IPL money earning | How does BCCI make money from IPL

How do the owners of IPL team make money?, Which IPL team earns the most money, How much KKR earn from IPL, How IPL team owners earn money Quora, How much RCB earn From IPL 2024,

The franchise of the team doles out millions of dollars to buy star players and we see there is always a competition for owning the franchises of the IPL teams. So when Most of the franchises of the IPL teams are businessman, it is obvious that they will not let so much of the amount flow just for the fun and definitely they will be trying to earn from this investment. So today we tried to dig out the answer of this question and here is my attempt to give a brief about how the IPL franchises are earning money:

Marketing Benefits:

Franchise can sell the team or a player to other companies for ad and promotion and the players do the ad without taking any money from the franchise or the company. The money which is paid by companies for ad to the player goes to franchise

Few interesting thing signed in the bond is:

No player can ignore the direction of their franchise for ad and promotion.

Players of the IPL team are not allowed for do any ad or promotion without permission of their franchise during the IPL match.

Percentage of Amount Distribution: 100% to Team Franchise.

Central Revenue:

1. TV broadcasting rights:

The match for the IPL is permitted for Live coverage and hence the Broadcasters has acquired the global broadcasting rights of the IPL for ten years at a cost of well over US$ 1 billion. This broadcaster then re-sold parts of the broadcasting rights geographically. And the major chunk here is these proceeds is equally distributed to the franchises

The earning of television ad during the live cricket match is also distributes in franchise of both teams (which are playing on the ground) and IPL. The TV channel covers the live of the match and shows ads between the overs. The TV channel pays shares of TV ad to the IPL and IPL distributes this amount to both franchises of IPL team and himself. This is the main reason why franchises want that their team should be play the more matches.

2. Sponsorship rights:

The amount earned by BCCI or an IPL organizing committee from the sponsorships of the IPL go towards a central pool and after that a sizeable percentage of that is distributed equally among the franchises. A part of this money is added towards prize money a well.

Percentage of Amount Distribution:

80% to Team Franchise and 20% to IPL committee (first 5 years)

60% to Team Franchise and 40% to IPL committee (after first 5 years- up to 10 years)

Local Revenue:

The other small revenues can be considered under this categories which can include:

Ticket sales: The revenue earn from the selling of ticket gets divided between the two playing teams and the IPL organizer.

Percentage of Amount Distribution: 80% of total stadium tickets are with franchises, 20% with IPL organisers.

The amount earned from the sale of gate passes are a major source of revenue for franchise owners.

Local sponsorships of the team, which the franchisee tries to earn from the different brand available in the market and hence the popularity of the team comes in picture here as definitely the most popular team among the population can get more sponsorship.

Prize money of the match also goes to the Franchisee . the price money consist of a single digit percentage of the broadcasting rights and IPL sponsorship.

The franchises sell merchandise like T-shirts and caps through their web-site and other channels and this revenue stream can be a big money spinner depending on the fan following of the team.

Player Trading was recently observed in the IPL where lots of players will be traded between different franchises. Franchises make a neat profit from the ‘sale’ of these players as they charge a premium on the price at which they ‘bought’ them.

Now coming to the point how a win can add a more benefit other than broadcast revenue and price money. The Champions League Twenty20! Here the top four teams in the IPL qualify for the Champions League every year and are entitled to a share in the amount paid for the broadcasting rights.