T20 World Cup The financial fallout of India's early exit

When India was eliminated in the first round of the ICC 50-over World Cup in the Caribbean in 2007, the tremors felt weren’t only cricket-related. The tournament’s revenues sank, sunk, and were subsequently halved instant India made its way out, as viewers began turning off their TV sets in fury and frustration. The broadcaster’s advertising revenue has decreased. Companies that had reserved ad slots in advance and were ready with campaigns – Pepsi’s ‘If you fight it, you win’ was one example — demanded a refund of payments, a reduction in the value of their contracts, or a rewrite of the agreements.

Passengers from India and Indian fans all over the world were abruptly cancelling flights and hotels to the Caribbean, according to tour and travel agencies.

“It’s a 48-day competition, and if teams like India and Pakistan are going out after playing two terrible matches, there is something seriously wrong (with the format and organisation of the event),” Sony Pictures’ then-India head Kunal Dasgupta remarked.

The shockwaves in terms of TRPs and money collection felt in the aftermath of India’s early exit were truly unexpected.

Let’s fast forward to 2021. India has already qualified for the second round of the ICC World Cup. Fortunately, unlike in 2007, when India’s withdrawal resulted in 31 matches remaining in the World Cup, there are just three matches left in 2021.

In reality, the loss suffered by a broadcaster, sponsors, or marketers will be restricted to not seeing the Indian team in the semifinals of this event, which is only one game. In any case, the final is only considered until the two best teams have arrived. The Indian team’s early exit, though, leaves the stakeholders with a larger picture to cope with.

“Surprisingly, the remaining three World Cups of the rights cycle – the T20 World Cups in 2020 and 2021, as well as the 50-over World Cup in 2023 – accounted for nearly 45 per cent of the amount that the broadcasters were expected to contribute to the governing body.

The broadcasters had been running a tight ship since the epidemic forced the 2020 edition to be postponed to 2022. Consider what would happen if India and Pakistan met in the final. These figures would have soared to new heights. As it stands, this was the most expensive game on Indian television in terms of commercial slots of any sport “Industry insiders claim.

The 2019 50-over World Cup in England, which was plagued by rain, was not a financially successful tournament for the ICC’s stakeholders, and much was expected of this year’s T20 World Cup.”

Now that India is out, the broadcasters are potentially missing out on a tremendous chance. What if India took part in both the semifinal and the final? There was also the possibility of an India-Pakistan final. “Had India been in contention, the broadcaster would have trebled the per-10-second (commercial) fee,” said people following the situation. It’s yet another reminder of the magnitude of an early India exit in a global cricket competition.