Indian cricket Industry
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Cricket in India is a billion dollar industry. Board of Control for Cricket in India (BCCI) is the richest cricket association in the world with a net worth of more than US $1.5 billion as in 2006. Of all the 10 full members of ICC (International Cricket Committee), BCCI contributes almost 70% of ICC’s expenses on cricket.
The best example of the health of Indian cricket industry can be illustrated by the fact that Sachin Tendulkar earns US $30 a minute compared to Mukesh Ambani’s (CEO of Reliance Industries) US $10 per minute, and Amitabh Bachchan’s US $8 per minute. Inspired by the buoyancy of cricket industry in India, Subhash Chandra of Zee TV invested US $23 million to create Indian Cricket League (ICL) with the assistance of Kapil Dev. BCCI, initiated the Indian Premier League in 2008 involving the leading Indian corporate houses and cricketers from all over the globe. This twenty20 tournament involving eight teams has the potential of generating revenue of US $1 billion for BCCI over the coming decade.
Indian Premier League
BCCI initiated a twenty20 cricket tournament in 2007, and played among eight teams in 2008. Total earning from each of these tournaments goes to a central pool which then is distributed thus: 54% to franchisees, 40% to IPL, and 6% towards prize money. This arrangement shall remain till 2017 after which the franchisees will be entitled to 45%, IPL to 50%, and 5% will go towards prize money. Board of Cricket Control in India is expected to earn a revenue of US $1 billion over the next five to ten years.
The total base price for the eight franchisees Chennai Super Kings, Delhi Daredevils, Hyderabad Deccan Chargers, Kings XI Punjab, Kolkata Knight Riders, Mumbai Indians, Rajasthan Royals, and Royal Challengers Bangalore was US $400 million. The auction of these eight franchisees fetched approximately US $724 million for IPL.
Global broadcasting rights for the entire IPL Twenty20 tournaments till 2017 has been secured by World Sport Group (WSG) at a cost of US $1.026 billion. Out of this, WSG will pay US $918 million to BCCI towards television rights and US $108 million towards promoting the tournament.
