Champions Trophy 2025 Row: Financial Implications If India Or Pakistan Pull Out Of Tournament

The absence of either India or Pakistan from the Champions Trophy would have severe financial implications for the ICC. The ICC has already locked in a media broadcast deal worth $3.2 billion, with projections to bring in an additional $1 billion through various other revenue streams.

Nov 13, 2024 - 16:12
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Champions Trophy 2025 Row: Financial Implications If India Or Pakistan Pull Out Of Tournament

India’s decision to skip traveling to Pakistan for the 2025 ICC Champions Trophy has reignited longstanding tensions between the two countries. This decision, reportedly communicated by the ICC to the Pakistan Cricket Board (PCB), has placed the upcoming tournament in a precarious situation. Initially, India proposed a "hybrid" model where they would play their matches in Dubai, but Pakistan rejected this suggestion. Now, media sources suggest that Pakistan is weighing other options, including either hosting the tournament without India or boycotting it altogether.

The absence of either India or Pakistan from the Champions Trophy would have severe financial implications for the ICC. The ICC has already locked in a media broadcast deal worth $3.2 billion, with projections to bring in an additional $1 billion through various other revenue streams. India and Pakistan command huge fan followings and play a major role in driving global cricket viewership. Missing out on either team would likely reduce viewership figures drastically, impacting not just broadcast revenue but also sponsorship deals. India, in particular, is a major revenue generator for the ICC, but Pakistan’s participation is significant as well, especially in tournaments where the two nations face off.

According to the ICC’s schedule, India is set to host several major international cricket events between 2024 and 2031, including the Women’s World Cup in 2025, the T20 World Cup in 2026, the ICC Champions Trophy in 2029, and the Cricket World Cup in 2031. If Pakistan chooses to boycott these events as a retaliatory move, it could strike a blow to the financial success of these tournaments, as Pakistan’s participation drives viewership and popularity. Since India and Pakistan only meet in international events due to the suspension of bilateral series, their rare encounters draw record-breaking audiences and are a significant boost to cricket’s global appeal. Cricket Pakistan reported that during the 2023 World Cup, India vs. Pakistan matches drew an unprecedented 173 million viewers on television and 225 million on digital platforms.

If Pakistan were to accept the hybrid model, logistical issues could arise due to the budgetary limitations set for the Champions Trophy. According to a report by PTI, ICC had initially allocated USD 70 million for the event, with a mere USD 4.5 million reserved for extra expenses. Shifting India’s games to Dubai would result in increased logistical costs and extended travel times for teams, adding to the tournament's complexity. Although ICC could consider increasing the tournament's budget to cover these additional expenses, doing so could strain the overall funding and operational efficiency, potentially affecting teams from both countries.

The uncertainty around the participation of either of these cricketing giants casts a shadow over the Champions Trophy’s prospects.

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