The economics of BCCI: How the BCCI turns cricket into cash
Like every other sport, cricket has a governing board that manages the administration and finances of the game. These cricket boards are essential for organizing tournaments, handling player contracts, and generating revenue through broadcasting rights and sponsorships. At the international level, the ICC (International Cricket Council) oversees the sport globally and organizes major cricket tournaments, such as the 2024 T20 World Cup.
BCCI is one of the wealthiest and most powerful cricket governing bodies in the world, both on and off the pitch. By 2022, BCCI's net worth had increased tremendously and had surpassed INR 18,000 crore. BCCI will witness another round of financial windfalls with expected earnings of over USD 1.15 billion (INR 9 billion) five-year cycle between 2023-2027. Here's all you need to know about world's richest cricket board BCCI.
Cricket's Beginnings in India
In 1721, a British ship anchored off the coast of Kutch in western India. The sailors not only brought goods but also introduced cricket, playing the first recorded game on Indian soil.
Over the years, cricket became popular among British soldiers and settlers in India. The first recorded match took place in 1751, between the British army and English settlers. Indians soon began to love the sport.
In 1792, the Calcutta Cricket Club was established, becoming the second-oldest cricket club in the world, after the MCC. This marked the formal introduction of cricket to India.
Cricket's popularity grew, with various communities forming their own clubs. The Parsis were among the first Indian civilians to embrace cricket, founding the Oriental Cricket Club in Mumbai in 1848.
In 1886, the Parsis sent a team to England to learn more about cricket. Led by Dr. D.H. Patel, the team aimed to pay homage to English cricketers. They returned with valuable experience, and in 1888, a second Parsi team toured England, winning eight matches, losing eleven, and drawing twelve. One of their star players, Dr. Mehellasha Pavri, took 170 wickets.
In 1889-90, the British sent a cricket team to India under G.F. Vernon, playing against Englishmen living in India and the Parsis. In a surprising turn, the Parsis won by four wickets, marking the first defeat of a British cricket team on Indian soil.
Lord Hawke's team toured India in 1892-93, playing against the Parsis. Lord Harris, a prominent cricket figure, encouraged the sport in India by organizing annual 'Presidency' matches and allocating land for cricket clubs in Mumbai.
In 1911, an 'All-India' team, sponsored by the Maharaja of Patiala, toured England. Among its standout players was Baloo Palwankar, a talented left-arm spinner from an 'untouchable' background.
Formation of the BCCI
In 1926, representatives from the Calcutta Cricket Club attended meetings of the Imperial Cricket Conference in London. Despite not having exclusive control over Indian cricket, their participation was endorsed by Lord Harris. This led to the MCC sending a team to India in 1926-27, led by Arthur Gilligan.
During this tour, C.K. Nayudu impressed with a remarkable 153 runs in a match against the visiting team. Gilligan and others, like Prof. D.B. Deodhar and Wazir Ali, convinced him of India's readiness for Test cricket.
By then, cricket had become immensely popular across India. Various cities like Chennai, Calcutta, Lahore, and Hyderabad had become cricket hubs. The Maharaja of Patiala also played a significant role in developing cricket infrastructure.
In a 1927 meeting in Delhi, Gilligan pledged to support India's inclusion in the ICC if all cricket enthusiasts united under a single governing body. This led to the formation of the Board of Control for Cricket in India (BCCI) after subsequent meetings in Delhi and Mumbai.
Despite initial challenges, the BCCI was established thanks to the efforts of Grant Govan and Anthony De Mello. Based in Mumbai, the BCCI played a crucial role in developing Indian cricket, leading to India's entry into Test cricket in 1932.
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BCCI's Financial Power
Today, the BCCI is the wealthiest cricket board in the world, with a reported net worth of $2.25 billion in 2022. This financial success is due to the immense popularity of cricket in India.
How BCCI Earns Money?
Indian Premier League (IPL): The IPL is a major revenue generator, with the 2021 edition bringing in a net income of $292 million. Revenues from ticket sales, media rights, and sponsorships contribute significantly to the BCCI's wealth.
Media Rights: The BCCI auctioned the broadcast and digital streaming rights for the 2023-27 IPL tournaments, resulting in a $6.2 billion deal with Disney and Viacom. The inaugural women’s T20 tournament also earned nearly $700 million.
Title Sponsorship: Companies like PayTM secure title sponsorships, with deals extending to all domestic and international cricket until 2023.
Team Sponsorship: Byju's, an Indian ed-tech company, paid INR 1,079 crores for team sponsorship until March 31, 2022.
International Cricket Tours: The BCCI receives substantial revenue from international tours, with an annual share expected to be around Rs 1892 crore (US$231 million).
Kit Sponsors: Recent deals, like the one with Adidas, contribute significantly to the BCCI's revenue.
Cricket in India is more than just a sport; it’s a deeply ingrained passion. The BCCI has effectively capitalized on this passion to generate substantial wealth. Next time you watch a cricket match, remember the financial investments that make it possible.
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