Explained: Where does ICC get money from?

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Where does ICC get money from?

Where does ICC get money from: The International Cricket Council (ICC) is the global governing body of cricket, responsible for organising and overseeing major international tournaments such as the Cricket World Cup, T20 World Cup, and ICC World Test Championship. The ICC also appoints the umpires and referees that officiate at all sanctioned Test matches, One Day Internationals and Twenty20 Internationals.

But Where does ICC get money from and How much do they earn? In this article, we will explore the ICC’s revenue sources and sharing model, based on the latest available information.

Where does ICC get money from?

The majority of ICC funds are gained from its “global events” which include the Men’s & Women’s 50 over Cricket World Cups (CWC) and World Twenty20s (WT20). The Champions Trophy 2017 & 2021 was also included, but the 2021 event was been replaced by a Men’s T20 World Cup.

In the majority, these funds come from two particular streams:

Media rights: The ICC sells the broadcasting rights of its events to various media outlets around the world, who pay a fee to air the matches live or in highlights. The ICC has a long-term deal with Star Sports, who paid $1.98 billion for the exclusive rights of all ICC events from 2015 to 20233. The deal covers both television and digital platforms, and covers markets such as India, Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan, Maldives, and Afghanistan.

Sponsorships: The ICC also sells the sponsorship rights of its events to various brands and companies, who pay a fee to associate their name and logo with the tournaments. The ICC has a number of global partners, such as Nissan, Oppo, MRF Tyres, Emirates, and Byju’s, who have signed multi-year deals with the ICC5. The ICC also has regional partners, such as MoneyGram, PepsiCo, Uber, Royal Stag, and Dream11, who have signed deals for specific markets or events.

Where does ICC get money from?
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Gate receipts: The ICC collects a percentage of the ticket sales from the host countries of its events. The host countries also bear the costs of organising and staging the events.

Licensing rights: The ICC sells the licensing rights of its events to various entities such as merchandise manufacturers, video game developers, fantasy sports platforms, etc., who pay a fee to use the ICC’s name and logo on their products or services.

Membership fees: The ICC collects annual fees from its members based on their status and performance. The ICC has 108 member nations currently: 12 Full Members that play Test matches, and 96 Associate Members.

How does ICC spend their money?

According to a report by ESPNcricinfo, the ICC spends money on the following areas:

Event costs: The ICC bears the costs of organising and staging its global events, such as venue hire, security, logistics, prize money, etc.

Development funding: The ICC provides funding to its members for various development programs, such as coaching, infrastructure, grassroots cricket, etc.

Administration costs: The ICC covers the costs of running its operations, such as staff salaries, office rent, travel expenses, legal fees, etc.

How much money does ICC generate? What is ICC’s net worth

The net worth of an entity is calculated by subtracting its liabilities (what it owes) from its assets (what it owns). According to NetWorthSpot, the net worth of ICC is estimated to be around USD 2.5 billion. This is based on the projected revenue of USD 2.5 billion to USD 2.7 billion for the current rights cycle (2015-2023) and the estimated expenditure of around USD 200 million per year.

However, this figure may not be accurate as it does not account for the actual revenue and expenditure of the ICC in each year, as well as the fluctuations in exchange rates and inflation. Moreover, the net worth of the ICC may change significantly in the next rights cycle (2024-2031), depending on various factors such as market demand, competition, innovation, etc.

How does ICC compare to other sports governing bodies?

Where does ICC get money from?
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To put the ICC’s net worth in perspective, let us compare it with some other sports governing bodies. According to Forbes, these are some of the estimated net worths of other sports governing bodies as of 2020:

FIFA: USD 4.1 billion

IOC: USD 3.6 billion

NBA: USD 2.9 billion

NFL: USD 2.7 billion

UEFA: USD 2.6 billion

ICC: USD 2.5 billion

MLB: USD 2.4 billion

NHL: USD 1.6 billion

As we can see, the ICC ranks sixth among these sports governing bodies in terms of net worth. However, this ranking may not reflect the actual popularity or influence of each sport or organisation, as there are many other factors involved such as fan base, media coverage, social impact, etc.

Conclusion

The ICC is a nonprofit cricket governing body that generates income from its global events and distributes it among its members. The ICC’s revenue sources include media rights, sponsorships, gate receipts, licensing rights and membership fees. The ICC’s revenue sharing model is based on an eight-year cycle period that ends in 2023. The model aims to provide a sense of equity in revenue distribution among the members, while also rewarding the teams that perform well in the ICC events. The model also ensures equal prize money for both men’s and women’s events.

I hope you now know “Where does ICC get money from”. For more such articles, follow 12cricket.

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