IPL franchises/Team Owners spend millions of dollars to buy star players and we see there is always a competition between the Team Owners for owning the franchises of the IPL. Most of the franchises/Team Owners of the IPL teams are businessman That’s why they will not let so much of the amount just for the fun and definitely they will be trying to do some business from this investment. So Now we tried to Find out the answer of this question “How the IPL franchises/Team Owners are earning money from there investment?”
IPL earns more than $10 Billion in one season which is more than one year earning of ICC which has created the history in terms of earning in Cricket industries. IPL teams earn money through various way including TV rights, prize money for winning matches, ticket sales, corporate sponsorships, and merchandise sales. All of which contribute to funding player salaries, coaching staff, and other expenses of the teams.
Here’s the more detailed breakdown:
TV Rights:
The biggest revenue source for IPL teams comes from the sale of TV and digital rights. A significant part of the revenue comes from the broadcasting rights. Where the league owners (BCCI) sell the rights to matches to various television networks like Disney-Star, JioCinema and distributes 50% of the media revenue equally among franchises. 2023-27 media rights deal was worth ₹48,390 crore (~$6.2 billion), ensuring each team gets ₹150-200 crore per year.
Sponsorships(Title & Central):
IPL teams secure sponsorships from various companies, who pay to associate their brands with the team and the league. There are two type of Sponsors come to invest Title Sponsors and Central Sponsors. More than 40-50% of sponsorship revenue is distributed among teams.
- Title Sponsors: Companies pay to be the league’s title sponsor (e.g., Tata IPL, Vivo IPL).
- Central Sponsors: Other central sponsors contribute to a shared revenue pool like Dream11, Pepsi, Vivo.
Prize Money:
Teams earn prize money for their performance in the tournament. The winning team, runner-up, and other top-performing teams receive prize money. This is a smaller share of revenue the winning team receiving a substantial sum.
Ticket Sales:
Teams earn from ticket sales for matches held in stadiums specially in home matches. Big teams like MI & KKR earn ₹20-50 crore per season from the sales of tickets. Hospitality Boxes, food, mineral water & Soft-drinks sales to add some revenue.
Merchandise Sales:
Teams sell team-related merchandise, like jerseys, caps, and other fan merchandise (online & offline) to generating additional revenue. Most popular teams like CSK and RCB earn ₹10-30 crore annually from this.
Digital Content & Fan Engagement:
Teams monetize YouTube, social media, and OTT platforms through ads and exclusive content. For example RCB’s “Bold Diaries” and MI’s and other social media presence generate additional revenue.
- YouTube Ad Revenue – Teams like RCB (4.9M+ subs), MI (6.67M+ subs), and CSK (4.11M+ subs) earn ₹5-15 lakh per video from ads.
- Exclusive Live Streams – Pre-match shows, Q&A sessions, and fan interactions (e.g., Polls, AMAs) keep engagement high.
