Cricket An Industry

India's Cricket: An Industry

History & Overview of Indian Cricket  The earliest recorded reference to

cricket in India was when British sailors in 1721 played the game as a recreational activity.  The British army took on the English settlers in what was the first recorded cricket match in India in 1751.  The establishment of the Calcutta Cricket Club (what we know today as CC & FC) in 1792, was another watershed for the sport in the land. In fact, it is the second-oldest cricket club in the world, after the MCC (1787)  The Parsis were the first Indian civilian community to take to cricket. They set up the Oriental Cricket Club in Mumbai in 1848.

History & Overview of Indian Cricket  BCCI was formed in 1928 with it’s base in  

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Mumbai. India played it’s first Test Match in 1932 against England at Lords. India won it’s first Test match in 1951-52 against England by an innings and 8 runs. India’s unexpected triumph in the World Cup in 1983 emboldened the BCCI to bid for the 1987 World Cup along with Pakistan. It was the first time anyone had even thought of staging the competition outside England. That one event showcased the organizational capabilities of the BCCI and the frenzy the sport enjoyed in India. Today BCCI has 27 State association members across five zones in India.

Is Indian Cricket an Industry?

Political Environment  BCCI: The Cash-Rich Board.  High drama involved in the

BCCI general elections.  Government and BCCI: How

much autonomy is right for Indian Cricket?   

Political Environment Improving Diplomatic ties between countries  Long has cricket been used as a channel to foster

Indo – Pak political relations.

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 IPL-2 had a political hue added onto it. 

The last edition of IPL had to be taken out of India, due to elections and also huge political pressure.

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Economic Environment India has become Cricket’s global

Financial Superpower BCCI currently has the highest income of any national cricket board. India contributes around 70% of the revenue for the sport. Its income has increased manifold in 2007-08 and crossed Rs 1000.41 crore, as compared to Rs 651.81 crore in 2006-07, leading to a surplus of Rs 303.15 crore.  

Economic Environment Cricket Board BCCI England & Wales Australia ICC Pakistan South Africa Sri Lanka Bangladesh

Worth ( In Million $) 1500 270 225 200 100 65 14 5

* Forbes valuation of Cricket Boards for 2007

Economic Environment BCCI is expected to earn a revenue of US $1

billion over the next five to ten years from IPL. Revenues for Government: Tax paid by BCCI in 2008 was Rs. 91 Crores. Media Rights: Nimbus Communications has bought global media rights for International and Domestic cricket owned or controlled by BCCI at a whopping 612 Million $. Sponsorship Revenue: Official kit sponsorship rights for 5 years from 2006 to 2010 inclusive were awarded to Nike for US$43 Million

Economic Environment  Air Sahara became the official

Indian cricket team sponsor for a period of four years at a cost of US$70 Million  Certain Reports state that BCCI will get another Rs 2,000 crore ($450 million) from the sale of other rights, including hotel, travel and ground sponsorship.  Global broadcasting rights for the entire IPL Twenty20 tournaments till 2017 has been secured by World Sport Group (WSG) at a cost of US $1.026 billion.  Betting on cricket in India is pegged at Rs. 1 Lakh Crores. Should it be legalized?

Social Environment Employment Generation: Players, umpires,

coaches, ground staff, commentators, technicians, sport journalists, etc. BCCI on behalf of ICC's commitment to the Spirit of Cricket, a wide range of activities were undertaken to raise awareness and reduce stigma around people living with HIV/AIDS. BCCI has set up a National Sports Development Fund, recognizing the need of development of other sports. This fund contributes up to Rs. 50 crores. Betting, corruption and Match Fixing.

Social Environment “If cricket is our religion,

Sachin is our God” For long cricket as a sport has served as a tool for international diplomacy and as one of India's greatest expressions of national prestige. As the general belief goes , India is considered as the Mecca of Cricket.

Technological Environment Technology has manifested

itself in multiple ways to bring the sport closer to the fan: Online blogs by sportsmen, video blogs, live online interactions, to multiple camera angles on the field of play etc. Stump cameras & microphones, Snickometer, Hot Spot are examples of how improvements in technology have taken place over a period of time. Hot Spot 

Technological Environment  Innovations have enhanced the experience of

cricket: The “Hawk-Eye and Online Pulse Predicta” game are other such amazing technology interfaces which are helping to take the game to the next level.  Exceptional strength and conditioning, sports science and sports medicine facilities will be available to allow players and specialist team staff to assist in fitness injury prevention and rehabilitation programs.  The ICC has ordered the e-Cricket Pro software produced by Bangalore-based Phoenix Global Solutions India (PGSI) Private Limited to train umpires for judging international games 

Future Prospects BCCI has been allotted the right to conduct and

host the 2009 – 2011 World cup in India along with Bangladesh and Srilanka as co – hosts. This gives India as a nation the opportunity to project itself as a responsible nation. Moreover the nation can use this platform to built upon its image and attract more and more people to come and visit this “SAFE” nation.

Future Prospects BCCI’s revenue surplus rose from a figure of 33

crores to a robust figure of 231 crores during the financial year 2006 – 2007. With the market forces trying to use Cricket as a medium of advertisement and the world cup just round the corner ,the board stands a good chance of strengthening its hold yet again as the pioneer of cricket in financial terms. Such is the amount of revenue generation in India , that BCCI was allotted the world cup rights , just on the find that World Cup in India stands to raise 400 million dollars more than what the next favorites were expected to raise .

Hence we conclude that Cricket is an Industry. T h a n k Yo u Compiled By: