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Where does this much money come from in IPL, know the earnings of team owners and the whole math of BCCI's business model

Teams in IPL flow money like water. BCCI also earns a lot. This tournament lasts for two and a half months and costs a lot. Then the question arises, where does the IPL come from so much money? So let us tell you the whole business model.
3 Month ago

The world's most expensive cricket league IPL will start from March 22 i.e., Friday. This is the sunshine of cricket, full colors, dance, thrill, action and glamour. Meanwhile, the Foreigners players come to India for a 2-month family picnic. Also called Indian Parivar League and Indian Paisa League instead of Indian Premier League. Money flows like water in teams in IPL. This earns BCCI a lot of money. Where does this money come from and how do the teams earn? Let's talk about it today.

Where does the money come from?

In IPL, there are not one, two but many sources of earning. There is both name and fame in this game. Simply put, central revenue has the largest share of revenue. This consists of 2 things. The first is media rights and the second is title sponsorship rights, from which the BCCI and the franchise earn 70 percent of their profits.

Media and Digital Rights

IPL and BCCI also fill the gap with media and digital rights. There is a price to pay to watch IPL live on TV with channels. Satellite TV channels buy the rights by paying huge price. BCCI keeps half of the revenue from this and gives half to all the teams. In the year 2008, i.e., during the first season, Sony bought the TV rights of the tournament for the next 10 years. This also generated great earnings. So now Jio Cinema has the rights and Mukesh Ambani is making good money.

Title Sponsorship

DLF IPL, Vivo IPL, Tata IPL… these are all title sponsorships. That is, a scheme to add its name to the IPL by paying money to the company that bids the highest. He will get title sponsorship. That is, cricket is brand promotion. This is another major source of IPL earnings. Out of this money, BCCI keeps it and divides it among half of the teams.

Advertising and kit sponsorship

When an over is completed in a match, there is a break for some time and during this break there is an advertisement on TV. According to a report, there are around 15 lakh ad slots in the 10 seconds between matches. Advertisements run during matches account for 20 percent of BCCI's total revenue. Apart from that, the franchise also earns a good amount from the logos made on T-shirts, helmets, stumps and umpire's dress.

Local Revenue

Finally comes local revenue, which includes local sponsorships and prize money. A ticket sale for a match earns up to Rs 5 crore per year. If a match is played at home ground, the franchisee gets 80 percent of the revenue. If the team is as popular as the local level, so many sponsors are found. Along with the championship prize money is also earned. Half of this money goes to the player and half the money is kept by the company.

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