How does Indian Premier League earns money?
Cricket – A game wherein neither probabilities work nor predictions, only your hard work and perseverance makes you a winner.
Bollywood Entertainment, Hollywood movies, and so many Online web-series for binge-watching. Is that it for our entertainment? Of course not, one of the biggest sources ofentertainment is missing here - Sports. When we talk about sports how can we miss Cricket? The most awaited matches, Indian Premier League is running in full swing so turn on your TV sets OR Hotstar and enjoy the most exciting entertainment ever. Cricket – you don’t know what would happen in the next ball, every ball can turn the game in the favour of winning/losing team. That’s what makes cricket so thrilling and enticing always.
Test series, One Day matches started losing its charm because of its long time and many other pitfalls. Right when Cricket was going to lose its magical spell, IPL was started in the year 2008 by BCCI (Board of Control for Cricket in India). It was an inspiration by EPL (European Premier League) as BCCI wanted to threshold a league similar to EPL in India with Cricket.
Indian Premier League – A professional twenty-twenty cricket league or competition in which every year eight teams represent eight different cities or states of India. You might be wondering, Can you earn from these leagues? How does IPL earn money? Are they Profitable? Can I start my business with IPL as my business Idea?
IPL has two strings in one bow. In simple words, it has entertainment plus business. IPL is a mega- profitable business wherein every player, sponsors, owners and many others earn big bucks.
Let me guide you through various revenue sources of IPL -
1. Sponsorships -
The most famous mode of earning money is brand sponsorships. Herein, brands sponsor to IPL teams and make their brand identity visible to the common people. For instance, The brand’s name/logo is placed on the T-shirts/Jersey of the team. If a team has won last year then the brands will pay more in comparison to any other team. After all, popularity is what counts.
2. Media Rights -
One of the main streams of revenue source is Media Rights. Some teams earn almost 60% of their total revenue from here. To show the live streaming of the match, the concerned channel requires media rights, and for this right channel has to pay some fees to BCCI. The hefty amount so earned is distributed between teams after excluding the BCCI share from it. The BCCI keeps the amount for Indian Cricket Development. The two broadcasters are Star India and Sony Entertainment. Sony Entertainment purchased media rights for IPL seasons 2008 – 2017. Presently, Star India purchase media rights for seasons 2018-2022 by paying INR 16,347 Crore to BCCI.
3. Title Sponsorship -
Title sponsorship is nothing other than the name sponsorship in IPL. When IPL was started it was popularly known by the name DLF IPL as DLF got the status to share its name with IPL. Also, DLF was the first brand to grab this golden opportunity. Later on, the title sponsorship was replaced by Pepsi IPL. Currently, Vivo has the ball in its court for five consecutive years. You would be surprised to know that Vivo earned this deal by paying an exorbitant price, INR 2200 crores. It means INR 440 every year. Just look at the figures by which brands are multiplying IPL Profits.
4. Ticket Sales -
This is the most common and popular mode of earning money. IPL also depends on its fans for the revenue. You would be surprised to know that it is one the most well-known and watched leagues across the world with a full house on most of the seasons. The profit generated via ticket sales goes to the home team owners. Approximately 80% of the tickets are held by the team owners who gets the proceeds of the same.
However, do you know that some part of this revenue is paid to the association of Home Ground? Let us understand this with an example. Wankhede Stadium in Mumbai, it’s the home ground for Mumbai Indian (MI). So, people would be coming for an IPL match on the name of MI and the Rivalry team. If 40,000 people are coming for the match with minimum ticket price INR 500. The total amount collected would be INR 2 crore. So, the money generated on the name of Mumbai Indian belongs to the Franchise.
5. Merchandise Selling -
Merchandise selling is another source of earning profits. It is usually done for the marketing and branding of their own teams. Self-branding is essential for all the teams to create and build their value. Kolkata Knight Riders, Mumbai Indians, and Royal Challengers Bangalore earn good money by merchandise selling.
6. Trading of the Players -
This is a very interesting way of earning money. Players are being exchanged and traded amongst teams to earn money. For example, Player ABC of Team Kolkata Knight Riders is being traded for Mumbai Indians. So, let’s say player ABC is sold to his original Franchise. In exchange, the buyer franchisee pays a good sum of money to the seller, and hence earn huge profits.
7. Prize Money -
Every team competes for the final trophy. Whoever wins the IPL, the ownership of prize money is of the Franchise. However, BCCI has a rule that half money is given to the team players (after all their hard work needs to be rewarded) and rest is taken by the owners.
Amazing, right! IPL earns huge chunks of money indeed! You are a hard-core cricket fan and you want to put your heart and soul into it. The above piece of information must have opened your minds and you always think about starting a business of cricket leagues.
How about playing and earningin these leagues, at the same time you are also earning money as people are playing it on your application. You can start with your exciting cricket business idea. Just would like to update you there are cricket gaming applications like Cric play, MPL, 11 wickets, and many more. If you are wondering can you really earn money? What about the competitors? Icrest Models can provide you an exact template for working on the business model of IPL, that too at a reasonable price.
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