How IPL franchises make money, Indian Premier League or Indian Money League, IPL2020

Here we are talking about how IPL franchises make money in different ways and become Indian league's greatest cricket League in the world.

IPL is as much about business as it about cricket. In terms of valuation, IPL brands were $6.8 billion last year according to Duff report and Phelps report.

Media Rights

There is a revenue distribution model in IPL, where the BCCI collect heavy revenue from the broadcast and online steamers like star sports channel and online steamer like Hotstar.

Here one thing keeps in mind that only one distributor and online steamer get tender of IPL rights because of heavy competitions and extraordinary market value of IPL.

 Distributes close to 40% of that revenue among the teams. The value of media Rights increases year by year because the more digital media influence in our life the more value of IPL media rights, that's why BCCI earns more money only just streaming of IPL on a particular channel.

So both distributors and channels have an advantage in financial growth because India has around 1.3 billion population and almost half of that watch IPL on TV and almost 20% of people watch IPL on smartphones that's the way both distributors and online steamer earn more money in the slot of IPL.

Special Show

Besides that, the IPL franchises also make money from broadcasting special shows such as KKR's night club. Media rights reportedly form a major proportion of team revenue.

Individually team has a telecast show on YouTube or a particular channel. Cricket-related show which is analyzed the performance of each player and team also pays franchises to the telecast of their team performance.

Not only KKR but all franchises earn money from their show. Fans of different teams love the special show because they get a chance to meet his favorite cricket players and get a chance to converse with him.

The special show features special funda and themes. Creativity runs the show and franchises peak talented cricket representative and anchor. Star sports have its own IPL preview show and post show.

Sponsor

There are two types of sponsors in IPL

1. Brands that are a sponsor for IPL like Dream11.

2. Brands that are tie-up individually with each team.

BCCI collects money from the sponsors of IPL and distributes close to 40% of that among IPL teams.

"This year's fantasy gaming platform Dream11 done a deal with a huge bid of Rs 222 Crore for the 2020 IPL season which is currently counties in UAE."

Previously Vivo had acquired the deal with IPL with a huge amount of Rs 2199 for the five years contract in 2018, BCCI earns almost 60 percent of the revenue of that amount per year which means Rs 439.8 Crore per year contract of Vivo with IPL.

Chinese mobile company announced that the company withdraws next three years money in 2020 because of the Chinese Brands Boycott campaign.

India disfellowships with all Chinese companies and their product due to geological war between two nation, and that affect Chinese companies more than IPL because IPL gets another brand for sponsorship, one thing sure that this year's contract bid amount is lower than past 2 years.

One of the major points is that IPL gives sponsorship to Dream 11 which is an Indian based company.

Stadium Revenue

1. Revenue generated from the sales of match tickets played at home forms another source of income for the different IPL franchises.

2. Team also earn money by contracting food and beverage stalls in the stadium to third parties

This year IPL's revenue effects due to the Covid-19 pandemic for sure.

Not only IPL but all around the world's sports leagues also get financial effects due to this pandemic situation. One of the manor drawbacks is IPL held this year in UAE and no viewer allow in the stadium.

 IPL franchises' revenue also gets effect due to an empty cricket stadium but we all hope this year we all fight against the Coronavirus and we will defeat it.

So we will support the organizer and UAE Government to allow the green signal to this wonderful game, so we can at least watch one great thing in 2020.

Individually Tie-up with Different Brands

1. IPL team individually tie-up with different brands to offer visibility to brands by endorsing their logo on team kits and jerseys.

2. Another revenue from advertising on the barricades near the boundaries from a part of sponsorship revenue.

3. IPL franchises generate a sizable part of their revenue through brand sponsorships.

Every franchise has a different brands contract each year, franchises prompt that brands by giving the place of that company's logo on their Kits, jersey, and Helmet. Franchises prefer the local company to tie up with so it’s good to promote local brands for both companies and franchises.

Franchises give the price of the logo's placement according to visibility and good things are all brands bid huge amount for just tie-up with any franchises.

Merchandising

IPL franchises also make money from the sales of official merchandise like jersey, souvenirs, and sports equipment.

"However, this industry is still in a nascent stage in India."

Almost all the franchises prefer Nike, Adidas, and Puma's merchandise for the team's kit. But these brands are not Indian, these brand's origins do not belong to India.

That's why franchises have no option to tie up with these international brands. Indian sports clothing companies are still under developing situations so the Indian sports brands industry is still in the nascent stage.

 We hope all franchises prefer Indian companies for merchandise like jersey, souvenirs, and sports equipment. Many franchises also believe in national product but sometimes ate still need to improve it somehow.

Price money

The prize money of IPL is relatively lower than other sources of income. Last year Mumbai Indians pocketed nearly 20 Crore for winning the IPL 2019 title.

And another major advantage of winning the IPL title is to build the brand value of the franchise and help in getting the best sponsor.

Of course IPL title matter for not only IPL franchises but also matter to individual players.Winning prize doesn't matter much because all the money distributes equal money to each member of the team, support staff, mentor, and coaches. 

Every player earns more money from the bid amount than IPL's price money. So price money does not matter much but the title does.

IPL is a way of allowing corporate India into Indian cricket dressing rooms and is a perfect blend of cricket and commerce.

IPL is not only a great competition that we all love but also a business market stroke that all wealthy businesspeople encourage and love.