The Indian Premier League (IPL) is one of the most premium and successful sports leagues in the world. IPL was started by the Board of Control for Cricket in India (BCCI) in 2008, and now it has become a major source of income for BCCI and cricket from all over the world. It provides Indian domestic players to showcase their talent in front of the world without playing international-level cricket. IPL is the gold mine for various stakeholders- richest and most successful sports leagues in the world.
Let’s understand how BCCI makes money from IPL.
1. Media & Broadcasting Rights (Largest Revenue Source)
Media & Broadcasting Rights refer to the rights to stream the live match to their platform, and it is the major source of revenue for IPL. Every 4 years IPL committee invites bids for media & broadcasting rights and sells them to the biggest bidders. Recently, Jio Cinema won the digital streaming rights for Rs. 23,758 crore and Star Sports won TV rights for Rs. 23,575 crores. It means the BCCI or IPL committee earned more than Rs. 47,000 crores just to sell Media & broadcast rights for 4 years (2023-2027).
2. Sponsorships
Sponsorship is the other major source of revenue for the BCCI and the IPL franchise both. BCCI signs many sponsorship deals, like Title sponsor, powered by, and more. IPL franchise teams sign sponsors to showcase the logo in team jerseys, helmets, etc. In the inaugural session of IPL, DLF is the title sponsor and they had paid Rs. 200 crores for 5 seasons of IPL (2008-2012). Recently, Tata became the title sponsor of IPL and they are paying Rs. 2500 crore for 5 seasons (2024-2028).
BCCI signs multiple central sponsors too, like Dream 11, Unacademy, CRED, etc.
3. Ticket Sales
Ticket sales are one of the important parts of revenue for IPL franchises and the BCCI. Ticket prices vary by location and team.
4. Merchandising
Merchandising is also a source of income for the IPL franchise, not for the BCCI. Every IPL team sells their customized jersey and caps, and various merchandise to branding themselves and make revenue too.
6. Franchise Fee & Team Ownership Deals
BCCI earned money by selling franchises as well, like in the inaugural season the various business owners and influential persons were invited to bid for IPL teams, and all the bid amounts were the revenue for BCCI. Recently, BCCI earned ₹12,715 crore from the sale of two new teams in 2021: Lucknow Super Giants and Gujarat Titans.
How Media & Entertainment Industry is growing in India ?
7. Brand Valuation and Investments
IPL is not just a normal cricket game; it is a glamorous money-making sport and a delightful festival for cricket lovers. The huge number of fan following all over the world attracts many investments in India for stadiums and other infrastructure for matches. People from all over the world come to India for IPL, which boosts our tourism and gives direct and indirect employment for many people. IPL teams make their own valuation too.
For example, CSK and MI have their own valuation of over ₹9,000 crore.
How BCCI & IPL teams distribute revenue?
-BCCL has its own revenue-sharing model for IPL teams, and they share the revenue accordingly.
-BCCI distributes 45-50% of the Media rights revenue among the IPL teams.
-They proportionally divide the sponsorship amount.
-Tickets & Merchandise sales will go to IPL teams. Franchise Bidding will go to the BCCI.
At the end, IPL teams have to pay 20% of their total income to the BCCI.
Leave a Reply