The league that generates the most money worldwide is the Indian Premier League. There have been 15 seasons played in the league, which is held annually. Because it is the biggest cricket league in the world, its business model and strategies will bring in a lot of money. The T20 Tournament format, salaries, match regulations, prize money, teams, sponsorship, brand value, broadcasting, and the IPL Governing Council are all key components of the IPL's business strategy. Broadcasting rights agreement for the five-season cycle from 2023 to 2027, the Indian Premier League (IPL) increased its wealth by an astounding 48,390.5 crore ($6.2 billion). The 2023–27 season's rights have been sold for twice as much as the 2018–22 season's rights. IPL had overtaken the English Premier League (EPL), Major League Baseball (MLB), and National Basketball Association league (NBA) to become the second-most valuable sports league in the world, behind the American National Football League (NFL).
How did the IPL Idea begin?
I believe the triggering point of Indians' craze over T20 started with Yuvraj Singh's six sixes in an over, which hasn't been experienced by fans before, and the next trigger point drives love towards T20. The victory of the 2007 World Cup made Indians drive crazes in the t20 format, where the BCCI got the nerves of the audience and planned to strengthen the domestic cricket league in India and came up with a league idea, which is one of the The fact that it lasts for only 3 to 4 hours at most is another factor that makes it more popular with viewers. Bcci planned the schedule brilliantly by focusing on the summer, when children are more in need of entertainment than at any other time of year, and as a result, it attracts a large and devoted audience from all over the world.
How do IPL franchises make money?
The BCCI is responsible for running the IPL league. The BCCI uses the IPL as a resource, and the next expansion will be a franchise.
Team sponsors:
Teams are sponsored by these organisations, which also act as the exclusive sponsors of specific franchises. These include shirt sponsors as well as radio and digital partners. However, this only makes up a modest portion of the franchise's revenue.
Stadium Tickets:
The franchise owners of both teams will receive roughly 80% of the money made from the sale of tickets for home and away games, with the remaining 20% going to the BCCI on behalf of each team. There are typically 7-8 home games per season, and it's estimated that between 10% and 15% of a team's revenue comes from ticket sales. Teams make money from the sales of food and beverages at home stadiums during games.
Sponsors:
The devoted fans who fuel the success of the IPL are the competition's key players. Based on the fanbase's demographics, businesses will sponsor events to increase the visibility of their goods or services where the number of attendees rises, converting us into the sponsors' secondary stakeholders for merchandise.
Merchandise:
Merchandise is the portion where the franchise owners can decide to licence the brand to help boost sales or set up an inhouse merchandise department to sell products directly to the fans. A small portion of the franchise's income comes from selling official team items like jerseys, hats, and other accessories.
Broadcasting Partners:
Television broadcasting has a significant impact on the game by raising the bar. They enable the league and players to communicate directly, and India has a huge viewership. Disney Group acquired the broadcasting rights for the Indian Premier League 16; they retained TV rights for Rs 23,575 crore for the 2023–27 cycle, which is three times more than the previous cycle. The BCCI will receive 50% of the broadcasting share, and the franchises will receive the remaining 45% of shares.
Digital Streaming Platforms:
Viacom18 received the IPL digital rights for Rs 23,758 crore (2023–2027), which is three times more than the previous cycle. The BCCI will receive 50% of the broadcasting share, and the franchises will receive the remaining 45% of shares.
Conclusion:
The Indian Premier League has experienced tremendous growth year after year in terms of brand recognition. Experts predict that the Indian Premier League (IPL) will surpass the National Football League (NFL) in global popularity by the year 2030. Share your views in comment section and say who’s gonna lift the trophy in IPL 2023.