Stadium Tickets, Hotel Rents, Travel: How Cricket World Cup 2023 Is Boosting Economy By $2.6 Billion

Even as the World Cup 2023 is going on in full swing, tickets are going sold out as soon as they are opened and the charges are exorbitant, especially for mega matches like India-Pakistan. Apart from stadium tickets, there are sponsorships as well as media rights that fetch hundreds of crores of rupees. The mega event is also set to boost demand for hotels, airline tickets, local travel, as well as the informal sector.

According to an estimate by Bank of Baroda, the Cricket World Cup 2023 is expected to boost the Indian economy by as much as $2.6 billion or Rs 22,000 crore.

Cricket World Cup 2023: Sponsorship Revenue, Media Rights, Ticketing Revenue

The ICC Men’s Cricket World Cup, which started on October 5 and will conclude on November 19, is expected to generate a whopping $150 million (about Rs 1,250 crore) in sponsorship revenue.

In media rights, the total Indian viewership for the tournament, including both on television and streaming platforms, is expected to be higher this time as compared with the 552 million seen in the 2019 World Cup. Global giants spend $3,600 a second on the Cricket World Cup.

According to economists at Bank of Baroda, the world cup may generate between Rs 10,500 crore and Rs 12,000 crore in TV rights and sponsorship revenue “on a conservative basis”.

In the 2019 World Cup, the ticketing revenue reached 50 million Great British Pounds, which was an increase of 75 per cent on the ICC Cricket World Cup in 2015.

Impact of the Cricket World Cup 2023 On Indian Economy

As the world cup is being hosted across 10 cities in India, airline tickets, hotel rents and service charge in the informal sector are set to get a boost. The economists at Bank of Baroda said the world cup is likely to push inflation in the range of 0.15-0.25 per cent during October and November.

According to Bank of Baroda estimate, the Cricket World Cup 2023 is expected to boost India’s economy by as much as $2.6 billion or Rs 22,000 crore.

How Revenues Are Shared Between ICC and BCCI

The Board of Control for Cricket in India (BCCI) is the richest and most powerful cricket board in the world. It gets the highest share in the International Cricket Council’s (ICC) total earnings.

According to the latest revenue-sharing model, the BCCI will get about 40 per cent shares in ICC’s annual net earnings between 2024 and 2027. As per this, the BCCI will receive a total of nearly $230 million per year during the four-year period, which is 38.5 per cent of the ICC’s projected annual earnings of $600 million.

The revenue-sharing model takes into account four key factors: Cricket history, team performance in the past 16 years, contributions to revenue generation, and the full membership status.

Between FY18 and FY22, the richest board BCCI earned Rs 27,411 crore in revenue.