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The Indian Premier League (IPL) has grown into one of the most profitable cricket tournaments in the world. What started in 2008 as a domestic cricket league has now become a global sporting event that attracts millions of viewers across continents. It blends sports and entertainment and brings together high-profile players, celebrities, business magnates, and millions of fans. The IPL has created a strong commercial structure, with multiple sources of revenue for the Board of Control for Cricket in India (BCCI), franchises, broadcasters, and sponsors. The economic structure of the league is now worth billions, and it has drawn interest not just from sports lovers but also from economists, investors, and analysts.
At the core of the IPL’s business model is the balance between revenue generation and expenditure. The league makes money through multiple channels, including media rights, sponsorships, ticket sales, and merchandise. On the other hand, franchises must carefully manage costs such as player salaries, staff payments, and infrastructure expenses while also generating income through branding, sponsorship, and other local business models. The IPL has matured into a self-sustaining system that not only generates profits for its stakeholders but also boosts the broader Indian economy through employment, tourism, and advertising.
Chennai Super Kings won their fifth Indian Premier League title in 2023 | Ron GAUNT / Sportzpics for IPL
The biggest source of income for the IPL is the sale of media rights. In 2022, the BCCI sold the broadcasting rights for the 2023-2027 cycle to Star Sports (television) and Viacom18 (digital streaming). The total deal was valued at ₹48,390 crore, making it one of the most expensive sports media deals in the world. This transaction alone explains why the IPL has become such a powerful force in global cricket.
With such a large sum paid by broadcasters, the BCCI receives a huge inflow of money, a portion of which is shared with the franchises. These broadcasters, in turn, make money through advertising slots and subscriptions. During the IPL season, ad rates for a 10-second slot can cross ₹15 lakh, especially during peak matches like playoffs or finals. As the viewer base keeps increasing, media networks continue to bet big on the IPL.
Sponsorship is another major contributor to IPL’s financial success. The title sponsorship deal alone brings in hundreds of crores. For instance, Tata Group signed a two-year title sponsorship deal worth ₹670 crore in 2022. In addition to the title sponsor, there are associate sponsors, official partners, and umpire partners.
Each of these deals contributes to the central revenue pool maintained by the BCCI. This pool is then distributed among the BCCI and the franchises in a fixed ratio. Moreover, each team has its own set of sponsors whose logos appear on jerseys, helmets, and training kits. Teams make deals with hospitality partners, financial institutions, mobile brands, and even crypto platforms to ensure a steady inflow of funds.
Franchises also earn from ticket sales during home matches. Although stadiums are often managed by local state associations, teams receive a share of the revenue generated from ticket sales. The percentage split varies from stadium to stadium, but it remains a stable income stream for teams, especially those with strong local fan bases like Mumbai Indians or Chennai Super Kings. The more matches a team hosts, the greater its chance to earn through gate receipts. In cities where matches often sell out, ticket sales can generate crores in a single evening.
Another emerging area is merchandising. Franchises are investing in brand development, and fans are increasingly buying official team jerseys, caps, and other merchandise. Although this segment is still growing in India compared to Western sports leagues, teams are seeing gradual returns from these efforts. Some franchises partner with retail platforms to reach a wider audience. The IPL’s growing popularity among younger fans has also helped this area grow.
Each team also enters into local business arrangements that help boost their income. These include partnerships with local brands, food delivery apps, and event companies. Some teams also license their brand name for events, cricket academies, or other sports-related activities, thereby expanding their presence beyond the two-month IPL season. All of these steps contribute to the team’s broader commercial goals.
However, the revenue side of the IPL is only one part of the story. The costs involved in running a franchise are also very high. Each franchise paid a one-time fee to acquire a team when the league started. For example, in 2008, the Mumbai Indians franchise was bought by Reliance Industries for around ₹447 crore, and the Chennai Super Kings were acquired for ₹346 crore. Over the years, the value of these teams has grown manifold.
When the BCCI added two new franchises in 2021, the bidding showed how much the league’s value had increased. Lucknow Super Giants were bought by the RPSG Group for ₹7,090 crore, and Gujarat Titans were acquired by CVC Capital for ₹5,625 crore. These numbers reflect the trust investors have in the financial future of the league.
Owning a franchise means paying various costs every year. One of the biggest is the player salaries. Each team can spend up to ₹95 crore (as per the 2023 rules) during the player auction. This money is used to sign both Indian and international players. Top players command salaries of ₹15-20 crore per season. Teams must carefully balance their squad to stay within the budget while building a competitive team. Supporting staff, including coaches, physiotherapists, and analysts, also have to be paid. Other expenses include travel, hotel stays, and training facilities. Some teams also invest in media content, fan engagement, and public relations to build their brand.
Franchises must also pay the BCCI a share of their revenue. This is generally 20 percent of the team’s income, paid as a franchise fee to the board. In return, franchises get access to central revenues and the right to use the IPL brand. The BCCI also provides logistical and operational support to conduct the tournament across multiple venues in India.
Despite the heavy expenses, many teams are now making profits or at least breaking even. This is possible because of the steady rise in media rights, team sponsorship, and fan engagement. For example, a franchise can now earn ₹250-300 crore in a season from its share of central revenue, team sponsorships, and other local sources. When compared with costs, which can range between ₹150-200 crore per season, the gap between expenses and income is reducing. Some teams, especially those with a strong history and loyal fan base, are also able to attract better sponsorship deals and command higher rates for brand endorsements.
It is also worth noting that the value of IPL teams is not only measured through yearly profits. Over time, the brand value of a team has become a major asset. According to financial reports, teams like Mumbai Indians and Chennai Super Kings have valuations of over ₹8,000 crore. Investors see long-term returns not just in match-day income but also in the overall increase in brand worth. If these teams ever go public or attract external investments, their value will be reflected in those deals.
Another major factor is the global appeal of the league. The IPL is broadcast in over 100 countries and draws players from nations such as Australia, England, South Africa, and the West Indies. The foreign interest boosts advertising, licensing, and sponsorship opportunities. International exposure also helps teams grow their brand beyond India, opening new markets and fan bases.
In recent years, the digital side of IPL has gained more attention. The growth of streaming platforms means fans can watch matches on mobile phones, which increases viewership and advertising potential. This digital reach also helps in marketing and data collection. Teams now use social media to stay connected with fans all year round, which helps improve their branding and attract digital sponsorships.
The IPL has also influenced other sports leagues in India. Based on its model, several leagues have emerged in football, kabaddi, and badminton. While these leagues are still small compared to the IPL, they are adopting similar formats to grow viewership and attract sponsors. The success of the IPL has shown that with the right structure, sports can be a profitable business in India.
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