Cricket in India is related to something more than just a sport. It is part of the nation’s fabric. And at the head of that cricketing obsession lies the Indian Premier League, the most glamorous competition that brings together entertainment, sport, and business. The set of changes occurred with the perception and organization of cricket in India, which has helped the league attract a massive audience, and further enhanced the economic impact of the IPL.
Owing to being the most marketed sports league in the world, it presents a spectacle of financial operations beyond just the sport. In 2024, franchise incomes are expected to touch unprecedented levels, thus making it a key economic growth driver for opportunities, advertisers, and investors in India.
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What is the Indian Premier League (IPL)?
It is that holy grail of men’s cricket in which every year males participate in T20 cricket in India: the Indian Premier League. This was a new notion by the Board of Control for Cricket in India in the year 2007. This includes 10 different franchise teams representing different cities and states within the country. So far, over the years, the IPL has clinched its place as one of the most viewed and commercially successful tournaments in cricket, with some of the better talents coming from around the world. Such high-profile matches, with huge fans, broke into another benchmark for the game in world cricket.
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The Indian Premier League continues to remain a major player in India’s economy. It is said that the 2023 IPL season made a massive contribution of $11 billion to India’s economy. According to the BCCI, it has given the IPL 2024 viewership a new viewership record. With a staggering figure of over 620 million, this is way beyond IPL 2020 viewership, and the total watch time is beyond 350 billion minutes. It would be clear that IPL is beyond cricket, glamour, and entertainment; it is actually a massive business platform. Below are a few revenue generators that convert IPL franchises into some of the world’s biggest earners.
The profit revenues from the Indian Premier League are very diverse. The main sources for the income of franchises from the IPL will be highlighted below.
List of IPLs earning sources
| Sr. No. | |
| 1 | Media Rights |
| 2 | Sponsorship |
| 3 | Merchandising |
| 4 | Gate Revenue |
| 5 | Brand Value |
| 6 | Prize Money |
1. Media Rights
Most of the income that IPL franchises make comes through media rights. The media rights deal with IPL for 2023 to 2027 stood at a staggering value of INR 48,390 crores, be it for digital or TV broadcasting. The deal is broken down as follows:
TV Rights: Disney Star acquired Indian subcontinent TV rights by bidding an astounding INR 23,575 crores, which roughly comes to INR 57.5 crores per match.
Digital Rights: Viacom18 bags its rights by bidding INR 23,578 crore for broadcasting.
This path-breaking deal epitomizes the very global popularity as well as the contributions of IPL towards changes in the sports broadcasting landscape. Live action from IPL 2024 can be shot on endearing platforms such as JioCinema that stream competitions in breathtaking 4K UHD and 11 languages. Wherever you are—be it in India, the UK, the US, Australia, or anywhere else—the IPL’s meaning in money terms is widening, promising viewers and enriching the sport globally.
2. Sponsorship
Sponsorship is the key to the financial success of IPL. Almost everything in the stadium—from the bails on the stumps to the bat of the player—is sponsored, and these partnerships are a massive source of income for the IPL. Each franchise has multiple sponsors that cover various aspects of their operations, including jerseys, sleeves, and key branding opportunities. This patronage greatly increases the team’s total income since business concerns pay huge amounts of money just to have their brand represented within that league.
The promotional strategy for these brands is based on two primary methods: print media and advertisements. Player jerseys are particularly effective marketing tools. An average IPL jersey can have ten different brand logos, all on the trousers, shirts, and hats. Apart from this, franchises produce advertising content to promote these brands’ products and services.
Even if sponsors do not make money from the sale of jerseys, they enjoy exposure through the IPL’s vast social media reach and the marketing of team merchandise. For example, CSK (Chennai Super Kings) has over eighteen sponsors, and Etihad Airways is their official sponsor. For IPL 2024, Dream11 is the co-presenting sponsor of the fantasy sports platform. Other notable sponsors include Tata Motors, HDFC Bank’s PayZapp, SBI, Cred, Upstox, Britannia, Pepsi, Parle Products, Google Pixel, Haier, Jindal Steel, Vodafone, Dalmia Cement, Kamla Pasand, and Rapido.
3. Merchandising
IPL is one of the primary income-generating units of the franchise teams of this cricket league, as they provide much of their total revenue through merchandising. This ranges from official jersey replica kits to specialized sports gear and even to commemorative merchandise. There are considerable opportunities for the IPL as well as its franchises in merchandising the IPL brand itself because of increasing globalization in the promotion of the international sporting leagues.
The trend will really blow up as the IPL franchises move towards the commercialization of resources with regard to merchandise; as it is, the market for gaming and sports accessories in India is pegged at being worth about $30 million but growing at an annually compounded growth rate of close to 100%. Each IPL franchise sells its branded merchandise, which can be anything from wristwatches, baseball caps, and T-shirts to other fan gear for the fans to use by integrating with their favourite teams and players; this, in turn, is bound to generate a lot of money.
4. Gate Revenue
Ticket sales are another important source of income for the IPL franchises. Every team will get at least seven home games so that they can have a fair chance of earning revenue. Even though ticket sales account for only 10-15% of the total income, dynamic pricing and full-house stadiums contribute to substantial income for the home teams.
The franchises retain all revenue from gate tickets and passes, with the home team receiving a share of total sales. Like any other major sporting event, the revenue of IPL franchises relies much on their passionate fan base. With most matches experiencing full attendance, the IPL is one of the leagues with the highest viewership around the world. This is one of the few streams of income where both franchises and fans get directly involved in the transaction, thereby creating a unique link between the two parties.
5. Brand Value
Brand value is an important determinant of the financial gain of IPL teams. Companies that have superstars like MS Dhoni, Rohit Sharma, and Virat Kohli in their teams will always be miles ahead when it comes to sponsorship and investors. The brand value of the franchise increases when it wins the IPL or reaches the playoffs, making it very easy to get high-value sponsorships at desired rates. This is a significant way that IPL franchises make money through branding.
In that regard, the most valuable brands—which include franchises such as MI, CSK, and KKR, all of which have had an IPL victory or two or even three—get more power to bargain over with sponsors. In contrast, a team like DC or KXIP will not command the same kind of leverage in terms of brand values.
But what needs to be remembered is that a team’s brand value isn’t solely made in the playing field. Owners such as Neeta Ambani, Shah Rukh Khan, and Preity Zinta, who are all celebrities, or Keshav Bansal, significantly add to the brand appeal of the franchise as a whole, thus bringing in big sponsors and fans.
6. Prize Money
The IPL prize money format has been the same every year, which helps ensure credibility and fairness in the event. Prize money, surely, is one of the first fruits that IPL franchises can accrue. The winner earns an impressive Rs 20 crores, while the runners-up bag Rs 13 crores. Third and fourth teams are also rewarded with Rs 7 crores and Rs 6.5 crores, respectively. The prize money is usually divided among the players and owners of the teams, but the winners get the lion’s share.
Orange Cap and Purple Cap are given out to the players who can bat the best and bowl in the entire tournament with an impressive bonus of Rs 15 lakh. Apart from the Orange Cap and Purple Cap, the Indian Premier League has various awards distributed across the whole season.
Other achievement categories with very generous compensations for the players include Emerging Player of the Tournament, Most Valuable Player (MVP), Power Player of the Season, Game Changer of the Season, and Super Striker of the Season. This recognition pays homage to individual greatness and inspires every player to give his best on the field.
Conclusion
The Indian Premier League is beyond just a sports tournament; it has become a phenomenon of going global and money-making, where people across the globe come with the thrill of viewing the things happening in the IPL here in India. This cricket frenzy attracted a multitude of fans from across continents. It’s spread like nothing else over the ranks of fans, almost influencing their lives—most not even knowing they love this game. Very profitable, IPL operates with a diversified revenue model of advertisements, sponsorships, stadium ticket sales, merchandise, and television and media rights.
