Economic Opportunities in Emerging Cricketing Nations

As cricket expands into new territories like the United States, hosting the T20 World Cup marks a pivotal moment for the sport's global growth. This article explores the economic opportunities in emerging cricket nations, from infrastructure development and broadcasting rights to merchandise sales and hospitality services.

Hosting the ICC Men’s T20 World Cup 2024 in the United States is a turning point for cricket which aspires to make its way into a baseball-dominated country. This also means with the introduction of Major League Cricket (MLC) in America and other such events, there will be an effort toward expanding the game in new areas which will bring about economic growth across many sectors.

Let’s investigate cricket’s push into emerging cricketing nations, market insights and various investment opportunities that arise from this growth.

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What drives cricket’s growth in emerging cricketing nations?

India, England and Australia are no longer the only places where cricket is popular. The sport has started gaining followers in countries like the USA, Namibia, Nepal, Canada and many more emerging cricket markets.

The ICC took steps to allow all member nations to play T20 international cricket back in 2018 which greatly contributed towards expansion. There are 108 members eligible for these matches, thus bringing new spectators and consumers into contact with the sport.

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T20 Format as Growth Catalyst

The past 15-17 years have seen T20 cricket emerge as the driver of growth for the game. It is fast-paced and unpredictable which gives every team a chance to win, making it attractive to a broad audience base. Allowing all members to play T20 international matches was one of ICC’s moves that further globalized this format.

Comparisons with Football

Cricket’s approach to expansion is similar to European league football. Here clubs from different regions compete against each other in tournaments like the Champions League. The ICC is on track to create an international league system that will promote more participation across countries, leading to wider development.

Regional Sales Strategy

ICC realized better results by selling broadcasting rights territory-wise rather than through a global deal. They had previously observed that some areas were being exploited while others were neglected under such arrangements. This way, it becomes easier for them to control and market the game according to specific regions thereby enhancing its growth and profitability.

League Cricket League Cricket is gaining popularity in regions where the sport is still developing. These lesser-known leagues attract attention by inviting famous overseas players, which boosts their viewership. However, the ICC has set a limit on the number of overseas players allowed per team, generally capping it at four. Notable exceptions include the International League T20 (ILT20), which allows up to nine overseas players, Major League Cricket (MLC) with six, and the Caribbean Premier League (CPL) with five.

This limitation helps promote local talent in those regions, blending business opportunities with sports development. The top three T20 cricket leagues are the Indian Premier League (IPL), the ILT20, and the Big Bash League (BBL).

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Market Insights

Global Cricket Equipment Market

The global cricket equipment market is estimated to grow at a CAGR of 6.52% from $662.84 million in 2024 to $1,098.99 million by 2032. The ball segment is projected to hold dominance over other segments until 2029 due higher number of tournaments being played globally.

Key players operating in this space include Kookaburra Sport, Grays International, Sommers, Kippax, Willow Limited, Bradbury, Blue Tongue, Adidas AG, Stag Cricket, Salix Cricket Bat Co and Blank Bats.

Revenue Projections

Revenue within the cricket market will hit $3.71 billion by the year-end of 2024 while recording an annual growth rate (CAGR 2024-2029) of 2.56%, generating an estimated worth of around $4.21 billion within the next five years till then. Most of this revenue will be generated in India, estimated at $2,275 million in 2024.

The average revenue per user (ARPU) is projected to be $28.71 in 2024, with user numbers expected to reach 139 million by 2029, reflecting a user penetration rate of 1.7% in 2024.

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Sectors which benefit from the development of Cricket

Broadcasting

Cricket is a great source of income for broadcasting rights. In the USA, where there are lots of viewers, many advertising contracts and subscriptions have been signed for T20 World Cup and MLC.

For example, the India-Pakistan match’s advertisement slots were sold out at $48,000 for every 10 seconds. This shows how much the cricket market has grown in America.

Infrastructure and Logistics

The Nassau County International Cricket Stadium is an example of rapid infrastructure growth due to hosting large cricket events that create economies. This flexible stadium with 34,000 seats was built in just four months. Populous Company along with Arena Americas and Alchemy International have worked on this project.

Temporary jobs like event management, catering services (food), security arrangements (protection), transportation systems and hospitality services were created during its construction which helped boost the local economy.

Merchandise

Cricket merchandise has become more popular after the T20 World Cup. Fans want to buy shirts, bats, balls or other cricket equipment so it has increased the sales of sports goods shops and manufacturers too. If demand continues rising then the US may start producing locally thus expanding this industry even further.

Restaurants & Cafes

Since eminent match tickets cost a minimum of $1,000, restaurant/cafe owners took advantage by showing these games live on their TVs to attract cricket fans who couldn’t afford to go to stadiums. These places provided food plus a good atmosphere at prices ranging from $65-$150 per person as a cheap alternative for supporters’ enjoyment.

For instance, if a cafe has a seating capacity for 150 people, then it can earn around $15,000 in one day only excluding food bills i.e., a highly profitable business opportunity both for establishments’ owners and customers alike.

Economic Impact on Nassau County

Bruce Blakeman, Nassau County Executive, claimed that the county will make $150 million from eight New York games of the T20 World Cup. This amount is ten times bigger than what the county spends on infrastructure (roads, bridges etc.), planning (events) and security measures. This indicates how beneficial it was to host such a big event in economic terms.

Conclusion: The Glamorous Double Win of Cricket

Heads, cricket wins; tails, cricket wins! The successful hosting of the T20 World Cup in the USA has not only showcased the sport's dazzling charm but has also unlocked a treasure trove of opportunities across various industries. Broadcasting, infrastructure development, merchandise manufacturing, and hospitality services are all set to bask in the glory of cricket's popularity surge, reaping substantial financial rewards and creating a plethora of employment opportunities.

The cricket market in the USA, along with other emerging cricketing nations, gleams with a bright and promising future, attracting substantial investments. As cricket continues its rapid global ascent, its impact on the American economy could be monumental, and its influence on the global financial system even more intriguing. Investors take note—cricket is not just a game; it's a burgeoning spectacle of economic potential and glittering opportunities!

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Source: Statista, Fortune Business Insights, The Hindu Business Line, Economic Times, New York Times