How do IPL make money? Do IPL teams get huge profits?

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It’s quite an interesting topic and will be worth reading. Let’s make it clear some base topics on IPL so you will enjoy reading.

From where did IPL come from?

The idea or concept is the thing that needs to come from any inspiration or from another concept.

You also need to know who bought the IPL concept to India as well.

Lalit Modi had bought the concept of ipl to india.

IPL which is called Indian Premier League inspired by EFL.

 English Football League. These leagues feature professional Football clubs from England and Wales 

Why IPL got popularity so early?

In India the highest market for sport is cricket and anything new in Cricket might get a good reach.

Moreover, it did not take much time to get popularity for IPL. Within no time it got viral and everybody started loving it.

The more catch point is that there are many India players in every team which makes viewers engaging.

It has become a good platform for youngsters to play for India and other teams as well.

Another more advantageous part for grabbing soon popularity is to attract Capital states with Team names

How does IPL make money from?

#1 Media Rights

Media rights are the main revenue source for IPL. It’s like…If you have a Media Channel and you want to Broadcast IPL on your channel.

Then you need to purchase Media Right of IPL. Only then you will be able to Broadcast IPL on your channel.

In the same way, whoever channel wants to Broadcast. That particular channel must buy Media right from IPL.

To take Media Rights from IPL, channels need to give some fees to BCCI.

IPL gets 70 to 80% revenue from Media Rights.

What will BCCI do with the fees?

After getting fees from channels, BCCI will keep some money with them and some part of the money will be distributed among the IPL teams.

How much do channels pay to get Media Rights?

If we take the example of the IPL season from 2008-2017. It is purchased by Sony Entertainment for Rs.8200 Crore. For 1 year it costed Rs 820 Crore

At present from 2017 -2022 it is purchased by Star India. At a whopping Rs. 16347 Crore.

If we calculate this for a year it will be if Rs. 3269 Crore.  As the cost has increased drastically. The IPL teams are also in the profitable hands.

#2 Brand Sponsorships

how ipl make money

Another revenue source for IPL teams is Brand Sponsorships. Brand Sponsorship which is displayed on their Jersey.

For example, you can see for RCB… Wrogn is a sponsor and you see many Advertisements as well on their T-shirts.

Even by these means, IPL teams get money

Title Sponsorship

Title sponsorship also plays a key role in terms of IPL revenue. In previous, you can see DLF was the Title sponsor for IPL. At present VIVO is the Title Sponsor.

For the span of 5 years VIVO had paid Rs.2199 to BCCI. From the total amount, a part of the amount is divided among the IPL teams.

#3 Ticket Sales

It is obvious that revenue will be generated from the Ticket sales as well. But even in this, the total amount is not taken by the owners of the stadium. They also need to divide them between the IPL teams as well.

By this means IPL teams can earn revenue.

#4 Merchandise Sale

You may get to know this name very familiar as well. You may get to hear that on YouTube as well.

Popular creators on YouTube launch their merchandise on YouTube.

So you can see their branding on the T-shirts, caps and other accessories as well.

A similar thing goes for IPL merchandise as well. You can get branding of IPL team T-shirts, caps etc.

The revenue from this is very low but they will get a decent amount of revenue from brand merchandise.

#5 Prize Money

This is more of Winning and pride compared to the revenue. But when we look over Prize money to the winning team and runner up.

The winning team will get Rs.20 Crore and the runner team will get Rs. 12.5 Crore.

This will also add up to their revenue source as well.

What will be the expenses for the IPL teams?

We just should not talk about the Revenue source. We should also look over the expenses of the teams.

Share their revenue with BCCI

Whatever the revenue do IPL teams gets they need to share 20% from their revenue this with BCCI. This is a major expense that IPL team need to bare.

Other requirements needs

They need to pay the fees for coaches, Transportation and all other needs.

Advertisements

IPL team advertises its team as well to increase the fan base. Every IPL team has their own song to promote it in a unique style.

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