played their role in this growth. The hotel rates and flight booking rates touched great heights during many high-voltage matches. ICC demands a tax exemption from the host nation for the event. However, the Indian government has responded in negative and has levied an extra 23% surcharge on broadcasting costs.

 

Role of BCCI

BCCI plays a great role in hosting the event. They took care of the renovation of the 10 stadiums in which the matches were held. That cost them around Rs 500 Crore. In addition, they had to arrange for the travel and accommodation expenses of all participating players and staff members. The BCCI had an expense of almost Rs 1500 Crore. Now the sad part for BCCI is that if the Indian government is reluctant to provide tax exemption to ICC, BCCI should pay the tax amount to ICC. The tax amount sums to about 950 Crore Rupees. This can make the event a financial loss for BCCI. If BCCI fails to pay the tax amount to ICC, the can deduct the amount from annual profits to be disbursed to BCCI.