IPL 2024: How IPL Teams Make Crores Every Year?
IPL 2024: Cricket is a big deal in India, and the biggest cricket event here is the IPL or the Indian Premier League. This league has teams from different cities competing against each other. But running such teams isn't cheap; they need money for a lot of things. So, let's see where these teams get their funds from.
Understanding the economics of IPL
The IPL is a yearly cricket tournament where teams from cities like Mumbai, Chennai, Bangalore, and more play against each other. Big players from India and even from other countries come to play in this league.
BCCI reaps significant revenues from broadcasters and Over-the-top (OTT) platforms through media rights sales, a portion of which is retained, while a substantial share is distributed among IPL teams.
Franchises are guaranteed a 40-50% revenue share from the IPL's central contract revenue pool, amounting to ?48,000 crore for the upcoming cycle. The victorious team of the season claims the lion's share of BCCI profits.
Following the latest auction, the IPL's worth has surged threefold to ?48,000 crore, implying larger profits for franchises from BCCI.
Financial advisory firm Elara Capital predicts a twofold increase in the average revenue of all IPL teams over the next five years.
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Sources of Money for IPL Teams
- Central Revenue Share: The Board of Control for Cricket in India (BCCI) sells the IPL's media rights to broadcasters, and a big chunk of that money goes to the teams. Each franchise gets a guaranteed cut, typically around 40-50%, from this central pool.
- Sponsorships: This is a huge revenue generator. Companies pay big bucks to have their logos on jerseys, for in-match promotions, and for social media mentions by the teams.? Some sponsorships are even title sponsorships, like DLF IPL in the early days.
- Ticket Sales: Though not the biggest earner, ticket sales still bring in a good amount.? With packed stadiums and dynamic pricing, tickets can range from a few hundred rupees to lakhs for premium seats.? The teams get the lion's share of ticket revenue (around 80%).
- Merchandise: Fans love to show their team spirit by buying jerseys, hats, and other team gear.? This merchandise revenue adds to the pot for the franchises.
- Prize Money: There's a trophy and prize money at stake, but compared to the other sources, this is a smaller chunk of the pie.
FAQs:
How many matches are played in the IPL?
There are typically 70 league matches, with each team playing 14 matches each.
How does the playoff work?
The top four teams from the league stage qualify for the playoffs, which involve an Eliminator, Qualifier 1, Qualifier 2, and the final.
How do IPL teams make money?
Teams earn from central revenue sharing (broadcasting rights), sponsorships, ticket sales, merchandise sales, and prize money.
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