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T20 World Cup business model
Hello friends, did you know that even though India is not in the World Cup, the Indian cricket team will get a prize of $ 120,000 from the ICC. Are you really asking, whenever the T20 World Cup happens, who gets the most money? Does the winning team get the most profit? Or the tournament organizer? Or the international cricket council alias ICC? Let’s understand this T20 World Cup business model.
Budget of T20 World Cup
Let’s start with the most basic and simplest gifts. The team that will win the T20 World Cup will get a cash prize of $ 1.6 million. The losing finalist team will get a cash prize of $ 800,000 and two semifinalists will get a prize of $ 400,000. In addition, every team in this Super 12 state that wins any match will get a $ 40,000 prize to win each match. This is the reason why even though India came out of the World Cup, because India won 3 matches of $ 40,000 per match, the Indian team will get a cash prize of $ 120,000. In total, the prize money amounting to $ 5.6 million will be given in this tournament and who will bear the cost of this prize money, the answer is ICC. International cricket body. Apart from this, there will be several other expenses to be borne by the ICC, the referee’s salary, the salary of the commentator, the ICC must pay all of this because all the tournaments are held by the ICC. The ICC has formed an elite panel of the referee and has classified the commentator into 3 categories. For example, the referee’s annual salary can be in the range of $ 35,000 to $ 40,000. In addition, for each match, the referee gets a fee for the T20 match, the average salary of the referee is around $ 1000 but where does the ICC get funds for this expenditure? T20 World Cup business model
ICC revenue when the World Cup was organized?
What was the source of ICC revenue when the World Cup was organized? The main source of income for them is broadcasting rights sold to TV channels and streaming services. Basically, permission to flow this match on their channel where you can watch the match. Instead, TV channels and streaming services, pay ICC. For example, you are currently watching a match at Star Sports because the ICC has reached an agreement with Star Sports that all ICC main tournaments will be broadcast exclusively at the Star Sports Channel, this agreement will be valid until 2023. As a consideration, Star Sports pays ICC $ 1.98 Billion almost ₹ 140 million. In addition, ICC got money from their sponsors, Nissan, Oppo, Mrf Tyres, Booking.com, Biju’s and Emirates are global partners of the T20 World Cup 2021. This is the top sponsor company, this is an advertisement for this company for this sponsor, They pay the ICC. There are various types of sponsors and they are divided into categories and both such as global partners, category partners and social media partners. Let’s understand this T20 World Cup business model.
The country where the tournament was held, what did he get?
Now let’s understand things from the perspective of the host country. The country where the tournament was held, what did he get? The answer for this is indirect, there are many indirect benefits that are difficult to count. Obviously, money from tourism, the country that hosted the World Cup was visited by foreigners who wanted to watch matches at the stadium and when there was a tourist entry in the country, of course, tourism brought money too. In the short term, many jobs are produced due to the big waves of tourists in this country, businesses around the stadiums such as restaurants, bars, hotels, see many growth. Clearly, the country’s economy, the country’s GDP experiences a positive potential impact. In addition, if the state can prove to the whole world that it has succeeded in hosting the World Cup, it proves the stability of the country, the state’s soft power increases because of this, more people want to invest in a country that leads to the growth of foreign investment and during preparation for the trophy The world, infrastructure needs to be improved good roads need to be built, cleanliness must be maintained. Like the 2010 Commonwealth Games held in Delhi, seeing major changes in infrastructure throughout the city but to do this, to improve infrastructure to prepare for the country’s tournament to bear a large cost. Let’s understand this T20 World Cup business model.
How much the biggest cost for this country regarding T20 World Cup?
Did you know how much the biggest cost for this country, regardless of this? During the T20 World Cup, often hosting the state gave tax exemption to the ICC and it was not for cricket only the same during the FIFA World Cup as well. The hosting country for the FIFA World Cup declared itself a tax -free zone for FIFA and millions of dollars spent on tax exemption. In fact, for the Football World Cup, this is a condition that the country with the offer of victory to host will be a tax exemption for grant for FIFA. For example, the 2006 FIFA World Cup was held in Germany, it was estimated that around € 250 million tax exemption was given later by the German government to FIFA but the benefits of the government’s perspective as a whole, the income from tourism was more than this. Like in the 2006 FIFA World Cup, the German government reported that tourism revenge because the World Cup was around $ 400 million. This is a clear advantage for the government. But every country is not so fortunate like in the 2014 FIFA World Cup in Brazil so there are many construction that does not need to be a lot of protests and accusations of corruption and it is said that Brazil must bear the overall loss because he hosts this World Cup. The cost borne by the Brazilian government is $ 15 billion but the income is estimated at only $ 13.2 billion. Let’s understand this T20 World Cup business model.
World Cup in India
The T20 World Cup that occurs now has an interesting story too if you see it from the perspective of the hosting country, initially it was planned that this World Cup will be held in Australia but then Pandemic Covid-19 broke because of that, the World Cup was originally postponed, taking place in 2021, not In 2020, then India offered to host this World Cup in India in 2021.