Profitable IPL Teams
Ever since 2008, the entire nation is bound by the cricket mania. From the day of its inception, the Indian Premier League has entirely set the stage on fire. With the perfect blend of Bollywood, Cricket, and big money, the Indian Premier League is said to be one of the biggest T20 cricket leagues in the world. IPL has incredibly grabbed interest from people across the globe. And owning the same is not just all about fun and games. It is a colossal business.
Maybe the franchise is being loved for the cricket but it thrives on profits. The management of IPL has indeed roped in a myriad of celebrities & businessmen as the proud owners of their franchisees. With such a popular event, we may wonder what interests these owners to invest in crores every year. We may have questions like ‘Are IPL Teams Profitable?’, and ‘How do IPL Teams make money?’ To put things clearly, IPL’s combined central revenues will be shared equally among the BCCI, IPL’s organizer, and all the teams. Also, IPL teams tend to generate revenue through a plethora of channels.
BCCI Revenue from IPL
There are 2 sections in the central revenue of an IPL team. One is broadcast or media rights and the other is title rights.
1. Media Rights
Media rights are said to be the most significant source of revenue for the IPL team. And for some teams, it is 60% of their total revenue. Media rights or broadcasting will be sold by the BCCI to channels. The revenue earned from media rights will be distributed between teams by BCCI after deducting their share from it. Star India and Sony Entertainment are two broadcasters who gained media rights in different seasons.
2. Title Sponsorship
You would have noticed leading brand names right before the word IPL and it varies in different seasons. Well, it simply implies that these brands are said to be title sponsors for IPL & they also pay huge just to get their names to appear before IPL.
3. Ads & Promotions
TV, Online streaming, and Ads have much to offer. IPL is considered to be one of the most viewed annual sports events and it hugely contributes to the overall revenue.
However, the Local revenue is the game changer!
4. Local Revenue
Before COVID-19, where there was no lockdown, the stadiums get fully packed with fans to cheer their teams. So another source of income was ticket sales for all the teams. The team owners get the major part of the revenue that gets generated from the sale of tickets. Usually, the cost of these home game tickets is decided by the team owners.
The sponsors and BCCI get a portion of tickets, while the rest goes to the team. Also, adding food and beverages gets summed up to a huge amount. The home team gets the major part of the entire summed-up amount. The revenue is also generated by the IPL team through local sponsors and merchandise sales. Every team will have a set of sponsors.
5. Most Profitable IPL Team
The most profitable & top valued IPL team was Mumbai Indians which is valued at Rs.809 crores which are followed by Chennai Super Kings which is valued at Rs.732 crores. The Mumbai Indians are owned by Indian Sports Private Limited which belongs to Reliance Industries. This team has a stellar track record winning the Champion’s League twice and tournament four times. Year after year, they have retained big names making them the most outstanding team that they are today.
How much profit do IPL teams make?
On average IPL teams make almost Rs. 4 crores per match. 80% of the earned money belongs to the home team.
Which is the most profitable IPL team?
The most profitable IPL team is Mumbai Indians which has a value of Rs.809 crores which are followed by the Chennai Super Kings which carries a value of Rs.732 crores.
How much money does the IPL generate?
BCCI earned around Rs.12715 crores after a successful bid of 2 new IPL teams. BCCI earns a huge amount from the media rights that are being sold to broadcasters.