Where does so much money come from in IPL, understand the earnings of team owners and the whole truth of BCCI’s business model
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So friends, there are not one or two sources of income in IPL but there are many sources of income. In this game there is name of fame at every step. Basically central revenue is the biggest share of earnings, there are two things in it. First media rights and second title sponsorship rights, from which BCCI and franchisees extract 70 percent of their profits.
media and digital rights
That is, the price by which the channels show live on IPL TV. Satellite TV channels buy media rights by paying a hefty price. BCCI keeps half of the income from this and the other half is distributed among all the teams. In the year 2008 i.e. during the first season itself, Sony had bought the TV rights of the tournament for the next 10 years. It was a huge gamble for the loss-making Set Max, and it paid off. Sony then bought it for 8,200 crores. After this, the media rights from the year 2018 to the year 2023 are with Star India.
title sponsorship
DLF IPL, VIVO IPL, Tata IPL… means scheme to link your name with IPL by paying money. The company that bids the highest will get the title sponsorship. Means our brand promotion through cricket. This is the second biggest source of income for IPL. Tata is currently the title sponsor of the IPL. Tata Group has bought the rights for two seasons for 670 crores. Vivo also pays termination fees for breaking its deal in the middle. In this way, BCCI will earn a total of 1124 crores in the year 2022-2023. Out of this, half the money is kept by the BCCI and the other half is distributed among the teams.
Commercial Aid and Kit Sponsorship
When an over is over in a match, there is a short break and advertisements are played on TV during that short break. According to a report, the slot of 10 seconds of advertisement coming in the middle of the match is around 15 lakhs. From the company that manufactures chips to cold drinks and don’t know how many small and big things, the sale increases. A total of 20 percent of BCCI’s earnings come from this advertisement running during the match. Apart from this, the franchisee earns a lot of money from T-shirts, caps, helmets, stumps and even the logo made in the umpire’s dress.
local revenue
Lastly, local revenue, which includes local sponsorship and prize money. Match ticket sale earns up to five crores in almost one match every year. If the match is taking place in the home ground of a team, then the franchisee gets 80 percent of that earning. Apart from this, the more popular the team is locally, the more sponsors it gets at the local level, along with this it also earns from the championship prize money. Half of this is given to the players of the team and the other half is kept by the company.
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