IPL Income Source 2020 - Media Rights, Prize Money - Secret Revealed!

The 13th season of the Indian Premier League is on its way! Over a decade of being in showbiz, IPL this year will be bigger and better than ever.

In 2019, the IPL viewership has increased by 31% as compared to 2018. According to Duff & Phelps, the brand value of the IPL 2019 was Rs. 475 billion.

Apart from its cricket matches & glitz, you might have often thought about how IPL manages to spend crores of money on the players in the auction. Moreover, how it gives such a mega cash price to the ultimate winner. If you don’t know, in the 2019 IPL season, the winners- Mumbai Indians took home the prize money of Rs. 25 crores! So, what the secret? Read on to know!

The IPL 2020 has moved to Dubai due to the ongoing pandemic. IPL will be played from 19 September 2020 to 10 November 2020 in Dubai, Sharjah and Abu Dhabi.

Miscellaneous Source of IPL Income

1. Media Rights

One of the major sources of Income for IPL teams is media rights for broadcasting IPL. In the beginning of the IPL, Sony acquired broadcasting rights for 10 years for Rs. 820 crores p.a. But, the rights were sold to the Star channel for a five years period for Rs. 16,347 crores (from 2018-2022). It means Rs. 3,269 crores p.a, which is four times of the earlier price.

The abrupt increase in the price is due to the increasing demand for IPL. Other than this, the advertisement income during IPL matches also plays an important role in the overall income. During IPL matches, Star India charges Rs. 6 lakhs for a 10-second ad.

2. Sponsorship

Sponsorship again plays a crucial role in the overall IPL income. The team’s tie-up with the organization to promote the brands in return for the excessive amount of money. Usually, promotion is done in two forms, through print media and advertorials. The player’s jersey is a valuable marketing tool, it is filled with colourful brand logos.

In the cricket ground, you might have witnessed the number of company’s logos & names printed on the jerseys, bats, umpire dresses, helmets, boundaries line and on the screen. All these are part of the income. Here are the sponsors of Indian Premier League right from the inception-

3. Merchandising

The sale of merchandise is another important part of the IPL income. The merchandise includes jersey, sportswear and other sports equipment. Each year IPL is growing and it has a huge potential in merchandising. It is the best opportunity for the IPL and the franchises to monetize the brand.

Currently, IPL is replicating the global sporting events and tasting success in monetizing their brands through merchandising.

4. Prize Money

Prize money is one of the main sources of income for the franchises. In 2019, the prize money for the winning team was Rs. 25 crores and for the runner ups, it was Rs. 12.5 crores. Better performance in the IPL will not only result in winning prizes, but it also augments the brand value.

The IPL teams valuation summary for the year 2019 are as follows:

5. Revenue from Tickets

Revenue from the sale of tickets adds to the income source of IPL. Each franchise is allowed to a minimum of 8 matches and the franchises have the complete right on the income from the gate passes and tickets. This income may go up if there are matches between two robust teams.

Conclusion

IPL is the most-attended cricket league in the world. It earns money from various sources and every year it contributes a good amount of money to the Indian Economy.