Cricket’s financial test: Tax and the business of modern play

As England gets ready to face Australia in another eagerly awaited Ashes series, cricket fans are looking forward to days of skill, tension and tradition. Test cricket still holds a special place in the sport, but behind the scenes the financial picture is changing fast, with the shorter, faster versions increasingly driving the money. For players, investors and clubs, the way cricket generates income is evolving, and so too are the tax and financial questions that come with it.

In this article, we’ll look at how each format of the game, from five-day Tests to the booming T20 leagues and The Hundred, earns its money and rewards its players. We’ll explore what that means for cricketers’ tax planning, career choices and long-term finances, and how investors and franchise owners are thinking about value, risk and the future of the sport.

The changing formats of wealth

Test cricket is the game’s spiritual and historical anchor. Accounting for roughly 40% of all playing days worldwide, it’s still the format that defines a player’s legacy. Still, it only contributes around 15% of global cricket revenues.^[1] The economics are unforgiving: the logistical costs of hosting multi-day matches are high, and ticket sales, broadcasting rights and sponsorships rarely match the eye-watering sums commanded by shorter formats. For smaller cricketing nations, the model is verging on unsustainable, even as their most gifted players are courted by lucrative franchise leagues abroad.

One-day internationals, which were the commercial powerhouse of the 1990s and early 2000s, now find themselves awkwardly positioned between nostalgia and obsolescence. With the rise of the T20 revolution and the ECB’s own experiment with The Hundred, the ODI calendar is being squeezed. Players, boards and broadcasters are questioning whether there is still time to fit 50-over cricket into an already congested global schedule.

T20, by contrast, has redefined the economics of the sport. The Indian Premier League (IPL) stands as cricket’s most lucrative enterprise, its franchises drawing colossal revenues from sponsorship, media rights and merchandise. Player salaries can reach several million pounds for a few weeks’ work, dwarfing national board contracts.^[2] The franchise model, replicated in Australia, the Caribbean and the Gulf, has created a quasi-global market for cricketing talent, with players increasingly acting as independent contractors rather than national employees.

The Hundred, meanwhile, is cricket’s latest commercial frontier. Designed to attract a younger, more digitally native audience, its eight franchises were collectively valued at £975 million when the England and Wales Cricket Board (ECB) sold stakes earlier this year.^[3] Investors have been quick to spot a long-term opportunity: short-format cricket offers scalability, brand visibility and year-round digital engagement. But for players, it also raises questions of financial planning, tax residency and long-term stability in a game now defined by short contracts and shifting loyalties.

For the players: income, taxes and time

The modern cricketer’s earnings portfolio is increasingly complex. Beyond central contracts, players derive income from franchise tournaments, endorsements, performance bonuses and digital content partnerships. For top-tier professionals, these revenue streams can cross multiple jurisdictions, each with its own tax regime. A player representing their country in England one month, a franchise in India the next, followed by a short stint in the UAE, will face overlapping tax obligations, double taxation risks and challenging residency questions.

Effective cross-border tax planning is therefore essential. With differing definitions of tax residency, withholding taxes on appearance fees and image rights, and the increasing use of personal service companies, specialist advice is key. The UK’s “temporary non-residence” rules, for example, can complicate earnings repatriation for those who spend extended periods playing abroad.

Career longevity compounds the challenge. Few professional cricketers play beyond their mid-thirties, and injury can end a career overnight. Structuring earnings to balance immediate cash flow with long-term savings via pensions, ISAs or international retirement contracts can help preserve wealth. By diversifying investments, both geographically and across asset classes, players can protect themselves against volatility in both form and fortune.

For investors: cricket as an asset class

The investment landscape of cricket is also evolving. Revenue streams have diversified well beyond ticket sales, with broadcast rights now forming the bulk of commercial value. Sponsorships, digital partnerships and global fan engagement platforms are increasingly central to valuations. The ECB’s success with The Hundred franchise sales mirrors similar trends in India and the US, where media conglomerates and private equity funds are betting on cricket’s growing global footprint.

But as with all sports investments, the risks are nuanced. Popularity fluctuates by format, and regulatory structures can shift with changes in national boards or ICC policy. The long-term value of a franchise depends as much on its brand equity and community engagement as on match-day revenues. For investors, it’s important to understand the interplay between tax-efficient structuring, ownership rules and exit strategy, whether via resale, merger or even a future public offering.

Balancing bat and balance sheet

Cricket today sits at a fascinating crossroads: it’s a game rooted in tradition, yet increasingly driven by commercial innovation. Test matches may still capture the heart, but it’s the shorter formats that capture the wallet. For players, the opportunities have never been greater, but neither have the tax and financial complexities. And for investors, the game offers both passion and profit, as long as the innings is played with patience and precision.

As the next Test begins, fans will debate batting orders and field placements. But behind the scenes, expert sports accountants, advisors and investors are engaged in their own contest of strategy, structure and financial acumen. Because today’s game is played as much on the balance sheet as it is on the pitch.

References

^[1] Cricket Mates, “Can Test Cricket Survive Financially?” https://www.cricketmates.co.uk/is-test-cricket-financially-sustainable (accessed 6/11/2025)

^[2] IPL Star, “How much do IPL players earn in 2025?” https://iplstar.in/how-much-do-ipl-players-earn/ (accessed 6/11/2025)

^[3] My News Desk, Bidders enter exclusivity period to become partners in The Hundred teams, https://www.mynewsdesk.com/uk/england-and-wales-cricket-board/pressreleases/bidders-enter-exclusivity-period-to-become-partners-in-the-hundred-teams-3369685? (accessed 6/11/2025)

We always recommend that you seek advice from a suitably qualified adviser before taking any action. The information in this article only serves as a guide and no responsibility for loss occasioned by any person acting or refraining from action as a result of this material can be accepted by the authors or the firm.

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