IPL (Indian Premier League) is a T20 cricket tournament introduced by the Board of Control for Cricket in India (BCCI) during 2007-08 and received massive recognition all over the country. Even though we, Indians are insanely dedicated to cricket, the IPL is not just limited to Indian players but also allows overseas players. So we got fans all over the world too.

IPL is one of the richest and most famous tournaments in the world, because of the currency rain that happens. The BCCI earns over $10 Billion in one session. Have we ever wondered how the IPL teams and management generate this much income?

The major source of income for the IPL is from the sponsors like the Tata group which became the new title sponsor for IPL 2022 by replacing Vivo. And from digital streaming partners like Disney+Hotstar, from broadcasters, Strategic Time out partners like Paytm, CEAT, Unacademy, etc., and a certain percentage of income generated from the sponsors is distributed equally amongst all the teams.

A lot of inflow will be garnered from the stadium tickets in an IPL game. Especially during their respective home game, the franchises will earn a lot of money. However, a fixed portion of the money earned from tickets is given to the BCCI.

Even when crowds were not allowed in the stadium during the pandemic, the BCCI got a huge stake of income from the broadcasters, digital media partners, online streamers, etc. Star India’s five-year deal for paying BCCI Rs.16,347 crore has been increased to Rs.30-35,000 crore this year due to the rapid growth of the league and sustained viewership members.

The BCCI usually sets a cap on the budget for all 8 teams, which will be termed as a player purse to ensure a fair auction. And this year the BCCI sets Rs.90 crore as salary purse as there are two more new teams, Gujarat Titans & Lucknow Supergiants for the IPL 2022. The price fetched by a player in the IPL auction is entirely his. None of the amount from the bid goes to a second party.

As the auction for IPL 2022 started. Shikhar Dhawan was the first player to get sold to Punjab for 8.25cr. Shreyas Iyer and Rabada were sold to Kolkata and Punjab for 12.25cr and 9.25crores. Even though the fact that Faf du Plessis got sold to RCB aches my heart. Deepak Chahar, Ambati Rayudu, Dwayne Bravo happen to remain in CSK.

The teams also make money through the dedicated sponsors for each team. They play a major role in filling the coffers of the IPL owners.  When you see a team’s jersey, the sponsors are seen more than the jersey. This way the sponsors generate a lot of publicity. Plus the team also earns from a lot of merchandised products like t-shirts and souvenirs being sold.

At last, one team gets to have the largest share of the money. IPL gives a large sum of money to the winning team and runners-up. Just to give an idea, Last Year CSK won Rs.20 crore, and the runner-up Kolkata knight Riders got Rs.12.5 crore. 

A lot of thought process goes into this kind of investment and the team owners are smart enough to know the pitfalls and becomes wiser with every passing year.

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