(Milcah Anila, Intern Journalist) Vijayawada: The 8 franchises in the Indian Premier League generate revenue in several ways. Teams earn revenue mainly through sponsors and media rights.
Launched in 2008, the Indian Premier League is one of the most successful cricket leagues in the world. The IPL, which has been entertaining the fans for the last 13 years, has become a boon for young cricketers. Succeeding in this league is not only financially viable .. it allows them to learn valuable tips from international players.
Entertainment for the fans, the IPL is raining down cash on the players .. How did it become financially successful ..? Now let’s see how the money comes to the franchisees. IPL is the main source of revenue for sponsors and media rights. Dream XI is the title sponsor for the 2020 IPL. CEAT, Cred, Paytm, Un Academy, and Altroz are also sponsors. Sponsors pay crores of rupees to the BCCI.
For the broadcasting rights of IPL matches for five years from 2018 to 2022 .. Star India has agreed to pay Rs. 16 thousand 347 crores. How is the revenue for the franchisees through IPL? Media rights, the revenue generated by title sponsorship, form the central pool. Of this, 50 percent will go to the BCCI and 45 percent to the franchises.
5 percent is given as prize money. BCCI receives Rs.2,000 crore. It is generating revenue of Rs 2,000 crore. Local Sponsors: Each team in the IPL has some sponsors. The names of the sponsors appear on the jerseys and helmets worn by the players. The sponsor’s contract with the franchisees to make it look like this. These sponsors also generate revenue for the teams.
Now there is a corona effect but on normal days, if there is an IPL match, all the stadiums are filled. The franchise generates revenue in the form of ticket sales for matches played at home. The stadium owners are given a certain amount but the franchisees have some leftover. Through Gate Revenue, franchisees get Rs. 15 crore to Rs. 25 crores.
Prize money: Changing players, selling t-shirts, caps, etc. with their brand also raises money for franchisees. Usually, the team that wins the IPL title gets Rs 20 crore and the runner-up team gets Rs 11 crore. But the BCCI has halved the IPL prize money this season.
Every franchise .. has to pay ten percent of their final bid amount to IPL every year. The main cost of franchising is players’ salaries and other expenses. Up to 35-45 percent of the revenue coming to the franchisees will have to be spent on players. Franchisees have to pay direct and indirect taxes to the government in many ways. Into profits after ten years. Not all franchises made profits when the IPL started. The league started in 2008.
Not all franchises made a profit until 2017. While some went into profits in the beginning .. others made a profit trail late. ipl-2020 Profits in 2020 too .. Corona effect in 2020 season .. Withdrawal from Vivo sponsorship. Revenue of franchisees decreased. With the withdrawal from the Vivo sponsorship, each team lost over Rs 13 crore.
The teams had to give discounts as the sponsors also changed. With matches being played in empty stadiums, over Rs 15-25 crore has gone without gate revenue. The BCCI also halved the prize money.
But with Star Sports paying over Rs 3,000 crore to the BCCI for live coverage of matches, all the franchises are in profit.
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