BCCI set to earn $230 million per year from 2024-2027 according to ICC's latest revenue share model - Reports
The International Cricket Council (ICC) is planning to unveil its revenue distribution model from its net surplus earnings in the upcoming commercial cycle from 2024 to 2027. The Board of Control for Cricket in India (BCCI) will understandably take home a large chunk of the revenue, close to 40 percent, which projects out to be close to $230 million per year.
The rudimentary calculations predict ICC to earn close to $600 million per year following the decision to sell the media rights across five separate regions across the world. The earnings from the sale were reported to be close to $3.2 billion, with Disney alone paying $3 billion for the broadcast rights for international cricket in India.
A report by ESPNcricinfo mentions that the England and Wales Cricket Board (ECB) is the second highest earner in the distribution model with 6.89 percent, which amounts to $41.33 million per year. Cricket Australia (CA) comes third with 6.25 percent of ICC's net surplus earnings, equivalent to $37.53 million.
Pakistan Cricket Board (PCB) is projected to take home $34.51 million (5.75 percent) while the rest of the full member nations are slated to earn less than five percent. Out of ICC's per year earnings of $600 million, the full member nations combined will get $532.84 million (88.81 percent), while the remaining $67.16 million (11.19 percent) will go to the Associate Nations.
The proposed model, which will be put up for debate and further consideration in the organization's next meeting in June, was curated by an ICC team and further reviewed by the organization's Finance and commercial affairs (F&CA) committee.
During the development of the new revenue share system, the criteria with which the nations will be assessed were determined through "component weightings", which according to the report are Cricket history, Performance in both men's and women's ICC events over the last 16 years, Contribution to the ICC's commercial revenue, And, an equal weightage for the status of being a Full Member.
Should the organization consistently continue to report earnings of $600 million in the upcoming cycle, then the BCCI will take home close to a billion dollars during the time frame.
This comes across as a huge boost for the BCCI as they had to settle for a loss following the collapse of the infamous 'Big Three' model in the previous eight-year cycle.
Full members were expected to send their feedback to ICC on the proposed revenue distribution model
As mentioned earlier, ICC wishes to approve the model at the upcoming annual conference in Durban. The full members were asked to peruse through the model and send their feedback at the start of May. However, the cricketing boards are bound to counter the basis of the revenue share and question the calculations after crunching some numbers.
Some initial concerns have already been raised, with a full member nation apparently calling the new model a rip-off of the Big Three system. They also proceeded to call the calculations 'arbitrary' and 'reverse-engineered'.
Another challenge that the Finance and commercial affairs (F&CA) committee have is the allocation of $100 million as an emergency fund. Now, should it be approved by the board, the amount will be taken off the annual earnings.
This means that the overall amount to share will be reduced to $500 million, and while the percentage will remain the same for the nations, their revenue share amount will understandably take a hit.
Do you think India have been awarded a fair share of the ICC's earnings considering its input in terms of broadcast revenue and influence in global cricket? Let us know what you think.