Pakistan–India T20 World Cup standoff triggers financial shock

Following Pakistan’s announcement that it will not play against India in the T20 World Cup, shockwaves have spread across India and the global cricketing world, largely due to the enormous revenue generated by a Pakistan–India clash.

In modern cricket, certain matches carry more weight than entire tournaments, and a Pakistan–India fixture in the T20 World Cup is far more than just another game. It is regarded as the tournament’s centrepiece.

India’s reaction to Pakistan’s decision is being linked to the match’s estimated commercial value of 500 million dollars (around Rs140 billion).

This figure includes broadcast rights, advertising premiums, sponsorship activations, ticket sales and even legal betting revenues.

The Pakistan–India encounter injects life into the entire tournament. Broadcasters pay premium prices for media rights, while the International Cricket Council uses the revenue to financially support boards that are otherwise unable to generate such income.

For broadcasters, the match is considered a golden goose. Advertising rates during a Pakistan–India game reach extraordinary levels, with a 10-second commercial costing between 2.5 and 4 million Indian rupees (approximately Rs7.6 million to Rs12.2 million in Pakistani currency).

By comparison, matches involving India against other major teams attract significantly lower advertising rates.

The absence of this fixture could fundamentally alter the tournament’s financial structure.

According to Indian media reports, the immediate financial loss will be borne by the rights holders. It is estimated that advertising revenue alone during a Pakistan–India match generates around 3 billion Indian rupees (approximately Rs9.2 billion).

In the event of losses, broadcasters typically seek compensation from the ICC. This could lead not only to reduced revenues for Pakistan and India, but also create serious challenges for the ICC in meeting payments to other full and associate member boards.