How does the BCCI Make Money?

Have you ever thought how does the BCCI make money? Do you know the revenue model of world’s richest cricket board? Have you ever tried to finding out the list of revenue sources of the BCCI? Well, if you have then don’t worry because here we have covered all the information related to BCCI revenue model. Board of Control for Cricket in India or popular known as BCCI is the top cricket board from last four decades and there is no doubt about it.

BCCI is the most powerful cricket board not only in terms of money but quality and sources. In the first place, they have some seriously big names as sponsors. Recently, Hyundai Motors India limited signed an agreement with BCCI as one of the associate sponsors for next four years. According to an agreement, they will get advertising space on the ground.

How does the BCCI Make Money

According to the annual report of BCCI for the 2014-15 year, the total revenue was INR 5436.97 crores which were more than INR 1300 crores of the previous financial year INR 4088.94 crores. In 1987 World cup tournament were hosted by the Indian cricket board and that time, Dhirubhai Ambani company Reliance group step forward to be the title sponsor for that world cup by paying $1 million. From that time only Indian cricket became giant cricket board who are earning lots of money. Let’s take a look at the revenue model of BCCI.

So how does the BCCI make Money ?

1. Media Rights

There is no doubt this is the big source of earning for the BCCI. TV rights or broadcasters pay a heavy amount to BCCI to broadcast matches. Every broadcaster pays BCCI according to their advertising space and the amount of the sponsorship they are paying.

Back in 2008, BCCI finalized a contract with a Singapore-based company – conglomerate of Multi-Screen Media, Sony Network India (SNI) and World Sports Group (WSG) to sell the broadcasting rights of the IPL for 10 years for US$ 2 Billion INR 8200 crores. That means BCCI is pocketing around INR 7.06 Crores for each IPL game and that too before team enter to the ground.

Recently,BCCI sold the broadcasting rights to the matches which are going take place during 2012 to 2018 for a colossal USD $750 Million (INR 3815 Crores). Total 96 matches are going to be played during these six years and for each match, BCCI will be getting INR 40.11 crores.

2. Title Sponsorship

Being title sponsor for any cricket event gives that particular company more amount of the exposure throughout the event. It also makes them superior and leading sponsors and gets the most number of advertising space, time slot and the logo & name of that company flashes on the title trophy.

PayTM is owned by One 97 Communications and partnered with the Jack Ma’s Alibaba have paid INR 203.28 crores to BCCI to be called the title sponsors of the all the events and matches to be played at home for the coming 4 years. Which covers around 84 matches including domestic leagues like Ranji Trophy, Deodhar Trophy, Duleep trophy. In like manner approximately INR 2.5 crores go to the BCCI pocket for every match.

3. Official Team Sponsors

The jersey sponsors also have to pay sufficient amount to the BCCI. The BCCI charges according to the placement of the logo or the name of the official team sponsors. Recently, In 2013 Star Sports Network successfully did the highest bid over the Sahara India Pvt. Ltd.

For that BCCI get paid around INR 203 crores for three years. According to the agreement, Star India will pay the BCCI INR 1.92 crores for every single game where the Indian cricket team wears the Star branded jersey and for INR 6.1 crores for every ICC Tournament’s game.

4. Kit Sponsorship

Indian cricket team jersey has Nike logo on their chest. This Swoosh tick is the trademark of the Nike which placed on top side of the BCCI logo on the jersey. For this Swoosh tick placement, BCCI charges Nike around US$ 12.13 million per year. Which will totally cost around  US$ 60.66 Million at the end of the five years of the agreement. BCCI aim is to collect around the US $ 100 Million by the end of 2017. Which makes roughly another INR 270 crores BCCI earns.

5. Indian Premier League (IPL) Revenue

Indian Premier League is the most successful, richest and popular cricket league in the world cricket. BCCI own this league and that made BCCI, even more, stronger financially. IPL is the most expensive league among all the cricket T20 leagues played currently.

All the advertisement revenues, the gate receipts, tickets from IPL and other incomes add up to roughly INR 1100 crores for the BCCI per season.  This income is one of course shared with the franchises in the same pool. DLF, Pepsi and recently VIVO were the title sponsors for the IPL. These are the revenue sources which make BCCI richest and powerful board in world cricket.