IPL 2021 Business Model: Nearly two years later, the Indian Premier League is returning to the home ground. This event will be played in Ahmedabad, Bangalore, Chennai, Delhi, Mumbai and Kolkata this year. The season will begin on April 9 in Chennai, where the first match between last year’s champions Mumbai Indians and Royal Challengers Bangalore will be played. 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.
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.
source of income
- franchise auction
- Title and Corporate Sponsorship
- Advertisement on Players Jersey
- ticket sales
- reward amount
- local sponsorship
- Advertisement inside cricket stadium
- merchandise sales
IPL 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. Most of the earnings of franchise teams come from broadcasting fees and central sponsorship from BCCI. 70 percent of the income comes from this.
In view of the increasing cases of Kovid-19 in Maharashtra, announcement of weekend lockdown, many new restrictions including night curfew
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.