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blends cricket, entertainment, and revenue engaged audience.
generation. In this cricketing extravaganza, 8. Franchise Fees: Teams pay franchise fees
money flows in from various sources. Here annually, ensuring a steady revenue stream
are the nine key revenue streams that power for the IPL.
the IPL’s business model: 9. Digital Rights: The IPL sells digital rights,
1. Team Ownership: Franchise owners invest allowing streaming platforms to broadcast
substantial amounts to own and operate matches online. This attracts viewers who
teams in the IPL. They are responsible for prefer to watch matches on digital platforms,
team management, player acquisition, and creating yet another income source.
marketing. The valuation of these franchises In a nutshell, the IPL’s business model is a
can be incredibly high, with the Mumbai masterclass in turning cricket into a financial
Indians leading the pack at a whopping $1.3 powerhouse, thanks to its ability to monetize
billion. virtually every aspect of the game, both on
2. Player Auction: Before each IPL season, and off the field.
player auctions create a competitive
environment as teams bid to acquire Numbers
players. These players earn salaries from
their respective teams, contributing to the
league’s financial dynamics.
3. Broadcasting Rights: Broadcasting
rights are a major revenue source. Global
broadcast rights alone can generate over
a billion dollars, with broadcasters often
reselling portions of these rights to other
regions. This income benefits the franchisees
directly.
4. Sponsorships: Sponsorship deals are
pivotal in the revenue streams of IPL The IPL’s Revenue Sources: The IPL is a financial
franchises. Teams enter agreements powerhouse, and a substantial portion
with various brands, including apparel of its revenue comes from broadcasting
companies, beverage manufacturers, and rights and central sponsorship deals, which
mobile phone brands. These deals provide typically account for approximately 70-80%
essential funds to the franchises, helping of the total income for the teams. The Board
them cover expenses. of Control for Cricket in India (BCCI) takes a
5. Ticket Sales: Fans purchase tickets to significant 50% share of the overall revenue,
watch matches live at the stadium. Ticket while the remaining 45% is divided evenly
sales contribute significantly to the revenue, among the franchises. This remaining
especially for matches held in large amount also contributes to the prize money
stadiums. awarded to the top four playoff teams, with
6. Merchandise and Fan Engagement: the ultimate champion receiving the lion’s
Merchandise sales are an additional source share.
of revenue. IPL franchises sell team jerseys, Central Sponsorships: The IPL doesn’t stop
caps, and various accessories, capitalizing at broadcasting and central sponsorship
on the league’s immense popularity. deals. Companies that sponsor the
7. Advertising: The IPL offers advertising tournament play a crucial role in its revenue
opportunities during marches, including generation. For example, Tata made a
commercial breaks and digital advertising massive investment of Rs 335 crore to be the
during games. Companies pay for title sponsor for the 2022 and 2023 seasons.
advertising slots to reach a vast and In addition to this, the IPL earned over ₹300
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