The Indian Premier League is a saga of an event and garners audiences from all around the world. This domestic T20 league is by far the most successful one and has taken the standards of domestic leagues to an all new level. The grandeur of this event is of another planet with all the extravagant advertising and monetary investments. The money flushed into this event and the popularity of the cricket itself, in India, has taken the IPL to what it is today.
Along with the money invested, there is also a large amount of profits that the team owners are making. With the mega tournament now completing 12 years, let us look at where exactly these teams get their money from.
There is no doubt about the magnitude of crowds that are attracted by IPL matches. The stadiums are jam-packed in almost every single game of the tournament, leave alone the playoffs and finals. Ticket sales draw a lot of money, but not all of it is for the team owners. A large share of it is given away to the BCCI and the sponsors of the team. However, what’s left is definitely enough to be considered as profits.
With the extended popularity of this tournament; especially, with the local teams and players on the field, advertising is a massive profit-making avenue. The branding and advertising is all over the scene, it can be seen on the players’ jerseys, caps, helmets, almost everything that can hold the branding. The advertising on the grounds and stadiums is a different game altogether. Similarly, the teams are also selling merchandise such as flags, whistles, jerseys, caps, and so on to amplify profits.
The prize money in for the IPL winning team is another major source of profit, however, this is only limited to the winning team. The runners-up get a good share too. This money earner is distributed between the players and the team owners. Last year’s IPL winners received INR 20 Cr., while the runners-up made INR 12.5 Cr.
The broadcasting rights for IPL are directly purchased from the managing committee. However, the teams and their owners get a certain amount from the deal between broadcaster and IPL committee. This is one of the fixed sources of income for the team owners.
Heavy crowds attend the games and the stadiums have multiple stalls for their entertainment. These stalls are for food items, merchandise, face painting and so on. The rent paid by these stall owners to set up their shop is also one way the team owners earn their profits.