How IPL Franchises Make Money: A Complete Breakdown- IPL


How IPL Franchises Make Money: A Complete BreakdownThe Indian Premier League (IPL) is not only the world’s biggest and most exciting T20 league but also a powerhouse when it comes to revenue. Forbes even ranks it among the most valuable sports leagues on the planet. Even with a prize money of Rs 20 crore, many are curious about how IPL teams manage to pull in such hefty revenues. A major chunk of that income comes from media rights.

The Board of Control for Cricket in India (BCCI) auctioned the media rights for Rs 48,390 crore. Under the 2023-2027 cycle, every franchise will get approximately 45% of the overall revenue generated, which is expected to increase their incentive to make it to the postseason. The BCCI will receive 50%, while 5% will go to the teams.

Sponsorship Deals: A Major Income Source for Teams

The franchises get a share of the media rights and receive revenue from sponsorship agreements outside of the league, after central sponsorship. A few players do appear in advertisements, and the names of these sponsors are displayed on the jerseys of the teams. The franchises will be able to negotiate better prices as they reach more people.

For example, the Royal Challengers Bangalore (RCB) have more social media followers than any other team even without an IPL championship. The presence of big players on the team also adds to the franchise having higher brand value. Further, fan support is also high for teams such as the Mumbai Indians (MI) and Chennai Super Kings (CSK).

Merchandise Sales: A Profitable Revenue Stream

 

IPL teams earn revenue from selling team jerseys, training gear, keychains, and other merchandise, much like many football and basketball teams around the world.

Home Advantage & Ticket Sales: A Key Revenue Source

 

Additionally, a team’s home advantage goes beyond just their performance on the field. Ticket sales are a major way teams earn money, making home games very important. For example, after the Women’s Premier League (WPL) 2024 final, the ground staff needed extra time to prepare the pitch at Arun Jaitley Stadium in Delhi, so the Delhi Capitals’ (DC) two home games were held in Vizag during the 2024 Indian Premier League.

 

IPL 2024 Brand Value Rankings

Rank IPL Team Brand Value (USD) Brand Value (INR) % Change
1 Chennai Super Kings $122 million ₹1,010 crore 52%
2 Mumbai Indians $119 million ₹985 crore 36%
3 Royal Challengers Bangalore $117 million ₹970 crore 67%
4 Kolkata Knight Riders $109 million ₹905 crore 38%
5 Sunrisers Hyderabad $85 million ₹705 crore 76%
6 Rajasthan Royals $81 million ₹670 crore 30%
7 Delhi Capitals $80 million ₹660 crore 24%
8 Gujarat Titans $69 million ₹570 crore 5%
9 Punjab Kings $68 million ₹560 crore 49%
10 Lucknow Super Giants $60 million ₹495 crore 29%

 IPL System Valuation (2009-2024)

Year Valuation (USD Billion)
2009 2.0
2010 4.1
2011 3.7
2012 2.9
2013 3.3
2014 3.2
2015 3.7
2016 2.5
2017 3.8
2018 5.3
2019 5.7
2020 4.4
2021 4.7
2022 8.4
2023 10.7
2024 12.0

IPL System Valuation (2009-2024)



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