From knowing about cricket from the Britishers to having the richest cricket board in the world we have come a long way. Among all other institutions and organisations that are helping in the growth story of India, BCCI is surely one of the biggest names.
From running regional tournaments to running the Indian Premier League, BCCI is one of the biggest organisations in this country. Now recently BCCI is again in the headlines for making some big financial deals with Atomberg and Campa.
What’s the news?
According to recent news, some new BCCI sponsorship deals has been signed with Atomberg and Campa which will help them with a total income of 90 crore approx. As per the deal, Atomberg and Campa will pay 40.8 crore and 48 crore respectively to BCCI for 48 matches between 2024 and 2026.
Atomberg will pay 85 lakh rupees per match while Campa will pay 1 crore per match, Campa’s pay is more because they also have the pouring rights.
Other deals
The BCCI asked reputable companies to provide quotes in September to obtain official partner rights for India’s home international matches. Two of the three official partnerships that were up for grabs were unsold, and SBI Life emerged victorious in one of them.
Dream11, Hyundai, and ACC served as the previous three official partners. For a base price of Rs 358 crore, the fantasy sports platform Dream11 was able to secure the lead sponsor rights for the Indian cricket team from July 2023 to March 2026 in June 2023.
The three official partners in the past were Dream11, Hyundai, and ACC. The lead sponsor rights for the Indian cricket team from July 2023 to March 2026 were acquired by the fantasy sports platform Dream11 in June 2023 for a base price of Rs 358 crore.
A tender for the Indian Premier League (IPL) title sponsorship rights has also been released by the BCCI. A base price of Rs 350 crore per year for 74 matches—Rs 1750 crore for five years—has been set for the IPL title sponsorship rights.
The decision will be made based on the combined value of the 74 matches, even though the BCCI has also advised bidders to bid for 84 and 94 matches at base prices of Rs 375 crore and Rs 400 crore, respectively. In 2025, 2026, and 2027, the BCCI intends to increase the number of matches to 84, 94, and 26.
Tata Sons, which paid Rs 670 crore for the right to sponsor an IPL title for two years in 2022, is entitled to match the highest financial offer made for the sponsorship rights. According to the terms of the previous title sponsor agreement, BCCI must notify Tata of the highest bid amount received for title sponsorship rights.
Business model of BCCI
During the starting years, it was very hard for the BCCI to earn even a single penny. Even the BCCI was able to organise the 1987 World Cup with the help of Dhirubhai Ambani. But after that, BCCI has seen a tremendous growth in revenue making the BCCI richest board in the world. One of the reasons behind this is the different BCCI sponsorship deals.
All these successes came because of the great business model of BCCI, let’s decode that model –
1. Title sponsorship –
One of the biggest sources of revenue for the BCCI is title sponsorship by different companies. Title sponsorship is also a lucrative opportunity for the companies. They will be called with the name of the tournament. The title sponsors will get more screen time and finally help in better exposure.
To get this golden opportunity, the companies have to pay a huge amount to the BCCI. Currently, Paytm is the title sponsor for different Indian tournaments.
2. Media rights –
Coming second in the list of different sources of earning BCCI are the media rights of the games played by our Indian team and also the media rights of the Indian Premier League.
The media rights are sold for huge amounts of money to different media companies. Several people tune in to watch the games of their favourite IPL team which leads to a lot of advertisements. So the media companies are also ready to pay huge amounts of money for these matches. Currently, the media rights of IPL are owned by Viacom18 and Star Sports.
3. Team and kit sponsors –
Here are two other big sources of generating money for the BCCI. The first one is obviously the team sponsor. It is a company whose name is shown on the jersey of our ‘Men in Blue’. Brands are ready to pay several crores for this opportunity as it helps in a lot of marketing and promotion.
Another source is kit sponsorship. Sportswear brands sponsor the kits of our Indian cricket players, currently, MPL is the kit sponsoring brand of our Indian cricket team and they pay 65 lakhs rupees per match and a total of 3 crore rupees every year as the official merchandise partner.
Conclusion
BCCI has built a huge business model with the help of the love Indians have for this game of cricket. Now more than anything, different cricket series and tournaments in India have become a competition for brands to get their marketing done in one shot to a big pool of audience.