{"id":8530,"date":"2025-03-23T07:22:45","date_gmt":"2025-03-23T07:22:45","guid":{"rendered":"https:\/\/www.incredmoney.com\/blog\/?p=8530"},"modified":"2025-03-23T07:34:44","modified_gmt":"2025-03-23T07:34:44","slug":"how-ipl-teams-make-money","status":"publish","type":"post","link":"https:\/\/devblog.incredmoney.com\/blog\/how-ipl-teams-make-money\/","title":{"rendered":"How IPL Teams Make Money!"},"content":{"rendered":"

I\u2019ve been a cricket fan for as long as I can remember. Some of my earliest memories are of watching matches with my family, glued to the screen as Sachin Tendulkar weaved his magic with the bat.<\/p>\n

Cricket wasn\u2019t just a sport; it was a ritual, a bond, and a passion that united millions like me across the country.<\/p>\n

But for the longest time, despite our obsession with the game, India lacked a proper domestic league that captured mainstream attention.<\/p>\n

Sure, we had the Ranji Trophy. But it never became a tournament that people tracked or discussed about. Ironically, during the non-international season, I heard more chatter about the English Premier League than about our own cricketing tournaments.<\/p>\n

The Beginning of Something Special<\/h2>\n

In the early 2000\u2019s, T20 was gaining popularity in England and other countries. But in India, the shorter format as well as the league system was scoffed at.<\/p>\n

India won the inaugural T20 World Cup held in 2007 with MS Dhoni as the captain. T20 became popular in India post that and in 2007-08, Zee Entertainment tried to capture this opportunity with the Indian Cricket League (ICL). Without official backing from BCCI or the International Cricket Council (ICC), ICL didn\u2019t stand a chance.<\/p>\n

Parallelly, in 2008, the Indian Premier League (IPL) was born\u2014this time, with the right people and the right backing. Lalit Modi, the architect of the league, ensured that the IPL had the full support of both the BCCI and ICC.<\/p>\n

While IPL\u2019s journey wasn\u2019t all smooth sailing (remember the teams that joined and were later removed?), it quickly became a juggernaut. You know you\u2019ve made it when your league is broadcast in every pub, bar, and restaurant across the country.<\/p>\n

IPL successfully merged three things – Sports, Entertainment & Money.<\/p>\n

And trust me, it\u2019s a game where everyone wins, regardless of their performance on the field.<\/p>\n

Where the Money Comes From<\/h2>\n

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IPL teams derive 70-75% of their revenue from the central pool, which includes title sponsorships (starting with DLF in 2008, then came ViVo for a few years and now with TATA) and, most importantly, media & broadcasting rights\u2014the biggest cash cow.<\/p>\n

Out of the remaining 25-30%, team sponsorships (those logos plastered all over jerseys) contribute to 10-20% of a team\u2019s income, with ticket sales & merchandise contributing the rest.<\/p>\n

But do you know the real beauty of IPL\u2019s business model?<\/p>\n

Performance on the field has little to do with financial success. Take CSK and RCB, for example\u2014despite RCB never having won, their revenues and profits are similar to those of CSK, which has won five times and finished as runner-up another five times.<\/p>\n

But how?<\/p>\n

The Answer Lies in The Broadcasting Rights<\/h2>\n

In 2022, the media rights deals for the period 2023-27 shattered all previous records:<\/p>\n