In what could be a landmark move to strengthen India’s standing further in the International Cricket Council (ICC), the International Cricket Council’s all-powerful Finance & Commercial Affairs Committee (F&CA) is learnt to be working towards putting a working group in place to propose a new revenue sharing model. Those in the know say the Indian cricket board is likely to pocket 37% of ICC’s revenue from the 2024-2027 cycle should the proposal go ahead as planned.
This is a major jump from the 22.8% BCCI received in the previous cycle which ran from 2016-2023. During that period, the Indian cricket board pocketed 405 million USD.
The ICC has steadfastly believed that the Indian market alone contributes for more than 75% of the global body’s revenue.
IPL 2023 Points Table: Check Team Standings, Team Points, Wins, Losses & Orange Cap, Purple Cap
However, the sale of media rights for the upcoming 2024-2027 cycle has disproved the theory and instead underlined how India’s contribution is even larger than perceived.
“For the first time the ICC decided to sell the rights territory-wise. In that, the India market alone fetched $3.04 billion. By ICC’s own “75% theory", this $3.04 billion should be 75% of all their global revenues right? But do you think the rest of the world, collectively, is contributing 25%?" say those tracking developments.
The Australian rights are believed to have been sold for approximately US$60m for four years.
IPL 2023: Purple Cap Complete List of Bowlers with Most Wickets, Check here
In the case of the UK & Europe, the ICC has closed an eight-year deal with broadcaster Sky instead of four years — like in every other market — and those tracking this space say “This happened because the four-year deal was hardly fetching the ICC anything."
The rest of the world, all put together, is not bringing even US$500m to the table.
“That means the Indian market alone is contributing 88 to 90% of ICC’s revenues. You go asking around in the industry and those who run the finances of the game will tell you — there was never any Big 3. There’s always been only Big 1", sources say.
Disney Star won both the digital and TV rights for the cycle and later signed a licensing agreement with Zee for the TV rights. The agreement enables Zee to broadcast ICC men’s and U-19 events falling in the 2024-2027 cycle.
IPL 2023: Orange Cap Complete List of Batters with Most Runs, Check here
“Look at the amount coming in just for the media rights sold for the Indian market for 2024-2027 cycle. The number is humongous and is clearly filling up ICC coffers considerably. There will be two T20 World Cups, one Champions Trophy and one 50-over World Cup in the next cycle. Plenty of big-ticket tournaments will be played," industry sources tracking developments said.
The BCCI has also internally discussed the ongoing tax issue ahead of the 50-over World Cup in India, which begins in October. It is reliably learnt that the Indian cricket board is likely to ask the ICC to deduct Rs 955 crore – 21.84% tax surcharge on ICC’s broadcast revenue from the World Cup – from BCCI’s revenue share of the current cycle.
As per ICC’s norm, every host nation is required to get an exemption from their government for hosting tournaments organised by cricket’s global body. The BCCI and ICC were swimming in rough waters due to the contentious tax issue and with the Indian government not providing, or even indicating, a relief, the BCCI is likely to inform the ICC about its stand soon.
ALSO READ| Saudi Arabia Proposes IPL Owners Plans to Set up World’s Richest T20 League in the Gulf – Reports
Under the proposed revenue share of 37%, BCCI should earn close to Rs 10,000 crore from ICC’s revenue share for the next cycle and the tax amount deducted will in a way be compensated from the gains of the 2024-2027 cycle.
A similar tax-related issue had cropped up ahead of the 2016 T20 World Cup and the BCCI didn’t get any relief from the government back then too. The BCCI lost close to Rs 193 crore as the tax exemption didn’t come their way in 2016 and the Indian cricket board is still fighting that case in the ICC tribunal.
“How can the government be asked to bend its rules? Even in 2016, during the T20 World Cup in India, a similar request was turned down by the Indian government so there was no point going that way again," added the source.
Get the latest Cricket News, IPL 2023 Live Score, Orange Cap and Purple Cap holder details here
Comments
0 comment