Survey reveals CPL economic success
Growth in sponsorship and investment in the 2016 Hero CPLT20 – the first to feature Republic Bank, the Caribbean’s largest indigenous banking group, as the Official Banking Partner – has spurred expectations of another CPL economic success.
The spin-offs from this kind of healthy home-based sponsorship support suggest that Caribbean host nation economies can celebrate with the Jamaica Tallawahs as collective winners of the 2016 Hero Caribbean Premier League (CPLT20) cricket competition.
Already, in advance of the release of economic statistics from the recent third edition of the Hero CPL T20, close examination of the trend set by its predecessors in 2014 and 2015 is reason for optimism. This is good news for host country economies also including Barbados, St Lucia, Trinidad, St Kitts, and Guyana.
The positive growth trend is evidenced in a just released Economic Return on Investment Report on Hero CPLT20 2015, researched and prepared by SMG INSIGHT, an independent agency providing research and consulting solutions to world-leading sports governing bodies like the CPL.
The SMG INSIGHT report finds significant year on year increases for 2015 over 2014 in three key areas of economic measurement, including direct spend, incremental spend, and media value from Hero CPLT20. These increases, it says, led to an overall 47.4 per cent jump in the total direct impact of Hero CPLT20 on host nation economies from US$36.28 million in 2014 to US$53.49 million in 2015. The report further notes that “in 2015, organiser spend for Hero CPLT20 (e.g. spend on hotels, local travel, and grassroots cricket development, etc.) was
US$9.58 M, an increase of 39 per cent from the 2014 figure of US$6.90 M”. It notes that this clearly shows the increased investment of CPL into the host nation local economies.
As the Caribbean’s largest indigenous banking group and a key contributor to the health of Caribbean economies, Republic Bank was announced in 2015 as the official Bank of Hero CPLT20. The regional Bank will therefore certainly be among stakeholders heartened by the release of the encouraging economic data. Speaking at the time of the sponsorship announcement, President of Republic Financial Holdings Limited and Managing Director of Republic Bank Limited Nigel Baptiste outlined a vision of regional unity for the creation of both tangible and intangible benefits.
Baptiste stated: “Republic Bank is honoured, as the Caribbean’s largest indigenous banking group, to partner with the Caribbean Premier League in bringing the Region’s largest sport entertainment event to cricket fans everywhere . . . Our hope is that, through this League, there will be deeper integration and collaboration between the leading minds and organisations across the Region, resulting in both the tangible and intangible benefits that can come from being parts of a larger whole. What better way to start that unification, than through the time-honoured and globally treasured sport of Cricket.”
In terms of those tangible benefits, direct spend from Hero CPLT20 including sponsors’ contributions was led by Trinidad and Tobago in 2015. The twin-island Republic contributed US$3.84 M, an increase of 132 per cent over 2014. Jamaica contributed US$2.4 M for a 144 per cent increase over 2014, followed by Barbados’ US$1.86 M, an increase of 63 per cent on 2014. All host countries recorded increases in both direct and incremental spend in 2015.
Barbados’ contribution to incremental spend in 2015 was 2.78 million, a 79 per cent increase over 2014, and the second largest percentage jump behind Trinidad and Tobago, where incremental spend of US$5.63 million in 2015 accounted for a 182 per cent increase over 2014. Additionally, percentage growth in the regional travel and tourism sector as a result of Hero CPLT20 was projected at four per cent in 2015.
This is the kind of growth referenced by Baptiste when he stated: “This partnership has given us the opportunity to not only augment our focus on building successful societies, both locally and regionally, but to also help provide the economic and environmental benefits of tourism – a sector that is critical to the development of many of our Caribbean countries.”
Given the apparent success and popularity of this year’s Tournament, Baptiste’s words should ring even more true when the Economic Return on Investment Report for is Hero CPLT20 2016 is released.