New Delhi: The International Cricket Council (ICC) is facing a potential financial crisis as India maintains its stance on boycotting the upcoming Champions Trophy scheduled to be held in Pakistan in February. A crucial note from the tournament’s broadcaster, Disney Star, has revealed that the ICC stands to lose a staggering 90% of its media rights revenue if India pulls out of the tournament.
This significant financial risk stems from the ICC’s decision to sell media rights for the Indian market separately for the first time in history. As a result, India contributes a massive 90% of the ICC’s total revenue share of US$750 million for the Champions Trophy. Disney Star, which holds the ICC TV and digital rights until 2027, highlighted this stark reality in a letter to the ICC a couple of months ago.
The broadcaster emphasized the stark contrast in financial implications depending on which team withdraws. If India pulls out, the ICC faces a substantial loss, while if Pakistan withdraws, the financial impact on the ICC would be negligible. This information adds another layer of complexity to the ongoing debate surrounding the tournament’s venue.
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The ICC Board was scheduled to meet in Dubai on Thursday to address the impasse but has reportedly postponed the meeting to December 7th. The Board faces a difficult decision, balancing the sporting integrity of the tournament with the potential financial ramifications of India’s absence.
Adding to the complexity is Disney Star’s own financial situation. The company recently reported a significant net loss, partly attributed to an “onerous contract” tied to the ICC media rights deal. This raises further questions about the long-term viability of the current media rights structure.
