Digicel contract worth US$26.4M

IN A JOINT statement released yesterday, Digicel and the West Indies Cricket Board gave a breakdown for the amounts paid to the board by the mobile telecommunications provider for their five-year contract. In addition to the US$19.75 million, the statement says that an additional sum of up to US$6.65 million is allocated for player incentives. As reported by Simon Crosskill a brokerage company will receive ten percent of the possible US$26.4 million total, covering a five-year period. The full text of the statement follows:

The West Indies Cricket Board and Digicel wish to clarify the issue surrounding Digicel sponsorship fees paid to the WICB. Apart from the West Indies Team and Title sponsorship for home and away series, the agreement covers sponsorship of the West Indies “A” Team and funds towards the development of cricket players and the game throughout the West Indies. The following breakdown details the fees to be paid to the Board, the potential incentive earnings for the team based on success, and the investment in cricket across the region.

Contractual Payments to the Board:
Funds totalling US$19.75 million will be paid to the board over the five-year term of the contract to include: Sponsorship Rights Fees: US$18.75M; Youth Development Programmes: US$ 1.00M;

Total: US$ 19.75M
The Sponsorship Rights Fees covers sponsorship of the senior team and “A” team for both home and away series as well as event sponsor for the Home Series. Additional contractual Payments to Team based on Incentives/bonuses Team incentives/Player bonuses based on estimates on the maximum attainable amount and the ICC Future Tours Programme scheduled over the term of the contract: Total— US$ 6.65M

Based on international standards for negotiating similar sponsorships, a ten percent brokerage fee is due to the ISM agency on all payments made to the WICB. The Master Sponsorship Agreement between Digicel and the WICB has given the Board the opportunity to substantially fund the overall development of cricket, which is its mandate. For the first time, sponsorship of this nature goes beyond the international team and channels right through to the level of youth cricket, assisting the needed preparation of a future generation of cricketers.