ICC Net Surplus Drops 36% In 2022

The International Cricket Council (ICC) has recorded a significant decline in its net surplus for the fiscal year ending 31 December 2022, marking a 36 per cent decrease compared to the previous year. 

The world's governing body for cricket reported a net surplus of USD 208 million, down from USD 326 million in the preceding fiscal year. Total revenue also saw a notable dip, falling by 7 per cent to reach USD 432 million. Event-related revenue, a critical source of income for the ICC, experienced a 4 per cent decline, amounting to USD 413 million. The ICC's primary revenue streams continue to be media rights and sponsorships.

In the pursuit of expanding its global reach, the ICC struck a major media rights deal with Disney Star, formerly known as Star India, worth a staggering USD 3 billion until 2027. This deal, along with agreements with broadcasters like Sky Sports, SuperSport and Willow TV, constitutes a substantial portion of the ICC's revenue.

Sponsorship contributions also played a pivotal role in the ICC's financial landscape, with support from prominent global sponsors such as MRF Tyres, Booking.com, Byju's, Nissan, Oppo, Bira91, and Emirates, among others.

ICC Chairman Greg Barclay expressed optimism about the future, citing their media rights deals as a means to reach larger audiences. He said, "World Cups and other future ICC events will be seen by greater audiences than ever thanks to our media rights deals, including several confirmed in the last 12 months. With further agreements nearing completion, we're delighted to be working with our broadcast partners to bring our great sport to more fans than ever before."

The ICC's revenue distribution model, approved in July, earmarks a substantial portion of future earnings for the Board of Control for Cricket in India (BCCI). Between 2024 and 2027, it is expected that the BCCI will receive the majority of the ICC's revenue, with reports suggesting an annual sum of USD 230 million out of an estimated annual revenue of USD 600 million.

Recent data provided by the Minister of State for Finance, Pankaj Chaudhary, revealed that the BCCI had amassed Rs 27,411 crore over the past five fiscal years (FY18-FY22). These earnings encompassed revenue from media rights, sponsorships, and revenue shares from the ICC.

The ICC anticipates a boost in revenue for the ongoing fiscal year, driven by the ICC Men's Cricket World Cup 2023, hosted in India. However, this revenue increase is counterbalanced by a significant rise in expenses, which surged by 64 per cent to reach USD 224 million. Event organising costs saw a particularly sharp rise, increasing by 73 per cent to USD 168 million.