‘Media rights contribute to 55-60% of a league’s revenue’

As per a GroupM report, sports sponsorships went up 24% from 2022 to 2023, with cricket seeing a 13% growth. It speaks volumes about audience interest in the game and the power of content that supports and nurtures it. At the e4m Confluence The Media Investments Summit 2024, Aditi Gupta, Assistant Editor, exchange4media spoke to Vinit Karnik, Managing Director, GroupM and Ashish Sehgal, Chief Growth Officer, Digital and Broadcast Revenue, Zee Entertainment Enterprise Limited, delving into how T20 leagues are turning cricket into a global sporting spectacle, shaping narratives and connecting cultures around the globe. 

“The evolution of the game and format is the secret sauce,” said Vinit Karnik, Managing Director, GroupM. He touched upon how cricket formats have evolved over the last 3 decades with IPL bringing in the most significant developments. “The broadcast and streaming platforms have done an incredible job in pushing the boundaries in terms of taking it to newer audiences and geographies,” he added, explaining the shift from a one-size-fits-all approach in the earlier days of television to the multiple screens of today.

Ashish Sehgal, Chief Growth Officer, Digital and Broadcast Revenue, Zee Entertainment Enterprise Limited talked about the rise of cricket content, which is just as keenly watched as the matches. Karnik added to the conversation with examples of how there is a lot of buzz around auctions and retention of players. “It’s the combination of great sporting action, great innovation in the world of sports and the great curation of content. The culmination of all these things has created that interest and therefore the leagues are growing,” he explained. 

“Media rights contribute to 55-60% of a league’s revenue,” said Sehgal, calling media rights the soul and nourishment of a league. “The broadcasters who build this content and popularise it have a lot at stake. At the end of the day, monetization should be profitable,” he added. 

“Going forward, T20 leagues are going to play an important role because they are building heroes,” said Sehgal. He explained that these offer an opportunity for talented players in countries that don’t have a strong cricket culture to get on the international stage, show their talent and earn big money. The leagues also attract fandoms, which accelerate their success.

“There are about 5 countries that have their own cricket leagues. That will continue and more will get added to the list. The next big step would be to see T20 cricket as part of the LA Olympics. It would be a great story for T20 cricket,” concluded Karnik.