We constantly hear that such player was bought for so many crores, such player was the highest bid. All figures are in crores. But we are constantly asking the question, team owners are spending so much on their players but how much money they are getting and how they are getting it. Do not worry, We will certainly help you in this.
IPL was announced in 2008 with a total of 8 teams and every year the popularity of IPL continued to increase and so did the revenue… The concept of IPL is Modi’s. Ah, the person you are thinking of is not Modi but Lalit Modi.
Let’s see BCCI and IPL team owners’ income sources:
1. Title Sponsors:
It is the real main source of revenue and initially the title sponsor of the IPL was DLF in 2008, then VIVO IPL and previous year itself the title sponsorship was bought by Dream-11 for a whopping Rs 222 crore. A division of Rs 222 crore takes 60% to the team owners and 40% to BCCI. Currently TATA is IPL title sponsors.
2. Each team has its own different sponsors:
The logos we see on players’ jerseys or caps are paid to the team owners for logos on professional IPL teams.
For example, the Mumbai Indians team’s T-shirt has the Samsung logo on it. This logo is always visible on TV because of the players. But the Samsung company is paying the owners of Mumbai Indians to display that logo on the t-shirts. On average, the team owners get 70 crores a year due to such advertisements.
As IPL is also popular, brands and companies do not hesitate to pay for their advertisements.
3. Media Rights and Broadcasting:
Whatever amount is agreed upon with the BCCI channel is split 60:40 between the BCCI and the team owners. Star Network India has signed a deal worth Rs 16,347 crore to broadcast IPL for 5 years in 2017.
So we can watch any IPL match on Star Sports, or Star’s other channels. With the increasing use of mobiles, we can watch matches from anywhere by paying Hotstar.
Thus BCCI and the team owners get most of the revenue through broadcasting.
4. Fans who go to the stadium and buy tickets to watch the match:
Cricket is the most popular sport in India. Some people consider sportsmen as gods or as idols. Many fans are keen to watch their favorite players anywhere in India.
Stadiums have different types of stands and ticket prices are also different. 2 years ago even though fans cannot go to the ground due to Corona, but every year each owner gets Rs 35-40 crore from ticket sales.
Suppose the ticket price is Rs.1000. A share of Rs 700 goes to the home ground owners, Rs 100 to the BCCI, Rs 100 to the cricket association of the state where the match is held and the remaining Rs 100 to the IPL title sponsors i.e. TATA this year.
Also, there are food stalls in the stadium, through which money is earned, and through other screens we see various advertisements in each stadium, the team owners are also getting money. Each team owner earns around Rs 400 crore a year from tickets, favorite team t-shirts, flags, team colorful face tattoos and other stadium activities.
5. Profit through prizes
Whoever wins the IPL trophy gets Rs 20 crore for the team. Now you will say why team owners with income above 500 crores would be thinking of 20 crores. For the team owners, the title is not for 20 crores but basically to increase their brand value.
Figures from previous years show that Mumbai Indians, who have won the most titles, have the highest brand value followed by KKR, CSK and then others. The higher the brand value, the more money the team owners get from advertisers.
If we add up all these sources, each team owner gets around 50-60 crore rupees per match. That means the team owners get 20 to 25 lakh rupees for every bowled ball. In short, we give the audience nothing but pure joy, but we make the BCCI and the team owners a lot of money.