Introduction
The U.S. cricket market is expanding, driven by global events and the rise of Major League Cricket (MLC). With growing intere st, acquiring a stake in the San Francisco
Unicorns presents a strategic opportunity for a private equity firm to enter this emergi ng market. This assessment explores the potential investment by analysing market
size, unit economics, revenue growth, and strategic factors.
Market Size
1. Current Market Size - The U.S. cricket market is set to generate USD 2.28 billion in 2024, growing at a CAGR of 3.21% to reach USD 2.67 billion by 2029.
2. North American Cricket Revenue: Specifically, in North America, the cricket market revenue is projected to be around $95.62 million in 2024, with an annual
growth rate of 1.87% from 2024 to 2029 .
[1]
3. Viewership- Major League Cricket (MLC) viewership is growing, fueled by events like the 2024 Cricket World Cup and 2028 Olympics. In its first season, MLC
reached over 3.7 million viewers, with 70,000 attending live, generating $2.8 million in ticket sales. Estimates suggest viewership could hit 20-30 million by season
three, driven by rising domestic and international interest.[3][4]
4. Sponsorship Revenue- Given the IPL's $600 million sponsorship revenue in 2022, MLC should target $50 to $100 million by 2029, reflecting its poten tial to capture
a significant sponsorship market share as it grows.
5. Merchandise Sales- Cricket merchandise sales in the U.S. could potentially cross $30 -40 million by the end of 2024.
US Cricket Market Size
2.8 2029(USD Billion)
2.6
2.4
2.2
2
2024 2025 2026 2027 2028 2029
Unit Economics
Revenue Ticket Sales: Predicted to generate USD 10-15 million annually, with an increase driven by improved attendance.
Streams
Broadcast Rights: Deals with major networks could yield USD 50-70 million per season.
Sponsorships: Sponsorship deals are likely to bring in USD 20-30 million.
Merchandise Sales: Estimated at USD 5-10 million, boosted by brand and fan base growth
Cost Player Salaries: Expected to be the largest expense, around 40% of total costs, influenced by player performance and market dynamics.
Drivers the average salaries lies between $100,000 to $1 million per player.[5]
Operating Expenses: Stadium maintenance, travel, and logistics could total USD 5-10 million annually.
Marketing Costs: Projected at USD 5-7 million, critical for brand and fan engagement growth.
Revenue Streams (USD
Millions)
Ticket Sales
Brodcasting
Rights
Sponsorships
Merchandise
sales
Baseline Improved team performance could boost ticket sales by 20% annually.
Assumptions
Increased fan engagement through digital channels can increase merchandise revenue by 15%.
New sponsorship deals and media rights renegotiations could add USD 10 -15 million in annual revenue.
Scenario Optimistic Case : Revenue growth at 12-15% annually, reaching USD 200 million by 2029.
Analysis
Base Case: Moderate growth at 8-10%, reaching USD 160 million by 2029.
Pessimistic Case : Low growth due to economic downturns or poor performance, 4 -5%, USD 120 million
by 2029.
Investment Strategy
Short-Term (1-3 years) Mid-Term (3-7 years) Long-Term (7+ years)
Focus: Capitalize on MLC’s rapid growth; viewership Growth Strategy: Optimize ticket sales (target $10-$15 Exit Plan: Explore strategic sale or IPO,
expected to hit 20-30 million by season three due to events million annually) and expand digital avenues like leveraging MLC’s projected market valuation
like the Cricket World Cup and upcoming 2028 Olympics fantasy leagues to increase fan engagement growth. MLC is expected to contribute
(MoneySite) (MoneySite) significantly to the $2.67 billion U.S. cricket
. .
market by 2029, up from $2.28 billion in 2024
(MoneySite)
Revenue Goals: Secure sponsorships worth $50-$100 Partnerships: Form strategic alliances with tech and
.
million and broadcast rights projected at $50-$70 million media companies for enhanced monetization of fan
per season(MoneySite) data and digital content. Diversification: Expand into digital rights,
.
international matches, and branded content to
Risk Mitigation: Use scenario analysis with expected
boost revenues further and enhance long-term
CapEx: Invest $25-$30 million in stadium enhancements growth rates from 4% (pessimistic) to 15%
valuations.
and digital fan engagement platforms to drive ticket and (optimistic), adjusting strategies based on performance
(Major League Cricket)
merchandise sales (Major League Cricket)
. .
Qualitative Factors
1. Brand Value: Teams like the San Francisco Unicorns benefit from strategic locations with significant South Asian communities.
2. Fan Base Loyalty: Engages 6+ million South Asian, Caribbean, and British expats in the U.S., with 70,000 attending games and 3.7 million viewer s
in the first season.
3. Synergies: Cross-promotions with U.S. sports leagues boost viewership by 10-15%, leveraging networks like MLS and NFL.
4. Event-Driven Growth: Cricket’s inclusion in the 2024 World Cup and 2028 Olympics is expected to draw over 100 million global viewer s.
5. Digital Engagement: Digital platforms can boost fan interaction by 20 -30%, driving merchandise sales and viewership.
6. Strategic Location: Hosting in cities like Dallas and New York increases attendance by 15 -20%, tapping into existing cricket-friendly markets.
Appendix: Thought Process and Assumptions (With Sources)
A. Assumptions for Revenue Projections
1. Improved team performance and enhanced fan experiences are expected to increase ticket sales by 20% annually.
o Source: Studies on fan engagement in sports show that improved team performance directly correlates with increased ticket sales. Fo r
example, data from the NBA and NFL reveal a ticket sales surge following team success in major leagues. (Source: Sports Business Journal,
2023; "Impact of Team Performance on Ticket Sales")
2. Increased fan engagement through digital channels could lead to a 15% boost in merchandise revenue.
o Source: Research from Nielsen Sports highlights that digital fan engagement, including social media and interactive online experien ces, has
been a key driver in increasing merchandise sales across major sports leagues. Similar patterns have been observed in EPL and IPL fan
engagement models. (Source: Nielsen Sports, 2024; "Digital Engagement and Merchandise Sales in Sports")
3. New sponsorship deals and media rights renegotiations are expected to add USD 10 -15 million in annual revenue.
o Source: Data from Deloitte’s Annual Sports Market Analysis indicates that media rights renegotiations can significantly impact reve nue
growth, as seen in recent deals in sports leagues like the NBA and EPL. MLC’s projected media rights growth aligns with these market
trends. (Source: Deloitte Sports Market Analysis, 2024; "The Impact of Media Rights on Revenue Growth in Sports")
B. Sources and Data Credibility
1. Viewership and market size projections are based on data from MLC and comparable market data from the Indian Premier League ( IPL)
reports.
o Source: MLC Official Website provides comprehensive data on viewership trends and market growth projections. Additionally, IPL reve nue
and viewership reports are used as benchmarks for assessing MLC’s potential. (Source: MLC Official Website, 2024; IPL Revenue Reports,
2023)
2. Revenue projections for broadcasting rights and sponsorships are influenced by historical data from established cricket leagu es and adapted to
the U.S. market dynamics.
o Source: Comparative analysis with IPL’s broadcasting deals, as detailed by KPMG Sports Advisory, provides insights into sponsorship
revenue growth potential for emerging leagues like MLC. (Source: KPMG Sports Advisory, 2024; "Broadcast Rights Valuation in Cricket
Leagues")
C. Scenario Analysis Methodology
1. The optimistic, base, and pessimistic cases were derived using historical growth data from similar sports markets, adjusted for market
conditions specific to North America.
Source: PwC’s Sports Outlook Report outlines various growth scenarios based on historical data and market conditions. These scenari os were adapted to fit
MLC’s unique market position in North America. (Source: PwC Sports Outlook, 2024; "Growth Scenarios in Emerging Sports Markets"
D. Qualitative factor(respectively for the points)
1. Source: Bay Area’s population includes over 7.7 million residents, with a strong South Asian presence. U.S. Census Bureau
2. Source: MLC Viewership and Attendance Data, 2023 Season. Major League Cricket
3. Source: Case studies of MLS and NFL cross-promotions, Sports Business Journal.
4. Source: Projections for Olympic and World Cup audiences, IOC and ICC.
5. Source: Data on sports fan engagement, Nielsen Sports.
6. Source: Market analysis reports on U.S. sports infrastructure, Statista and PwC.
SOURCES: MLC and Viewership Projections: MLC Official Website
Comparable Market Data: Indian Premier League Revenue Reports
Market Size and Revenue Data: Statista
