IPL – Indian Premier League | How IPL makes money

Do you Know How IPL makes money ??

In this blog, you will be knowing How IPL makes money. This blog would be based on IPL earning, IPL profits and IPL revenue statistics.

SITBLOGS have chosen this topic due to the popularity of IPL in this current month. IPL 12 is been a trending topic over the internet these months.

As you know IPL 12 is been started all the teams are competing with each other to qualify in the playoff and then the Finals.

But have you ever asked yourself questions about IPL money making techniques? If you have asked and your still not getting any answer read this blog you will have a clear idea.

This blog would be covering questions like what is IPL earning & profits ?
what is IPL franchise profit? what is IPL revenue statistics ? Which team is the Most profitable team of IPL 2019 ?

List of the way from which IPL makes money.

1.Media Rights

media rights for ipl
Media rights For ipl

Media Rights plays a major source of Income for IPL.

Suppose any channel want to show the Ipl t20 live streaming.

For showing live telecast channel need media rights and for taking media rights Broadcaster (Channel) needs to pay some Fees to BCCI.

This Money which was paid by Broadcaster to BCCI is shared among the number of the franchise playing in the IPL session.

But BCCI also keeps some amount of money to itself which is used for Indian Cricket development.

From 2008 – 2017 Media right for Ipl t20 live streaming was with Sony Entertainment.

Sony Entertainment invested 8200cr Indian Rupees to buy First ever live telecast of IPL for 10 years.

For every Per year, 820 Crore was been paid Sony.

And Now just for 5 years, Star India has taken the Media Rights but money which is been paid by Star India is 16347 Crore India Rupees.

Which means Star is been paying 3269 crore Indian Rupees For per Year .

This made IPL teams Profitable and BCCI to so this is one way how IPL makes money.


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2.Title Sponsorship

ipl title sponsorship Dlf ipl Pepsi ipl Vivo Ipl


Title word clearly indicates that this sponsorship would be regarding the name of anything in IPL 2019.

When IPL was started people would be knowing It by the name DLF IPL.

DLF was the first brand which got the status to share its name by IPL.

Later

Pepsi took the place then IPL was known as Pepsi IPL
Now,
Vivo has grabbed the Spot for 5 Years, Vivo has grabbed this deal by paying 2200 crore India Rupees.

Which means 440 Crore India Rupees per year So think how brands are making IPL in profits and IPL franchise in profit.

3.Brand Sponsorship


This is the most popular way to be recognized by people.

Brands Sponsor to IPL teams and make there brand visible to people by placing the brand’s name or logo on the Jersey of Team.

For example, any Team which has won Last year IPL league then the brands would be paying more to them than any other team.

Popularity is also what matters the most for Brands.

4.Ticket Sales


Generating the revenue by ticket is the most common way to make money you would have know.

But Do you know some part of this revenue is paid to the association of home ground?

Let take the example of Wankhede Stadium in Mumbai Its the Home ground for Mumbai Indian.

People would be coming to IPL matches on the name of Mumbai Indians and Rivarly team.

If let say there are total 40,000 people coming for a match with minimum ticket amount which 500 rupees total amount collected is 2 crore Indian rupees.

So amount which was generated on the name of Mumbai India Belongs to Franchise.

So some part of It would Be paid to MCA by Franchise because stadium belongs to them.

5.Sale of Merchandise


Merchandise sale is usually done for the branding or marketing of own team.

Self-branding is necessary for all the teams this is what creates value for them.

Franchise like Mumbai Indians, Kolkata Knight Riders and Royal challengers Banglore makes a good amount of money by selling merchandise.

6.Players Trading


Many time Players are been sold to some franchise by Franchise which he was belonging.

In return to seller, buyer franchise pays a good amount of money and by this franchise again gain some profit.

7.Prize Money

prize-moeny-for-ipl


All the IPL teams are competing indirectly for this money but whoever wins the IPL the amount which is been paid as a reward belongs to Owner of the franchise.

But BCCI had made rules the half of money is been paid to Team players and rest is taken by owners.

However, this is not a major source of income for any team so they mainly focus on Winning the title and money is not the mainstream here.

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What are the Expenses of IPL franchise or IPL teams?


An expense for all the IPL franchise is mostly the same, as all the revenue which is been generated by all the franchise during IPL.
20percent of total revenue is to be shared with the BCCI.

In expense Player Fees, accommodation expense for the players which is in 5-star hotels, Travelling expenses.

There is also Support staff which needed to paid on time, and administration cost.

And Self – advertisement cost on promotional activities which includes the Theme song of the team.

How much do IPL players earn of their actual bidding amount?

Actually bidding amount mostly not paid to players here are two ways how IPL players generate the Income.

They have to sign a contract with BCCI Firm Agreement is the First one, Here BCCI decides the Fixed fee of players.

If the player bid is more then its Fixed fee then all profit over fixed fee would be taken by BCCI.

Basic Agreement is the second one, Here all the money which was bid on a player is fully taken by him.

The average Money which player is been taking with him is at least 80lakh Indian rupees.

According to BCCI it is mandatory to spend at least 3.3million dollars annually on player fees and 100$ on each player a day.

Till now many teams have made the profit but not huge profit KKR is the most successful team in IPL with a profit of 18 to 20 crore.

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Yeah, It sounds very low but the fact is IPL owners are not making huge profits but if you see in the long term then this business will definitely make billion of business for investors.

Here , is the List of Winner in IPL so far .

SPONSORYEARRUNNER UPWINNER
DLF2008Chennai Super KingsRajasthan Royals
DLF 2009Royal Challenger BangloreDeccan Chargers
DLF 2010Mumbai IndiansChennai Super Kings
DLF 2011Royal Challenger BangloreChennai Super Kings
DLF 2012Chennai Super KingsKolkata Knight Riders
PEPSI2013Chennai Super KingsMumbai Indians
PEPSI 2014Kings Xl Punjab
Kolkata Knight Riders
PEPSI 2015Chennai Super KingsMumbai Indians
VIVO2016Royal Challenger BangloreSunrisers Hyderabad
VIVO2017Rising Pune SuperGaintMumbai Indians
VIVO2018Sunrisers HyderabadChennai Super Kings

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