7 Ways the Indian Premium League (IPL) Franchises Make Money
- 1. Media Rights The official media sponsor of the IPL for the last decade was Sony India, vivo and then it was Dream 11. ...
- 2. Ticket Sales/Gate Revenue The revenue generated from the sale of tickets for matches forms another major source of income for the IPL franchises. ...
- 3. Merchandising ...
- 4. Selling stake ...
- 5. Sponsorship ...
- 6. Prize Money ...
- 7. Brand value ...
How much revenue do IPL teams get from sponsorship?
Around 20-30 percent of the IPL teams’ revenue is from Sponsorship. Team owners fix the ticket price and if an IPL franchise the home team for a particular match they also get ticket shares. Around 10 percent of the revenue for IPL teams comes from ticket sales.
How does the BCCI make money from IPL?
IPL, being a mixture of Bollywood and cricket, is a source of entertainment for millions. Besides, the BCCI collects hefty revenue by selling the media rights of IPL. In this revenue distribution model, the BCCI gains revenue from broadcasters and online streamers. It then shares this with the teams after deducting its share.
Why do companies invest in the IPL?
The franchise is sold at a large price so corporate will be attracted to invest in various other major components of IPL. When it comes to the Indian Premium League auctions, teams spend crore of rupees just to get the desired players. With the kind of money involved in the league, it is hard to ignore the financial aspect of the game.
How much did Star India pay for IPL broadcasting right?
A stat suggests the fact that Star India purchased the IPL broadcasting right for a mammoth 16,347 crores for the five-year period. Not only that they were able to pay through roughly 60 crores per IPL match.
Are IPL franchises profitable?
Analysts said in the 15th edition of IPL, most of the old franchises are likely to have turned profitable as central revenues (14-15 per cent of compounded annual growth rate (CAGR) over FY2009-22) have grown faster than the costs, particularly player fees.
Which is the most profitable IPL franchise?
It is interesting to note that both MI and CSK are also the two most successful teams of IPL, with a combined nine titles. Two-time IPL champions Kolkata Knight Riders, which are owned by Shah Rukh Khan and Juhi Chawla, have a value of approximately $1.1 billion.
What is the benefit of owning an IPL team?
The home team gets a fixed share of the total tickets sales and all IPL team owners earn money through the sale of tickets. The franchises then have complete rights on the income from gate tickets and passes. Just like any other major sports event, the IPL teams also depend largely on their fans for revenue.
How do IPL title sponsors make money?
How do IPL sponsors make money? The IPL sponsors, like Tata, Dream11, Unacademy, Tata Safari, CRED, Upstox, RuPay, Star Sports, Paytm, and others make money from the amount of advertisement done on their behalf, which helps them: Build credibility. Improve ROI.
Is IPL richer than EPL?
"The IPL generates more revenue than the English Premier League. It makes me feel happy and proud that the sport I love has evolved to become so strong," said Ganguly at India Leadership Council Event while speaking to Deepak Lamba, CEO, Worldwide Media, President, Times Strategic Solutions Limited.
Who is the richest owner in IPL?
Mukesh Ambani is the sole owner of the team. It is no surprise that the team owner is also the second richest sports team owner in the world second only to Steve Balmer owner of Los Angeles Clippers of the NBA.
How do team owners make money?
Sponsorships & Licensing Deals Besides large media contracts and more tangible items like tickets and concessions, professional sports leagues and teams also make a large sum of money by selling companies the rights to sell items that represent their league or team.
How much SRK earn from IPL?
Latest PlayerYearTeamSalary2022Punjab Kings₹ 90,000,0002021Punjab Kings₹ 52,500,000Total₹ 142,500,000
How much does it cost to buy IPL team?
The lowest bid amount was 503 Crores for Rajasthan Royals took over by businessman Raj Kundra. In 2021, Lucknow and Ahmedabad franchises have been sold at a whooping prices of 7090 and 5600 Crores respectively....Cost of All 10 IPL Teams Franchises.FranchiseCost (Crores)Ahmedabad56009 more rows•Nov 11, 2021
How much do IPL sponsors pay?
Vivo had agreed to pay Rs 484 crore for IPL 2022 and Rs 512 crore for IPL 2023 on account of increase in the number of matches during the two forthcoming seasons. VIVO was supposed to pay Rs 996 crore to the BCCI over next two seasons.
How much vivo earn from IPL?
BCCI had a deal with VIVO till 2023 earning them Rs 440 crore (INR 4.4 billion) per season, however, TATA will be paying the Indian board only Rs 335 (INR 3.35 billion) per season.
How much did cred spend on IPL?
Cred's employee expenses were Rs 72.8 crore in FY20. Other expenses, including marketing, touched Rs 418 crore in FY21, up 43% from Rs 237.2 crore in FY20. This was because of spending on marketing during the Indian Premier League (IPL) during FY21, as well as advertising campaigns during the IPL season.
Who is most successful IPL captain?
Rohit SharmaMumbai Indians's Rohit Sharma is the most successful captain in the IPL with 5 title wins.
Who is most top in table top in IPL?
IPL 2022 Points Table. With 217 points, Mumbai Indians (MI) is at the top position of all IPL points table. MI has played 186 league matches and won 108 matches in 13 IPL league stages completed so far. Mumbai Indians is the only team to win 100 league matches in the Indian premier league.
Who is owner of Gujarat Titans?
CVC Capital Partners, a British private equity and investment advisory firm, won the rights to operate the Ahmedabad franchise with a bid of ₹5,625 crore (US$700 million). CVC Capital Partners has won the Ahmedabad franchise in the auction that was held in Dubai in October 2021.
Who is the owner of IPL team RCB?
United SpiritsRoyal Challengers Bangalore / OwnerUnited Spirits Limited, abbreviated to USL, is an Indian alcoholic beverages company, and the world's second-largest spirits company by volume. It is a subsidiary of Diageo, and headquartered at UB Tower in Bangalore, Karnataka. USL exports its products to over 37 countries. Wikipedia
What is the brand value of IPL 2022?
The brand value of IPL has last recorded a growth of 7% to reach $4.7 billion in 2021, as of February 2022.
Who is king of IPL?
Mahendra Singh Dhoni is known as King of the IPL Teams. He is also referred to as the Baap of the IPL Teams, and the King of the IPL Captains. It i...
What is IPL merchandise?
The IPL merchandise including IPL and team t-shirts, key rings, jerseys, polo t-shirts, mobile covers, chargers, caps, joggers, coasters, wrist ban...
What do IPL teams cost?
The cost of IPL teams are all in 3-digit crores.
What is the IPL revenue?
Though the exact figures of the IPL revenue couldn't be determined, it has been concluded that the IPL revenue contributes to 40% of the global rev...
What is the IPL business model?
The IPL business model revolves around the acquisition of players and teams, advertising, merchandising, sponsorship, fantasy gaming, and more. The...
Which is the oldest IPL team?
MS Dhoni-led Chennai Super Kings (CSK) had the oldest players in their team while Rajasthan Royals (RR) had the youngest team playing in the IPL 20...
Which is no. 1 successful team in IPL?
MI is the most successful team in the league's history with 5 IPL titles to their name, while CSK is the second most successful IPL team, which has...
How do IPL teams make money?
How IPL teams make money. We often see IPL players being cast for brand sponsorship. During the IPL season, the sponsorships increase. It is because IPL teams generate a large percentage of their revenue through brand sponsorship. All franchises which partner with brands, sign contracts agreeing to endorse their logos on their kits.
What do IPL teams sell?
The IPL teams also sell merchandise like T-shirts, caps, kits and wristwatches of all teams which can also be a form of revenue.
How does BCCI make money?
The BCCI collects colossal revenues by selling the media rights of IPL. With this revenue model, the BCCI gains revenue from broadcasters and online streamers, and after it deducts its share from the revenue it shares it with the teams after deducting its share. The final winning team which has the highest ranks at the end of all matches gets the highest amount. According to Business Insider around 60-70 percent of all revenue earned by IPL teams is generated through media rights.
Why is the IPL business model not dependent on ticket sales?
It is because of this reason that IPL teams can buy players for millions and yet be profitable.
What is the IPL business model?
The core of IPL's business model is the idea of inviting private firms to own franchises. When the franchise rights are sold at soaring prices, investing firms saw the value of investing in IPL. By selling off the franchise rights IPL was able to create money.
Do IPL matches continue?
Nevertheless, the matches continue to take place without any hindrance. Ever wondered how the IPL franchises make money if the tickets are not being sold? Here is all you need to know about how IPL franchises make money.
Can IPL tournament franchises make money?
They make sure that there are various other outlets from which they can generate money to sustain themselves. IPL tournament franchise has developed as a valuable commercial property. It offers firms the opportunity to market and extensively advertise their businesses. And with this they can easily earn money and continue the IPL.
What is the business plan of the IPL?
The major business plan of the IPL is to invite private companies to buy cricket franchises. The franchise is sold at a large price so corporate will be attracted to invest in various other major components of IPL. When it comes to the Indian Premium League auctions, teams spend crore of rupees just to get the desired players.
How much did the IPL contribute to the Indian economy in 2015?
According to BCCI the 2015 IPL season contributed ₹11. Billion to the GDP of the Indian Economy. The viewership of IPL in 2019 was a record of 31% to 219 million and has only increased this year because the Dream 11 IPL is now being played behind the door due the Covid Pandemic.
Why is winning an IPL important?
Winning IPL or even making it to the Playoffs helps IPL franchises to boost their brand values. This, in turn, helps in easily get brands on board – at prices that the owners demand. Note that MI, CSK, and KKR, all of whom have won IPL more than once, top the Brand value.
How does BCCI get money?
The BCCI gets a substantial amount from broadcaster and online streamers. On the basis of IPL team ranking, this amount is distributed among all IPL teams after deducting their fees. Media rights are another way of earning for IPL franchises. In fact they are IPL brand biggest financial contributors.
How many home matches are there in the IPL?
The revenue generated from the sale of tickets for matches forms another major source of income for the IPL franchises. Each franchises is entitled to a minimum of 7 home matches which gives them a fair opportunity to generate money. The ticket revenue share in the IPL team revenue is around 10%. The home team gets a fixed share of the total tickets sales and all IPL team owners earn money through the sale of tickets.
What is the real source of income in the Indian Premium League?
The sponsors are the real source of income in the Indian Premium League. All the teams of IPL have sponsors for everything, there are main sponsor, a jersey sponsor and even a sleeve sponsor which are the main source of income. The team’s tie-up with organizations to promote brands in return of the exorbitant amount of money.
What is the 13th edition of IPL?
The 13th edition of the Indian Premium League ( IPL) has commenced and so has the cricket frenzy and the trilling action-drama on the field. The Twenty20 Cricket league allows the best cricket players around the world are gives a chance to represent their talent. The major business plan of the IPL is to invite private companies to buy cricket ...
How IPL Franchise Owners make Money- Broadcasting Rights
The constant and fixed income of source for All Franchise owners is Media Rights. The IPL Team owners earn more than half of their revenue through this mode. This is the biggest revenue source for most of the IPL teams.
How IPL Franchise Owners make Money- Ticket Sales
IPL Franchise owners hold a major portion of the income generated from selling IPL game tickets. As per the report, IPL Franchise owners generate around 10% of their total revenue from IPL by Ticket sales. They have all rights regarding setting the price of the ticket. Each IPL team is entitled to host a minimum of 7 home matches.
How IPL Franchise Owners make Money- Sponsorship
Through sponsorship IPL Franchise owners also collect revenue. The revenue generated from the Title sponsor is divided among IPL Teams. Currently, Vivo is the IPL title sponsor. Vivo had signed five years contract between 2018 to 2022 for a whopping amount of Rs.2199 crore.
How IPL Franchise Owners make Money- Merchandising
Over the years, IPL Franchise owners earning a significant amount by selling Merchandise. The merchandise includes sports equipment, replica jersey, cap, wristwatches, etc. Apart from selling Merchandise, IPL teams are tie-up for brands like Kolkata Knight Riders tie-up with Wrogn for their merchandise.
How IPL Franchise Owners make Money- Prize Money
Prize Money also a source of income for IPL teams. The team which wins the IPL title gets the largest share. The remaining amount is divided among other teams as per their standing in the points table. The Prize Money was reduced in the last season due to Covid-19.
What do IPL teams sell?
The IPL teams also sell merchandise like T-shirts, caps, kits and wristwatches of all teams which can also be a form of revenue.
Why do IPL players get sponsorship?
During the IPL season, the sponsorships increase. It is because IPL teams generate a large percentage of their revenue through brand sponsorship. All franchises which partner with brands, sign contracts agreeing to endorse their logos on their kits. Around 20-30 percent of the IPL teams’ revenue is from Sponsorship.
How does BCCI make money?
The BCCI collects colossal revenues by selling the media rights of IPL. With this revenue model, the BCCI gains revenue from broadcasters and online streamers, and after it deducts its share from the revenue it shares it with the teams after deducting its share. The final winning team which has the highest ranks at the end of all matches gets the highest amount. According to Business Insider around 60-70 percent of all revenue earned by IPL teams is generated through media rights.
Why is the IPL business model not dependent on ticket sales?
It is because of this reason that IPL teams can buy players for millions and yet be profitable.
What is the IPL business model?
The core of IPL's business model is the idea of inviting private firms to own franchises. When the franchise rights are sold at soaring prices, investing firms saw the value of investing in IPL. By selling off the franchise rights IPL was able to create money.
Do IPL matches continue?
Nevertheless, the matches continue to take place without any hindrance. Ever wondered how the IPL franchises make money if the tickets are not being sold? Here is all you need to know about how IPL franchises make money.
Does IPL depend on selling tickets?
A robust business model like IPL does not depend only on selling of tickets. They make sure that there are various other outlets from which they can generate money to sustain themselves. IPL tournament franchise has developed as a valuable commercial property. It offers firms the opportunity to market and extensively advertise their businesses. And with this they can easily earn money and continue the IPL.
1. MEDIA RIGHTS
BCCI earns a lot of revenue from the media rights which it sells to the broadcasters. If we remember in 2017, Star India brought IPL broadcasting rights for 5 years by spending 16,347 crores. This translates to roughly 60 crores per IPL match. BCCI shares these media rights with all 8 teams. (now they will share with 10 teams)
2.TITLE SPONSORSHIP
The total amount collected by the IPL commission or the BCCI from the sponsorships of the IPL, for example, the VIVO or Dream 11. Then this amount has to go to a central pool, and then a mutually agreed percentage gets divided among all the franchises.
4. MERCHANDISING
This is a very fruitful resource for the IPL team owners also. They get a significant amount of income from this as well. The merchandising includes the sale of jersey copies, some of the sports mementos, kits, caps, T-shirts of all the teams! They are genuinely sold in a very wide range.
5. IPL PRIZE MONEY
IPL prize money is also another way by which the IPL franchises earn money. The teams are given prize money according to the rank they get in the points table. In VIVO IPL 2021, CSK won the IPL title, and they received 20 crores.
6. BRAND VALUE
The brand value of IPL teams also plays a major role in how IPL franchises make money. The team which has a lot of star players attracts a lot of brand value.
7. SELLING STAKE
The IPL franchises also make a lot of money by just selling stakes in the team. A very recent example is Delhi Capitals. This IPL franchise was formed in the year 2008 for 84 million USD by the GMR group. In the year 2018, Jindal South West (JSW) brought a 50% stake in the team for 77 million USD.