Cricket is the only sport that connects people’s emotions, uniting fans across cultures, generations, and borders. Since 2008, IPL has gained a lot of popularity. Now, it is one of the most successful cricket leagues on the planet. Every year, IPL owners gain a large amount of money, but how these IPL owners make money. This blog thoroughly explain about the business model of IPL. So, let’s understand it.
Introduction to IPL Franchise Ownership
Basically, there are 10 IPL teams in India which play every year. The IPL franchise owners buy the players in the auction and make their own team. These IPL franchise owners are top business groups, celebrities, and investors. They earn money in various ways, like media rights, sponsorship deals, ticket sales, and merchandise. Here is a table showing each IPL team’s franchise owners.
| IPL Team | Owner(s) | Owning Company / Group | |
| Mumbai Indians (MI) | Mukesh Ambani & Nita Ambani | Reliance Industries | |
| Chennai Super Kings (CSK) | N. Srinivasan | India Cements | |
| Royal Challengers Bangalore (RCB) | United Spirits Ltd (Diageo) (with Hombale Films stake from 2026) | United Spirits / Diageo | |
| Kolkata Knight Riders (KKR) | Shah Rukh Khan, Juhi Chawla, Jay Mehta | Red Chillies Entertainment & Mehta Group | |
| Delhi Capitals (DC) | Sajjan Jindal & Parth Jindal | JSW Group & GMR Group | |
| Punjab Kings (PBKS) | Mohit Burman, Ness Wadia, Preity Zinta, Karan Paul | PBKS Consortium | |
| Sunrisers Hyderabad (SRH) | Kalanithi Maran (and family) | Sun TV Network | |
| Rajasthan Royals (RR) | Manoj Badale, Lachlan Murdoch & others | Royals Sports Group / Emerging Media | |
| Gujarat Titans (GT) | CVC Capital Partners (and Torrent Group) | CVC Capital Partners plc / Torrent Group | |
| Lucknow Super Giants (LSG) | Sanjiv Goenka | RPSG Group |
Central Revenue Sharing in IPL
The Board of Control for Cricket in India (BCCI) conducts the IPL. It is the official governing body of cricket in India. Central revenue sharing is a key part of the IPL business model. The BCCI earns money from television and digital broadcasting, title sponsorships, and official partner sponsorships. In the IPL revenue sharing, BCCI keeps 50% revenue, and the rest is divided among the 10 teams. Every year, the franchise value grows due to strong IPL event sharing.
Media Rights and Broadcasting Revenue
Under IPL media rights revenue, broadcasters pay huge amounts to show matches on TV and digital platforms.
IPL Media Rights and Sponsorships 2023-2027 –
- The BCCI received a total of ₹48,390 Crore for the five-year Media Rights Package (2023-2027), which was divided between Viacom18 (Digital) and Star Sports (Television), with each Match averaging over ₹114 Crore. In the past SONY, ( 2008-2017)- It spent 82 billion total. Star Sports spent 164 billion for 5 years
- Title Sponsorship – Tata Group will be the title sponsor for the IPL from 2024-2028 and will pay a total of ₹2,500 Crores (Approx. ₹500 Crores per season).
- New AI Sponsorships – The 2026 IPL Season will see the introduction of a new AI Sponsor – Google’s Gemini, who has signed a 3-year deal worth ₹270 Crores (Approx. ₹90 Crores per year).
Central Sponsorship Distribution
IPL Central sponsorship distribution is a major revenue stream in the IPL business model. Under IPL central sponsorship, big brands partner directly with the league, not with individual teams. A fixed amount, almost 50% of the BCCI revenue from these sponsors, get share in team franchises.
IPL Sponsorship details: 2008 -2028
1- DLF was the first title sponsor for the first 5 IPL seasons, with the sponsorship fees of rupee 40 crore each year.
2- Then, in 2013-2015, Vivo spent 79 Cr/Year, in 2016-2017 100 Cr/Year, in 2018-2019 440 Cr/Year.
3- In 2021, Dream11 was the title sponsor with fees of 222 Cr/Year.
4- Again in 2022-23, Vivo bought the title sponsorship with fees of 300+ Cr/Year.
5- From 2024 to 2028, Tata secured the brand sponsorship with the fees of 500 Cr/Year. It is the highest-ever sponsorship value.
Team Sponsorship and Brand Partnerships
IPL team sponsorship plays a key role in franchise revenue. Every IPL team signs multiple brands each season. These deals include jersey branding, digital promotions, and on-ground visibility.
Popular teams attract premium brands. This increases team value and long-term profits. IPL team sponsorship helps franchises earn money even outside match days.
Jersey Sponsorships Deals
The IPL jersey sponsor gets maximum brand exposure. A total of at least 10 Logos appear on the front, back, and sleeves of team jerseys. These are visible on TV, social media, and live matches.
- Front jersey sponsor earns ₹30-70 crore per season
- Sleeve sponsor earns ₹10-20 crore per season
- Back jersey sponsor earns ₹5-15 crore per season
Top teams like MI, CSK, and RCB earn ₹80-100 crore per season only from jersey sponsors.
Associate and Official Team Partners
Apart from jersey deals, teams sign associate and official partners. These IPL brand partnerships cover specific categories like banking, travel, hydration, and merchandise.
- Associate partner deal value: ₹5-15 crore per season
- Official partner deal value: ₹2-8 crore per season
Each team signs 10-15 partners every season. This adds ₹40-70 crore to team revenue.
Matchday and Stadium Revenue
When we go to watch the live match, the revenue from the ticket we buy means IPL matchday revenue share between the home ground team and the home state cricket association.
Ticket Sales and Hospitality Boxes
IPL ticket revenue is an important source of revenue for the team franchise. The team get revenue when the match is played on its home ground. For example, if the match is in Wankhede Stadium, then 80% of the IPL ticket revenue goes to the Mumbai Indians and 20% to the Home State Cricket Association. Each team would play at least 7 matches on homeground. The revenue from the stadium ticket sale approx 4 Cr per match.
In-Stadium Advertising and Branding
Stadium advertising IPL brings steady revenue during home matches. Brands pay to display logos on boundary ropes, LED boards, big screens, and dugouts.
Merchandise and Licensing Income
Additionally, IPL merchandise revenue is also a source of revenue for the IPL teams. When you buy jerseys of your favourite teams, the revenue directly goes to team brands.
Online and Offline Merchandise Sales
IPL team merchandise revenue depends on the team’s popularity and team brand value. IPL merchandise can be sold both online and offline.
Online Merchandise Sales:
Fans can buy the keychains, phone covers, t-shirts, joggers, wrist bands, cap and etc to support their team.
Offline Merchandise Sales:
On match day, Fans can also buy offline directly at the stadium.
Prize Money and Performance Bonuses
The IPL prize money for the winner is ₹20 Crore. The BCCI distributes prize money at the end of every season. This money is separate from sponsorship and media revenue.
IPL Prize Money Distribution (Season 2023)
- Winner: ₹20 crore
- Runner-up: ₹13 crore
- Qualifier 2 loser: ₹7 crore
- Eliminator loser: ₹6.5 crore
This IPL prize money motivates teams to perform better throughout the season.
League Stage and Playoff Earnings
Only the top four teams receive IPL playoff prize money. Whether or not a team wins the championship title, finishing in the playoffs gives teams a chance to earn additional income and increased visibility.
How well a team performs in the league determines whether it qualifies for the playoffs. The playoff matches are highly rated on television, provide significant sponsorship value, and attract a lot of fan interest. This, combined with all of the other playoff matches, generates a lot of additional income.
Digital, Social Media, and Fan Engagement Revenue
IPL digital revenue has grown rapidly in recent years. IPL teams earn money through digital platforms, online content, and fan engagement activities. With millions of followers on social media, teams attract brands looking for digital visibility.
Digital revenue includes app partnerships, paid content, fan memberships, NFTs, and fantasy gaming tie-ups. These sources help teams earn money even outside the match season.
Strong IPL digital revenue also increases brand value and global reach.
YouTube, Social Media, and Content Monetisation
IPL social media income comes from platforms like YouTube, Instagram, Facebook, and X. Teams post match highlights, behind-the-scenes videos, reels, and player interviews. Top IPL teams earn ₹15-30 crore per season from IPL social media income. Mid-level teams earn around ₹8-15 crore per season.
Franchise Valuation and Long-Term Profits
IPL franchise valuation shows how much a team is worth in the market. Over the years, IPL teams have become highly valuable sports assets. Rising media rights, sponsorship deals, and fan engagement have pushed valuations higher.
Growth in Team Valuation Over the Years
IPL team valuation growth has been steady and strong since 2008. Early franchises were bought for ₹300-700 crore. Today, many teams are valued at ₹6,000-8,000+ crore.
Top teams like the Mumbai Indians, Chennai Super Kings, and Royal Challengers Bengaluru have shown the highest IPL team valuation growth. Strong brand value, trophies, and loyal fan bases play a big role.
This growth proves that IPL teams deliver long-term financial returns.
Expenses involved for IPL Owners
Major IPL franchise expenses include:
- Player auction and salaries (₹90-100 crore salary cap)
- Coaching and support staff costs
- Travel, hotels, and logistics
- Marketing and promotions
- Stadium rental and match-day operations
On average, an IPL team spends ₹220+ crore per season as IPL franchise expenses.
FAQs:
How does IPL revenue sharing work between teams and the BCCI?
IPL revenue sharing works through a central pool. The BCCI earns money from media rights and central sponsorships. Around 50% of this revenue is shared equally among all IPL teams. The rest stays with the BCCI for league operations. This system gives teams a stable income every season.
Do IPL owners earn money even if their team performs poorly?
Yes. IPL owners earn money from the merchandise, ticket sales, team sponsorship, etc. But their team’s brand value may drop after performing poorly.
Do IPL owners earn from ticket sales and stadium revenue?
Yes. Each team play a total of 7 matches at their home ground. From that stadium’s ticket revenue, 80% revenue goes to IPL owners.
How has IPL franchise valuation increased over the years?
IPL franchise valuation has increased rapidly over the years. Teams bought for ₹300-700 crore in 2008 are now valued at ₹6,000-8,000+ crore. Rising media rights, sponsorship growth, and strong fan engagement drive this increase.
