Indian Premier League is not just a game of cricket, but also a game of crores and crores of rupees. Ever since it began in the year 2008, the popularity and fame of the Indian Premier League as the top T20 league have only gone up globally. Every year as the IPL draws near, the excitement and enthusiasm of cricket enthusiasts are palpable. Graced by a long list of cricket superstars and legends, the IPL glows brightly every season, and never fails to leave a mark. This very presence of cricket celebrities has also played a role in making the Indian Premier League the richest tournament in the world. The recent bidding process for the two new IPL teams attests to this fact as it broke all prior records. Read along to know more about how IPL teams make money and their different revenue sources.
The Where and How
Given the overwhelming enthusiasm and excitement associated with IPL, the extravagant amounts of money spend are perhaps justifiable. Yet the crores spend on the tournament never fail to spark awe and wonder, and perhaps a bit of curiosity about how the teams earn this money.
The media rights are the primary source of revenue for IPL teams. This much-coveted media rights are sold by the BCCI to the respective broadcasters following which the revenue gained is shared among the different teams after subtracting BCCI’s share. Till now, the tournament has been covered by Sony Sports Network and Star Sports Network. Let us take a look at the exuberant amounts paid by these two broadcasters to gain the media rights for the popular tournament.
Apparently, Sony Entertainment spent a whopping 8200 crore INR to purchase the media rights for the year 2008-2017. This means that the media house had to spend 820 crore INR every season. While in the year 2018, Star Sports spend 16,347 crore INR to purchase the IPL rights. The contract was for five seasons. The difference in the amount spent clearly indicates the fact that over the years the popularity of the tournament hasn’t waned.
Another major factor that contributes to the revenue of the teams is the title sponsorship. For the next two years, TATA Group will pay a total of INR 335 crores every season as it assumes the position of the title sponsor. While 50 percent of this revenue goes to the BCCI, the rest is distributed among the teams. In addition to the title sponsor, every other team has sponsors of their own and they contribute quite a remarkable amount to the overall income. Prior to Covid, the ground earnings were also a key source of income.
