How T20 league drives the business of cricket

considered a stuffy gentlemen’s sport, cricket – thanks in most part to the growth of the dynamite T20 format – is experiencing a major boom, not just on the pitch but also as a multibillion dollar industry.

In February, Cricket South Africa (CSA) launched its new franchise-based T20 Global League.

The competition will have eight franchises and starts in November. Each team will have one Protea marquee player and one international marquee player in its squad.

Applications to own one of the South African franchises closed at the end of April and signs point to a similar calibre of owners for the new T20 Global League as the team owners list for the Indian Premier League (IPL) – a collection of the world’s leading lights in entertainment and business.

And why not, with global sport sponsorship spend forecast to reach $62 billion (R792.75bn) and global sporting media rights spend expected to hit $45bn this year.

The key revenue driver for major professional sport is, of course, television reach and advertising. In 2008, the IPL signed a 10-year rights deal worth $1.026bn with Sony Entertainment Television. That deal has just ended and one can only begin to imagine the figure that could be attached to the new deal.

The biggest sporting television deal in South African history remains the local Premier Soccer League’s deal with Supersport. The PSL/ Supersport relationship started in 2007 with a R1.6bn broadcast deal over five years, followed by a deal for R2bn in 20113.

The introduction of a global cricketing tournament, which will attract some of the game’s biggest stars from around the world, means the T20 Global League would challenge football for the top spot.

Last year in India alone, the 2016 ICC World T20 semi-final was watched by 88 million viewers and the cumulative in-home audience for the same tournament was a staggering 730 million.

A test case for hosting a successful global T20 tournament in South Africa exists.

In 2009, we hosted the IPL after a decision to move the tournament due to political unrest in India in the run-up to their elections. According to Brand South Africa the tournament injected between R1bn and R2bn into the South African economy. Up to 40 000 hotel rooms and 10 000 domestic flights were booked for the tournament.

The T20 Global League clearly brings with it opportunities for our local tourism industry – an increasingly valuable asset as our emerging market looks set to experience rapid sports tourism growth.

The 2009 IPL also provided R10 million in scholarship funds to 300 pupils and 32 schools across the country.

The T20 Global League will serve as a key financial injection for the development of cricket at various levels in South Africa – CSA’S top line business objective. But it’s not just cricket. We’re talking about creating tourism attraction for visitors, about branding South Africa and its cities, and if we get it right there will bea lasting benefit, not only for cricket, but for the country.

If television and sports tourism are still the biggest cash drivers for cricket, social media consumption is rapidly catching up, taking the game to more people.

New revenue streams are fast emerging as fans become connected and thanks to increased investment in big data, we’re able to optimise our fan relationships.

Mobile is increasingly becoming the device of choice of fans to consume, generate and share content, so it’s also become the key device for rights holders, broadcasters and brands.

Fan acquisition and monetisation means cricket is definitely reaching out to fans across multiple access points for greater connection and engagement.

Athletes too are becoming their own media owners – from massive Instagram followings to dedicated apps and Youtube channels.