Lucrative cricket business
PUBLISHED : 12 Apr 2011 15:53:28 | Andrew Heathcote
The elevation of Michael Clarke to the position of Australia’s cricket captain will elevate him into the upper echelon of the nation’s highest paid sports stars.
On BRW’s Top 50 Sports Earners list for 2010, which was published in December last year, Clarke had an estimated gross salary of $2.2 million. The only higher paid cricketer was the man he is replacing, Ricky Ponting, who was in eighth spot on the list with an estimated gross salary of $3.9 million. (In first place was Formula One car racing driver Mark Webber with $13.4 million.) Expect Clarke to take over from Ponting by the end of next summer’s season.
It has been said that the job as Test cricket captain is the second most important in the country (after the Prime Minister’s). While only the keenest of cricket fans could still claim to believe this today, it is one of the best paying (and more lucrative than the Prime Minister’s).
Australian cricketers earn their money in three main ways. The first is for the time they spend on the field. Players earn match fees and prizemoney. Not surprisingly, the best players have the best deals. The top five players got an average retainer of $1.5 million for the 2010/2011 season.
The second is for group marketing, which is closely controlled by cricket’s governing body, Cricket Australia. Unlike in many sports, Cricket Australia retains tight control over some of the biggest relationships cricketers have with advertisers.
Third, cricketers are able to sign personal deals. These typically are available only to the top few. These deals can have the added benefit of continuing after a cricketer retires (as former captain Mark Taylor has managed with Fujitsu).
Contrary to some reports, Australia’s best cricketers earn more money from their local contracts and endorsements than they do in the Indian Premier League. This is despite the IPL being extremely lucrative given its short duration; six week contracts of $1 million are common.
The biggest earners in Indian cricket remain Indians and their value to advertisers has increased since their recent World Cup win. Captain MS Dhoni’s fee for each annual endorsement is reported to be more than $2 million.
BRW
Andrew Heathcote
Rich lists editorMelbourne
Andrew Heathcote began his career as a reporter at Fairfax in 2001. He has since gained considerable experience in business journalism and has tackled several key rounds including the energy and financial services sectors. Andrew has also worked for market-leaders in the commercial sector in the financial and professional services industries.
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