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Everything about Indian Premier League Business Model

Indian Premier League 2021 is going on with eight teams are battling it out to be the winner of the tournament. Due to COVID-19 crowds are not allow in stadiums this year too due to which IPL not able to sell tickets for the T20 matches.

Many of you may wonder as to how are the franchises making money if the tickets are not being sold?

What is the Business Model of IPL?

The IPL has a strong business model that is able to sustain itself despite facing these difficulties of COVID-19.

IPL is a tournament that has been develope as a valuable commercial property.

IPL offers firms the opportunity to market and extensively advertise their businesses.

How BCCI and IPL Makes Money?

In IPL private firms to own franchises.

When the franchise rights were sold at heavy prices other firms saw value in investing in the tournament, and that is sources of money.

Some of the large firm made up of several different companies in India fight it out to get the title sponsorship of the tournament.

Also IPL being a mixture of Bollywood and cricket is a source of entertainment for millions.

BCCI collects heavy revenue by selling the media rights of IPL.

BCCI gains revenue from broadcasters and online streamers.

Board of Cricket Control in India then shares this with the teams after deducting its share.

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The team which ranks higher at the end of all matches gets the highest amount.

About 60% to 70%of all revenue earn by IPL teams is generate through media rights.

How IPL Teams make Money?

IPL teams generate a large percentage of their revenue by brand sponsorship.

Franchises partner with brands and offer them visibility by endorsing their logos on their kits.

The more visibility the sponsors want more money they have to spend.

Sponsorship revenues generate around 20% to 30% of revenue for the IPL teams.

IPL franchises also get a share of ticket sales if they are the home team for a particular match.

Team ownershas the right to fix the ticket price.

The BCCI and sponsors also get a share of this revenue stream.

Around 10% of the revenue for IPL teams comes from ticket sales.

How IPL Franchises make Money?

IPL teams can also generate more revenue by actually winning the tournament.

The IPL offers a huge prize money which is distribute between the owners and the players of the winning team.

Also 50% of the prize amount must go to the players according to rules.

IPL teams also generate revenue through merchandise sales. T-shirts, caps, kits and wrist watches of all teams are sold in abundance.

THANK YOU FOR READING.

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