How does money talk in cricket?
- From: cricdabbler@xxxxxxxxxxx
- Date: Tue, 8 Jan 2008 09:29:26 -0800 (PST)
It's now taken as an accepted truth that the
BCCI has enormous financial leverage over the
ICC, and uses it when it suits its ends (as in
recent days, over Bucknor, and over Harbhajan's
alleged monkey). One hears statements such as
"70% of the money in cricket is from Indian
sources." There are people on this newsgroup
who bemoan this leverage -- nostalgic perhaps
for that simpler way of life when the MCC was
the ICC -- and there are those who gloat over
it. Nobody seems to deny it.
Can one of you financial people out there
explain in simple terms how exactly it works?
Here's what I understand: Cricket matches are
organized and money flows in as a result,
directly or indirectly, into the coffers of the
national boards of the playing teams and the
ICC. This money comes from direct ticket sales,
the sale of broadcast rights, and advertising
(either via direct ads on the field or via
endorsements).
My questions are:
1) Are there other big revenue sources?
2) Is there a reliable way to find out what
percentages of the incoming money comes from
different sources of revenue? Are the
business models available for study?
3) How do the national boards and the ICC split
what comes in? Why are some national boards
so much better at making money off a
common model than others?
4) How does the Indian money, supposedly 70% or
so of the total, fit in? Is the bulk of the
advertising Indian, for example?
5) How does the BCCI use its money to dictate
to the ICC? Is there a direct cash flow from
the BCCI to the ICC that (implicitly perhaps)
it threatens to withhold? Or, is it that the
BCCI supposedly has power over advertisers,
television companies, etc., and can switch
off the juice that way?
I know nothing about these matters, so it's
possible I totally misunderstand how it works.
I'll gladly accept correction and elucidation.
On a related note: is it true that many Australian
players have lucrative advertising contracts with
Indian companies? What does Ponting sell?
It'll be interesting to see if Ponting-endorsed
brands take a sales hit. For better or for worse,
it's the lure of lucre that keeps many American
athletes from acting with the brazen disregard
for public opinion that marks Ponting's posturing.
(As Michael Jordan supposedly said when asked
to take a more public political stand
"Republicans buy Nike too.")
.
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