IPL is the one thing which everyone is missing during this lockdown since it used to entertain us during every summer and we are addicted to it since it is the most interesting format of cricket where we can see rivalry between our favorite players.
We all know that IPL teams will incur huge costs in acquiring players (For example, KKR acquired Australian fast bowler Pat Cummins for a whooping price of Rs 15.50 Crores which is around Rs 4 Lakhs for every ball he is bowling assuming KKR will play 17 matches with team consisting of him and offering 4 overs every match played), administration costs like their travel and lodging expenses for every match and their team promotion other costs related to it.
Prize money for IPL 2019 for winning team was Rs 25 Crores and for runner up was Rs 12.5 Crores. At the outset after considering expenditure being incurred by every team as mentioned above, it is clear that prize money is just a minor source of income and there are so many other major sources of income. Detailed discussion will start below.
Sources of Income for IPL Teams:
Dramatic increase of price is due to ever increasing demand for watching cricket (mainly IPL) and higher advertisement income during IPL (for one 10 seconds slot during IPL Matches, Star India charges around Rs 6 Lakhs)
|Company||Period||Fee p.a. (In Cr)|
With an ever increasing title sponsorship fee, income of IPL teams is also increasing (especially from the year 2018 where it has witnessed more than 4 times increase).
Forty percent of Title Sponsorship Income and Media Rights shall go to BCCI and remaining sixty percent shall be distributed among the teams.
In a cricket ground, we will witness so many of the company’s logos and names not only on player’s jerseys as mentioned but also on cricket bats, dresses of umpires and helmets and even boundary lines and screens behind them. All those forms part of the income of the concerned IPL Team.
On a rough calculation of an average of 30,000 seats being filled up per match at a price of Rs 500, for seven matches to be played in its home ground, every team will earn Rs 10.50 Crores approx. p.a.
From the year 2018, all IPL teams have started reporting profits due to manifold increase in broadcasting income and title sponsorship income. BCCI is also earning a considerable amount because of IPL.
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