Cricket accounts for almost 85% of the Indian sports economy: Report
According to the report 'Impact of COVID-19 on Revenues of World Cricket and Indian Sports', Indian cricket revenue is nearly 45% of total cricket revenues, 75% of which comes from IPL
According to the report 'Impact of COVID-19 on Revenues of World Cricket and Indian Sports' authored by Sundar Raman, former COO of the IPL, cricket accounts for almost 85% of the Indian sports economy with IPL being a major contributor, while Football and Kabbadi are 2nd. The bulk of Indian sports revenue comes from broadcast and sponsorship, contributing 65% and 30% respectively while ticketing revenue accounts for only 5% unlike a lot of other markets. A very significant proportion of this 5% in ticketing revenue is also generated through ticket sales for IPL matches.
From the USD 1.9 billion revenue for Cricket in 2019, approximately 72% came from the broadcast. Sponsorships contributed 20% and Matchday ticketing/hospitality was around 8%.
Indian cricket revenue is estimated at 45% of total cricket revenues at USD 862.5 million, with 75% coming from IPL. In a non-ICC event year, the share of Indian cricket revenue goes up even higher by at least 10%-15%.
According to the report, India is a key player in the world cricket economy. Apart from Australia and England, who have large domestic market deals, both valued at USD 1Bn over a 4-year cycle, other cricket boards rely on Indian tours as part of bilateral fixtures to attract interest from Indian broadcasters. One-third of cricket revenues in 2019 were from the Indian Premier League(IPL). In 2019, despite being a Cricket World Cup year, IPL revenues were estimated to be 30% higher than that of the World Cup (not including ticketing revenues of CWC as those are retained by the host). IPL 2020 revenue was projected to be 70% higher compared to ICC WT20 revenues in 2020.
With current uncertainty around both these events, this remains a hypothetical scenario. Cancellation of both cricket World Cup and IPL will have a serious impact on cricket economics for this year. Not hosting IPLor bi-lateral season of any country will lead to a loss of revenue. Cricket revenues in 2020 are estimated at USD$ 1.92 billion, driven by ECB's new deal cycle starting this summer, and ICC WT20 and Asia Cup.
Cricket has been at standstill from early March and it is unclear when the sport will resume. ECB has stated a loss of over USD 300 million in revenue if no cricket happens this summer. How the world of sport responds to this situation will largely determine how the impact can be minimised. The last few months have shown the world newer ways of thinking, behaving and doing - how much of that can be mainstreamed remains to be seen. Business facilitation will emerge as the fulcrum to support, safeguard and continue sport with minimal interruption.
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