India’s exclusive hosting of the ICC Men’s World Cup 2023 is proving to be a financial windfall, with the country anticipated to earn approximately $2.6 billion, equivalent to over Rs660 billion in Pakistani currency, according to multiple reports.
The 48-match tournament, distributed across ten cities in India, including Ahmedabad’s Narendra Modi Stadium, is set to deliver substantial financial gains through various revenue streams. Predictions indicate a significant influx of funds from TV broadcasting rights, ticket sales, food delivery, sponsorships, higher advertising rates, foreign tourism, and merchandise sales.
Despite this economic boon, concerns have emerged about the distribution of this income. The current ICC financial model for the period of 2017 to 2023 appears to heavily favor India, granting them a more significant share of the total earnings compared to other participating cricketing nations. This discrepancy has been a subject of debate within the cricketing community, raising questions about equitable revenue distribution.
Economists from Bank of Baroda estimate that the Cricket World Cup could potentially contribute approximately 220 billion rupees ($2.6 billion) to the Indian economy. The tournament is expected to witness an increase in viewership, both through television and streaming platforms, likely surpassing the 552 million viewers recorded in the 2019 World Cup.
The extensive reach of the event, involving matches in ten cities, is set to boost sectors such as travel, hospitality, and retail. The coinciding with India’s festive season is expected to encourage sentiment-driven merchandise purchases, further stimulating the retail industry.
However, the economic benefits come with potential drawbacks. Inflation might be a consequence of increased demand, with surges in airline ticket prices, hotel rentals, and service charges within the ten host cities. The economists anticipate a potential inflation rise between 0.15% to 0.25% for the months of October and November due to these factors.
Notwithstanding these concerns, the tournament is foreseen to positively impact the Indian government’s revenue. Increased tax collections from ticket sales, goods and services taxes on various sectors like hotels, restaurants, and food delivery are expected to contribute to the country’s fiscal capacity.
The current financial model’s inclination towards India’s substantial share of the generated income has drawn criticism, sparking discussions about a more equitable distribution framework to ensure all participating cricketing nations benefit proportionately from mega events like the Cricket World Cup.