Updated: 09 May 2023

The team owners of the 10 TATA IPL 2024 teams spend a lot of money to buy the team and players. These team owners are big corporates who bank their money on IPL teams. A lot of money is involved in raising an IPL team. It is very important to know how IPL franchises make money. There are multiple ways by which they do so.

After the successful bid of two new IPL teams, from which BCCI earned 12715 crores, people will have a question where and how do IPL franchises earn money?

Here we discuss how IPL franchises/team owners make money

Media Rights

BCCI earns a lot of revenue from the media rights that it sells to broadcasters. If we remember in 2017, Star India brought IPL broadcasting rights for 5 years by spending 16,347 crores. This translates to roughly 60 crores per IPL match. BCCI shares these media rights with all 8 teams. (now they will share with 10 teams). In June 2022, IPL media rights sold by BCCI (2023-27) for a whooping 48,390 Cr.

Also Read: T20 World Cup 2024: Team India Squad, Their T20Is Stats And Other Details

Sponsorship

The major source of income for IPL franchises is sponsorship. If we look at any IPL team dress, we see a lot of logos of different brands. The logo on the player’s jersey, the team kit, advertisement on the boundary ropes, etc. These brand companies provide a hefty amount to the teams for their brand promotions.

Merchandise Sales

Another source of how IPL franchises make money is merchandise sales. These teams sell the caps, jerseys, etc of the players via online medium. By this, they earn a lot of money.

Ticket Sales/Gate Revenue

The revenue from ticket sales is one of the most important sources of how IPL franchises make money. It is estimated that ticket sales contribute to 15% of the total revenue for IPL franchises. They depend a lot on this income source.

Also Read: IPL Winning Captains List From 2008 Till Date

IPL Prize Money

IPL prize money is also another way by which the IPL franchises earn money. The teams are given prize money according to the rank they get in the points table. In TATA IPL 2023, CSK won the IPL title, and they received 20 crores.

Similarly, GT got 12.5 crores for being the runner-up. This way, the IPL prize money is distributed to the teams.

Brand Value

The brand value of IPL teams also plays a major role in how IPL franchises make money. The team which has a lot of star players attracts a lot of brand value.

Players like Virat Kohli, Rohit Sharma, MS Dhoni, Glenn Maxwell, etc bring in a lot of brand image to IPL teams. According to India Today’s data intelligence unit March 2024 report, Mumbai Indians (MI) were ranked as the most valuable IPL team with a brand value of $87 million (726 crores). CSK is the second most valuable team in terms of brand value. IPL brand value cross $10.7-billion valuation. The IPL team which performs better gets more brand value compared to others.

Also Read: IPL 2024 Playoffs Scenarios: RR, SRH CSK And KKR Strengthen Playoffs Bid

Selling Stake

The IPL franchises also make a lot of money by just selling stakes in the team. A very recent example is Delhi Capitals. This IPL franchise was formed in the year 2008 for 84 million USD by the GMR group. In the year 2018, Jindal South West (JSW) brought a 50% stake in the team for 77 million USD.

These are the few ways by which IPL franchises make money.