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Multifaceted Revenue Streams of IPL
- Devyani Birje
The Indian Premier League (IPL) is not just the IPL broadcasts, and the rights to be the
a cricket tournament, it’s a phenomenon title sponsor are highly coveted. Over the
that has taken the world by storm. With years, the IPL has seen some big names
its impeccable structure and world-class as title sponsors, including DLF, Pepsi, Vivo,
talent, it’s no wonder that the IPL has and now Tata. The amount of money these
become the benchmark for domestic cricket companies spend on securing the title
tournaments worldwide. However, what sets sponsorship is mind-boggling. For instance,
the IPL apart is not just its contribution to the Vivo spent a staggering 440 crores INR in
growth of Indian and world cricket, but also 2021, while Tata spent 330 crores in 2022!
its revolutionary and profitable business The BCCI, the governing body of the IPL,
model, which has inspired other nations to has a smart revenue-sharing arrangement
follow suit. with the title sponsor. They keep 50% of the
At the heart of this profitable model are three amount received, while the other 50% is
key stakeholders - the IPL governing body distributed equally among the ten teams.
(BCCI), the broadcaster (Star Sports), and This ensures that every team gets an equal
the ten IPL franchises. Together, they rake share of the title sponsorship revenue.
in millions of dollars every year, making IPL Besides the title sponsor, the IPL also has
one of the most lucrative sporting events on other official sponsors like CEAT, Cred, Dream
the planet. But have you ever wondered how 11, Rupay, Unacademy, etc. These sponsors
these IPL teams make money, or how much contribute a total of around 200 crores INR
they earn beyond the winning prize money? every season, which is not a small amount
Well, to begin with, it’s important to note by any means. The BCCI keeps 60% of this
that running an IPL team is no cheap affair. revenue, and the rest is distributed equally
On average, an IPL team incurs expenses among the ten teams.
of around INR 200 crores (approximately
$25 million) per year. This massive sum is Team sponsors
spent on player acquisition, staff salaries, One of the most prominent ways in which
transportation, accommodation, training IPL franchises earn revenue is through team
facilities, and even recreation and other sponsorship. These sponsors are the ones
miscellaneous activities. But where does whose logos and names you see prominently
all this money come from? The answer is displayed on a franchise’s jerseys, caps, and
simple - IPL teams have a variety of sources pants during matches. Depending on the
of income, each contributing to their overall brand value of each team, the total amount
revenue. These include broadcasting rights, they receive through team sponsorship can
sponsorships, ticket sales, merchandising, vary greatly, but it’s not uncommon for each
and even player trading. franchise to earn well over 100 crores INR
through this medium alone.
Title and official sponsors In addition to the sponsors visible on the field,
The IPL is not just a cricketing extravaganza, franchises also promote brands through
it is a massive business venture. The league’s social media and TV advertisements. And
official sponsors play a crucial role in this, when you add it all up, the revenue generated
and the title sponsor is the most prominent by team sponsorships, along with the
of them all. The name of the company along earnings from the title sponsor (Tata, in the
with its logo is prominently displayed during case of IPL 2022, bringing in a cool 16.5 crores
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