World-Events

How IPL Team makes money

IPL the biggest game in India is also known as game of money and one of the favourite game in India. The players are considered not less than god for those who having intoxication of cricket game. This game is based on IPL business model. Let’s have a look on a IPL team’s owner how much do they spend and make money in a season.

 INVESTMENT

This expenditures have been categorized  in different ways so that expenditure could be easily understood.

  1. Players   – around 80 crores.
  2. Supporting staff –  around 10 crores.
  3. Hotel, food , health, party, travelling –  around 50 crores.
  4. Advertisement –  around 10 crores.

According to BCCI maximum 80 crores can be spent to buy players by any team.

INCOME

IPL make money in two ways

  1. Through BCCI – Amount divided by BCCI
  2. Through  Team  – Income earn by team

INCOME THROUGH BCCI

BCCI auction its broadcasting rights and take money from TV Channel. IPL 1st season had been started in 2008 and broadcasting rights was sold to Sony entertainment channel. Sony channel had given RS 8200 crores for 10 years, mean for one season approximately RS 820 crores. BCCI divided these amounts  among the teams in ration of 20% and 80%. BCCI used to keep 20% and 80% distributed among the team, this system has been pursue for two years and next 3rd and 4th years ratio turned into 30% and 70%. Next 5th and 6th years ratio turned into 40%  and 60%, and in coming years ration turned into 50%, 50%.

When Sony rights finished, again in 2018 broadcasting rights was sold and this time star sports had given huge RS 16,000 crores amount in bidding for next 5 years, mean for one season Rs 3200 crores, and now the amount of distribution is made between 60% and 40%. BCCI keep 60% and among team 40%.

SPONSOR INCOME

Whosoever the company sponsors to IPL they give a handsome amount to BCCI. When IPL started DLF had sponsored first and later on PEPSI and now VIVO sponsoring to IPL. VIVO has paid RS 2200 cores for next 5 years. Mean RS 440 crores for a seasons and amounts is distributed  between the BCCI and TEAMS in ration 60% and 40%.

INCOME THROUGH TEAMS

Team owner makes money by different ways which are as follows.

  1. By Jersey advertisements- earning around 30-40 crores.
  2. By ticket collection- around 5 crores per match.
  3. By ground Sponsor – around 2-3 crores
  4. By wining final match – 50% team owner and 50% among the wining team.

Thus IPL business based on this model which given a chance to many player to make career in cricket and to earn handsome money.

Comments (1)

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