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How Companies Make Money from IPL: A Detailed Breakdown

How Companies Make Money from IPL: A Detailed Breakdown
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The Indian Premier League (IPL) is not just a cricketing phenomenon but a financial juggernaut. 

From record-breaking broadcasting deals to lucrative sponsorships, the IPL generates immense revenue for multiple stakeholders, including the Board of Control for Cricket in India (BCCI), broadcasters, sponsors, and franchise teams. 

This article explores how each entity profits from the cricket league tournament.

How Does the BCCI generate revenue from the Indian Premier League?

Media Rights

The BCCI’s most significant income source from the IPL is selling media rights. Companies pay astronomical sums for exclusive broadcasting and digital rights to reach the massive match-watching audience.

  • 2018–2022: Star India purchased broadcasting rights for a whopping ₹16,347.50 crore. This deal gave Star exclusive TV and digital streaming rights.
  • 2023–2027: The BCCI earned ₹48,390 crore from media rights, split between Viacom18 (₹23,575 crore for digital rights) and Star Sports (₹23,575 crore for television rights). This marked a historic rise in the league’s valuation.

Title Sponsorship

Title sponsorship is another significant revenue generator for the BCCI. Major corporations vie for this opportunity to align their brand with the league’s global appeal.

Tata Group: Paid ₹440 crore annually for 2018-22 to become the title sponsor.

Vivo: Previously signed a deal worth ₹2,199 crore for five seasons, emphasizing how valuable the title sponsorship is.

Franchise Fees

BCCI collects franchise fees from Indian Premier League teams annually. These fees are part of the agreements that allow teams to operate in the league. In return, franchises benefit from central revenue pools and exclusive branding opportunities.

Teams like Mumbai Indians and Royal Challengers Bangalore contribute significantly, bolstering the BCCI’s coffers.

Broadcasters: Raking in Ad Revenue

Imagine this: millions of cricket fans glued to their screens, every boundary and wicket sending a wave of excitement through the nation. This is the Indian Premier League, and it’s a goldmine for broadcasters. 

Star India, the previous rights holder, reaped massive rewards, generating over ₹3,000 crore in advertising revenue during the 2021 season alone. But the landscape shifted in 2023 with the arrival of Viacom18.  They recognized the digital revolution sweeping the nation and secured exclusive digital rights. Now, fans can stream matches on their phones, tablets, and laptops, opening up a whole new world of possibilities for advertisers. 

Viacom18 capitalized on this, offering innovative ad formats, premium subscriptions, and interactive features like live stats and multiple camera angles to keep viewers engaged and advertisers happy.

Sponsors: Key Contributors to Indian Premier League’s Financial Success

Major Sponsors

Sponsors heavily invest in the Indian Premier League to capitalize on its global audience and market penetration.

Tata Sons: As the title sponsor, Tata enhances its brand visibility across all matches, connecting with millions of fans worldwide. According to ET reports, the Indian Premier League (IPL) has locked ₹1,485 crore in sponsorship deals. This announcement follows Tata Sons’ acquisition of the title sponsorship rights for ₹2,500 crore.

Associate Partners

Associate partners include smaller brands that invest in specific categories or advertising slots.  Notable additions to the sponsorship roster include My11Circle, a fantasy sports platform, which outbid rival Dream11 with a ₹625 crore offer. Payment service provider RuPay has also joined as a sponsor with a ₹210 crore deal spanning three years. 

Furthermore, online stock trading platform Angel One has secured a sponsorship slot, further strengthening the league’s sponsorship lineup. Etihad Airways sponsors the Chennai Super Kings, enhancing their international appeal while benefiting from global exposure.

Diverse Revenue Streams

Merchandise Sales

Official merchandise is a growing revenue stream for team franchises. Fans purchase jerseys, caps, and memorabilia to show support for their teams. During Indian Premier League 2023, the MI app (Mumbai Indians) saw an extraordinary 300% increase in downloads compared to the previous season, while the Mumbai Indians website experienced notable growth, with a 60-100% rise in page views, sessions, and unique users.

Sponsorships and Advertising

Franchises negotiate sponsorship deals with brands for jersey placements, training kits, and stadium banners. Chennai Super Kings (CSK) has over 20 sponsors, including Gulf Oil and India Cements, contributing over ₹100 crore annually. These sponsorships often involve multi-year agreements, providing teams with stable income.

Matchday Revenue

Matchday revenue includes ticket sales, food, and beverage concessions, and stadium events.

Ticket Sales: Teams typically host 7-8 home matches each season, generating significant revenue from ticket sales. The ‘domicile’ franchise owner retains approximately 80% of this revenue, while the remaining 20% is shared between the BCCI and sponsors. Ticket sales alone contribute around 10-15% of a team’s total revenue. In addition, teams benefit from earnings generated through food and beverage sales during home matches at their stadiums.

Fan Engagement: Exclusive VIP experiences and fan zones enhance matchday income while boosting fan loyalty.

Revenue Distribution in Indian Premier League

Here’s a simplified table to highlight league’s major revenue streams:

Revenue StreamEstimated Amount (₹ crore)Beneficiaries
Media Rights48,390BCCI, Broadcasters
Title Sponsorship440 (annually)BCCI
Team Sponsorships100+ (per team)Franchise Teams

Conclusion

The cricket league’s business model is a well-oiled machine that benefits multiple stakeholders. With billions in revenue each season, it has become a financial powerhouse, setting a benchmark for sports leagues worldwide. Whether it’s BCCI’s strategic partnerships, broadcasters’ advertising windfalls, or teams’ diverse revenue streams, Indian Premier League proves that cricket is more than just a game—it’s a billion-dollar industry.

Related Posts

  1. How does the BCCI make money from the Indian Premier League?

    The BCCI earns from media rights, title sponsorship deals, and franchise fees collected from the teams.

  2. How much do broadcasters pay for broadcast rights?

    For the 2023–2027 cycle, Viacom18 and Star Sports paid ₹48,390 crore for broadcasting and digital rights.

  3. How do league teams generate revenue?

    Teams earn from sponsorships, merchandise sales, matchday income, and share in central revenue pools.

  4. Who are the major sponsors of the Indian Premier League?

    Key sponsors include Tata Sons, Dream11, MyCircle11, RuPay, and AngelOne.

  5. How do sponsors benefit from the Indian Premier League?

    Sponsors gain massive brand visibility through televised matches, digital streams, and stadium branding.

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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.

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