How do IPL Teams and Franchises Make Money?

The detailed ways from where the team players & team owners make money are given below here.

The IPL (Indian Premier League) is one of the greatest T-20 Cricket tournaments that has a huge fan following. 

This allows the franchises to make huge profit out of the IPL teams and advertisements. 

IPL Business Model 2023

The business of the IPL franchises doesn’t specifically depend on the match tickets bought by the fans. There are multiple other ways from where the franchises are making money. 

The IPL tournament allows the teams and their owners to market their brand and do public promotion of their services and products to connect with a considerable range of individuals.

IPL Media Rights & Price

Disney Star bought TV rights to the IPL 2023 for INR 23,575 crores from BCCI for the Indian subcontinent.

IPL Sponsorship

The names of the IPL sponsors for its 16th edition along with their span and Sponsorship fee(per year) is mentioned below in the table:

Official sponsors include: Dream 11, RuPay, Swiggy Instamart, CRED, up, Saudi Tourism Authority,Upstox.

Sponsor of strategic timeouts: CEAT 

IPL Prize Money 2023 

The prize money for IPL 20233 ranges from INR 7 Crores to INR 20 Crores and all the teams who took part in the league will win something as prize money.

IPL 2023 Ticket sales Revenue 

Ticket sales add 15% profit in the total revenue generated by IPL franchises. 

IPL Brand Value 2023

At present in the IPL 2023, Royal Challengers Bangalore has the strongest brands as they have a number of celebrities in it. The list of  squad in IPL 2023 along with their brand value is given below:

• Mumbai Indians - INR 9,962 Crores (Brand Value)
• Chennai Super Kings - INR 8,811 Crores (Brand Value)
• Kolkata Knight Riders - INR 8,428 Crores (Brand Value)
• Royal Challengers Bangalore - INR 7,853 Crores (Brand Value)
• Sunrisers Hyderabad - INR 7,432 Crores (Brand Value)
• Delhi Capitals - INR 7,930 Crores (Brand Value)
• Punjab Kings - INR 7,087 Crores (Brand Value)
• Rajasthan Royals - INR 7,662 Crores (Brand Value)
• Gujarat Titans - INR 6,512 Crores (Brand Value)
• Lucknow SuperGiants - INR 8,236 Crores (Brand Value)

Other ways from which the owners of the IPL teams Make money are:

Merchandising in IPL

The sale of duplicate jerseys, caps, kits, T-shirts, and sports memorabilia is one source of revenue.

IPL Selling Stake

The franchises make a lot of money from their team shares.

IPL Stall Rental 

These stalls serve supporters throughout the game on an agreement basis to a third party, with each club earning a fee per stall per match.

How much profit does an IPL franchise get?

• The IPL tournament, right from its inaugural season, has earned a considerable amount of cash due to huge fan following. 
• Specifically talking about IPL 2023, the 16th IPL edition, the revenue growth has increased up to 80% from last year in IPL 2022.

Mr.Santosh N, the managing partner of D&P Advisory, stated:

“The central pool is now pegged at about ₹9,000 crore-10,000 crore which includes media broadcast rights fees and central sponsorships. Almost 50 percent of this will be distributed to the teams, which works out to be ₹450-500 crore for each team. Add to that team sponsorships that franchises have bagged which is estimated to be in the range of ₹75-100 crore per team. So, each of the IPL franchises will be looking at total revenue in the range of ₹500-600 crore this season.This will be 80-100 per cent growth in revenues over last year.”

How does RCB make money even after not winning a trophy?

RCB or Royal Challengers Bangalore, established in 2008 (the inaugural year of IPL), is an IPL squad representing Bangalore City in the tournament.

• RCB has been a popular IPL squad and despite the fact that they have never won the IPL title, this franchise makes huge cash from various additional ways. In IPL their fame allows them to earn big.
• This franchise includes some of the big names like: Chris Gayle, Virat Kohli and AB De Villiers from many years. This franchise has reached the finals thrice in 2009, 2011 and 2016. 
• RCB gets a lot of money each year via broadcasting rights, advertising, stadium ticket sales, product sales (T-shirts), and prize money from the IPL which is a cash-rich league. 

It is true that this franchise has never won any title, but they make money through various ways including:

Media Rights

The BCCI guarantees each of the ten IPL franchises a share of forty to fifty percent of media rights. 

Sponsorships

In 2023, RCB secured an unparalleled three-year title sponsorship agreement with Qatar Airways for an exclusive amount of INR 75 crores.

Stadium tickets

The team owners are getting 80% of the profits from ticket sales, with the balance of 20% going to the BCCI.

Merchandise Sales

RCB also has collaborations with Status Quo, Puma, and all individuals can buy T-shirts, shorts, caps, shoes, and more from the RCB website.

Prize Money 

The RCB franchise is tentatively going to get INR 7 Crores. 

Conclusion

Most of the people are unclear about how the franchises earn this high-profit. Most viewers believe that they only earn from ticket sales, but that is not absolutely true.

The complete detail about the profit that an IPL franchise makes from the IPL league and how RCB earns huge money, without winning a trophy till date,is given above here.