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Indian Premier League (IPL) is the world's biggest and best T20 league and the same goes when it comes to revenue generation. The IPL is one of the most valuable sports leagues in the world, according to Forbes. Even if the IPL prize money is Rs 20 crore, many people are still curious about how IPL teams generate revenue. The revenue from media rights is the primary and most notable source.
The media rights were sold by the Board of Control for Cricket in India (BCCI) for Rs 48,390 crore. All franchises will get a redistribution of around 45% of the money collected for the 2023–2027 cycle. The teams will be more motivated to make it to the postseason. While the board will receive the remaining 50%, these teams will receive an extra 5%.
Bigger the brand value, better the deals
The franchises receive revenue from sponsorship agreements outside of the league's central sponsorship after receiving a portion of the media rights. Players even make appearances in a few advertisements, and the names of these sponsors are displayed on the jerseys of the teams. The franchise will be able to negotiate better prices the more people they reach.
For instance, despite not having an IPL championship, the Royal Challengers Bangalore (RCB) have a larger social media following than any other team. Large players on the team also contribute to the franchise's increased brand value. Additionally, there is a sizable fan support for teams like the Mumbai Indians (MI) and Chennai Super Kings (CSK).
Merchandise sale
IPL teams make money from the sale of team jerseys, training gear, keychains, and other items, just like many other football and basketball teams worldwide.
Ticket sales
Additionally, a franchise's home advantage extends beyond on-field performance. Ticket sales are how franchises make money. This is among the factors that make home games so important for teams. For instance, following the Women's Premier League (WPL) 2024 final, the pitch curators needed time to prepare the surface at Arun Jaitley Stadium in Delhi, therefore the Delhi Capitals' (DC) two home games were held in Vizag during the 2024 Indian Premier League.
