How IPL Franchises Make Money: A Complete Breakdown

The Indian Premier League (IPL) is not only the world's biggest and most exciting T20 league but also a powerhouse when it comes to revenue. Forbes even ranks it among the most valuable sports leagues on the planet. Even with a prize money of Rs 20 crore, many are curious about how IPL teams manage to pull in such hefty revenues. A major chunk of that income comes from media rights.

The Board of Control for Cricket in India (BCCI) auctioned the media rights for Rs 48,390 crore. Under the 2023-2027 cycle, every franchise will get approximately 45% of the overall revenue generated, which is expected to increase their incentive to make it to the postseason. The BCCI will receive 50%, while 5% will go to the teams.

Sponsorship Deals: A Major Income Source for Teams

The franchises get a share of the media rights and receive revenue from sponsorship agreements outside of the league, after central sponsorship. A few players do appear in advertisements, and the names of these sponsors are displayed on the jerseys of the teams. The franchises will be able to negotiate better prices as they reach more people.

For example, the Royal Challengers Bangalore (RCB) have more social media followers than any other team even without an IPL championship. The presence of big players on the team also adds to the franchise having higher brand value. Further, fan support is also high for teams such as the Mumbai Indians (MI) and Chennai Super Kings (CSK).

Merchandise Sales: A Profitable Revenue Stream

IPL teams earn revenue from selling team jerseys, training gear, keychains, and other merchandise, much like many football and basketball teams around the world.

Home Advantage & Ticket Sales: A Key Revenue Source

Additionally, a team's home advantage goes beyond just their performance on the field. Ticket sales are a major way teams earn money, making home games very important. For example, after the Women's Premier League (WPL) 2024 final, the ground staff needed extra time to prepare the pitch at Arun Jaitley Stadium in Delhi, so the Delhi Capitals' (DC) two home games were held in Vizag during the 2024 Indian Premier League.

IPL 2024 Brand Value Rankings

 IPL System Valuation (2009-2024)