IPL 2023 Revenue Has Reached Whopping Rs 9,978 Crore, With 130 Crore Per Match Earning : On May 29, 2023, the IPL 2023 came to an end with Chennai Super Kings (CSK) won the trophy for a record fifth time by defeating Gujarat Titans by four wickets. IPL has been mine of Gold for BCCI because of its earnings. Due of its appeal and enjoyment, IPL is rising on a larger scale every year.
Additionally, the IPL’s financial resources are expanding. In fact, the IPL is presently the richest cricket league in the world, surpassing major American sports leagues in both popularity and financial resources. Our cherished IPL fans, however, are the most fundamental cause of our wealth and fame.
Every year, about half of India’s population waits for the IPL to start. But did you realise that your eagerness has raised IPL’s profits by 12 times. However, if we split it into average yearly revenues, IPL made Rs. 820 crore in 2008 from the sale of media rights. This revenue reached Rs 9,978 crore in 2023.
Even before the IPL, the BCCI had the distinction of richest cricket body in the world. Now, IPL has proven to be BCCI’s most successful enterprise. In 2006-07, BCCI earned Rs 651.81 crores. The board’s overall earnings climbed to Rs 4,360 crores in 2021-22. IPL alone contributed almost Rs 2,200 crore to this.
IPL’s brand value was Rs 47,500 crore in 2019. According to a Brand Finance research, the brand value of IPL would be over 70 thousand crore rupees in 2022.
This is how IPL Finances Work
Today, IPL operates as an economic machine, just like any other large corporation. The BCCI has complete power to run it. IPL profits are divided into three categories…
The earnings in the Central Pool are derived from three sources. It is similarly separated into three sections. Earnings of a Franchisee in the Second Part: There are three basic ways to make money in this. While it is divided into two halves. The franchisee receives 80% of the profits.
Third, the Franchisee Fee: The owner of each IPL franchise is determined by an auction. The team’s franchisee is awarded to the highest bidder. This one-time franchisee charge is totally deposited into the BCCI account.
Viewership Increases the Value Of Media Rights
The IPL 2023 league stage had 70 matches in total. Millions of people watched it live on Jio Cinema and Star Sports. It offers media rights through the IPL auction process. The rights to show the match are awarded to the highest bidder.
Sony Entertainment purchased the media rights to the IPL for ten years in 2008, during the inaugural season. Sony paid the BCCI a total of Rs. 8,200 crore for this.
When a product has a big audience, it is deemed successful. He draws people’s attention, and as a result of that interest, businesses advertise, and a new avenue for generating money opens up. Advertisements from various corporations are the most lucrative source of revenue in cricket or any sport. The cost of which is determined by the number of people that watch the game. The IPL had 102 million viewers in 2008. Which is expected to exceed 40 crores by 2023.
Title Sponsorship And Other Earning Factor For IPL
Tata IPL, not just IPL, is the name given to IPL. Before the league, the name of a brand in 2008, it was known as DLF IPL. This is known as title sponsorship, and firms compete for it.
In 2008, championship sponsorship cost 50 crore per year, but by 2023, the price will have risen to more over 300 crore per year. Tata and BCCI have agreed to a two-year agreement at a total of 600 crore.
There are also official sponsors, umpire sponsors, and strategic time out sponsors in addition to championship sponsorship. As a result, around 270 crores were generated in 2022. In addition, BCCI profits from ads placed on the ground during the event
The franchise fee is also a significant source of income. When a new team joins the IPL, it must pay a franchisee fee. This entire process is completed through bidding, in which individual corporations or organisations participate in the bidding process to purchase the team.
This bidding procedure, however, is not open to the public. Only those with a worth of more than 3,000 crore are eligible to apply. After that, the franchise is granted to the highest bidder. When Gujarat Titans and Lucknow Super Giants joined the league in 2022, the BCCI’s account was credited with 12,500 crore.
In terms of earnings per match, the IPL is presently only second to America’s NFL. A single match in the IPL generates around Rs 130 crore in revenue, including viewership, sponsorship, licencing, and ticket sales. However, in terms of player spending, the IPL lags well behind other sports leagues.