ICC Committee To Propose 37% Revenue Share for BCCI In The Upcoming Cycle?
BCCI's honorary secretary, Jay Shah (Twitter)
The International Cricket Council's Finance & Commercial Affairs Committee is reportedly considering the creation of a working group to propose a new revenue sharing model that could increase India's share of the ICC's revenue.
If the proposal is adopted, it is expected that the Board of Control for Cricket in India (BCCI) will receive 37% of the ICC's revenue for the 2024-2027 cycle, which would be a significant increase from the 22.8% it received in the previous cycle. The ICC has long believed that the Indian market accounts for over 75% of its total revenue.
According to recent reports, the sale of media rights for the 2024-2027 cycle has shown that India's contribution to the ICC's revenue is even greater than previously believed. This contradicts the theory that India's market accounts for just over 75% of the ICC's total revenue.
“For the first time the ICC decided to sell the rights territory-wise. In that, the India market alone fetched $3.04 billion. By ICC’s own “75% theory", this $3.04 billion should be 75% of all their global revenues right? But do you think the rest of the world, collectively, is contributing 25%? (sic.)"
The ICC has recently closed an eight-year deal with broadcaster Sky for the UK and Europe market, which is longer than the usual four-year deal for other markets. This is because the shorter deal was not generating much revenue for the ICC.
It has been reported that the rest of the world, combined, is contributing less than $500 million to the ICC's revenue.
“That means the Indian market alone is contributing 88 to 90% of ICC’s revenues. You go asking around in the industry and those who run the finances of the game will tell you — there was never any Big 3. There’s always been only Big 1", as per sources.
The BCCI has reportedly discussed the ongoing tax issue related to the upcoming 50-over World Cup in India, which is scheduled to start in October. It is believed that the BCCI may ask the ICC to deduct a tax surcharge of Rs 955 crore (approximately $128 million) from the ICC's broadcast revenue from the World Cup, and subtract it from the BCCI's revenue share of the current cycle.
According to ICC regulations, host nations are required to obtain tax exemptions from their respective governments for hosting tournaments organized by the global cricket body. However, the BCCI and ICC have been facing difficulties due to the tax issue, and with no indication of relief from the Indian government, the BCCI is expected to inform the ICC of its position soon.
If the proposed revenue share of 37% is adopted, the BCCI stands to earn approximately Rs 10,000 crore from the ICC's revenue share for the next cycle. It is expected that the tax amount deducted from the broadcast revenue of the 50-over World Cup will be compensated from the gains of the 2024-2027 cycle.
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