ICC MEETING

Cricket West Indies calls for return to equitable revenue distribution at ICC meeting

by Bertus de Jong • Published on

All 7 of the ICC's major global events in the period 2015-2023 are hosted by the Big 3 © Getty

Cricket West Indies has tabled a proposal for a comprehensive review of the ICC revenue distribution model ahead of this week's Annual Conference in Dublin. The paper, titled "Economics of Cricket" also calls for a more even allocation of hosting rights for major ICC events for the cycle starting after the 2023 World Cup, including the suggestion that every second World T20 be hosted in an emerging cricket country.

The paper also recommends the pooling of overseas broadcast rights for bilateral internationals, and argues for compensation to to be paid by BCCI to other full-member boards for allowing the IPL to be played in its own window in the schedule.

Calling for the ICC to commission an independent study into the game's finances to ensure that "strategic decision-making is based on an accurate understanding of the economics of the world game," the report argues that whilst the revised model for sharing the surplus revenue generated by ICC events adopted in June 2017 is more equitable than that agreed during the "Big 3" reforms of 2104, it remains skewed in favour of those members who are least dependent on ICC disbursements at the expense of less wealthy boards, suggesting that "a more equal distribution would make a real difference to them with negligible effect on the wealthier full members."

Currently, the BCCI is projected to earn some USD 405 million in ICC disbursements over the rights cycle running from 2016-23 and the ECB USD 139 million, whilst the remaining full members are set to receive USD 128 million with the exception of Zimbabwe Cricket which can expect USD 94 million, with the ICC's remaining 94 members sharing approximately USD 200 million between them, of which some USD 40 million is reserved for new full members Ireland and Afghanistan.

Under the previous cycle's model, just under three quarters of the ICC surplus was distributed equally between full members with just over a quarter reserved for Associate boards and a further 6% of revenues before costs allocated to ICC development spending.

The paper goes on to note that all seven of the ICC's major global events in the period 2015-2023 are hosted in just three countries: England, Australia and India, and suggests that gate receipts from these events be pooled in a similar fashion to broadcast, sponsorship and digital rights.

It goes on to propose that for the coming cycle "there should be a more equitable spread of host countries for ICC Events to each ICC region, so that each Full Member/ICC Region has the opportunity to benefit from hosting" and that as "the ideal tournament to fast track growth in new markets" the World T20 should alternate between Full Member and Associate hosts.

The proposal also suggests that given the de-facto creation of a window for the IPL in the international calendar, unique among domestic T20 leagues, the BCCI might compensate other full members in recognition of the opportunity cost incurred "by giving up two months of the season when they could have played international cricket and thereby earned revenue, or of the additional value added to the IPL by virtue of being played in an exclusive window."

Finally the report also suggests that return to bilateral decision-making in drawing up the Future Tours Programme has undermined the principle of reciprocity in the schedule, and that "this move clearly favoured the Full Members based in the larger economic markets and/or those Full Members whose labour and operational costs are lower."

To redress this imbalance, CWI recommends that overseas broadcast and title rights to the new Test and ODI leagues be sold collectively, and that 20% of revenue generated by domestic broadcast rights be shared on the same basis.

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