IPL BUSINESS MODEL: EXPENSE & INCOME.
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| IPL BUSINESS MODEL: EXPENSE & INCOME. TEAM SPONSORS |
ICL (
About one year before IPL began, ICL was abbreviated as The Indian Cricket League. This league is started by a private company, the Zee Entertainment Enterprises. The company runs TV channels Zee TV and Zee News etc. This company set up this league. The concept of ICL was similar to the IPL. There are teams from different cities, players would be an auction, the teams buys the players, and then they would play against each other. But neither the Indian cricketing board BCC nor the International cricketing board ICC recognized the ICL. A large no of cricketers wants to play in the ICL. To prevent the players from playing in the ICL, the BCCI increase their salaries for playing in the domestic tournaments and said that a player who had played in the ICL would face a lifetime ban from the BCCI tournaments. BCCI did not want a cricket league that it could not control. These restrictions on players from playing in ICL slowly killed off the ICL. The last tournament of ICL was play in 2009
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| IPL BUSINESS MODEL: EXPENSE & INCOME. ,ICL (The Indian Cricket League ) |
IPL (The Indian Premier League )
On 13 September 2007, BCCI announced a similar league to ICL, the Indian Premier League or the IPL.BCCI is the governing body of the IPL. The vice president of BCCI, Lalit Modi was being organized this tournament under his supervision. This idea was quite popular in football and basketball. The English Premier League (EPL) is a tournament in football. And the NBA in the USA for basketball. The first season of IPL was played in April 2008.
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| IPL BUSINESS MODEL: EXPENSE & INCOME. ,BCCI (Board of Control for Cricket in India) |
BCCI (Board of Control for Cricket in India)
BCCI is considered a non-public organisation. Many people consider BCCI a government firm, but the government has no direct authority over the BCCI. The International Cricket Council (ICC) recognizes that BCCI is the single representative for the Indian team,for cricket .It gives BCCI power to head cricket in india . If ICC stops accepting BCCI, the BCCI would not be considered the cricket authority in indiaany longer.BCCI is not directly supervise by the Indian government .
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| IPL BUSINESS MODEL: EXPENSE & INCOME. ,BCCI (Board of Control for Cricket in India) |
TITLE SPONSORS .
The brand name that’s used with the name IPL, is the title sponsor. In the beginning, it is called DLF IPL. Then it was known as Pepsi IPL. VIVO IPL, now it is known as Tata IPL, Here DLF, PEPESI, VIVO, and TATA are IPL title sponsors. Whenever we talk about IPL, we will recall the name of the company as well. These brands pay a lot of money to become the title sponsor.
TITLE SPONSOR NAME
YEAR
PAID
TO BCCI
DLF IPL
2008
₹400
million
DLF IPL
2009
₹400 million
DLF IPL
2010
₹400 million
DLF IPL
2011
₹400 million
DLF IPL
2012
₹400 million
PEPSI IPL
2013
₹790 milion or 79CR
PEPSI IPL
2014
₹790 milion or 79CR
PEPSI IPL
2015
₹790 milion or 79CR
VIVO IPL
2016
₹1billion OR100CR
VIVO IPL
2017
₹1billion OR100CR
VIVO IPL
2018
₹4.4billion or 440 CR
VIVO IPL
2019
₹4.4billion or 440 CR
Dream11 IPL
2020
Vivo IPL
2021
₹4.4billion 0r 440CR
TATA IPL
2022
₹3.3billion or 330CR
TATA IPL
2023
₹3.3billion or 330CR
OFFICIAL SPONSORS
IPL Brands that sponsor various aspects of IPL. For Example, CIAT tyers has sponsor the strategy break. They had paid ₹300 million to sponsor the strategic timeout.’ Cred power play’ is sponsored by Cred. They have the Dream11 Game Changer of the match. There are several companies that sponsor multiple aspects. It is estimated that BCCI received ₹2.10billion/ 200CR from these official sponsors
The money received by BCCI from title sponsorship,50% of it is retain by them and the remaining 50% is given to the teams
IPL TEAMS
IPL team is owned by the enterprise or by person such as actors like Sharukhan and rich business mens. They bus the IPL teams after that they spend on a lot of things. When players hire the IPL teams have to give the salaries of the players to provide transportation, training, hoteling and many other facilities all these expenses are borne by the IPL teams. It is guess that on average, an IPL team spends around ₹2 billion rupees in one season.BCCI shares 50% of its revenue with IPL teams. But it is not enough. The main source of teams revenue is from the sponsors and Merchandising.
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| IPL BUSINESS MODEL: EXPENSE & INCOME. ,BCCI (Board of Control for Cricket in India) |
Merchandising.
Merchandising is also a source of income for IPL franchises. IPL merchandise can be of several types like coasters, mobile covers, chargers, jerseys, caps, joggers, wrist brands, and many other things. That can purchase in shops. The profit from selling these merchandise goes directly to the IPL franchise. And finally, in the end, there’s the ''prize money ₹200 million Indian rupees goes to the winner of the IPL team. And the runner-up team that loses in the final of IPL gets exactly ₹130 million/ 13 Crors''. The loser of the Qualifier 2 match would'' get ₹70 million/ 7 crores, and the team losing the Eliminator match, get ₹65 million/6.5 crores''. Half of the prize money goes to the team holders and the remaining 50 % goes to the players of the team who play or win the tournament. It is divided equally among all players.
TEAM SPONSORS
The brand sponsorships can be seen on the jerseys of team members. There are an average of 10 to 12 brand logos on a regular IPL uniform. These brands pay the IPL teams to put their logos on the player's costumes. Income generates from match tickets 80 % of it goes to the IPL teams. The stadium that hosts the match gives 80% of the revenue to the home team. For example, if a match is played in the Wankhede Stadium, 80% of the revenue from the sale of tickets would go to the Mumbai Indian teams. The remaining 20% goes to the Home State Cricket Association. Each team plays half of its matches in the home stadium.
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| IPL BUSINESS MODEL: EXPENSE & INCOME. ,BCCI (Board of Control for Cricket in India) |
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