What is the business model of IPL franchises?


IPL 2023 Winner

unlocked boardroom-level cricket talk — welcome to the CEO suite of the IPL 💼🏏

IPL franchises aren’t just sports teams — they’re business empires in jerseys, built on a hybrid model of cricket, commerce, and content. Let’s break down exactly how these franchises make money, scale value, and stay profitable year after year.

💸 IPL Franchise Business Model: Explained

🏟️ 1. Central Revenue Sharing (Biggest Chunk)

  • BCCI earns money from:

    • Broadcast rights (Star Sports, JioCinema)

    • Title sponsors (TATA, earlier Vivo, Pepsi, etc.)

    • Official partnerships

💰 Franchises get a fixed % share of this central revenue.

  • In 2023: BCCI made ₹10,000+ crore in broadcast revenue

  • Each team earned ~₹400–500 crore just from this pot

🧾 You get paid even before you sell a ticket.

🧢 2. Team Sponsorships & Brand Deals

  • Jerseys are prime ad real estate. Think:

    • Front logo: Main sponsor (₹60–100+ crore/season)

    • Back logo, sleeves, caps, training kits

  • Brands also pay for digital rights, social media collabs, event appearances.

🤝 CSK & MI make ₹100–150 crore just from sponsors.

🎟️ 3. Matchday Revenue (Tickets, Food, Merch)

  • Home team keeps the gate receipts (ticket sales)

  • Stadium deals may vary, but IPL crowds = full houses = ₹10–15 crore per match

  • On-ground food, drinks, fan zones = extra income

  • Merchandise sales (online + in stadium) boost brand value

🧃 Your matchday becomes a mini festival economy.

📲 4. Digital Monetization & Content

  • Teams now behave like media houses —

    • YouTube, Instagram, fantasy leagues, vlogs, docuseries

    • Collaborations with influencers or creators

  • Brand placement in content = additional ₹₹₹

📸 Your reel views now fund your training kits.

🃏 5. Player Trading & Auctions

  • Buy low, sell high — if a player becomes a star, teams can release or trade for value

  • Example: Some players bought for ₹20 lakh → now worth ₹5 crore+

  • There’s no formal transfer fee (like football), but it's a future possibility

💹 A good scout is like a great stock picker.

🧢 6. Franchise Licensing & Merchandising

  • Team-branded merch:

    • Jerseys, caps, phone covers, water bottles, NFTs

    • Sold on platforms like Amazon, Myntra, team websites

  • Some franchises explore licensed collabs (CSK x BoAt, MI x HRX)

👕 You wear it. They earn from it.

🛫 7. International Brand Expansion

  • Some teams now own international franchises:

    • MI → MI Cape Town (SA20), MI Emirates (ILT20)

    • KKR → Trinbago Knight Riders (CPL), Abu Dhabi Knight Riders

    • DC → Dubai Capitals

  • This expands their brand globally and adds more monetization channels

🌍 IPL is going multinational now.

🧾 Cost Side (Because it’s not all profit)

  • Player salaries (up to ₹95 crore per team per season)

  • Support staff, physios, coaching, travel, logistics

  • Marketing, operations, digital content production

  • Stadium rent (for some teams)

But… most franchises now run profitably — or are at least massively appreciating assets.

📈 Valuation Growth

  • Franchises bought in 2008 for ₹300–400 crore

  • Now valued at ₹5,000–8,000 crore+ (some >$1 billion!)

  • New teams (like LSG and GT) sold for ₹7,000+ crore EACH in 2021

📊 Better returns than most tech startups.

🏁 Final Thought:

An IPL team is not just a cricket squad — it’s a media-tech-sports hybrid that earns from eyeballs, emotions, and entertainment.

🎯 Play 14 games. Earn like a billion-dollar brand.