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How Does the BCCI Earn Money?
The initial years of the BCCI were rough in terms of economic gains. The 1987 World Cup hosted by the Indian cricket board was possible with the charitable move by Dhirubhai Ambani’s title sponsorship on behalf of the Reliance group for a sum of 1 million USD. And since then, it was a gradual upward flow for the BCCI with tons of improvements, opportunities and monetary gains. In the following, we have explained the methods of how BCCI earns money.
1) Media Rights
One of the massive sources of income for the BCCI is through their broadcasting media rights. The board grants the media broadcasting rights of the matches that feature the Indian cricket team to the networks for a huge sum of money. The cricket matches featuring team India attracts a large audience who tune in to catch the “Men in Blue” in action. The advertisers of different marketing agencies know this to be the best time to showcase their advertisements to a large, worldwide audience. This makes each and every broadcast of the game very valuable, thus the BCCI charges a lot of money for the media rights to broadcast the games. Back in 2008, the BCCI made a deal with Multi-Screen Media, Sony Network India and the World Sports Group (WSG) for the 10 years of broadcasting rights of the Indian Premier League for a total of 2 Billion USD, tallying around INR 8200 crore by the end of the agreement. This alone has made the BCCI earn a revenue of INR 820 crore every year for the next ten years. After the end of the term of this massive deal, the following media rights for the worldwide Indian Premier League were sold to the Star India network for an incredible amount of 2.55 Billion USD, for a period of 5 years. So this should satisfy a big part of the question that asks how does BCCI make money.
2) Title Sponsorship
The second spot on the topic of how BCCI earns money is the title sponsorship. One of the biggest spots for advertisement is surely attaching the company’s name to one of the biggest cricket championship titles in the country. Yes, the spot of title sponsorship is a massive source of income for the BCCI in recent years. The company that sponsors the title of a cricket event, receives the most exposure, meaning more space for advertisement, a bigger logo, an enhanced time slot, the name and logo of the company over the trophy area, and a lot more. To achieve this spot, which is a golden opportunity for companies in terms of advertisement, they have to pay a huge sum of money to the BCCI. Currently, the rights for the title sponsorship have been sold to One97 communications, the company that owns Paytm, for the next four years. In terms of money, the company has paid around INR 203.28 crore to the BCCI for these exclusive rights. So be prepared to see more Paytm Ranji Trophy, T20 Series, Test series and so on in the future.
3) Team Sponsorship
Another huge contribution to the revenue model of the BCCI is through their official team sponsorship. Remember the Sahara logo at the centre of the Indian national cricket team, worn by legendary players while representing the country on the international stage of cricket? Imagine the amount of publicity and marketing benefit it does for the company. Hence being able to sponsor that is another golden opportunity for these types of companies, eventually paying a huge sum of money to the BCCI for its rights. For many years, Sahara India Pariwar were the official sponsor for the Indian Cricket team, until they dissolved the contract back in 2013. Following this, the companies like Star India and OPPO have been the official team sponsors for the period of 2014-17 and 2017-19, respectively. As of 2019, the official team sponsorship for the Indian Cricket team is taken up by BYJU’S. It is said that BYJU’S deal with the BCCI is for an amount of INR 1079 crores, for the contract from September 2019 to March 2022.
4) Official Kit Sponsors
The company that sponsors the official kit of the team has to pay a massive amount to the BCCI for their logo placement on the jersey. Nike was the previous kit sponsor for the team and had to pay about 12.13 Million USD to the board each year. In the five-year deal, Nike had to pay nearly 60.6 Million USD at the end of the term to the BCCI. The contract ended with Nike back in 2020 and since then, MPL has taken the charge of the official kit sponsors for the Indian cricket team, paying the base price of INR 65 lakhs per match and a total of INR 3 crore each year as the official merchandise partner.
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