Tuesday, 13 March 2018

IPL 2018: How IPL Team Owners Make Money

How IPL Team Owners Make Money: The Eleventh edition of the Indian Premier League(IPL 2018) will starts on 7th April and we are going to witness some exciting drama on-field. As we all know a huge amount of money involved in IPL and the franchises spends crores of rupees to buy desired players for their team in the Auction. But peoples are wondered to know how IPL team owners make money after spending millions of dollars. In this article, I tried to answer some of your doughts on IPL franchises Revenue Model.

How IPL Team Owners Make Money

How IPL Team Owners Make Money

1- Media rights

Media rights is also a fixed source of income for IPL franchises. BCCI collects all the revenue from broadcasters and shares it with the teams.

Ex-Previously Sony Entertainment had media broadcast rights for Rs. 8,200 crores for 10 years up to 2017 and pays Rs 820 crore per year to BCCI. In 2015, Star India got the digital rights(Hotstar) for three years for Rs 302.2 crore.

Sony Media Rights Revenue Share
Now in IPL 2018, Star India has the media rights for the next five years(2018-22) after winning bid of Rs 16,347.50 crore. In addition to this, teams can also charge for the separate shows that they make during the IPL season. 

2- Sponsorship rights

A major source of income comes from the official sponsorship of the IPL. 

Ex- DLF was the title sponsor of 1st-year IPL, then it was Pepsi and now Vivo is the title sponsor for IPL 9 onwards along with other sponsors like Yes Bank, Vodafone, Hero etc. 

The revenue share of sponsorship rights between BCCI and franchises are 50-50 and it is distributed equally among all the franchises.

This is how IPL franchise earns money most of out from Media rights and Sponsorship rights a fixed and conform amount to get from an IPL season.

3- Team Sponsorship

Primarily IPL franchise income sources are the Team Sponsorship. Teams have sponsors for everything. When you see a player’s jersey, you see less of the jersey and more of the sponsors.

Each team has a main sponsor (Title Sponsor), along with some side sponsor (Principal sponsor) and even a sleeve sponsor which is their main source of income.

Ex- In IPL 2018 Daikin will be the title sponsor of Delhi Daredevils whereas Suzuki Gixxer and Nature fresh are the principal sponsors.

4- Ticket Sales

The franchises also make money from the ticket selling during their respective Home game. 80% of the tickets sold by IPL franchise for their home ground. They decide which tickets will be sold at what price.

As we know each team has 7 home games, that is the opportunity to generate money for the franchise.

5- Ground Sponsors and Stall contracts

When we talk about IPL owners income do not forget the advertisement on the grounds during the match. You will see an advertisement on stands, boundaries etc.

The food and beverage stalls that serve spectators during matches are given on a contract basis to a third party. It is usually a fixed term for a fixed amount that each franchise collects on per stall per match basis.

Note: A franchise earns approx of 5 to 8 crore from each match on Ticket sales, Ground sponsor and Stall Contracts.

Also Read: IPL 2018 Schedule, Match Time Table 

6- Player Trading

Before every IPL Auction each season, a transfer window is opened for a certain period of time. This is when teams are allowed to exchange players. Typically, exceptional players are exchanged with good ones with some money as compensation.

7- Merchandise sale

Each franchise sells merchandise including T-shirts, Caps, Wristwatches etc on their websites and on the ground during the match. This revenue depends on the fan following the team.

8- Prize Money

The teams make big money if they win the IPL as the championship prize money which is variable in each edition of IPL. The 2017 season of the IPL the winning team gets ₹15 crore, the runners-up received 10 crores. The third and fourth-placed team also gets 7.5 crores each.

Note: The IPL rules mandate that half of the prize money must be distributed among the players.


This is how IPL team owners make money from the whole tournament. But the income varies with the franchise depends on the brand value and what position they finished with. Brand value adds a lot to the team. If you have star players like Virat Kohli, MS Dhoni or AB de Villiers in your team, you have a better chance to earn more.

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