IPL Backstage : How IPL teams make money? Here are major income sources of franchises

The Indian Premier League (IPL) is the best T20 league in the world, especially regarding revenue generation. As per Forbes, IPL is one of the most valuable leagues in the world across sports. While the prize money for winning the IPL is Rs 20 crore, it leaves many thinking about how IPL franchises make money. 
 

A big chunk of revenue

The first and most prominent source is the money earned via media rights. The Board of Control for Cricket in India (BCCI) sold the media rights for Rs 48,390 crore. Nearly 45 per cent of the revenue generated for the 2023-27 cycle will be redistributed to all franchises. The teams will have an added incentive to reach the playoffs. These teams will get an additional five per cent whereas the remaining 50 per cent will go to the board.
 

The bigger the brand, the more influx of money

After a share in media rights, the franchises earn money from sponsorship deals other than the central sponsorship of the league. The names of these sponsors can be seen on franchises’ jerseys and players even appear in a few advertisements. 
 

The bigger the franchise’s reach, it will help them get better deals. For example, the Royal Challengers Bangalore (RCB) may not have won an IPL trophy but they have a better reach on social media than any other franchise. Having big players in the team also helps the franchise build on brand value. Also, franchises like Chennai Super Kings (CSK) and Mumbai Indians (MI) have a large fanbase as well. 

ALSO READ: All 7 records in CSK captain MS Dhoni's name: Thala's IPL career in numbers ahead of 17th season
 

Merchandise sale

Like several football and basketball teams around the world, IPL franchises also earn from the sale of team jerseys, training kits, keychains, etc. 
 

Ticket sales

Also, home advantage for franchises is not limited to what happens on the field. Franchises earn from ticket sales. This is one of the reasons why having home matches is crucial for franchises. For example, Delhi Capitals' (DC) two home matches were played in Vizag in IPL 2024 as the pitch curators needed time to prepare the surface at Arun Jaitley Stadium, Delhi after the Women’s Premier League (WPL) 2024 final. 
 

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