IPL 2022: How IPL makes money?

 Indian Premier League(IPL) is one of the famous tournaments in the world. IPL started in 2008 is currently in 15th edition.

IPL is the richest tournament in the world because of their popularity and success.Ahead of IPL 2022, two new teams are introduced: Gujrat Titans and Lucknow Super Giants.

IPL_LOGO

 BCCI,who control IPL organized an event where ownership of two franchise were sold.The deal was successfully grabbed by RPSG Group and CVC Capitals.

RPSG Group were the highest bidder in the list and grabbed the franchise of Lucknow Super Giants and CVC Capital were the second highest bidder and grabbed the franchise of Gujrat Titans.

 

Other than these, Some of the revenue sources which helps IPL to make money:

1)MEDIA RIGHTS: It is the main source of revenue for the IPL teams.BCCI sells the media right to the broadcasters.Sony Sports Network and Star Sports Network are the two broadcasters of the tournament till now.Sony Entertainment purchased IPL media rights from 2008-2017, for a reported price of 8,200 crore INR which is around 820 crore per season. Star Sports Network bought the IPL rights in 2018 for a contract of five seasons for a reported price of 16,347 crore INR.The right are expiring in the year 2022 and new media rights will be sold next season.

Media_Rights

 

2) TITLE SPONSORSHIP:TATA Group has highest bid for title sponsorship as it also plays an important role in the revenue of BCCI.TATA Group has invested 335 crores INR every season for two years for title sponsorship. Every team has its own sponsership and sell their franchise rights.

title_sponsorship

3)Ticket Sales: COVID 19 has affected ticket sales for IPL in a large scale.Since COVID 19,80% of the revenues of ticket sales had been reduced.

ticket_sales