How PCB, ICC, BCB reach resolution on T20 World Cup match between India and Pakistan
“It’s not just another cricket; it’s one of the commercial backbones of the ICC event,” said Faisal Hasnain, the ICC’s former chief financial officer, in a social media post.Due to many aspects, the India vs Pakistan match is an economic juggernaut. The major contributor to its strength is the contribution from the broadcaster, especially the Indian region. JioStar, which owns the broadcast rights for ICC events in India, has earned $3.04 billion (in the Indian market only) for the 2024-27 rights cycle.In August 2022, when Disney India bought the broadcast rights, each of the 179 matches was valued at Rs 138.7 crore. Back then, one men’s competition was scheduled each year: the 2024 T20 World Cup, the 2025 Champions Trophy, the 2026 T20 World Cup and the 2027 ODI World Cup.Nevertheless, the return on investment is unfavorable. Of the 179 matches of the cycle, India will play between 26 and 30 matches (having already played 14 matches in the T20 World Cup in 2024 and the Champions Trophy in 2025). As India accounts for nearly 80% of the ICC’s revenue, this creates a heavy dependency on the single market.
India and Pakistan captains Suryakumar Yadav and Salman Ali Agha. (AP file photo)
Just two months ago, the operator reportedly told the ICC that it was unable to honor the remaining two years of their four-year contract due to “deep financial problems”. The ICC and JioStar quashed the news a few days later, but there is no doubting the tough financial situation.With the India vs Pakistan T20 World Cup match in jeopardy, it made more sense than ever for the ICC to sit at the table with the PCB and negotiate.“Television ads for this match are said to sell for $25,000 to $40,000 for just 10 seconds. Prime time can be as high as $50,000. On digital and connected TVs, 10-second ads can even be worth $10,000 to $15,000. A single minute of an ad during an India vs Pakistan match or the entire match can be worth $250 or more than $250 could generate $60 million in ads alone,” explained Hasnain.With advertising blocks sold in individual device packages, India-only games and India-Pakistan separately, an abandoned competition would spell disaster. If the match was called off, the T20 World Cup would take a 15-20% hit in terms of advertising revenue alone. In net terms, this would mean a loss of Rs 200-300 crore in direct advertising value.Maths behind India vs Pakistan match
- JioStar spends $3.04 billion for ICC broadcast rights for India region for 2024-27 cycle
- India vs. Pakistan can generate $60 million in TV ads alone
- Other sources of income include ticket sales, corporate boxes, merchandise, and stadium advertising
- The local economy receives a direct and indirect boost
Lazy math would help triangulate the broadcast value of the India vs Pakistan match. Culver Max Entertainment/Sony Pictures Network Limited (SPNI) has spent $170 million for the eight-year Asian Cricket Council (ACC) media rights (2024-2031) covering the four men’s Asia Cup tournaments.In one Asia Cup, India and Pakistan can meet a maximum of three times, if they also meet in the final. Even if they meet ten times in four editions, the value of the competition is 15-17 million dollars.With more at stake in the World Cup as evident from the three contenders for broadcast rights, it can be argued that the award will be double that of the Asian Cup. Conservatively, this means $30-35 million, about the same as the PCB’s share of ICC revenue.That’s not it.India vs. Pakistan beyond broadcasting revenue
The R. Premadasa Stadium in Colombo will host the India vs Pakistan T20 World Cup match. (Getty Images)
The India vs Pakistan match brings with it sold out stadiums, corporate box sales, merchandise and stadium advertisements. The direct and indirect losses to the local economy in Colombo prompted Sri Lanka Cricket (SLC) to write to the PCB to reconsider its stance. Hotel rooms, which normally cost $45 a night, were selling for $80 a night because of Valentine’s Day and the India-Pakistan weekend.“Besides (broadcasters), there are other sources of revenue. Industry estimates and history suggest that the total commercial value of this one match is around $200-250 million. That’s a lot of money for one game of cricket,” Hasnain said.He further explained how no India vs Pakistan match would hurt broadcaster JioStar with loss of advertising revenue, ICC sponsors, India and Pakistan cricket team sponsors and damage ICC’s influence in future media rights negotiations.Those fears have now been allayed after the ICC announced that the India vs Pakistan match would go ahead as originally planned.