The T20 World Cup was a much-awaited tournament for cricket fans across the world. Everyone’s eyes were on the Indian team to at least make it to the semi-finals in the World Cup. Apart from being a new dose of entertainment for fans after the covid-19 pandemic, betting sites also provided opportunities for punters to bet on their favorite team. However, the tournament proved to be quite devastating for the Indian cricket fans. Those who were hoping to put their money on India’s win, can’t do it now as India failed to qualify for the Semi-Finals.
In the 2007 ICC-50-over World Cup too, India had made a shocking departure in the first round. The repercussions were felt inside, as well as outside the cricketing world. Fans back in India had started switching off their television in frustration. This caused the finances of the tournament to take a fall. The moment they made their way out of the tournament, the finances almost became half. Well, BCCI is the richest cricket board and most of the ICC revenue comes from the Indian team only.
Which Companies Suffered Financial Losses Due to India’s Early Exit
Companies that had already booked their advertisement slots for the ICC World Cup we’re hoping India would go ahead in the tournament so that they get more viewers glued to their screens. However, there was a drop in the advertisement revenues as viewers’ interest in the T20 World Cup declined after India’s early exit.
Travel and tour companies had seen an influx of flight tickets and hotel bookings. However, as soon as the Indian team walked out of the tournament, passengers started canceling their bookings. No doubt, it is a significant loss for the tour and travel industry.
It appears like Indian viewers are backing out after seeing two poor matches from the Indian Men’s team. It shows that there is something wrong with the organizing and format of the World Cup tournament.
The revenue collection and TRPs felt shock waves as a result of the early exit of team India. Surely, it had hardly been expected by Indian fans or others.
Loss Suffered by Various Industries
The sponsors and broadcasters or advertisers will have to bear the outcome. However, the financial impact is not restricted to these industries. As the Indian team bows out early, it leaves the stakeholders to deal with a bigger picture. For instance, Star India’s broadcaster had an 8-year telecast rights deal with ICC, but it ends with the 2023 50-over World Cup.
What’s interesting is the revenues of about 45% of the payment, which the broadcasters were scheduled to make to the respective body, rested on the last three World Cups of the rights cycle- 2020, 2021, and 2023 50-over edition.
The COVID-19 pandemic has caused the 2020 World Cup edition to be postponed to 2022. So, the broadcasters had also been running a tough slip from the very start. As no quarter-finals had been scheduled, 8 out of 12 teams had been knocked out in Super 12.
Sadly, the 2007 Champions and the significant attraction of international cricket in regards to revenue and viewership, the Indian squad found itself to be one of the 8 teams. This was due to their first two matches against New Zealand and Pakistan.
The India-Pakistan 10-seconds advertisement slot had been sold for 25 lakh each by Star Sports. This number has been three times more than the 10-second slot that had ever been sold at the World Cup for a high-profile clash. This is because the India-Pakistan cricket rivalry is more intense than the Ashes or any other series. Due to political tension between the two countries, no bilateral series have taken place for years. The T20 World Cup is the only place where these two teams met after a long time and this was a real opportunity for broadcasters to earn money.
Moreover, the broadcasters had been able to draw in dozens of sponsors for the India vs. Pakistan game itself. It generated revenues of a little more than 100 crore rupees. As per the broadcasters, the viewership numbers increased for the India vs. Pakistan match for Super 12 on 24th October. The viewership had been more than 167 million. Previously, a similar viewership was shown in the T20 World Cup 2106 Semi-Finals. The match was between India and West Indies. This match had a viewership of 136 million.
Now, if a final match between India and Pakistan had happened, the viewership numbers would have gone through the roof. Cricket is one of the costliest sports games on Indian television in regards to commercial slots.
The World Cup 50-over 2019 that took place in England with rain had been a threat. In fact, it had not been quite profitable for the stakeholders. A lot had been expected from this World Cup edition.
With India being out of the race, broadcasters are going to miss out on a significant opportunity. If India had made it to the semi-finals or finals, it would have been highly profitable for the broadcasters. There could have been an Indian Pakistan face-off, too. The 10-second rate might have just tripled if the Indian team had been in the race.
No doubt, the exit of team India had a big impact on the T20 World Cup cricket tournament.