How do IPL franchises make money?


IPL 2023 Winner

IPL franchises make money through multiple revenue streams, making the league one of the most profitable cricket tournaments globally. Here are the key ways IPL teams generate revenue:

1. Central Revenue (BCCI’s Share)

BCCI distributes a significant portion of its earnings from media rights and sponsorships to the franchises.

  • Media Rights: The biggest revenue source comes from TV and digital broadcasting deals. The IPL 2023–27 media rights deal was sold for ₹48,390 crore (~$6.2 billion).

  • Title Sponsorship: A share of IPL’s title sponsorship (e.g., TATA IPL) is given to all teams.

2. Team Sponsorships & Partnerships

  • Franchises earn money through jersey sponsorships, kit sponsors, and brand partnerships.

  • Example: Mumbai Indians’ 2023 jersey had Slice, DHL, and Marriott Bonvoy as sponsors.

3. Ticket Sales & Matchday Revenue

  • Ticket sales generate significant revenue, especially for teams with large stadiums like CSK (Chepauk) and MI (Wankhede).

  • Food & beverage sales inside stadiums also add to earnings.

4. Merchandising

  • Official team merchandise like jerseys, caps, and accessories contribute to revenue.

  • Online stores and collaborations with brands like Puma (for RCB & MI) boost sales.

5. Prize Money

  • The IPL-winning team earns substantial prize money (₹20 crore in 2023), with a portion going to owners.

6. Player Transfers & Trading

  • Teams can trade players during transfer windows, sometimes at a profit.

  • Unused players can be released before auctions to save costs.

7. Digital & Social Media Monetization

  • Teams earn from YouTube ads, branded content, and collaborations on social media.

  • High engagement leads to more sponsorship deals.

8. Private Equity & Franchise Valuation Growth

  • Some franchises sell minority stakes to investors at higher valuations.

  • Example: Rajasthan Royals sold a 15% stake to RedBird Capital for ~$37.5 million.

Conclusion:

With multiple revenue streams, IPL franchises continue to grow in value, with teams like MI and CSK worth over $1 billion. Do you want a breakdown of any specific team’s earnings? 😊