How IPL Teams Earn Money – Full Detailed Explanation

How IPL Teams Earn Money

How IPL Teams Earn Money: Indian Premier League is considered one of the most famous T20 cricket leagues in the World. Though the tournament set the stage for many blooming cricketers to make their debut in the national team, it also pays a massive amount for the players as per their skill set.

How IPL Teams Earn Money

How IPL Teams Earn Money: IPL is also known as the cash-rich league in the cricket community. As the name, IPL makes a massive cash flow compared to the other T20 cricket leagues. But many might be confused regarding – How IPL Teams Earn Money out of this massive cash flow.

For those communities, we have given a brief detailing on How IPL teams earn money. Apart from sharing IPL Prize money, IPL Teams make money in four different ways which include:

  • Team Sponsorships
  • Broadcasting Rights
  • Ticket Sale
  • Merchandise Sales

Team Sponsorships

How IPL Teams Earn Money: Since the beginning, the Indian Premier League have different brands as their title sponsors till date. Along with the Title sponsor, other sponsor amounts move in an uptrend since the beginning of the tournament.

A part of the central sponsorship deals is kept by BCCI, and the rest gets distributed among the franchises. Same with the other central sponsorship deals as well.

As per a report, 50 percent of the central sponsorships will be shared among the IP teams. Apart from the central sponsorship, each franchise has its individual sponsors as well. From title sponsors to associate sponsors to media partners to social media and radio partners, there is a surplus of sponsors linked with an IPL team.

Around 20-30 percent of the team’s revenue comes from sponsorship only. From jerseys to caps to trousers, a sponsor can be found everywhere on the kit. The sponsorship of teams like Mumbai Indians, Chennai Super Kings and Royal Challengers Bangalore is said to be comparatively more expensive than the rest of the teams.

All three mentioned teams have a huge fan following and their social media numbers provide further validation. The bigger the logo, the bigger the amount a sponsor needs to pay to the franchise.

CHECKAll IPL Team Owners With Sponsors Details – Teams Net Worth

Broadcasting Rights

How IPL Teams Earn Money: The IPL 2023-27 media rights have earned INR 48,390 crores (digital+TV). Across five years of media rights, a total of 410 matches will be played where BCCI earns roughly INR 118 crore per match.

50 per cent of the total revenue from the IPL Broadcasting rights will be divided among the IPL teams. 

It has been learnt from the series of tweets by Shah himself that half of INR 48,390 crore will be distributed between the eight original franchises namely, Mumbai Indians, Chennai Super Kings, Kolkata Knight Riders, Rajasthan Royals, Royal Challengers Bangalore, Sunrisers Hyderabad, Punjab Kings, and Delhi Capitals.

Each of these eight teams is expected to get around INR 3,000 crore while the two new teams Gujarat Titans and Lucknow Super Giants will have to wait for some time to get that amount of share.

Meanwhile, the other half (INR 24, 195 crore) will be shared with the players and the state associations.

According to reports, 26 percent of the second half will be distributed among domestic and international players while four of the remaining 74 percent has been allotted for staff salaries. The remaining 70 percent will be allotted to the various state associations.

The value per IPL match made more than a 100 per cent jump from the previous Rs 54.5 crore to above Rs 118.02 crore, making it the second most expensive sports league in the world. The per match value (USD 14.61 million) of IPL is second only to NFL where every match is worth USD 17 million.

Disney Star retained their Indian sub-continent TV rights by paying Rs 23,575 crore (Rs 57.5 crore/game) while Viacom18 bagged the digital rights with a winning bid of Rs 23,578 crore.

The base price for the five-year IPL media rights from 2023 to 2027 is Rs 32890 crore. This is almost double of Rs 16347.5 crore that Star India had paid for the 2017-22 media rights cycle.

As per a report, Disney+Hotstar earned an estimated ad revenue of Rs 1,500 crore from IPL 2022. However, according to some latest source-based reports, Viacom18 has targeted ad revenue of Rs 3,700 crore from IPL 2023, and it has already sealed deals worth Rs 2,700 crore.

The estimation also included the women’s IPL, which had 20 matches. The men’s IPL has 74 league matches between 10 teams.

Ticket Sale

How IPL Teams Earn Money: All playing teams in IPL will have a home ground where they will play 7 league matches out of their 14 games. Each IPL ticket ranges from INR 500 to INR 25000 approx. In the 100 percent of tickets sale, a part of the money is distributed to the State Cricket Associations as well.

For example, if CSK is playing at the Chepauk stadium in Chennai, Tamil Nadu Cricket Association will also get an 80 percent of share.

Merchandise Sales

How IPL Teams Earn Money: Every IPL team will have their own Merchandise partner to sell their product like jerseys, trousers, mobile cases, caps etc. Fans would love to buy Virat, Dhoni, and Rohit’s team jerseys instead of some low-valued players. This is also a reason why franchises try to sign a player with a bigger brand value.

CSK merchandise page(Image: CSK)

Following are the details of the all teams official Merchandise sites:

  • CSK Product Buying Link: CLICK
  • RCB Product Buying Link: CLICK
  • MI Product Buying Link: CLICK
  • GT Product Buying Link: CLICK
  • LSG Product Buying Link: CLICK
  • PBKS Product Buying Link: CLICK
  • RR Product Buying Link: CLICK
  • KKR Product Buying Link: CLICK
  • SRH Product Buying Link: CLICK
  • DC Product Buying Link: CLICK