Can the Pakistan Super League get its marketing act together?
Cricket, like most other sports has become a business and a multibillion dollar business at that. Although I am a purist ruing the loss of the authenticity of the gentlemen’s game, many people hold (and I am not saying that they are totally wrong) that sport needs to be run like a business. Fair enough. Financial statements matter. What is not right is the inequitable distribution of wealth; just like in any other walk of life.
Here are some numbers.
The International Cricket Council (ICC) has an annual net income of $128 million after tax (Source: ICC Annual Report 2014-15).
A projection of the next eight years’ profit stream by the ICC shows that a total of $2.58 billion will be distributed to its members. If there were no ‘big three’, every full member would receive $117 million from that income. Now, based on the new system, the Board of Control for Cricket in India (BCCI) alone will receive $568 million out of the total, taking its share from four to 22%, while Pakistan, Sri Lanka, New Zealand, West Indies and South Africa are set to collectively lose $162 million.
Contrast this with how TV money was distributed among the English Football Clubs in the 2012-13 season. Queens Park Rangers (QPR), which finished last still banked £39.75 million, roughly two thirds of what Manchester United (the champions) made (£60.8 million). United is a global brand, with millions of followers across the globe, while QPR are not even the fifth most popular club in London.
So what has given the BCCI so much power? Apart from being the cricket administrator for the largest cricket playing country in the world, a lot of credit has to go to the Indian Premier League (IPL). Forbes and The Economist have run lengthy articles on the business side of IPL, showing how it has introduced an unprecedented commercial element into Indian cricket.
Sponsorship money, broadcasting rights and on ground activities rake in millions of dollars every year. Although the success of the IPL led to the creation of other leagues – Caribbean Premier League, Sri Lankan Premier League, Bangladesh Premier League – none of them were able to replicate IPL’s success. Why? Because of the sheer size and mass appeal of IPL in terms of viewership and consumerism, thanks to a large Indian population and a growing economy. Now the Pakistan Cricket Board (PCB) has announced the constitution of a Pakistan Super League (PSL).
Based purely on the business generated by the IPL, the PSL will not even come close to what the IPL brings to the BCCI and Indian cricket. So will a ‘me-too’ product be able to establish itself in cricketing as well as commercial terms? The answer is that it will be an uphill task with a lot of intricacies.