How Do IPL Franchisees Earn Money? Know The Full Details

Indian Premier League (IPL) is one of the richest T20 leagues in the world. Every cricket player wants to play in the Indian Premier League because of its popularity and interaction with international players.

But the most important question asked by the cricketing fans is how do the franchisees earn if they spend so much on players? And where does so much money come from to spend on players?

1. The Board of Control for Cricket in India (BCCI) operates the IPL, and the biggest source of income for franchises and BCCI is media and broadcasters. IPL franchisees earn maximum money by selling their media rights and broadcasting rights of the Indian Premier League, and now all the Broadcasting rights of IPL are currently with Star Sports. Initially, BCCI used to keep 20 percent of the earnings from broadcasting rights, and the teams received 80 percent of the amount. But gradually, this share increased to 50-50 percent.
2. Apart from selling the rights to IPL media broadcasts, the franchisees also earn a lot of money from advertisements. Companies also pay huge amounts to the franchisees for the names and logos of the companies on the players’ caps, jerseys, and helmets. During the IPL, the players of the franchises do many types of advertisement shoots. Overall, advertising also brings a lot of money to the IPL teams.

Now let’s understand the earnings of BCCI and the franchisee’s income. Revenue is divided into three parts.

(A) First parts of the IPL team’s earnings:-
Central Revenue, Divide into promotional revenue and local revenue. Media broadcasting rights and title sponsorship come in the central revenue only. About 60 to 70 percent of the teams make money from this.

(B) The second is an advertising and promotional revenue:-
From this, teams earn about 20 to 30 percent. However, 10% of the team’s earnings come from local revenue. This includes ticket sales and other things. With 7-8 home matches per season, the franchise owner keeps an estimated 80 percent of the revenue from ticket sales.

(C) The Sponsors and Merchandise
The remaining 20 percent is divided between the BCCI and the sponsors. Income from ticket sales typically accounts for 10-15 percent of a team’s revenue. Teams also generate a small portion of revenue by selling merchandise such as jerseys, caps, and other accessories.