The Business model of Indian Premier League Broadcasting rights, sponsorships, ticket sales, merchandise, and franchise fees.

What is the Business model of Indian Premier League?

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Introduction  –

The Business model of Indian Premier League relies on broadcasting rights, sponsorships, ticket sales, merchandise, and franchise fees. IPL cricket  started in India in 2008, in which 90% of the spectators in the cricket world of the whole world are Indians. Because of which Indian Premier League cricket is a sport watching 769 million spectators not only in India but around the world. Earlier people used to watch cricket through one day cricket and five day cricket. But the number of international countries playing cricket in the world is only 8, so the IPL of India was welcomed by the ICC to make cricket famous worldwide by doing a shorter version of cricket.

Twenty Twenty versions of Indian Premier League Business model have become very popular since last 14 years and players from all over the world playing cricket are taking advantage of it. It is very difficult to get a place in the Indian team in a large number of countries like India, so many cricketers used to be successful in reaching the state level before this. By manufacturing in IPL, such players started getting crores of rupees and you have started getting a chance to show your cricketing skills. IPL is good from many points of view, but it also has some bad side.

Through this article, we will try to know from the history of Indian Premier League Business model -IPL to the business model of IPL. In which we will try to know how the team earns money and how the players earn money. We will try to find out how IPL started in India and who worked hard to make it successful. Many questions arise in our mind in IPL, for which we will try to find answers through this article.

What is the business model of Indian Premier League? ,

The Indian Premier League started in 2008, which brought the format of 20-over cricket matches to India in a professional manner. In which every team and player are bought and sold through auctions and its main source of income is earned through media broadcasting, title branding and other advertisements. It is mainly teamed after major cities of India and has been sold through BCCI to industrialists and film stars.

The formats of the National Football League of America and the English Premier League of England have been brought into cricket. ICC cricket format and what is the difference between it? If seen, the cricket played by the ICC is played between the countries playing this cricket, in which ODI cricket and Test cricket are seen in this important format. The first T20 World Cup was played by the ICC in 2007, which was won by India, after which this team is formed by buying foreign players and taking local players.

Every year the players of the team for Indian Premier League Business model -IPL are selected by auction, in which international players, Indian International players and local players of India are decided by making categories like this. This three-hour cricket match was played in prime time in India, in which the local cricket board and BCCI benefit from it crores of rupees. This gives local cricket players a chance to show their skills and earn money.

History of Indian Premier League –

The first T20 World Cup was organized by the ICC at the international level, which was won by India under the leadership of Mahindra Dhoni, in the same year the Indian Premier League was founded by Subhash Chandra, the head of India’s media company Zee Entertainment. Which got a lot of success in India and abroad, but BCCI refused to recognize it and ordered the players playing in it to get out of it. Due to which this ICL had to be closed. Because BCCI itself was about to establish its own Indian Premier League under the leadership of Lalit Modi.

He remained the chairman of the Indian Premier League Business model -IPL from 2008 to 2010, but after that he was accused of financial embezzlement and was expelled from the IPL. Meanwhile, for the first five years, the IPL did not get much success financially, but as the broadcast rights started being sold under the new contract and preparations were seen by the companies  spend more money for the IPL title, so did the IPL teams and BCCI started getting a huge amount of money.

The professional model of the Indian Premier League Business model -IPL was decided in view of the English Premier League, of England and the National Basketball Association of America. Sony TV was given the broadcasting rights for the first ten years for which they spent 8200 crores to BCCI. In 2018, Star Sports spent Rs 16,400 crore for its broadcast, which was a contract for five years. Due to this, BCCI got a huge amount of money, in which 80 percent of the money used to go to IPL teams till five years ago, which has been increased to 50 percent today.

Indian Cricket League & Subhash Chandra  –

The Professional World Series was started in 1976 by Carrie Packer of Australia calling the ICC, in which we saw players in colorful clothes. He failed without the support of the ICC. In 2007, Subhash Chandra’s Essel Group, along with another company, formed the Indian Premier League, which ran from 2007 to 2009. BCCI, which is itself a private body, but being an institution recognized by the ICC, they refused to allow it and ordered a ban on the player who will play in the Indian Cricket League.

Earlier many allegations were made against BCCI and Indian cricket team that they are not able to perform well at the international level. Even after so much competition of cricket players in India, good cricketers are not selected. That’s why he believed that through the Indian Premier League, all the cricketers of India would get a chance to show the right skills. In 2007, seven teams were selected for the Indian Premier League, which they wanted to increase to 16 in the future. A letter was also written by him to avoid conflict with BCCI.

For the Indian Cricket League, he composed two Indian players with four foreign players and the rest of the local cricket player and the ICL team was formed. Many Pakistani crickets were included in this, we see that we do not get to see these players in IPL. The BCCI had recognized the future of Professional T20 and did not want to hand it over to any other private hands, so Indian players and players from states were banned from playing in the ICL and this led to the closure of the ICL in 2009.

IPL Cricket Team & Market Value  –

  • Mumbai Indians – 9,900 thousand crores
  • Chennai Super Kings – 8,800 thousand crores
  • Kolkata Knight Riders – 8,400 thousand crores
  • Lucknow Super Giant – Rs 8,200 thousand crore
  • Delhi Capital – 7,900 thousand crores
  • Royal Challengers Bangalore – 7,800 thousand crores
  • Rajasthan Royal – Rs 7,600 thousand crore
  • Sunrisers Hyderabad – Rs 7,400 thousand crores
  • Punjab Kings – 7,000 thousand crore
  • Gujarat Titan – 6,000 thousand crore

BCCI & IPL Cricket  –

The Kolkata Cricket Club was first established in Kolkata in 1792, making it the second cricket club in the world after the MCC Australia Cricket Club.A Cricket match was played for the first time in India in 1751 and cricket club was established by Parsi society in Mumbai. Hindu Gymkhana  established in 1866, which was built by people different from non-Parsis and Jew people. The first international cricket match in India was played between Sri Lanka in 1884 which was held in Kolkata.

In 1927, the Maharaja of Patiala was advised by the British official Gilligan to come together to decide all the cricket volunteer institutions and assured the ICC recognition of England. This meeting was held in Delhi on 21 November 1927 and 45 delegates participated in it. The BCCI was established on 10 December 1927 and through a meeting between Govan and D’Mello it was tried by the English representative for the ICC in England.

Govan became the first president of the BCCI and D’Mello became the first secretary to be instrumental in securing membership of the ICC. Therefore, there is a big controversy over the use of the Indian symbol on BCCI as it is not a part of the Sports Foundation of India. BCCI was registered in 1928 under the Tamil Nadu Societies Registration Act, which is not a part of the Government of India, but has seen political influence after India’s independence.

There was a dispute between BCCI and Zee Entertainment in the establishment of the IPL, but due to the recognition of the ICC to the BCCI, the BCCI has been successful in establishing the IPL and closing the ICL. Due to the success of IPL, BCCI has become the richest cricket board in the world.

IPL Cricket & National Basketball Association  –

Professional basketball is well known in the US through the National Basketball Association, whose business model was studied prior to the introduction of the IPL. It was founded in 1946 in New York City and this game is seen all over the world, for which 30 teams play, in which one team is from Canada, the team is from major cities of America. It is the most expensive tournament in the world, for which a lot of money is spent on every player.

NBA This is the USA Basketball Association of America affiliated to this government organization, which has got the recognition of the International Basketball Federation. The National Football League and the English Premier League of England are other business models run on this format which have been very successful in the sports sector. Keeping this business model in mind, the business model of IPL cricket has been created, which today is the game to have the largest spectator in the world.

Financially, the National Basketball Association and the National Football League will still have to work hard to match. But the speed with which IPL has shown its success since last will give us very good results. The Indian people also see the highest TRP in entertainment matters than the rest of the region. Since 2008, we have seen a lot of development in the Indian cricket team’s cricket scene and due to more exposure of ordinary players than IPL cricket, competition is seen in the international Indian team, which benefits the team.

How the Business model of Indian Premier League makes money?

Every team in IPL is auctioned for purchase, in which IPL team is selected and that money is received by BCCI. Every year the auction of cricket players takes place and the price of cricketers is decided by making rules. The BCCI and the IPL teams decide the price for the media broadcast rights and the name of the brand that used the IPL book, in which first we saw that the IPL trophy was displayed under this name, DLF IPL, for which the company paid 200 crores. Spent Rs.

Vivo This Chinese company spent 440 crores for two years for IPL title branding, the amount of which is distributed as 50% profit between BCCI and IPL team. Every team branding companies on their cricket player’s jersey, advertisements are shown in the stadium at the time of the match and at the break. Every team has a stadium in its city, where crores of rupees from the ticket of the match played, the board of that stadium and the team gets money.

IPL cricket does its branding to increase the market value of its team, due to which the rates of marketing are increased significantly and this benefits IPL. Media broadcast rights were bought by Sony TV for the first ten years, which was worth Rs.8200 crores but after its termination Star Sports spent about Rs.16400 crores for only five years which is the most important income for IPL. .

Every IPL team spends an average of 200 crores on their team expenses, from buying players in auctions to players for every match that is played across the country.

Features of IPL Cricket –

  • This cricket model was started in 2007 by Subhash Chandra, who was the head of Zee Entertainment Enterprises but it had to be discontinued due to lack of support from BCCI and ICC.
  • BCCI is also a private cricket body, but it is recognized by the ICC, due to which it is the regulator and producer of the IPL.
  • The establishment of the Indian Premier League was started in 2008, in which T20 cricket was started playing by forming teams within the country.
  • IPL Cricket T20 was run in a lot of losses till the initial days but gradually due to its public support, its sponsorship started increasing and all the IPL teams started running in profit.
  • Seeing the success of America’s National Basketball League and England’s English Premier League, this shorter version was introduced in cricket.
  • Since 2008, the IPL has been played every year for 60 days with 20 over matches on prime time.
  • Till 2021 with about 10 teams representing their respective cities in IPL whose franchise is owned by film stars and industrialists.
  • The team that wins the IPL is given Rs 20 crore as a reward, in which the winning team distributes 50% of this money among its players.
  • Cricket players get exposure from IPL which was available to decent players in one day cricket and test cricket.
  • The main sources of earning money in IPL have been title trophy, IPL television broadcasts, and branding.
  • From football to basketball, IPL cricket is the highest in the world in 2018 with almost 769 million viewers.
  • The rights to broadcast IPL were with Sony TV for the first ten years for which they paid Rs 8,200 crore to BCCI.
  • IPL broadcast rights were given to BCCI for the next five years from 2018 to Rs 16,400 crores.
  • In the IPL auction, the team is sold by bidding, the same players are bought from the auction every year.
  • In IPL cricket, each team spends up to 200 crores on its players and the rest, but this team gets money from branding, selling match tickets and media broadcasting.

Critical Analysis of IPL Cricket –

Because of the IPL cricket team, the culture of traditional Test cricket that was there has started dying, it is believed by many old players. Due to Test cricket, the right cricketers were made, which technique and restraint in Test cricket, this quality is developed from this cricket, which is not seen in the players of today. T20 on one day cricket is also seeing results due to this short time cricket format, so T20 will not end the old cricket format, it is worrying all the cricket experts.

After the start of IPL professional cricket, a lot of money and some wrong things are entering the cricket, in which illegal intoxication and many activities are seen through parties. The cricketers of many countries have decided to retire from international cricket to devote more time to the IPL, so the time to play with the spirit of the country seems to be over. Many match-fixing allegations have been seen on IPL, in which teams like Chennai Super Kings and Rajasthan Royal have been seen, due to which it has seen a lot of results on the TRP of IPL.

Lalit Modi had gained a lot of fame in the initial days of IPL, but he believes that he has been implicated in wrong allegations by doing politics in BCCI. Hence the influence of politics on BCCI and IPL is visible. Despite the brand value of IPL being 6 billion US dollars, when the IPL team’s balance sheet is prepared, then its profits are shown around 200 crores, due to which there have been allegations of black money being used in IPL.

Conclusion –

In this way we have seen how IPL cricket is run and how to organize it in a professional manner. BCCI is the main producer of IPL, through which it earns money from the teams of IPL. IPL teams saw a lot of losses for the first few years, but teams like Kolkata Knight Riders have kept themselves in profit by branding themselves from the early days, for which film star Shahrukh Khan has played a very important role, who is the owner of this team. .

Rajasthan Royal The team was bought by Shilpa Shetty this Bollywood film actress for this team while the team was bought by Preity Zinta for Punjab King due to which IPL has a glamor look from the beginning. The purchase of the Mumbai team by industrialists like Mukesh Ambani, the head of the Reliance Group, has given a corporate hue. The IPL has made BCCI the richest cricket board in the cricket world, due to the fact that 90% of the spectators who play cricket in the world cricket are Indians.

Through this article, we have tried to know from the history of IPL to how it was established. How BCCI and IPL teams make money through case studies. India gets a lot of foreign exchange money in the Indian economy in this 60 days, due to which the importance of IPL is created. As much as IPL has been successful in India, work is started by the US government to make a cricket league in America and in future we can see T20 format cricket in America as well.


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