IPL Teams Business Model

How IPL Teams, Owners and Franchises Make Money

The owners of the TATA IPL 2022 teams spend a lot of money to buy their teams and players. These team owners are big businesses that put a lot of money into IPL teams. BCCI made 12715 crores from the successful bids of two new IPL teams in 2021. Now, People will wonder where and how IPL franchises make money

Here we discuss how IPL teams/franchises/ Owners Make Money

IPL’s strong business model doesn’t just depend on selling tickets. IPL Teams make money through different channels.

Media Rights 

Media Rights are the main source of earnings for IPL teams which contributes 60-70%. The media rights that BCCI sells to broadcasters bring in a lot of money for the company. In 2017, Star India paid 16,347 crores for the right to broadcast the IPL for 5 years. This means that each IPL game costs about 60 crores. All teams share these media rights with BCCI. The BCCI got one of the biggest broadcast deals in the sport’s history. The IPL media rights will bring in an eye-popping 48,390 crore (USD 6.20 billion) over the next five years, starting in 2023.

Business model of IPL
Big Deal

Sponsorship

Sponsorship is the main way through which IPL teams make money. If we look at the outfit of any IPL team, we can see a lot of brand logos. The logo on the player’s jersey, the team’s uniform, the ads on the ropes around the field, etc. For their brand promotions, these companies pay a lot of money to the teams.

Merchandising

Merchandise sales are another way that IPL teams make money. The players’ caps, jerseys, keychains, mugs, Hoodies, and other items are sold online by these teams. They make handsome money this way.

Ticket Sales

One of the most important ways that IPL teams make money is by selling tickets. It is thought that ticket sales make up about 15% of IPL franchises’ total income. They rely a lot on this source of income.

Selling stake

The IPL teams also make a lot of money by selling shares of the team. Delhi Capitals is a good example from very recently. The GMR group bought this IPL franchise for 84 million USD in 2008. In 2018, Jindal South West (JSW) paid 77 million USD for a 50% stake in the team.

Brand value

IPL franchises also make a lot of money because of how well-known their teams are. A lot of brand value goes to the team that has a lot of stars.
IPL teams get a lot of brand recognition from players like Virat Kohli, Rohit Sharma, MS Dhoni, Glenn Maxwell, etc. Forbes 2022 said that Mumbai Indians (MI) was the most valuable IPL team with a brand value of $1.3 billion (9900 crores). In terms of brand value, CSK is the second most valuable team. They were the first IPL teams to be worth more than a billion dollars. The IPL team that does better than the others gets more brand value.

Prize Money

IPL prize money is another way that the IPL franchises make money. The teams get prize money based on where they finish in the table of points. CSK won the IPL title in 2021, and they got 20 crores for it.
In the same way, KKR got 12.5 crores for coming in second. The IPL prize money is given to the teams in this way.

Also, read about the Owners of the IPL Teams

Leave a Comment

Your email address will not be published. Required fields are marked *