Connect with us

Cricket News

World Cup 2023: India likely to generate over 660 billion PKR

World Cup 2023: India likely to generate over 660 billion PKR

  1. India anticipates a windfall of $2.6 billion from ICC Men’s World Cup 2023, boosting its cricket board’s finances.
  2. The tournament’s revenue sources include TV rights, ticket sales, and sponsorship deals, fueling India’s financial gains.
  3. Calls for equitable distribution of funds in ICC’s financial model as India reaps the lion’s share.

India, the exclusive host of the ICC Men’s World Cup 2023, is reaping significant financial benefits from this prestigious cricket event, according to a report in The News on Sunday. A recent study estimates that the country is poised to amass more than Rs660 billion in Pakistani currency, equivalent to $2.6 billion, from the revenues generated by the tournament, further strengthening the already prosperous cricket board’s finances.

While India has previously co-hosted World Cups alongside Pakistan, Sri Lanka, and Bangladesh, this is the first time it’s hosting the mega tournament solo. The event spans across ten cities in India, with a remarkable 48 matches, including games at the monumental Narendra Modi Stadium in Ahmedabad, boasting an astounding seating capacity of 132,000 spectators.

India’s financial gains from the World Cup are primarily sourced from TV broadcasting rights, contributing a substantial PKR 360 billion. Furthermore, with many day and night matches during the seven-week tournament, spectators are expected to gather with friends and family to enjoy the games, creating a boost for the food and related businesses, estimated to generate 15,000 crores in Pakistani rupees.

Initially, the early matches had a lower turnout, but as the tournament progresses, more people are flocking to the grounds, and the revenue from ticket sales is projected to exceed Rs60 billion. In addition to the local crowds, the World Cup is also attracting a substantial number of foreign tourists, media representatives, broadcasters, and commentators, along with ten foreign teams. This influx of visitors is expected to generate income through travel and merchandising, amounting to PKR 660 billion.

A multitude of renowned companies, including Coca-Cola, Google, Indian Unilever, Emirates Airline, Saudi Arabia’s Aramco, and Nissan, are sponsoring the World Cup. Moreover, businesses from various regions, including Asia, Europe, and the Americas, are participating as sponsors. Advertisers are also willing to pay a premium, with TV advertising rates at PKR 900,000 per second, marking a 40% increase from the last World Cup.

The ICC has declared a total prize pool of $10 million for the current World Cup, with $4 million set aside for the winning team in Ahmedabad on November 19, and the runner-up receiving $2 million. Teams will also earn $40,000 for each group stage victory. Teams that do not make it to the semi-finals will receive $100,000 each, while the losing semi-finalists will be rewarded with $800,000 each.

In terms of the ICC’s financial model for 2017 to 2023, India is poised to receive a major share of the revenue, with the Indian board benefiting from an additional $112 million compared to the previous model, totaling $405 million over eight years. In contrast, Pakistan’s share amounts to $128 million, with annual disbursements ranging from $12 to $15 million.

Ehsan Mani, the former PCB chairman and head of the ICC’s financial committee, expressed the opinion that Pakistan and India should not face each other in a group match during the World Cup, as the revenue generated from a semi-final clash between the two arch-rivals would be significantly higher. He had proposed a $10 million fixed share for Pakistan, considering its contribution to revenue, but the ICC did not adopt this suggestion.

The distribution of the income from the ICC’s financial model disproportionately favors India, leaving countries like Zimbabwe and West Indies without a share, which could have detrimental effects on their cricketing endeavors. Mani highlighted the inequitable distribution of World Cup-generated funds in the ICC’s financial model.

Also, see:

First team to qualify for World Cup 2023 semifinal

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

More in Cricket News