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What is the business model of IPL? Know how IPL team owners earn money

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Through the IPL the best cricket players around the world are given a chance to represent their talent. Corporate India is linked with IPL which helps IPL owners to earn crores of profits. Winning in the IPL is important, but the franchise does not depend only on it.

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The major business plan of the IPL is to invite private companies to buy cricket franchises. When the franchise is sold at a large price, corporates will be attracted to invest in the major components of Indian cricket. This is where the money comes from.

How IPL team owners make money?

Here are some ways through which all the IPL franchises earn millions of rupees.

1. Advertising on Jerseys of Players

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Companies advertise on players’ jerseys which gives them publicity and for this, the team is paid a considerable amount. There are sponsors for everything on the team. There are also main sponsors, jersey sponsors, and sleeve sponsors which are the main sources of income and through which IPL team owners earn money.


2. Media Rights

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The official media sponsor of the IPL for the last decade was Sony India. IPL has a revenue distribution model. Here the BCCI gets a substantial amount from broadcasters and online streamers. On the basis of IPL team ranking, this amount is distributed among all IPL teams after deducting their fees.

At the end of the league team on the high ranks gets the larger share of media revenue. Media rights account for 60-70 percent of the total earnings of the IPL team and through which IPL team owners earn money

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3 Ticket Sales

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IPL has a big craze among Indian cricket lovers. The team owners decide the ticket price. Ticket’s share in the IPL team’s revenue is around 10%. The stadium house remains full in about 60 percent of the matches played. The home team gets a fixed share of the total ticket sales and all IPL team owners earn money through the sale of tickets also.


4. Prize Money

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The IPL gives a large sum of money to the winners and runners up. In the year 2020, the winners got 10 crores from the IPL prize money of IPL 2020, the runner up got 6.25 crores, the third place in the playoffs was 4.375 crores, the fourth place in the playoffs got 4.375 crores each

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The winning team of the tournament gets the largest share of the prize money. The team owner and the players get the prize money.


5. Merchandising

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The game merch andise market in India is growing at an annual rate of 100 percent. This market is about 30 million dollars. Every franchisee sells its merchandise. This includes T-shirts, caps, bats, wristwatches, and many other items. With this also IPL owners make money.

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Tags: IPLIPL 2020
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