How IPL owners, teams, franchises make money? All you need to know

How IPL franchises make money - If you live in India then you would have either accidentally or willingly watched at least a clip of a cricket match. The majority of Indians are insanely dedicated fans of cricket, but with the current situation of covid-19 unfortunately they are not allowed into the stadium to watch their favourite matches live. 

Nevertheless, the matches continue to take place without any hindrance. Ever wondered how the IPL franchises make money if the tickets are not being sold? Here is all you need to know about how IPL franchises make money.

Why is the IPL franchise not having any issues

Due to COVID-19 restrictions, crowds aren't allowed in stadiums this year, which means IPL isn't selling tickets for the T20 matches. But that fact has not stopped Indian Premier League 2021 from forming eight teams to battle it out to be the winner of the tournament. This can catch you wondering as to how the franchises might be making money if the tickets are not being sold? 

To answer that, the IPL business model does not wholly depend on ticket sales per match. It is because of this reason that IPL teams can buy players for millions and yet be profitable.

What is the business model of IPL?

A robust business model like IPL does not depend only on selling of tickets. They make sure that there are various other outlets from which they can generate money to sustain themselves. IPL tournament franchise has developed as a valuable commercial property. It offers firms the opportunity to market and extensively advertise their businesses. And with this they can easily earn money and continue the IPL.

How does the BCCI and IPL make money?

The core of IPL's business model is the idea of inviting private firms to own franchises. When the franchise rights are sold at soaring prices, investing firms saw the value of investing in IPL. By selling off the franchise rights IPL was able to create money.

People always crave entertainment; this guarantees that showbiz will never slump but exponentially continue to grow. IPL is a mixture of Bollywood and cricket; it is a source of entertainment for millions and the investors are aware of this, hence there will never be a shortage of investors. For more details about t20iplindia cricket, you can check their main website about the invester relations and live streaming..

The BCCI collects colossal revenues by selling the media rights of IPL. With this revenue model, the BCCI gains revenue from broadcasters and online streamers, and after it deducts its share from the revenue it shares it with the teams after deducting its share. The final winning team which has the highest ranks at the end of all matches gets the highest amount. According to Business Insider around 60-70 percent of all revenue earned by IPL teams is generated through media rights.

How IPL teams make money

We often see IPL players being cast for brand sponsorship. During the IPL season, the sponsorships increase. It is because IPL teams generate a large percentage of their revenue through brand sponsorship. All franchises which partner with brands, sign contracts agreeing to endorse their logos on their kits. Around 20-30 percent of the IPL teams’ revenue is from Sponsorship.

Team owners fix the ticket price and if an IPL franchise the home team for a particular match they also get ticket shares. Around 10 percent of the revenue for IPL teams comes from ticket sales.

How do IPL Franchises make money

When an IPL team wins the tournament, they generate additional revenue. The hefty prize money is distributed between the owners and the players of the winning team. Around 50 percent of the prize amount must go to the players.

The IPL teams also sell merchandise like T-shirts, caps, kits and wristwatches of all teams which can also be a form of revenue.