How BCCI Became Rich?

Summary

The video script delves into the financial and operational dynamics of cricket boards, highlighting the BCCI's significant influence and wealth due to India's massive viewership. It discusses the ICC's role in rule enforcement and international match management, the importance of broadcasting rights and sponsorships in revenue generation, and the BCCI's strategic decisions to maximize its earnings, including the IPL's impact and the board's reluctance to allow Indian players in foreign leagues.

Takeaways

• 🏏 The ICC does not invent cricket or make its rules; it oversees the game's governance and ensures rules are followed.
• 🌐 The West Indies Cricket Board represents multiple countries as a federation, not a single nation.
• 🏦 Australian cricket is managed similarly to a public company, with varying financial statuses among different cricket boards.
• 💰 Financially struggling boards may arrange matches with India to improve their financial situation.
• 📺 The entry of streaming platforms like Netflix into cricket broadcasting could potentially solve financial issues for some boards.
• 🚫 The Indian audience's lack of interest in retired players contrasts with the BCCI's focus on current players and matches.
• 📈 The BCCI's revenue and influence are substantial, with 80% of world cricket's income originating from India.
• 🏆 The BCCI's push for the organization of the World Cup in India stems from a past incident where they were denied tickets for a match.
• 🏛 In democratic countries, the government's role in sports is typically limited to infrastructure and financial support, not management or selection.
• 🏉 The All India Football Federation (AIFF) was banned by FIFA due to government interference in its management committee.
• 🏟 The BCCI operates as a charitable trust with no government involvement, unlike other sports in India that may receive government support.

Q & A

What is the role of the ICC in cricket?

The ICC does not invent cricket or make rules. Its role is to ensure that the rules are followed, conduct international matches between countries, manage these matches, oversee the salaries of umpires, match referees, commentators, and monitor issues like doping and match-fixing.

Why is the BCCI considered to be a public company?

The BCCI operates like a public company because it is a well-structured organization that manages cricket in India, including organizing matches, maintaining infrastructure, and handling finances. However, it is actually a charitable trust and not a government entity.

How does the financial disparity between different cricket boards arise?

The financial disparity arises due to various factors such as the revenue generated from broadcasting rights, sponsorships, and the popularity of cricket in different countries. Some boards are wealthier because they have more resources and larger audiences, like the BCCI.

What is the significance of broadcasting rights in cricket?

Broadcasting rights are significant because they generate a substantial portion of the revenue for cricket boards. Channels that acquire these rights can show the matches and use the platform to advertise, which is a major source of income.

How does the BCCI's financial strength impact the global cricket economy?

The BCCI's financial strength has a significant impact on the global cricket economy because a large portion of the world's cricket revenue comes from India. The BCCI's earnings from media rights, sponsorships, and the IPL contribute greatly to the overall cricket economy.

Why do some cricket boards fix matches with India to improve their financial conditions?

Some boards fix matches with India to improve their financial conditions because the Indian audience is large and the matches generate significant revenue through broadcasting rights, ticket sales, and sponsorships.

What is the role of the Marylebone Cricket Club (MCC) in cricket?

The MCC is responsible for making and amending the laws of cricket. They have appointed the ICC to oversee the proper management and discipline in the game, ensuring that the rules are followed.

How does the BCCI's independence from government support contribute to its success?

The BCCI's independence from government support allows it to operate without political interference, ensuring that decisions are made in the best interest of cricket. This has helped the BCCI to grow and manage its resources effectively.

What is the importance of the IPL for the BCCI's revenue?

The IPL is a significant source of revenue for the BCCI. As a franchise-based league, it generates income through media rights, sponsorships, ticket sales, and other commercial opportunities, contributing to the BCCI's overall financial strength.

How does the BCCI manage its earnings and investments?

The BCCI manages its earnings through various channels, including the Indian national cricket teams, domestic cricket, and the IPL. It also invests in infrastructure, player development, and other areas to promote cricket in India.

What is the Lodha Committee and its role in the BCCI?

The Lodha Committee was formed to monitor the BCCI's adherence to its rules and to ensure there is no corruption. It provides recommendations for changes and keeps an eye on the board's activities, although it does not interfere directly in the BCCI's operations.

Outlines

00:00

🏏 Cricket Governance and Financial Dynamics

This paragraph discusses the structure and financial aspects of cricket's governing bodies. It clarifies that the ICC does not invent or rule cricket but oversees the sport's integrity and organizes international matches. The paragraph also highlights the varying financial statuses of different cricket boards, with some being financially robust and others struggling, often relying on matches against India to bolster their finances. The narrative touches on the potential impact of streaming services like Netflix on cricket and the Indian audience's lack of concern for retired players. It also delves into the history of cricket in India, the formation of BCCI, and the importance of test cricket for advertising slots and revenue. The paragraph concludes with a critique of government interference in sports and the unique case of BCCI's independence from government support.

05:01

📈 The Economics of Cricket Broadcasting Rights

The second paragraph delves into the economic model of cricket broadcasting, emphasizing the revenue generation through broadcasting rights, sponsorships, and advertising during matches. It explains the ICC's Future Tours Program and the role of bilateral matches versus ICC tournaments in revenue distribution. The paragraph outlines how the broadcasting rights for BCCI and ICC tournaments are sold and how the revenue is shared among the boards. It also discusses the high net worth of both ICC and BCCI and questions the disparity in wealth among different boards. The importance of audience attention for advertising and product promotion is highlighted, along with the lucrative nature of broadcasting rights in the cricket industry.

10:02

💼 The Business of Cricket: BCCI's Dominance and Strategies

This paragraph examines the business strategies and dominance of the BCCI in the world of cricket. It details how the BCCI's revenue streams, including the IPL, have contributed to its wealth and influence. The paragraph also discusses the importance of viewership in India for the financial success of cricket events and how the BCCI leverages this to its advantage. It touches on the contractual restrictions placed on Indian players to prevent them from participating in foreign leagues and the impact of the Indian audience's preferences on global cricket broadcasting. The paragraph concludes with insights into the BCCI's historical financial growth and its current status as a powerhouse in the cricketing world.

15:07

🌐 Global Impact and Challenges in Cricket Administration

The final paragraph explores the global impact of the BCCI and the challenges faced in cricket administration. It recounts the historical struggle of BCCI for recognition and its eventual success in hosting the World Cup in India. The paragraph also discusses the Lodha committee's role in monitoring BCCI's activities and the absence of corruption that has contributed to BCCI's success. It highlights the positive economic impact of cricket on India, including tourism, job creation, and cultural display. The paragraph concludes with a reminder of the BCCI's influence on the global cricket landscape and its responsibility to invest in the sport's development.

Keywords

💡ICC

The International Cricket Council (ICC) is the international governing body of cricket. It is responsible for overseeing the rules of the game, organizing international matches, and ensuring fair play. In the video, the ICC is discussed in the context of its role in managing international cricket and its financial operations, with the script mentioning that it neither invented cricket nor makes the rules but rather ensures they are followed.

💡BCCI

The Board of Control for Cricket in India (BCCI) is the governing body of cricket in India. It is highlighted in the script as a very wealthy and influential organization, running like a public company and having significant control over the cricketing world due to the large Indian audience and the financial contributions from broadcasting rights and sponsorships.

💡Test Cricket

Test cricket is the longest form of cricket, played over several days, and is considered the traditional format of the game. The script discusses how test cricket is favored by boards due to its longer duration, providing more opportunities for advertising and revenue generation, despite the growing popularity of shorter formats like T20.

💡T20

T20 cricket is a fast-paced, short format of the game played over a few hours. The script mentions T20 in the context of the limited advertising slots available during matches, contrasting with the longer duration of test cricket, and how it has become a significant part of cricket's financial model through franchises like the Indian Premier League (IPL).

💡Broadcasting Rights

Broadcasting rights refer to the legal permissions granted to a channel or network to air a sports event. The script explains how these rights are crucial for revenue generation in cricket, with Star Media purchasing the rights for a significant sum and how the BCCI earns more due to the large viewership in India.

💡Franchise

In the context of sports, a franchise refers to a team or organization that operates as part of a larger entity, sharing branding and structure. The script mentions the IPL as a successful franchise model, where the BCCI takes a significant portion of the revenue and how teams like CSK and Mumbai Indians invest in foreign franchises to diversify their wealth.

💡Government Interference

The script discusses the importance of keeping sports organizations free from direct government control to maintain fairness and avoid political influence. It contrasts this with the BCCI's independence and the Lodha committee's role in monitoring the board's activities without direct interference.

💡Match Fixing

Match fixing refers to illegal activities where the outcome of a game is predetermined for profit. The script touches on this issue, noting that the BCCI was formed during a time of match-fixing scandals and that it has managed to maintain a reputation for not being involved in such activities.

💡Viewership

Viewership refers to the number of people watching a particular event or program, which is a key metric for the success and revenue of sports broadcasts. The script emphasizes the importance of Indian viewership in cricket, noting that when India is in a match, the viewership and thus the income from the tournament increases.

💡Sponsorship

Sponsorship involves a company supporting an event, team, or individual in exchange for advertising or other benefits. The script describes various forms of sponsorship in cricket, such as title sponsorship for series, player kit sponsorship, and strategic time-out sponsorships, which are vital for generating income.

💡IPL

The Indian Premier League (IPL) is a professional T20 cricket league in India, which has become a significant source of revenue for the BCCI. The script discusses the IPL's impact on the cricketing world, its media rights sales, and how it has become a rich and influential league due to the Indian audience's love for cricket.

Highlights

ICC does not invent cricket or make rules; it oversees rule adherence and organizes international matches.

West Indies is a cricketing federation of multiple countries, not a single nation.

Australian Cricket Board operates like a public company, independent of government influence.

Financial disparities among cricket boards can lead to match-fixing for financial recovery.

BCCI's financial stability is partly due to Indian audience's lack of interest in retired players.

T20 has limited ad slots, prompting boards to prefer Test cricket for longer ad opportunities.

BCCI's initial financial struggles included paying Doordarshan for match telecasting.

Governments typically don't interfere in sports management but can aid in infrastructure and finance.

AIFF was banned by FIFA due to government interference in its management committee.

BCCI was established in 1928 as a charitable trust, recognized by ICC for international play.

BCCI operates independently, not seeking government support and not being interfered with by it.

ICC's role is to ensure cricket rules are followed and to manage international cricket affairs.

MCC is the rule-making authority in cricket, with ICC appointed to oversee rule enforcement.

ICC membership requires demonstrating competitive ability against test-playing nations.

Bilateral and ICC tournaments are the two main types of cricket matches globally.

ICC Future Tours Program outlines a 10-year calendar for international cricket.

BCCI's financial success is largely due to the massive viewership and revenue from India.

IPL's media rights sales and franchise model significantly contribute to BCCI's wealth.

BCCI mandates捆绑销售 of media rights for T20, ODI, and Test cricket, ensuring revenue stability.

BCCI's influence is such that it can alter the landscape of international cricket scheduling.

BCCI's growth from a financially struggling board to a wealthy entity is noteworthy.

The Lodha Committee was established to monitor BCCI's adherence to rules and detect corruption.

Cricket in India boosts the economy, creates jobs, and promotes cultural exchange.

Transcripts

See, neither ICC invent cricket nor it makes rules

West Indies is not a country

But a group of countries made a federation and sent them. If we talk about the Australian cricket

then the Australian cricket board runs like a public company.

Some boards are rich and some have less money

What is the actual reason behind all this? Sometimes, if some boards are struggling

financially then their match is fixed with India so that

their financial conditions improve. The condition of the Netflix

if they get into cricket like Hotstar then all of their problems will be solved.

Because the BCCI also knows that the Indian audience doesn't look after the retired players.

And there are limited slots in T20 for showing ads

That's why all the boards want test cricket to not end ever

An incident hit BCCI and after that BCCI took it personally and

Then the plea to organize the world cup in India started.

Earlier, BCCI had to give 5 lakhs to Doordarshan for telecasting matches.

In any democratic country, there's no role of government in sports.

Government can help build infrastructure,

it can help financially but it is out of

management and selection committee.

And this is because there wouldn't be any politics

People from the same party should not get any preference

Basically, there should be an equal

platform for every sportsman that's why government interference is not allowed in this.

You may have seen this recently, AIFF

FIFA banned the All India Football Federation because the

government interfered with the management committee of AIFF

Earlier, the name of ICC was Imperial Cricket Conference. They used to conduct

international cricket between different nations. But at the time, there was no team from India

Different groups used to play cricket in India

But India wasn't able to reach an international tournament.

But in 1926, there was a cricket club in Kolkata

Calcutta Cricket Club

They used to play cricket in India.

They attended a meeting in London with ICC

for playing international cricket. After that,

multiple meetings were conducted and in 1928, BCCI was formed.

ICC gave recognition to BCCI

that they can play international cricket and from then onwards

BCCI is representing the Indian cricket team.

BCCI was made as a charitable trust and it is run as a charitable trust today also.

There's no role of the government in this.

Today's date, if the government wants to make a cricket team then they cannot do it.

Because India is represented by the BCCI for the ICC. Just like this, West Indies is not a country but

many countries formed a federation and sent them. If we talk about Australian cricket then

The Australian Cricket Board runs like a public company. There's no role of government in it.

See, the government didn't interfere in any sports for no reason

But it helps in infrastructure, ground, or financial support

promote a particular game. But it doesn't

support every federation and every sport but it supports only those federation

which was affiliated with the International Olympic Committee. Now you'll say, kho-kho, kabaddi

aren't in the Olympics then why the government is supporting them?

See, there are some exceptions like Kho-Kho, kabaddi

Tug of war. They have applied separately

And the government also accepted them. They also get the

same help as the one who goes to the Olympics gets.

But BCCI is the one sport in India

which hasn't been applied for the help of the government.

BCCI doesn't want any support from the government

The government has said multiple times to apply and the government will provide support.

But the BCCI never applied. That's why,

BCCI is different from other sports in India because it's very big and plays at a big level but

the government is not helping. Whatever BCCI earns,

Neither tax goes to the government

Nor does the government give anything to the BCCI.

BCCI has to pay taxes in case of IPL. I'll tell you how this is done at the end. The question is

we understood about the BCCI but what is the ICC?

Which country manages the ICC? Or what is it? Neither ICC invented the cricket

Nor does it make any rules. The work of ICC is just to

take care whether the rules are being followed or not.

And to conduct the international matches

between countries and manage them.

To manage and see after the salaries of the umpires, match referee, commentators

And to look after the drugs and fixing. Any rule of cricket that's been made

or any amendment or there's to be a rule in the future

is looked after by MCC, Marylebone Cricket Club

You can also say MCC is the owner of the cricket.

And they've appointed ICC to look whether

all the work is done properly or not. ICC doesn't make laws

but sees how things are managed while playing cricket and whether everyone is disciplined or not

The match referee is from the ICC

He looks after

whether all the rules are being followed or not.

If anybody's not following the guidelines properly then

he is to be fined. You may have noticed one more thing there are 108 ICC members

who plays cricket but India is never seen

playing with Bermuda bilaterally

What's the reason behind this?

Out of 108 members, there are 12 full members of ICC.

The ones who play the test are called the full members. Countries can be the members of ICC

but if they want the ODI status they have to beat two test-playing nations.

If they want test status then they've to beat 5 test-playing nations.

And the criteria that I'm telling keeps changing.

Normally, these countries don't get the chance to play with test playing countries

But they do get that chance in the world cup.

And they've to be qualified for playing in the world cup.

In short, until any team becomes a good playing team

They don't get the chance to play directly with big teams. All the cricket matches all over the world

They are of two types,

The first is bilateral And the second is ICC tournaments.

There's an ICC future tour program for ICC

which publishes its calendar every 10 years. What happens is in the coming 10 years

The full members of ICC means

matches are held between the test-playing countries

They will play against one another. There will be one home and one away bilateral series.

Test, ODI and t20 matches are held combined

There's no role of ICC in the bilateral matches

The two countries between which the matches are held

The respective boards of those two countries look after the match

ICC just sends the umpire.

ICC has nothing to do with the revenue of these matches

Nor ICC invests any money in these matches.

Whatever is invested is divided among the two boards.

The main role of the ICC is to conduct international tournaments.

All the countries compete altogether in the world cup, T20 World Cup, test championship

The ICC tournaments, the country in which these tournaments or matches are held

ICC and that particular country share the revenue.

ICC shares the revenue with the rest of the boards.

The net worth of ICC is 2.5 billion $ and the net worth of BCCI is 2.25 billion $

Some boards are rich and some have less money.

What is the actual reason behind all this? How does the money flow in this game? See it requires money

to conduct matches, ground maintenance, salary of umpires and commentators, hospitality of team,

winning amount, stump camera, spider camera

Many different cameras are required.

All of this requires money. But a tournament organizer earns more by conducting the matches.

And he earns by people's attention.

Whenever a company produces products, it has to showcase them

Then only people will buy it.

How will they show it on the road? The company needs a place which

has the attention of all the people and they can show their products there.

On today's date, your attention is money.

The thing which has more attention is rich.

The success of the game of cricket depends upon the attention of people

When a match is conducted, lakhs of people watch it During this, the company tells us about their products

in different ways and make money.

And the major role is played by broadcasting rights.

The channel which has broadcasting rights can only show the matches of the BCCI.

From 2023-2027, during these 4 years, 20 tests, 21 Odis

31 T20 matches will be played in India.

There will be a bidding for the broadcasting rights of these matches

Who will show them on their channels?

After purchasing the broadcasting rights, these channels

Give slots to

brands, companies.

Showcase your product during the match which is called an ad.

Star Media has purchased the media right from BCCI for 6138 crores.

If the match is conducted in India then the rights are to be purchased from BCCI

If it's an ICC tournament then the rights are to be purchased from ICC

if the match is in Pakistan then the rights are to be purchased from Pakistan. Because people in India watch

match in a large number that's why BCCI earns more money than anyone else.

Whenever a series is conducted, the name of the brand or a company is added

before the name of the series and it is called title sponsorship.

Like if there's an India- Sri Lanka series then it would be called Paytm India- Sri Lanka series

If we talk about IPL then it would be called Vivo IPL and not just IPL

After that, the people who come to see the match, they buy tickets

They earn money from that. The kits of the players are sponsored.

It earns money. When there's a strategic time-out, there's bidding for which company's name

would be there, the t-shirts of the umpires

There's a bidding for whose name would be there on it

In 2022, Paytm won the bidding for the Official Umpire Partner

And gave crores of rupees. The boundary of the ground during the matches

If you'll see the name of any company then it has given money and that goes to the boards.

See, the expenses are the same for every match.

And the ways to earn money are also the same.

But there's an advantage in the case of BCCI

Because BCCI earns revenue from IPL too.

BCCI launched IPL as a franchise that's why BCCI takes 50% of the revenue

BCCI profited from the IPL very much.

The media rights of IPL from 2023-2027

They are sold for 6.2 billion $

Some countries don't have this much budget. BCCI waits for the IPL

more than people wait for IPL.

BCCI also has a fixed deposit and it also earns revenue for the BCCI

I will add one more thing even though these IPL teams and BCCI are so wealthy

But CSK and Mumbai Indians

They purchase a foreign franchise

And make their investment diversified. It helps in building long-term wealth.

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Let's get back to the topic. With this, the ICC conducts international matches

and the profit is also divided among boards

But BCCI, ECB, and Australia.

ECB means England. These three get more revenue in comparison to other boards.

Because it is presumed that cricket is watched more in these countries.

When there's the world cup, the profit is distributed between the ICC and the country

which is conducting the match. The profit is distributed among the boards of the

countries who are playing when there's a bilateral match. When ICC gives membership to any board,

they make them pledge to invest the money in cricket whether it's domestic cricket or

it is invested in the players. Nobody can earn money

and take it outside like whatever the BCCI earns

It manages mainly three bodies, first is the men and women Indian cricket team,

under 19 cricket team,

India A team, India B team, and domestic tickets.

It maintains all the money earned from all of this.

Many businesses open their franchise

BCCI also has its franchise in T20

with the name IPL and it has so much

impact of Indian audiences that

IPL became a very rich cricket league in no time. IPL owners have seen

massive massive growth within 10-15 years. BCCI has influence that IPL is the only cricket league

which has a special window in ICC (FTP). Having a special window in ICC FTP means

When there's IPL then at that time

There would be minimal international matches.

This doesn't happen for any other cricket league.

See, BCCI is the world's most rich, big, and influential board.

The reason behind that is Indians watch very much cricket. 80% of world cricket income comes from India.

About 7 million people watch cricket in India which is huge. When there's India in any match,

its viewership increases. Sometimes when the boards

are struggling financially then their matches are conducted with India

So that their financial condition gets to improve.

When India gets out of a tournament then the overall income of the tournament falls.

because the viewership falls. When India won the world cup in 2011

ICC made a huge amount of money. Some experts say

that the condition of Netflix will improve if they get into cricket like Hotstar

The craze for cricket is at this level in India. If you notice in ICC events

whichever brands or companies you'll see

They only show the ads of the company that has relevance with India.

BCCI knows where its power comes from that's why no Indian player is allowed to play outside leagues.

Because if any famous cricketer Virat Kohli or Hardik Pandya

goes and plays for another league

The Indian audience will start watching those matches also.

BCCI doesn't want this. BCCI makes the players sign a contract

before signing them starting they cannot play for another league.

Until they are retired.

Because BCCI also knows that after retirement

Indian audience doesn't watch them. BCCI doesn't send their players but

Invites foreign players in the IPL

Adam Gilchrist raised his voice many times but nobody could do anything

No board wants to disappoint the BCCI. In fact, all the cricket boards want to

have a match with India. Ramiz Raza said that

If BCCI keeps moving forward like this then Pakistan cricket will end.

BCCI is a giant

on today's date because of the Indian men's cricket team.

If women's cricket team also reaches this level then it would be impossible to beat BCCI

This is the reason for BCCI to promote

women's cricket team. You may have noticed one more thing that

All the boards favor test cricket very much

because test cricket is played for more days.

That's why companies get more time to show their ads

And it is played for days

There are limited slots in T20 to show ads.

All the boards want test cricket to never end.

If T20 also starts getting the same demand as test cricket then the profit would be tripled.

That's why they brought the test championship but it didn't have much impact.

The viewership of test cricket is taking day by day comparatively T20

Most broadcasters avoid test cricket but BCCI made it mandatory

that the rights will be sold all together for T20, ODI, and test cricket

It will not be like you can purchase T20 rights and not test cricket.

You have to buy

all three together. It becomes a compulsion for the channels

to buy the rights for test cricket at the same price and

They cannot do anything about it. BCCI was not rich forever

BCCI takes money from the channels to broadcast matches, Earlier BCCI had to give 5 lakhs

to Doordarshan for telecasting the match

And the money earned from the tickets

was the only income of the BCCI but when

the tour of South Africa happened, the broadcasters of

South Africa contacted BCCI for the first time and asked them for the media rights

And the money that they offered

BCCI didn't think of it. Earlier they had to give money to Doordarshan and they are getting money here.

After that, BCCI went to court and won the case that the rights can be sold to other broadcasters.

And the game of BCCI changed from here.

BCCI had $600,00 in 1993

Doordarshan was taking money from BCCI to telecast the match

It gave 240 crores to the BCCI in 2004.

In 1983, the BCCI won the world cup but the money came very late.

And as soon as the money came

BCCI got stronger. World Cup was hosted only in England but when India

reached the world cup finals in 1983 then the union

Minister of India, Siddhartha Shankar demanded the tickets for the match

He told this to BCCI supreme, NKP Salve. He tried

very hard but England didn't give tickets.

And it wasn't like the tickets weren't available.

The England team

didn't reach the finals and all the seats were empty there

After that, they also didn't give tickets. This incident hit BCCI very much

And after that, BCCI took it personally.

And the plea to conduct the world cup in India started.

With the boards of Australia, Pakistan, and Sri Lanka, England was forced

For the very first time, the world cup was held in India. The reason for BCCI's success

was that it didn't have corruption on that level as other federations. It was formed at the time of match-fixing and its work

But then also the bureaucrats and politicians stuck their noses into it

So that they can control the funds of BCCI.

You may have noticed that the higher authorities of BCCI have

more politicians than cricketers. The government cannot

interfere directly but they've made a Lodha committee to keep an eye

was to monitor the rules of BCCI and see if there's

any corruption, if there are any recommendations or a need to change

Then it would inform the BCCI. BCCI does all the work on its own, it has no government interference

But the Lodha committee monitors it.

One thing among all these is a good thing that because of BCCI

Indian economy gets boosted.

And it has so much impact that

You would hear Australian, England, and all the other cricketers speaking in Hindi.

You'll see foreign players playing in Indian capitals.

And all the credit goes to BCCI.

Our tourism gets boosted because of cricket. There are new job opportunities

Our culture is displayed in front of the world.

The business of hotels and restaurants also boosts. The corporate events of BCCI, IPL, etc

The government gets tax on that.

And all the credit goes to BCCI.

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