Indian Premier League started in 2008, and it is certainly the biggest T20 league around the globe. The top cricketing superstars of the world make their presence in the league and it has become the richest tournament in the world as well. When BCCI decided to add two new teams in IPL 2022, the bidding process broke all records.
Ahead of the IPL 2022, BCCI had organized an event where ownership of two franchises were sold. There was interest from all around the globe, but RPSG Group and CVC Capitals got successful in getting the deals.
The main source of revenue for the IPL teams is the media rights. BCCI sells the media rights to the broadcasters, and the revenue gets shared with the teams after cutting the BCCI’s share from it. Sony Sports Network and Star Sports Network have been the two broadcasters of the tournament till now.
Sony Entertainment purchased IPL media rights from 2008-2017, for a reported price of 8,200 crore INR which is around 820 crore per season. Star Sports Network bought the IPL rights in 2018 for a contract of five seasons for a reported price of 16,347 crore INR. The shift in the money is clearly visible between the two deals.
The title sponsorship of the IPL also plays an important part in the revenue process. The TATA group will pay INR 335 crores every season for the next two years to the BCCI to be the title sponsor. BCCI keeps 50% of the revenue to itself, and the rest of the revenue is distributed in the franchise.
Every team also has different sponsors, and they are also an important source of income for the sides. Every side has a lot of sponsors around their kits.
Since IPL 2020, Covid has hit the market, but before that ground earnings used to be an important source of income. 80% revenue of the ticket sales goes entirely to the franchise, whereas there are a lot of different earnings in the local market as well.
The core of IPL's business model is the idea of inviting private firms to own franchises. When the franchise rights are sold at soaring prices, investing firms saw the value of investing in IPL. By selling off the franchise rights IPL was able to create money.
People always crave entertainment; this guarantees that showbiz will never slump but exponentially continue to grow. IPL is a mixture of Bollywood and cricket; it is a source of entertainment for millions and the investors are aware of this, hence there will never be a shortage of investors. For more details you can check their main website about the investor relations and live streaming.
