Cricket making millions in South Africa

The SA20 cricket tournament has become a financial lifeline for South African cricket, generating nearly R60 million in annual revenue for Cricket South Africa through packed stadiums, global broadcasts, and strategic fan engagement initiatives.

The SA20 cricket tournament, now in its third year, has become a major event on South Africa’s sporting calendar. 

Despite cricket’s long history, it’s been revitalising stadiums across the country, with formats like Test cricket regaining popularity and competitions like the SA20 featuring international stars.

On The Money Show with Stephen Grootes, Kelvin Watt Nielsen, Sports Africa Middle East Head, noted the rapid rise of the tournament’s popularity.

When SA20 launched a few years ago, many were surprised by how quickly it captured attention. Nielsen attributed this success to the perfect blend of sport and entertainment at the right time of year.

Aside from filling stadiums, the game is also managing to attract broadcast viewers. 

He said last year’s tournament, the second season, was a crucial test of its staying power, which it passed with flying colours – it achieved 12 full stadiums, including a sold-out final.

On the global stage, the SA20 has secured significant reach, with broadcasts in key markets such as India, the UK, the US, and Australia. Viewership increased by 21% globally and by 24% in South Africa. 

Notably, 46% of South African viewers were women, “which is really positive for the game, and I think just an indication that they’re getting that mix of sport, of entertainment and everything in between.”

According to Nielsen, SA20’s 3-hour format has contributed to its popularity in South Africa.

He explained that it makes a great evening event or a great precursor to a night out for younger people. 

Because it’s simpler to fit into people’s schedules, it also makes it easier for people to bring their families along to the games. 

“Everyone that’s interested in sport and entertainment just loves it.”

“They’ve really got that mix of everything right, and, importantly, their commercial partners have played along with them in that respect,” Nielsen said.  

The Betway-sponsored “R2 Million Catch” activation, which began as a R1 million prize, has become a fan-favourite phenomenon. 

“They haven’t gotten bored of that activation because certainly, the fans haven’t, the viewers haven’t, and people love to be engaged in the game.”

“That’s the one thing that SA20 seems to be getting right, in that it brings the fan base into the game.”

“It’s not just about sitting back and watching – it brings the people into the evening and makes them part of the entertainment.”

The SA20 has also introduced some other clever innovations, including a standout promotion where tickets for the first home game of the season are priced at just R20. 

This initiative has proven hugely popular, with many fans snapping up as many tickets as they can.

“They’ve been very clever,” Nielsen said. “The team that is running SA20 have really done their homework.”

“They know that South Africans come out of December mostly financially on the backfoot.”

“People have spent a lot of money in December, and they’ve been very clever in making sure that they ease the people into that sort of first part of the tournament.” 

South Africans who get paid on the 25th are navigating a 49-day pay gap this January, which has stretched a lot of people very thin. 

“That just shows you that they’re a business that really understands what they’re about.”

“They understand their customers and they make sure that they meet those customers halfway in giving them what is what must be the best value entertainment out there.”

This approach also generates excitement early on. Packed stadiums for the opening matches, like those in Port Elizabeth and Durban, create an electric atmosphere. 

The frequency of games being broadcast also helps to support this model and build excitement around the games.

“There’s a lot more people at home for the majority of January and I think having this great entertainment on most nights of the week really is a benefit to the Betway SA20 as a tournament and as a viewership property,” Nielsen explained.

“I think they’ve they’ve got that model quite right. They’ve thought about it and that really allows people to those cheaper tickets upfront, get people into the stadiums.” 

“But for the vast majority of people who can’t necessarily be there, they can watch it on the broadcast, and it gives them a great deal of entertainment ”

The SA20 is critical for South African cricket financially. Last year, it contributed nearly R60 million in revenue to Cricket South Africa. 

This steady income is vital as the Test cricket schedule over the next four years faces challenges, with fewer lucrative tours from India, Australia, and England.

“This SA20 just means that there’s a domestic cricket format that’s contributing to the coffers of Cricket South Africa significantly each year,” Nielsen added.  

“That’s just so important for the game, so important for the sports industry, for stadiums, for the hotels, the travel industry, everything else that benefits from SA20.”