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We all know that through IPL BCCI makes tonnes of money but many of us don’t know that teams also makes lot of money. Curious to know how IPL teams make money? Then read this full article.
We were always told that IPL is the biggest and most profitable Cricket league in the world but many of us don’t know that why and how IPL teams make money. There’s a lot of money stream for the team.
IPL is growing rapidly in terms of popularity and profitbility. The brand value of IPL 2019 was more than $6.7 billion. Surprised to know this? Yes, this is damn true. IPL is very profitable Cricket league and that’s why franchise are spending tonnes of money.
So, below are some of the main reasons how IPL teams make money.
1. Ticket sales
Cricket stadium ticket sales is one of the biggest source income of the IPL teams. According to a source, IPL teams get upto 80% of ticket sales of every matches happened in their home towns. That’s the main reason why every IPL franchise want matches to be happened in their hometown.
Minimum of 7 matches are played in a hometown of a team. Above 7 matches are also played in certain cases.
Almost 10% of the revenue of an IPL team comes from ticket sales.
2. Sponsorship
Sponsorship is the highest revenue source for an IPL team. Every team is sponsored by a bran which pays the team a high revenue. An IPL team takes millions of rupees for a small logo of a brand in the players dresses. Players or teams are sponsored from top to bottom, from the top of jersey to their shoe and even Cricket kit. Everything is sponsored by big brands.
3. Prize money
Prize money is another great source of income for the franchise. Although it is not very high (it was 20 crores in IPL 2019) because players like Virat Kohli is only bought in a price of 17 crores and many times much more. But this is also a good income because there are much more source of income for the teams and they are not dependent on the prize money but they want to win IPL because it will increase their brand value.
4. Selling merchandise
You may have often see the IPL teams selling their official merchandise and trust me this is very profitable to them. It is also a good source of income for them. Not only CSK but almost all the teams (MI, RCB, DC and many more) see their merchandise to their fans.
Also read: Top 5 Biggest Rivalries In IPL History
5. Media rights
Media rights is a big source of income for the IPL teams. BCCI distributes the money after deducting some money received by the broadcasters and online stream platforms. BCCI takes a huge amount from them. Star sports took the broadcasting right of IPL in 2017 for 5 years in Rs.16,347 which is very big amount.
BCCI then distribute this amount to the teams and the team get the most who rank higher in the table at the end of IPL. According to the reports, almost 60% of the revenue is distributed among the teams.
Also read: Top 10 Best Batsman Of IPL 2020
Except these there are some more income sources of the IPL teams like share of revenue in the advertisement inside their home stadium, brand value and others. However, above are the main source of incomes of the IPL teams.
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