Breakdown of IPL Revenue

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https://drive.google.com/uc?export=view&id=1bL_NKZQ_axzFVS2EsKc9H8alowM2q1uy
The IPL season is coming back with a bang and all the fans are eagerly waiting for the new season. The Indian Premier League is a franchise owned cricket team competition comprising players from all over the world, before its inception there was another cricket league started by the Zee Group named as the Indian Cricket League (ICL) but this league lost its existence due to resistance by the BCCI and its vision of starting a new league under its own authority. 
Every year the IPL breaks its all past financial records and with the addition of two new teams the expectations are more. The Indian Premier League is a cash cow for the BCCI and is the world’s second richest league. It is also the world’s biggest cricket league with a fan base from all over the world. Everyone’s fascination for this league never ends and with this let us talk about its big numbers: 
The league earns its revenue basically from three major sources: 
1. Broadcasters 
2. Ad Sponsors 
3. Franchise Teams 
 The two main earners from this league are the BCCI and the Franchise Teams: 
1. From the perspective of the BCCI: The BCCI being the controller of the IPL the majority earnings go to it only. The main sources are:
 1. Sponsors: There are a lot of companies who want to make their name recognized in the public through this popular league. There are various types of sponsors one of them is the Title Sponsor. As we all know the title sponsor gets the privilege to get its name added with the IPL as a prefix which gives the company huge marketing boost. 
https://drive.google.com/uc?export=view&id=1PC712cYsZDg0KD8FGwgUP_oS50bKWCqq
 The revenue from title sponsors has increased to a huge level ranging from Rs 40 Cr in first season to Rs 330 Cr in the latest season. There is a huge potential in increment due to the increasing brand value of IPL. Beside this there are other sponsors like Strategic Time Out (Rs 30 Cr), Powerplay (Rs 30 Cr) and Man of the Match sponsors ( Rs 210 Cr). 
2. Broadcasting Rights: We can see all the news headlines covering the bitter bidding war between the major broadcasting companies whenever the new broadcasting rights are auctioned by the BCCI for IPL. 
https://drive.google.com/uc?export=view&id=1wnXawlEECVu03H26xUlohLr-GE_rZ7KI
The broadcasting rates provides a huge amount of money to BCCI with Sony during its ten-year tenure paid Rs 8200 Cr and after that with a heavy increase came Star Network paying Rs 16347 Cr for 5 seasons. Now for the next seasons Viacom 18 Network has swooped the broadcasting rights for an amount of Rs 23758 Cr rupees for 5 seasons. This graph will keep on increasing for next coming years.
What does the broadcasters get?
 By paying such heavy amounts the broadcasters even earn a lot of profit. The Star network charged around Rs 14.5 Lakhs for 10 seconds of showing their company’s ad on their channel. With a lot of companies for advertising and 45 days per season the broadcasters generate a huge revenue.
https://drive.google.com/uc?export=view&id=1DGidWrKu0xi9CCwNmxKDUMbpIveMb3gh
 With IPL viewership increasing at a tremendous rate and crossing 450 million viewership mark in the latest season. The cricket pundits expect a healthy growth in viewership every year and addition of new teams with new fan bases the prospects are very high. 
3. Team Franchises: This is the third major source of revenue generation with many big players ready to throw out hefty amount of money to buy teams being lured by the beauty of the IPL they do not mind thinking about money spent. The latest add Ons in this list were made by the mighty RP Sanjiv Goenka Group shelling Rs 7090 Cr to buy Lucknow Super Giants and the CVC capital buying Gujarat Titans for Rs 5040 Cr.
 All the profits generated by the above sources is being shared equally by the BCCI and the various team franchises. 
2. From the perspective of team franchises:
 1. Team sponsorships: There are many companies wanting to sponsor the different teams with each franchise being sponsored by 8-10 sponsors this is a major source of revenue generation. The sponsorship rates vary from franchise to franchise. The rates depend on brand value of the franchise. 
https://drive.google.com/uc?export=view&id=1txkvC958nNLubw9kGQqsAq3wJLjCIkXr
As we can see Mumbai Indians having the highest brand value of 83 million USD whereas Punjab Kings with the lowest brand value of 45 million USD so the sponsorship rates are charged accordingly. The brand value of the teams also depends on how many seasons they have won and how many big players they have attracted to play for their team. 
2. Revenue from ticket sales: Ticket sales are not a big source of revenue generation but they are an imminent part. Every team generates revenue from its home ground ticket sales and the revenue is divided in 80:20 ratio between the respective franchise and the home state cricket association. Further food and drink sales add to revenue generation. 
3. Merchandising: Every franchise sells its jerseys, accessories and other items to the fans adding to revenue and provides the much-needed advertising boost to the teams. 
4. Winning Amount: Each season’s winner and all the qualifying teams get the respective amount:
             Position                         Cash Prize
                  1st                                   20 Cr
                  2nd                                  13 Cr
                  3rd                                   7 Cr
                  4th                                   6.5 Cr
The prize money won by every franchise is divided between the owners and players equally which give the incentive to players to win the league. 
 It is important to know that an average IPL franchise spends around Rs 200 Cr every season on all the expenditure like traveling, accommodation, player wages, support staff etc. So, after spending such a hefty amount what do the owners get. In the earlier years all the franchises were making losses and at that time Deccan Charges were unable to pay its player’s wages and then it was overtaken by Sunrisers Hyderabad. But after these loss-making years, came the tremendous increase in viewership and valuation of the IPL and then all the franchises started earning profits.  
With the monetary benefits comes the popularity game, being the owner of a franchise in the most popular league gives the limelight to the owners in between media and common people. It satisfies their self-actualization needs and, in many cases, gave recognition to their brands just like in the case of Jio. 
 Comparison of IPL with other major leagues: The Indian Premier League is the first Indian league in any major sport making remarkable impression at a global level. The IPL is now the second most valued sports league globally in terms of per match value cost. The media rights for the 2023-27 term earned them a staggering Rs 48,390 Cr. 
https://drive.google.com/uc?export=view&id=1EgPlZy5GbxGpHyAB-U2wLbWvul93lErr
The figure shows the per match cost in the various leagues where IPL stands right behind the National Football League (NFL). IPL’s revenue model is very similar to the other major leagues like NFL and EPL. The media rights growth rate of IPL is 10.4% which outlawed the other leagues growth rate of 8%. 
 The IPL has a strong fan base getting love and appreciation by national and international audience. However, the Covid years hampered its growth but the league is back on track with addition of new teams the potential growth is expected to be very high. To increase its revenue and popularity BCCI has also started Women IPL which is getting a huge response from the audience. The IPL is definitely the best product of the BCCI but there is scope for improvements like exploring in new domains and reducing incidents of match fixing and corruption.

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