IPL 2020 Business Model: There are only a few hours left for the start of IPL 2020 i.e. 13th edition, which is considered to be the most popular tournament of quick cricket. IPL 2020 Business Model: There are only a few hours left for the start of IPL 2020 i.e. 13th edition, which is considered to be the most popular tournament of quick cricket. To feel this thrill of cricket, the audience has to wait a long time this time. Currently, the 13th edition is going to start in the United Arab Emirates (UAE). Here along with Indian legends, many famous cricketers from all over the world will be seen on one stage. The biggest reason for the popularity of IPL is money and glamor in it. Players become millionaires only by playing a tournament here. At the same time, BCCI and franchise teams also earn a lot. Actually IPL has been designed for business only.
Tournament based on business model
There is only 1 day left for the start of IPL 2020 i.e. 13th edition, which is considered to be the most popular tournament of quick cricket. To feel this thrill of cricket, the audience has to wait a long time this time. Currently, the 13th edition is going to start in the United Arab Emirates (UAE). Here along with Indian legends, many famous cricketers from all over the world will be seen on one stage. The biggest reason for the popularity of IPL is money and glamor in it. Players become millionaires only by playing an tournament here. At the same time, BCCI and franchise teams also earn a lot. Actually IPL has been designed for business only.
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‘Paisa hi paisa’ in IPL
IPL has been designed from business point of view. This is a cricket tournament, which has been developed as a commercial property. For team owners, this is not just a game of cricket but a business game. Maybe that’s why market experts call it not IPL but ‘Indian Paisa League’. Through this, many companies also help to increase their exposure and they are ready to pay crores of rupees in return for their advertisement. The main business plan of IPL is to connect corporates with cricket and create a way from where the money will come.
What are the sources of income
franchise auction
broadcasting
Title and Corporate Sponsorship
Advertisement on Players Jersey
Tickets are on sale.
prize money
local sponsorship
Advertisement inside cricket stadium
merchandise sales
What is Revenue Model?
According to a report, BCCI used to get 40 percent of the earnings through IPL, which has now become close to 47 percent. 47 percent of the total earnings go to the franchisee’s account. 6 percent is spent on prize money. Whereas when the players bet on the players by the franchise, their price is decided that which player will get how much for the whole season. The player’s base price is decided before the auction. The largest part of the earnings of franchise teams comes from broadcasting fees and the amount received from central sponsorship from BCCI. This accounts for 70 percent of the earnings.
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BCCI income
According to media reports, according to the balance sheet of the financial year 2018, after sharing 50 percent of the revenue to all the 8 franchise teams, the BCCI had a profit of 2000 crores annually. In the first season of IPL 2008, the income of BCCI through IPL was Rs 350 crores. In 2016, again the BCCI got 1200 crores. It is clear that IPL is a big deal for BCCI.
Earnings of Franchise Teams
According to a report, even after the shadow of Kovid 19 this year, the earnings of franchise teams can increase by 25 percent to be around 500 crores. This means that the earnings of the teams in the last season can be estimated around Rs 400 crores.