In this article, we will talk about The Economics of Cricket i.e. Money, Sponsorship, and Broadcasting. Cricket is one of the most interesting and beloved sports among all sports. Furthermore, cricket has a major impact on the economics of the various countries. In addition, the economics of cricket include the money that is being invested in the cricket teams, Sponsorship, and Broadcasting. All these contribute to the economics of the cricket.
The Economics of Cricket: Money, Sponsorship and Broadcasting:
Cricket Money:
Money plays a major role in the economics of cricket. Various things contribute to the expenditure of cricket like the salaries of the players, contracts, prizes, tournaments, etc. We will be discussing each of them.
Salaries and Contracts of the Players:
Most of the money and revenue is spent on salaries and contracts with the players. Team salaries include various things like contracts, coaching and support staff, travel, and logistics. Apart from the contracts and salaries, most of the money is spent on the coaching staff. The coaching staff includes an assistant coach, head coach, etc. Support staff include doctors, nurses, physiotherapists etc. During the tours, the accommodating statistics of travel are also part of the players’ contracts and salaries.
Tournament Salaries:
After the contract, comes the salaries of the tournament. It includes the prize money, fees of the participants, sharing of revenue, and increments.
Now let’s discuss them one by one. The prize money that is given to the teams and players after the matches is the major contributor to the expenses of cricket. The different prizes are given to the players depending on their performances.
- Most of the players and teams asked for the participation fee in the tournaments. This is asked for the preparation of the team and other expenses before and after the matches and tournament matches.
- Then comes the revenue-sharing models. In this, the cricket teams get a percentage of the total tournament revenue. This includes various things like sales of rockets, broadcasting rights, and sponsorships.
- Now the last is the increment. Some of the teams also get bonuses and increments depending on the victories, scores, etc.
Cricket Sponsorship:
Sponsorship is defined as when a certain organization or company supports someone or some company financially. Many big companies are there in Pakistan like HBL, Pepsi, and Brighto Paints. There are various categories of sponsorship like team sponsorship, tournament sponsorship, etc. The sponsorship also requires a large amount of investment and money. We will now discuss them one by one.
Team Sponsorship:
There are many sorts and types of team sponsorship like corporate branding, title sponsorship, and long-term partnerships. First comes corporate branding. In this type of sponsorship, the logos and monograms of the different brands are displayed on the different cricket equipment. Like shirts, helmets, bats, etc. This allows the long exposure of the brands during the whole match.
Then comes the title sponsorship. In this type of sponsorship, you put the name of the sponsor with the cricket title. This also increases the exposure of the sponsor during the whole match which helps to attract the audience.
Next comes the long-term partnership another type of sponsorship. Some cricket teams have long-term partnerships with various brands like DP World. This allows stability and such companies provide the platform for the various sponsors.
Tournament Sponsorship:
There are many different types of tournament sponsorship official partners, category-specific sponsors, and regional sponsors.
- Many tournaments have their official and permanent partner as their sponsors. There are different examples of official partners like Coca-Cola, oppo, IndusInd Bank, etc. This permanent sponsorship attracts the audience and provides the platform for the promotions of the other brands.
- The second one is the category-specific sponsorship. The different types of sponsors are invited like automotive, telecommunications, consumer goods, etc. The different types of sponsors are made visible in their specific sectors.
- The last one is global and regional sponsors. The different tournaments go for both regional and regional sponsors. The regional sponsors focus on specific markets while the global sponsors have international exposure.
- The players also endorse some of the brands. The companies approach the top players from different teams for promotional purposes. The various types include brand ambassadors and apparel sponsors. The different companies approach the famous and renowned players for the promotion of their brand. They become the brand ambassador of such brands so that their sales may increase.
- Then comes the equipment and apparel sponsorship. Different clothing and equipment brands approach the players for the endorsement of their brands. The equipment includes gloves, bats, gears, etc.
- Similarly, there are also other types of sponsorships like league and franchise sponsorship which include title sponsors and venue sponsors. In title sponsorship, the name of the sponsor is added to the title of the team.
Broadcasting:
Broadcasting is one of the major elements in the economic structure of cricket. The major purpose of the broadcast is so that the audience and people around the world can enjoy live cricket streaming. There are different means of broadcasting television, online streaming, innovation in broadcasting, etc. We will also discuss the broadcast revenue.
TV Broadcasting:
This includes broadcasting rights, live coverage, and HD Broadcasting.
- The different cricket boards auction the broadcasting rights to the various TV channels. This allows the channels to telecast the matches and tournaments on TV.
- In the live coverage, the channel plays and telecasts the live matches. This also includes commentary, expert opinion, and post-match discussions.
- To enhance the quality of steaming, there is now HD and ulUltraD coverage of the matches.
Online and Digital Streaming:
This includes online platforms, over-the-top platforms, and subscription models.
Various online platforms run live streaming of cricket. Sometimes third parties also provide access to the live-streaming.
- The over-the-top platform allows the viewer and audience to enjoy live streaming with various features.
- Some online platforms pay for the live streaming. You pay the required charges and enjoy the live streaming for the specified time.
Global Coverage:
This includes international partnerships with different broadcasting companies. The different tournaments make partnerships with the Broadcasting companies. Such companies provide the global convergence of the different tournaments.
Regional and language broadcasting allows the telecast of matches in different languages and region-specific broadcasting.
Broadcasting Revenues:
When the broadcasting rights are auctioned, this will generate the maximum revenue for the different companies and cricket boards. The money that is generated is then distributed to the teams and boards
Conclusion:
In this article, we have discussed the economics of cricket including money, Sponsorship, and Broadcasting. In addition to that we have talked about each of the factors that contribute to the economics of cricket. We have discussed the sponsorship and its type. Furthermore, we talked about broadcasting and its different types and means.