How IPL Teams are Making Money?
Are you a cricket fan, most probably you are!
Indian Premier league (IPL) was launched in 2007, since then it’s been almost 17 years and IPL has become staggering brand value of almost 11 Billion USD as of 2024.
IPL is cricket tournament where 10 teams are formed named after different Indian cities and they compete each other for over 2 months. Interesting part is each team is formed with players from different countries globally.
That was a intro part, which I’m sure you must already know.
Let’s get to understand how does IPL teams make money.
There is no single way how a franchisee make money, a franchisee makes money through various sources but mainly through advertising.
Sponsorships- Each team get sponsorship from various companies, which is clearly visible on their jerseys.
Revenue Sharing – IPL as a league also makes money through various sources such as Broadcasting rights, sponsorships, OTT rights, merchandise sale, revenue from sale of tickets, etc. Interestingly, IPL share most part of this revenue with all the participating teams regardless of their performance on field.
This is also a good source of revenue for IPL teams.
Sale of merchandise – All teams are selling their merchandises i.e. T-shirts, Hats, wrist bands, etc. This not only keeps the enthusiasm alive but also helps the franchisee to create a profit out of it.
Player Auction – Every year before the tournament players action happens, in which different teams can bid for different players. One team can also but a player and later sell it at a higher price.
Before we end this, I have one question for you!
Did you know, which IPL team was considering public listing through IPO. Is this even allowed?
Until then, thanks for reading!