The pursuit of securing tickets for the ICC ODI Cricket World Cup 2023 mirrors the endeavour of chasing a shooting star – it’s elusive and often accompanied by steep costs, particularly for high-profile clashes like India vs. Pakistan. However, beyond the excitement of packed stadiums and thrilling cricketing action, this tournament plays a pivotal role in the Indian economy. Bank of Baroda, a leading financial institution, has made an astounding prediction, estimating that the ICC Cricket World Cup 2023 will inject a staggering $2.6 billion (approximately Rs 22,000 crore) into India’s economy. Let’s delve into the details and explore how this cricket extravaganza propels economic growth.
Cricket World Cup 2023: Find Out How Much Money BCCI Will Earn From The Tournament
The Economic Breakdown
1. Television Rights – A Rs 12,000 Crore Spectacle
One of the primary revenue streams for the ICC ODI World Cup 2023 is the sale of television rights. Bank of Baroda’s prediction indicates that this segment alone is expected to accumulate an impressive Rs 12,000 crore. The immense passion for cricket in India results in high demand for broadcasting rights, making it a key contributor to the tournament’s economic impact.
2. Screenings & Food Deliveries – A Rs 5,000 Crore Extravaganza
The enthusiasm surrounding the World Cup isn’t limited to stadiums alone. Viewing parties and food deliveries witness a massive surge during the tournament. Bank of Baroda estimates that this segment will contribute a substantial Rs 5,000 crore, reflecting the immense passion and engagement of cricket fans across the nation.
3. Ticket Sales – A Rs 2,000 Crore Revenue Source
The sale of tickets is another significant component of the revenue division. While procuring tickets for popular matches can be a daunting task, the revenue generated is substantial. Bank of Baroda’s prediction suggests that ticket sales will contribute around Rs 2,000 crore to the overall earnings of the tournament.
4. Travel, Merchandise & Event Management – A Rs 3,000 Crore Industry
The World Cup also triggers substantial economic activity related to travel, merchandise, and event management. Cricket enthusiasts flock to host cities, generating substantial demand for travel services and merchandise. According to Bank of Baroda’s estimates, this segment is projected to contribute Rs 3,000 crore to the overall revenue.
5. Total Revenue – A Staggering Rs 22,000 Crore
When we amalgamate these revenue segments, the total economic impact of the ICC ODI World Cup 2023 on India’s economy is a staggering Rs 22,000 crore. This colossal figure underscores the magnitude of the tournament’s financial significance.
The ICC Men’s Cricket World Cup, which commenced on October 5 and will conclude on November 19, 2023, is on track to amass an astounding $150 million (approximately Rs 1,250 crore) in sponsorship revenue. The global reach and appeal of the tournament are evident as India is expected to surpass the 552 million total viewership recorded during the 2019 World Cup. What’s truly mind-boggling is the rate at which global giants are investing in this cricketing spectacle – a staggering $3,600 per second.
Bank of Baroda’s economic experts are conservative in their estimates, suggesting that TV rights and sponsorship revenue could range between Rs 10,500 crore and Rs 12,000 crore. This level of sponsorship interest and investment underscores the world’s fascination with cricket and the massive financial stakes involved.
Moreover, ticketing revenue for the 2019 World Cup reached an astonishing 50 million Great British Pounds, marking a staggering 75% increase from the 2015 edition. This trend highlights the consistent growth in the economic impact of the tournament over the years.
When delving into the financial intricacies of the tournament, it becomes apparent that the Board of Control for Cricket in India (BCCI) stands to gain significantly. The BCCI is set to receive about 40% of the ICC’s annual net earnings from 2024 to 2027. This translates to a substantial $230 million per year for four years, capturing a remarkable 38.5% share of the ICC’s projected annual earnings of $600 million. This revenue-sharing configuration takes into account various factors, including cricket history, team performance, revenue contributions, and full membership status.
The impact of the World Cup extends far beyond the boundaries of cricket matches. Hosting the tournament in 10 cities has led to a surge in airline ticket sales, increased hotel rentals, and a boost in the informal sector. There is even the possibility of a marginal increase in inflation, ranging from 0.15% to 0.25%, during the months of October and November.
