ICC is an international organization that basically govern its member boards to develop, organize, and promote the cricket across the world. This governing body came into existence in 1909 as an ‘Imperial cricket Conference’ and then its name was changed to ‘International Cricket Conference’ in 1965. In 1987, it was again renamed with ‘International Cricket Council’ that is currently known as. Every year ICC generate a huge revenue through different ways and then distribute major part of that among its member countries.
The fundamental events for ICC through which it earns money are T20 World cups, ODI world cups, Champions Trophy, and ICC test championships. These international events are being organized on regular basis and different countries host them ranging from single to hybrid models. The Contemporary plan of ICC is to held an international tournament every year with t20 world cup in even years, ODI world cups in a year before Olympic games, champions trophy in remaining year of the cycle. The test championships are going on continues basis and one test cricket tournament takes around 2-years to be completed and next one starts immediately afterwards and so it keeps on repeating in a cycle.
While conducting international tournaments, ICC makes a huge amount of revenue through different channels. In 2022, the International Cricket Council generated around $208.38 million as a net income. In ICC business model there are 5 sources that more or less contribute to the bank balance, these are broadcasting rights, sponsorships and advertisement, ticket sales, merchandising and licensing, and member boards.
1. Broadcasting Rights
To broadcast live matches from stadium to across the world is the highest paying source for ICC among all other earning ways. The international cricket council like any other sport’s league or organization has the exclusive rights concerning the broadcasting rules and Business Model Broadcasting Rights Sponsorships & Advertising Ticket Sales Merchandising & Licensing Member Boards regulations. Cricket being a professional sport is not allowed to be broadcasted by any user or cricket fan by just setting the camera in ground without license or broadcasting right.
For getting a high viewership or TRP, TV channels or other digital platforms pay a substantial amount of money to ICC for securing the right to broadcast live cricket. Star Sports remained the official broadcaster of International cricket council from 2015 to 2023 and paid USD 1.8 billion for this time period. According to some sources, just in ODI cricket world cup 2023, ICC earned approximately USD 534 million from broadcasting rights. There are proper coverage plans per territory where different license holders broadcast live matches in different parts of world e.g. PTV in Pakistan, SKY Sports in UK & Northern Ireland, Willow in USA & Canada, Amazone in Australia etc.
2. Sponsorships and advertisement
Sponsorship is the second highest source of income for ICC in International events. As cricket has a huge number of fan following across the the world that creates a platform for different companies to promote their brands. This creates a mutual interest between ICC and companies that leads to a way of income for International Cricket council.
There are three types of sponsorships that ICC is offering, these are Global, Official, and premium/category sponsorships. These sponsorship slots are dynamic and keep on changing depending on the deals and interests of companies. Currently in 2024, Royal Stag and FanCraze are the official Sponsors, Coca Cola and IndusInd Bank are Global partners, and Emirates, Aramco, DP World are premier partners.
In ODI cricket world cup 2023, six global partners Emirates, Master Card, IndusInd Bank, Booking.com, Aramco, and MRF tyres paid $8-10 million for this sponsorship slot. The official partners DP World, Nisaan, Thums Up, Upstock, Polycab, Nium, Oppo, and Bira91 forked out between &6-8 million. Then there were some category partners like Dream11, Near foundation, and Royal Stag who contributed between $3 to $4 millions.
3. Ticket Sales
The revenue generated by ticket sales is something that is directly linked with spirit and craze of cricket among spectators. The income from each match is proportional to the capacity of the ground. Narendra Modi Stadium is the largest cricket stadium in the world with seating capacity of 132000.
The ticket prices vary depending on opponent teams in a particular match, sitting location, host country, and demand in market. The ticket price goes up especially in knock out matches of world cups and in contests between two archrival nations, Pakistan & India. For example, ticket price for India-Pakistan match in t20 world cup 2024 started from approximately $175 and went to highest $10000 (Diamond club/luxuray).
4. Merchandising and Licensing
During international tournaments, all teams have a huge fan’s support that make all contests even more interesting and joyful. Fans cheer in stadium with official outfit of their team, holding flags and banners in hand, decorating their cars with painting or advertisements result in vibrant display of enthusiasm and spirit of cricket. This whole climax becomes a source of income for ICC and companies to sell their products. The manufacturers and retailers take license from International Cricket Council to produce and sell the products e.g. FanCode has merchandising right for India.
5. Member Boards
The individual boards same as ICC organize different international events like bilateral series, trilateral series, Asia cup, domestic tournaments and international leagues like IPL, PSL etc. The earning sources of individual boards are almost as similar as International Cricket Council like broad casting rights, sponsorships, ticket sales, and merchandising. The ICC does not take directly every penny earned by boards rather the individual boards are required to pay some amount as a membership fee, participation fee in ICC events, and fee for hosting tournaments organized by International Cricket Council. For Example, BCCI Paid $23.9 millions to ICC as a host fee for world cup 2023.
Distribution Model
International cricket board is working worldwide to develop and promote cricket. Currently, ICC has total 108 members, out of these, 12 are full members and 96 are associate members. The ICC takes a little portion of generated revenue and distribute remaining part to all of its members. The allocation of fund’s share for each country depends on the board size of members, performance of teams, and popularity of cricket.
According to latest distribution model, ICC distribute $600 million to its members on yearly basis for the time period 2024 to 2027. Full ICC members will get 88.81% of projected $600 million and associate members will be granted with 11.19% only.
India is significantly at top spot and supposed to get $231.00 million every year out of proposed budget for the cycle 2024-27, Australian cricket board will receive $37.53 million, Afghanistan $16.82, Bangladesh $26.74, England $41.33, Ireland $18.04, New Zealand $28.38, Pakistan $34.51, South Africa $26.24, Sri Lanka $27.12, West Indies $27.50, Zimbabwe $17.64, and Associate members $67.14 million.