Funding
New Zealand Cricket derives most of its revenue from the sale of two types of broadcasting rights.
- Broadcasting rights to home internationals.
- A share of the broadcasting rights the ICC sells to its tournaments, such as the World Cup.
Host nations pick up all the expenses of touring teams, but get sole access to all broadcast rights and gate receipts.
In November 2007 it was announced that NZC had made a 5-year deal for the broadcasting rights to home internationals for NZ$65.4m with Sony Entertainment Television. The previous four-year deal between NZC and ESPN-Star was for only NZ$14.4m. Part of the 5-fold increase in value is due to the Indian team's tour of NZ in 2009.
Immediately prior to the 2009 Indian tour of NZ the Sunday Star Times reported that "NZ Cricket hits $25m jackpot".
The article claimed that NZ Cricket will get $1 million for each of the 22 days the Indians take the field and that NZ Cricket had insured against loss of income for the sale of TV rights due to bad weather. NZC boss Justin Vaughan also said that a tour by India generates "many times" more income than tours by Australia, South Africa and England and that the Indian tour was worth more to NZC than the payout from the Cricket World Cup, which was around $20m.
The article also states that over the past two years, NZC's income has been around $30m, but this year (2009) Vaughan is hoping to get more than $40 million from broadcast rights, sponsorship and ticket sales.
In 2007, the ICC sold the rights to broadcast the World Cup, the Champions Trophy and the ICC World Twenty20 to ESPN Star Sports until 2015 for US$1 billion. NZC will receive a slice of that.
Read more about this topic: New Zealand Cricket