How to earn in IPL: IPL gains Rs 26300 crore in 7 years, how do teams earn crores after huge expenses

IPL gains Rs 26300 crore in 7 years

IPL 2021: In the year 2021, the brand value of IPL has fallen by 3.6 per cent to Rs 45800 crore. At the same time, its valuation increased from Rs 19500 crore (year 2014) to Rs 45800 crore (year 2020) in the last 7 years. During this period, the valuation has increased by Rs 26,300 crore.

According to a report by Global Valuation and Corporate Finance Advisor company Duff & Phelps, for the first time in 6 years, the brand IPL has suffered a loss. In the year 2020, the brand value of IPL has fallen by 3.6 per cent to Rs 45800 crore. The report states that valuations have declined due to the Corona epidemic crisis.

However, a question arises in everyone's mind here that in the IPL, teams spend crores on everything from buying players in the auction to their stay, travel, support staff. After such a huge expense, how do these franchises earn in the IPL.

Kolkata Knight Riders, Mumbai Indians, Royal Challengers Bangalore, Delhi Capital, Kings XI Punjab, Sun Risers Hyderabad, Gujarat Lions and Rising Pune.


First of all, know how IPL has gained 26,300 crores in 7 years.

According to the report of Duff & Phelps, the valuation of IPL in the year 2014 was around Rs 19500 crore. Which has increased to Rs 45800 crore in the year 2020. Hence, it has gained Rs 26,300 crore during this period.


Year

Valuation

2014

19,500 crores rupees

2015

21,300 crores rupees

2016

27,500 crores rupees

2017

34,400 crores rupees

2018

41,800 crore rupees

2019

47,500 crores rupees

2020

45,800 crore rupees


How to earn in IPL

Lalit Modi was the brain behind bringing together business, entertainment and sports on one platform. IPL was started in the year 2008.

This league not only brought together the best cricket players from all over the world, but it also connected corporate India with itself.

Still many people are unable to understand how IPL franchises are buying star players for crores of rupees and how they are earning.

IPL Team Valuation


Team

2019

2020

Mumbai Indians

809 crores rupees

761 crores rupees

Chennai Super Kings

732 crores rupees

611 crores rupees

Kolkata Knight Riders

629 crores rupees

543 crores rupees

Royal Challengers Bangalore

595 crores rupees

535 crores rupees

Sunrisers Hyderabad

483 crores rupees

442 crores rupees

Delhi Capitals

374 crores rupees

370 crores rupees

Kings 11 Punjab

458 crores rupees

318 crores rupees

Rajasthan Royals

271 crores rupees

249 crores rupees


It is a cricket tournament, which has been developed as a valuable commercial property. It provides an opportunity for companies to advertise their business aggressively.

The major business plan of the IPL is that private companies be called to buy cricket franchises. When the franchise is sold at a large price, the corporates will be attracted to invest in Indian cricket. This is where the money comes from.

The big corporate companies of the world including India have been entered in the IPL. Now big companies are sponsoring this game.

Companies are also taking advantage of the craze for cricket in India. India has the largest number of cricket lovers and population in the world, which is continuously increasing.

Everyone agrees that the entertainment industry never slows down and that the IPL is a cocktail of Bollywood and cricket, promising only entertainment, entertainment and entertainment.

Earnings are done by selling media rights

There is a revenue distribution model in the IPL. BCCI charges a hefty amount from broadcasters and online streamers.

From this, after deducting their fees, this amount is distributed among all the IPL teams. It is divided on the basis of team rank.

At the end of the game, the higher the rank of the team, the larger it gets in the media revenue. Media rights account for 60-70 per cent of the total revenue earned by the IPL team.

Earnings through brand sponsorship

Franchisees tie up with the brand and print their brand and logo on team kits and jerseys. There is also revenue from advertisements on the boundary of the stadium.

If the company name or logo is put in big and bold letters on the player's chest and back, then the highest sponsorship fee is paid.

Sponsors can also organize some events with team players, through which they promote their brand. Sponsorship accounts for 20–30 per cent of the total earnings.

Earning by selling tickets

The stadium also earns from ticket sales. The team owners decide the price of the ticket. Ticket's share in the IPL team's revenue is around 10 per cent.

Earning from prize money

In the IPL, a very large amount of cash is given as a prize. The champion team of the tournament gets the largest share of the prize money. The prize money is divided between the team owner and the players.

Other way of earning

The sporting goods market in India is growing at an annual rate of 100 percent and this market is about $ 30 million. Every franchisee sells merchandise, which includes T-shirts, caps, wristwatches and many other items.

During the match, food stalls are given to a third party on contract basis, which gives them as subcontracts. These stalls are given at a fixed price per match per stall.

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