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 do IPL teams generate revenue?
IPL teams generate a large percentage of their revenue through brand sponsorship. Franchises partner with brands and offer them visibility by endorsing their logos on their kits. The more visibility the sponsors want, the more money they spend. Sponsorship revenues form around 20-30 per cent of revenue for the IPL teams.
How do IPL teams get sponsorships?
According to Business Insider around 60-70 percent of all revenue earned by IPL teams is generated through media rights. We often see IPL players being cast for brand sponsorship. During the IPL season, the sponsorships increase.
How much money do the winners of IPL finals get?
In the year of 2019, the winners got 25 crores, the runner up got 12.5 crore, the third place in the playoffs was 10.5 crores, the fourth place in the playoffs got 8.5 crores. 7. Brand value
How much does the BCCI pay for IPL broadcasting rights?
Then the Star India broke the bank in 2017 to buy IPL broadcasting rights for a massive ₹16,347 crores. Each match of the IPL made ₹54.5 crores, while the latest bid in BCCI media rights auction stands at ₹60.32 billion which amounts to ₹591 million per match.
How do IPL team owners make money?
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.
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.
Do IPL teams make profit?
Franchises get a guaranteed 40-50% revenue share (share of ₹48,000 crore for the next cycle) from IPL's central contract revenue pool. The final winning team of the season walks home with the biggest share of BCCI profits.
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.
Which IPL franchise is in loss?
List of Teams With Most Losses In IPLTeamMatchesWonPunjab Kings21898Royal Challengers Bangalore227107Kolkata Knight Riders223113Mumbai Indians2311294 more rows
Who is most successful IPL captain?
Rohit SharmaMumbai Indians's Rohit Sharma is the most successful captain in the IPL with 5 title wins.
Is Mumbai Indians profitable?
The profit of the company was around 289 million Indian rupees in financial year 2021, a significant decrease from the previous financial year....CharacteristicNet profit in million Indian rupees--5 more rows•Apr 25, 2022
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.
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...
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 ...
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.
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.
Here We Discuss How IPL Franchises/Team Owners Make Money
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) Also Read: List of captains of all formats of Indian …
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. Then 80 percent of the amount is given to the team franchise, and the left 20 percent goes to the IPL committee.
Ticket sales/gate Revenue
- The revenue from ticket sales is one of the most important sources of how IPL franchises make money. It is estimated that ticket sales contribute to 15% of the total revenue for IPL franchises. They depend a lot on this income source.
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. The stall rentals which are there in the IPL matches also give their rents to the BCCI. It is …
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. Similarly, KKR got 12.5 crores for being the runner-up. This way, the IPL prize money is distributed to the teams.
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. Players like Virat Kohli, Glenn Maxwell, AB de Villiers, etc bring in a lot of brand image to RCB. Recently in 2020, Mumbai Indians was ranked as the most valuable IPL team with a brand value of 761 crores. A few days back CS…
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. These are the few ways by which IPL franchises make money. Also Read: Which is …