BCCI – India’s richest sporting body and world’s richest
cricket board, which lures many politicians for top positions in it. As India
is large market in terms of International Cricket revenue, BCCI’s opinion carry
weight in ICC’s decision making process. India can decide future of
International players as well as can upgrade cricket rules. ECB, Cricket
Australia and BCCI are ‘Big Three’ economic players in world cricket. BCCI is
independent body which does not depend on Government for its finances. BCCI has
tax liability of $4.13 bn who paid only $419mn till now.
During 2007, Indian Cricket League (ICL) a private cricket
league funded by Zee Entertainment initiated in India which feared BCCI. BCCI
and ICC refused to recognise ICL and BCCI decided to launch Indian Premier
League in 2008 on franchise model. BCCI increased prize money of IPL and banned
ICL players. BCCI put Lalit Modi in change of starting T20 of its own.
IPL conducted bidding for selling franchise of each team. Obviously,
BCCI made whooping assets from IPL bidding. It is interesting to know how IPL
team owners/investors earn. Revenue of the team is generated from media rights
for broadcasting, sponsorships, tickets, stall rentals and prize money.
Media rights for broadcasting IPL matched is decided by BCCI
through auction process. Sony network is having worldwide broadcasting rights.
Some part of revenue obtained from it goes to each team investor. Revenue
earned from media rights creates maximum share of total earning around 60-70% for
each team.
Out of total revenue of the team, 10% revenue comes from match
tickets. Maximum the spectators, more is the earning and good view for broadcasters.
Hence team owners decides ticket rates based on standard of living of the city.
Some tickets are already reserved for BCCI which BCCI can provide to VVIPs and
their relatives. KKR in first season of IPL did not do well, but they were in
profit due to celebrities’ presence.
Stalls installed inside stadium for beverages, eatables also
acts as an addin to team revenue. And finally the prize money 50 cr for
winners. As per the rule, 50% of prize money should go to each team members.
There are other illegal sides of earnings in IPL. Let’s not
go into the details of it. We shall wait for Tuesday 14th July, probe of CSK
and RR fate result to be announced by Supreme Court.