Do you know the average revenue extracted by the IPL (Indian Premier League) in 2024? It is around 16.4 billion dollars, around 1,35,000 crores in INR. Well, the income generated by the Indian Premier League is hugely massive! But have you ever imagined how they earn money?

There isn't a single way through which the IPL earns money; they have a streamlined process of various strategies and sources of revenue for them. In this blog, let's explore the different ways in which IPL franchises earn money. Read more to know more.

What Is IPL?

The Indian Premier League, or IPL, is a men's T20 cricket league held annually in India. The BCCI (Board of Control for Cricket in India) founded the league in 2007, merging with ten state and city franchise teams. The Indian Premier League is one of the most popular cricket leagues in the world which has grown to the extent of creating the most expensive and lucrative cricket matches, collecting players worldwide.

What Is the Business Model of the Ipl?

The Business model of IPL is way better and follows a different model. Combining the entertainment, sports, and marketing strategy, the IPL has created a new business model of its own and is generating crores and crores of revenues from various sources.

The team follows a franchise business model, where Ten teams from the country participate in the IPL and compete with each other. These franchises are private entities based on a revenue-sharing model. There are different ways you can make money in the IPL like sponsorship deals, merchandise sales, auctions, endorsements, and broadcasting rights.

However, there are also different benefits for the players who play in the Indian Premier League Matches. BCCI will award players who have made well throughout their seasons, and their names will be added to the IPL winners list. The team member with the highest runs will be awarded, and the name will be added to the IPL orange cap winners list. Similarly, the purple cap is awarded to the highest wicket-taker in the season.

How Does IPL Franchise Earn Money?

There are different ways in which the Indian Premier League makes money. Here, I have shared a list of sources of revenue for the IPL franchise.

Media and Broadcasting

A massive amount of revenue for the IPL is through the media and broadcasting. The IPL grants its broadcasting rights to all the franchises, and the company pays enormous amounts of money to broadcast its IPL matches. Additional revenue sources are digital platforms with streaming, which also contribute part of the revenue to the team.

Also Read: What is Net Run Rate in Cricket​

Ticket Sales

Ticket sales are another source of income for the IPL. Each franchise is responsible for conducting at least seven home matches, an excellent opportunity to earn money. The ticket revenue in the team is around 10%. The home team gets the total ticket sales, and all the IPL owners earn by selling tickets, which adds a significant income to the franchise's earnings, which includes VIP boxes, premium seating, regular tickets, etc.

Merchandise

Sales of merchandise are another source of income for the players. Here, the franchise teams sell team jerseys, hats, and other branded accessories, contributing to their overall earnings of the team. Not only shop purchases but also a splendid growth in e-commerce merchandise sales through online platforms, which are in higher demand. The IPL craze has resulted in a higher demand for merchandise as well.

Sponsorships

Even through the sponsorships, the Indian Premier League makes a considerable amount of money. However, there are multiple sponsors for franchises whose logos appear on the jerseys, etc. They include the companies that partner with themselves for mutual promotion, such as the companies like the beverages, travel partners and more.

The promotion for any brand has two forms. The first is through print media or advertorials, which is why the IPL outfit has an average of at least 8-10 brand logos; this promotion leads to different sources of revenue generation. However, it can attract good sponsorship deals and better commercial partnerships once the brand grows.

Revenue From Stadium

Apart from all these merchandise and sponsorships, there are additional earnings from which the IPL earns money through revenue from food, beverages, and other concessions sold during the matches.

In some instances, the IPL may enter into the naming rights of their stadiums to generate additional income.

Prize Money

Prize money is another source of income and how the IPL franchises earn money. However, teams that perform extraordinarily will win prize money, which adds sources of revenue to the IPL. It is distributed to the members based on their final places in the league.

Other Sources

The IPL also generates revenue through other sources, such as organizing cricket exhibitions and charity events, creating digitally engaging content like conducting interviews, etc. These are some other sources of income for the IPL Franchises to make additional income.

Frequently Asked Questions about Ways on How Ipl Franchises Earn Money

What Does the IPL Team Win After Winning the Match?

After winning in the league, the IPL continues to be a premier tournament in the world, receiving prize money of Rs. 20 crores for the team and around 12.5 crores for the runner-up.

What Is the Profit of the IPL in the Year 2023?

In 2023, the IPL team earned 307 crores (approx) of income, a 23% rise from the previous year's revenue, which was only 251 crores.

Which is the Wealthiest IPL Team in the Country?

The wealthiest team of the IPL is the Mumbai Indians, owned by Reliance Industries by India's most prominent businessman, Mukesh Ambani. The net worth of the Mumbai Indians team is Rs.803 crores.

The following blog informs the readers about how the IPL franchise earns money. However, it portrays the different sources of revenue generated by the IPL through various techniques and methods.

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