Profit of IPL Team Owners: If players are auctioned for IPL, franchises spend crores of rupees to buy them. The price of a player in the IPL auction is several crores of rupees. The year is 2023 England’s Sam Curran was sold for Rs 18.50 crore in the mini auction. Punjab Kings included him in their team. Now think, if franchisees spend so much money to buy a player, where will they get this money. Along with the players, the franchise also pays the coach and support staff. However, how team owners earn, let’s discuss the same in this article.
What is the source of income?
IPL is organized by BCCI. IPL team and BCCI’s source of income is media and broadcasting. IPL franchises make maximum money by selling their media and broadcasting rights. According to a report, earlier the Board of Control for Cricket in India (BCCI) kept 20 per cent of the earnings from broadcasting rights, while the remaining 80 per cent went to the IPL teams. But now this share has become 50-50 percent.
They are also earning through advertisements
Apart from selling media broadcasting rights, IPL franchises also earn a lot through advertising. Companies pay IPL franchises a lot of money for their names and logos to appear on players’ caps, jerseys and helmets. Apart from this, the players shoot many types of advertisements during the IPL. Teams also earn a lot through these ads.
Easily understand teams’ earnings
How do IPL franchises earn? Understand in simple language. First let’s divide the income of IPL teams into three parts. They are Central Revenue, Promotional Revenue and Local Revenue. Media broadcasting rights and title sponsorship come under the purview of Central Revenue. It earns 60-70 percent of the team’s earnings, while 20-30 percent is earned from promotional revenue. At the same time, 10 percent is earned from local revenue, which includes some other items, including ticket sales.