CricketICC Mens T20 World CupInternationalIPLIPL SponsershipSports BusinessTrending

Dominance of India in Cricket World

0
IPL-Teams-2025

The Evolution of Cricket as a Business & How India took over the Cricketing World

From a traditional pastime to a multibillion-dollar enterprise, cricket is frequently referred to as a religion in nations like South Africa, Australia, England, India, and Pakistan. Commercialization, globalization, and the introduction of new forms such as Twenty20 (T20) have all contributed to the exponential growth of cricket’s business sector in recent decades. This article examines cricket’s many facets as a business, including its sources of income, the function of the media, leagues, sponsorships, and the financial effects on players and countries.

 

The Business Aspect of Cricket: A Comprehensive Analysis

Cricket began to grow into a worldwide industry in the latter half of the 20th century. At first, the sport was controlled by conventional forms such as One-Day Internationals (ODIs) and Test cricket, which were mostly financed by ticket sales and a small amount of sponsorship. But the advent of Twenty20 cricket in 2003 was a game-changer. Younger viewers were drawn to the shorter, more engaging format, which boosted commercialization and viewership.

The 2008 inception of the Indian Premier League (IPL) completely changed the cricket industry. The IPL set the standard for other T20 leagues throughout the world with its franchise-based business model, well-known player auctions, and rich TV agreements. With players, teams, broadcasters, and advertising among its stakeholders, cricket has evolved into a global entertainment industry in addition to a sport.


Revenue Streams in Cricket

Broadcasting Rights

The biggest source of income for cricket leagues and boards is the sale of broadcasting rights. Due to cricket’s widespread popularity, particularly in South Asia, broadcasters are vying for exclusive rights. One of the most valuable sports leagues in the world, the IPL, for example, sold its broadcast rights for the 2023–2027 cycle for an incredible $6.2 billion.

In order to draw in advertisers and users, television networks and streaming services such as Disney+ Hotstar now known as JioStar, Sky Sports, and SuperSport make significant investments in cricket. Cricket fans may now watch matches on their cellphones and other devices thanks to the growth of digital platforms.

Sponsorships and Brand Endorsements

Sponsorships are still another important source of income. To increase their brand awareness, businesses from a variety of sectors, such as consumer products, automobiles, and technology, support players, teams, and competitions. For instance, companies like Coca-Cola, Dream11, and Tata pay millions of dollars to be associated with the Indian Premier League.

In the cricket industry, player endorsements are also quite important. Prominent athletes like Mitchell Starc, MS Dhoni, and Virat Kohli make a lot of money from brand endorsements. The athletes gain from these endorsements, but they also help to make the sport more commercialized overall.

Ticket Sales and Merchandise

For cricket boards and teams, matchday revenue—which includes ticket sales, hospitality, and merchandise—is a substantial source of money. During major events, iconic locations like the Melbourne Cricket Ground (MCG), London’s Lord’s and Narendra Modi Stadium produce millions of dollars. Additionally, selling team jerseys, caps, and other memorabilia has grown to be a profitable industry, particularly during major competitions like the ICC Cricket World Cup and the Indian Premier League.

Franchise Fees and Player Auctions

Cricket boards now have a new source of income thanks to the franchise-based concept, which was made famous by the IPL. The board and other stakeholders split the large sums that franchise owners pay to purchase teams. Franchises bid for elite players at player auctions, which also bring in a sizable sum of money. Players like Sam Curran and Pat Cummins, for example, have landed multi-million dollar IPL contracts. Some of the other iconic purchases of players include Rishabh Pant who was bought by Lucknow Super Giants (LSG) at 27 crores INR and Mitchell Starc bought by Kolkata Knight Riders (KKR) at 24.75 crores INR.

The Role of Media in Cricket’s Commercialization

A major factor in cricket’s transformation into a worldwide industry has been the media. Cricket’s popularity and economic worth increased in the 1990s as satellite television made its way into millions of people’s living rooms. Fans may now interact with cricket in real time through social media, live streaming, and highlights thanks to digital platforms, which have further expanded the sport’s reach. In order to draw in sponsors, who are prepared to pay more for ad slots during high-profile matches, broadcasters take advantage of cricket’s enormous viewership. For instance, it can cost up to $200,000 for a 30-second commercial during the IPL final. The growth and profitability of cricket have been driven by this mutually beneficial partnership between the sport and the media.

 

The Economic Impact of Cricket

Beyond just the sport itself, cricket has a significant economic impact on a number of industries and countries.

Job Creation

Players, coaches, support personnel, and administrators can all find work in the cricket industry. Tournament planning also creates temporary positions in security, hospitality, and event management. Over 30,000 jobs are thought to be created each year by the IPL alone.

Tourism

Major cricket competitions draw spectators from all around the world, which increases travel to the host nations. Local transportation, restaurant sales, and hotel reservations are all impacted by events like the ICC Cricket World Cup and the Ashes series. For instance, the predicted economic impact of the 2019 ICC Cricket World Cup in England was £350 million.

MCG-aerial-view

Infrastructure Development

World-class stadiums and facilities are frequently built as a result of hosting international cricket matches and tournaments. These infrastructure initiatives benefit host towns in the long run in addition to improving the fan experience. For example, India is now a top location for international cricket games thanks to the development of the Narendra Modi Stadium in Ahmedabad, which can accommodate 132,000 spectators.

skysports-the-hundred-jos-buttler

Indian Investment in “The Hundred”

Indian investment in English cricket’s “The Hundred” tournament has increased significantly, which is indicative of an increasing trend of IPL franchise owners expanding internationally. The Mumbai Indians’ owners, Reliance Industries Limited (RIL), are at the forefront of this movement after acquiring a 49% share in the London-based Oval Invincibles. The RPSG Group, which owns the Lucknow Super Giants and is helmed by Sanjiv Goenka, has also made a significant investment by purchasing a 70% share in the Manchester Originals. The Sun Group, which owns the Sunrisers Hyderabad and is led by Kalanithi Maran, has taken things a step further by acquiring a 100% share in the Yorkshire-based Northern Superchargers.

The GMR Group’s acquisition of a 49% share in the Southern Brave and its takeover of the host county, Hampshire, further illustrate the tendency. Significant actions have also been taken by other investors with Indian ties in addition to well-known IPL teams. A group of Silicon Valley software entrepreneurs called Cricket Investor Holdings Limited has acquired a 49% share in the London Spirit. Notably, Sanjay Govil, an Indian-American computer entrepreneur, has purchased a 50% share in the Welsh Fire. Together, these investments demonstrate The Hundred’s growing allure to Indian companies and financiers, indicating a calculated step to take advantage of the competition’s potential and increase their footprint in the international sports industry.

 

Expansion of the IPL Empire

Indian companies are actively expanding into the international T20 cricket market, particularly those that hold IPL franchises. Multi-club franchise enterprises have emerged as a result of this development, with IPL team owners acquiring shares in well-known international competitions like Major League Cricket (MLC), the Caribbean Premier League (CPL), the UAE T20 League (ILT20), and the South Africa T20 League (SA20). By making this calculated move, these companies are able to take advantage of T20 cricket’s growing global appeal, diversifying their holdings and building their brands internationally.

This global campaign is being spearheaded by a number of well-known Indian investment firms and conglomerates. Reliance Strategic Business Ventures Ltd (RSBVL), a subsidiary of Reliance Industries, has purchased a UAE T20 League franchise. Similar to this, teams in the same league have been acquired by the Adani Group and Capri Global, an Indian financing company. The GMR Group, another well-known IPL franchise owner, has entered the Legends League Cricket market, further illustrating this trend. This multi-franchise strategy is best illustrated by the Knight Riders Group, who control the Kolkata Knight Riders and teams in the UAE T20 League and the CPL (Trinbago Knight Riders). Additionally, other prominent IPL teams like the Delhi Capitals, Kolkata Knight Riders, and Mumbai Indians continue to play in a number of international cricket competitions, confirming the pattern of Indian companies controlling the world’s T20 cricket scene.

Cricket’s commercial component has made the game a worldwide sensation, bringing in billions of dollars and opening up endless opportunities for players, companies, and countries. Cricket’s financial ecosystem is varied and ever-changing, ranging from franchise fees and products to sponsorships and television rights. To preserve its long-term viability, the sport must address issues including athlete burnout and corruption. Cricket’s future as a successful industry will depend on its capacity to adjust to shifting trends and enter new markets. Cricket’s transformation from a gentleman’s game to a commercial force is evidence of its continuing popularity and economic potential, both on and off the field.

 

Written by Karan Doshi

BEYOND THE TRACKS: HOW F1 IS CAPTIVATING INDIA

Previous article

The Rise of Kabaddi from Rural Sports to World Stage

Next article

You may also like

Comments

Leave a reply

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

More in Cricket