How do IPL owners, teams, franchises make money? All you need to know


If you live in India, you would accidentally or on purpose watched at least one clip of a cricket match. The majority of Indians are incredibly dedicated cricket fans, but with the current covid-19 situation, unfortunately they are not allowed to enter the stadium to watch their favorite matches live.

Nevertheless, the matches continue to go off without a hitch. Have you ever wondered how IPL franchises make money if tickets don’t sell? Here’s everything you need to know about how IPL franchises make money.

Why is there no problem with the IPL franchise?

Due to COVID-19 restrictions, crowds are not allowed in stadiums this year, which means IPL is not selling tickets for T20 matches. But that fact hasn’t stopped the 2021 Indian Premier League from forming eight teams to fight for the tournament winner. This may make you wonder how franchises could make money if tickets don’t sell.

To answer this, IPL’s business model is not entirely dependent on per-match ticket sales. It is for this reason that IPL teams can buy players for millions and yet be profitable.

What is IPL’s business model?

A robust business model like IPL doesn’t just depend on ticket sales. They make sure that there are various other outlets from which they can generate money to support themselves. The IPL tournament franchise has grown as a valuable business property. It offers companies the opportunity to market and widely publicize their activities. And with this, they can easily earn money and continue IPL.

How do BCCI and IPL make money?

The heart of IPL’s business model is the idea of ​​inviting private companies to own franchises. When franchise rights are sold at skyrocketing prices, investment firms have seen the value of investing in IPL. By selling the franchise rights, IPL was able to make money.

People always crave entertainment; this ensures that showbiz will never collapse but will continue to grow exponentially. IPL is a mix of Bollywood and cricket; it is a source of entertainment for millions of people and investors know it, so there will never be a shortage of investors. For more details on cricket t20iplindia, you can check out their main investor relations and live streaming website.

BCCI collects colossal revenues by selling IPL media rights. With this revenue model, BCCI derives revenue from broadcasters and online streamers, and after deducting its share of the revenue, it shares it with the teams after deducting its share. The final winning team that has the highest ranks at the end of all matches gets the highest amount. According to Business Insider, around 60-70% of all revenue generated by IPL teams is generated through media rights.

How IPL Teams Make Money

We often see IPL players being selected for brand sponsorship. During the IPL season, sponsorships increase. This is because IPL teams generate a large percentage of their income through brand sponsorship. All brand partner franchises sign contracts committing to affix their logos to their kits. About 20 to 30% of the income of IPL teams comes from sponsorship.

Team owners set the ticket price and if an IPL franchises the home team for a particular game, they also get ticket shares. About 10 percent of IPL teams’ income comes from ticket sales.

How do IPL franchises make money?

When an IPL team wins the tournament, it generates additional income. The jackpot is distributed between the owners and the players of the winning team. About 50 percent of the prize money must go to the players.

IPL teams also sell merchandise such as t-shirts, caps, kits and wristwatches of all teams which can also be a form of income.

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