IPL is a game of money, and both the players as well as the owners end up richer in the end than they were before. But the question is, how do IPL Teams earn so much money? This is the question we will be dealing with in this article. Decoding the economics of IPL is not easy since several factors are at play simultaneously, however, let’s address them one by one.
If you want to know what these factors are, then keep reading.
The official sponsors of the teams are responsible for a major share of their incomes. Everything in this tournament has a price tag and there are sponsors for each and every element, from the jersey to the shoes, everything is placed strategically by the sponsors. The amount generated from the official league sponsors as well as other dedicated sponsors is then equally distributed among-st the franchises.
- Broadcasting Rights
Another major source of income is selling the broadcasting rights. Currently, Sony Entertainment has a deal with the BCCI, and the money earned from this deal is again distributed amongst the franchises. This is a guaranteed income, however, the teams can earn separately as well by having their own shows.
- Brand Value
Building a brand value is quite significant and the presence of star players in a team can automatically raise its value, which ultimately will result in attracting big brands and investors, hence bringing more money. Also, owners of the team who are celebrities themselves also add a substantial value to the team.
IPL is largely dependent on its fans for the success of the event as well as generating a big revenue. The tickets sold, especially of the home games formulate a large part of the total revenue. Moreover, The souvenirs, jerseys, food, and beverages sold in the stadium are a part of this revenue as well.
- Prize Money
Last but not the least is the Prize Money. Even though the amount is not quite attractive as compared to the expenditure of the teams, yet, it is a source through which the winning team and the runners-up earn. And also, if a team succeeds in winning back to back, it will be able to earn a considerable amount.
These are the major sources through which the IPL teams earn. There are other smaller factors as well which affect their income, however, most difference is made by these above-mentioned elements.