Posted on: May 1, 2021 Posted by: Akash Gokhe Comments: 0
How IPL Team Owners Earn Money From IPL

If you are also a fan of IPL, then there must be a question in your mind that How IPL Team Owners Earn Money From IPL?

Know how IPL team owners buy star players for crores of rupees. And earns millions of crores through them. Winning in the IPL is important, but the franchise does not depend only on it.

The IPL is designed from a business point of view. The major business plan of the IPL is to invite private companies to buy cricket franchises. When the franchise is sold at a large amount, corporates will be attracted to invest in the major components of Indian cricket.

There is a total of 8 teams in IPL, All teams have different owners, but the entire business model is the same for all and within their revenue model is the income source of all the team owners and from this they get profit.

IPL Team Owners

TeamDebutOriginal Owner(s) in 2008Current Owner(s) in 2021
Chennai Super Kings2008India CementsChennai Super Kings Cricket Limited
Delhi Capitals2008GMR GroupGMR Group and JSW Group
Kings XI Punjab2008Mohit Burman, Ness Wadia, Preity Zinta, and Saptarshi DeyMohit Burman, Ness Wadia, Preity Zinta, and Karan Paul
Kolkata Knight Riders2008Red Chillies Entertainment and Mehta GroupRed Chillies Entertainment and Mehta Group
Mumbai Indians2008Reliance IndustriesReliance Industries
Rajasthan Royals2008Emerging MediaAmisha Hathiramani, Manoj Badale, Lachlan Murdoch, Ryan Tkalcevic, Shane Warne
Royal Challengers Bangalore2008United SpiritsUnited Spirits Limited
Sunrisers Hyderabad2013Deccan Chronicles (Deccan Chargers 2008-2012)Sun TV Network

 

Read Also: Top 10 Batsmen With Most Centuries in ODI Cricket

How IPL Team Owners Earn Money From IPL

By the way, the IPL team owners earn money in many ways, we talk about some special ways by which they earn more money, such as given below.

  • ‌Brand Sponsorship
  • Title sponsorship
  • Ticket Revenue
  • Media Rights
  • Merchandise sales
  • ‌Prize Money

Brand Sponsorship

Each team of IPL has its own brand. Like your must have seen t-shirt, trouser helmet, Players Kit that they wear the names of many companies. All these companies charge the team owner accordingly. Even the players get any product advertised and charge a large amount from the owner of that product. According to an estimate, the ipl team owners from the brand sponsors earn 8-10 crores in each IPL season.

Brand Value Of IPL Teams

TeamBrand value
Mumbai Indians₹761 crores (US$106.7 million)
Chennai Super Kings₹611 crores (US$85.7 million)
Kolkata Knight Riders₹543 crores (US$76.1 million)
Royal Challengers Bangalore₹536 crores (US$75.1 million)
Sunrisers Hyderabad₹442 crores (US$62.0 million)
Delhi Capitals₹370 crores (US$51.9 million)
Punjab Kings₹318 crores (US$44.6 million)
Rajasthan Royals₹249 crores (US$34.9 million)

Title Sponsorship

The title sponsor is the second biggest source of earnings for the owner of the IPL team. Like you will hear Vivo IPL, Dream 11 IPL, Pepsi IPL. To sponsor IPL titles, BCCI also sells title sponsors for which BCCI takes crores of rupees from companies. Not all the money is given to the team owners but 30% to 40% of the revenue is distributed equally among all the team owners.

Read Also: List Of IPL Winners (2008 To 2020): Winners List of All Seasons

List Of Title Sponsors Of IPL

SponsorPeriodSponsorship fee (per year)
DLF2008–2012₹40 crores (US$5.6 million)
Pepsi2013–2015₹79.2 crores (US$11.1 million)
Vivo2016–2017₹100 crores (US$14.0 million)
Vivo2018–2019₹439.8 crores (US$61.7 million)
Dream112020 (18 August 2020 – 31 December 2020)₹222 crores (US$31.1 million)
Vivo2021–2023₹439.8 crores (US$61.7 million)

Ticket Revenue

IPL match tickets are an important source of revenue for the owners of all the teams. You must have seen that every team has its own home ground. As the home ground of the Mumbai Indians is Wankhede Stadium and it is in Mumbai – 75% to 80% of the revenue of the match team’s home ground goes to the IPL team franchises owners.

Media Rights

The BCCI sells media rights to broadcast IPL matches on TV. The media rights set for the first 10 years of IPL ie 2008 to 2018 was bought by Max. For this, SET Max gave Rs 8200 crore to the BCCI. That is, 820 crores for a year. In which the BCCI distributes 60% of themselves and 40% among the team owners. In the first 10 years, each team of the IPL received 42 crore rupees from the media rights.

Then for the next five years i.e. from 2018 to 2022, media rights star 6 Sports has bought. And for this, Star Sports has given Rs 16347 crore to BCCI. That means 3269.3 crores of a year. 40% of this is distributed to the BCCI IPL team owners. That is, from 2018 to 2022, the owner of the IPL team will get 163.47 rupees from the media rights.

Merchandise Sales

In the Merchandise Sale, the team owners also make a lot of money by selling their team logo T-shirts, trousers, caps, players’ signed bats, etc. Earns around 1-2 crores rupees.

Prize Money

And in the last one, in our list is prize money. This money is given to the winning team of the IPL. 50% of the prize money is given to the IPL team owners, the remaining 50% is distributed among the players of the team.

Leave a Comment