What is the business model of an IPL franchise?


IPL 2023 Winner

Now we’re talking big money and smart strategy 💼💰
An IPL franchise isn’t just a cricket team—it’s a sports business empire. Their business model is built on a mix of revenue streams, brand building, and fan engagement, all backed by the powerhouse of the BCCI and IPL’s global reach.

Let’s break it down 👇

🏗️ Core Structure of an IPL Franchise’s Business Model

🔹 1. Revenue Streams (How They Make Money)

💰 A. Central Revenue (Shared by BCCI)

  • Media Rights (TV + Digital): BCCI sells broadcast rights (e.g., Star Sports, JioCinema), and 50% of that money is shared among franchises.

  • Title Sponsorship: Like TATA IPL—again, revenue is pooled and shared.

📊 In IPL 2023, each franchise reportedly earned INR 300–400 crore from central rights alone.

📢 B. Sponsorships

  • Jersey sponsors, sleeve sponsors, helmet/back logos, and even dugout branding.

  • Big-name brands pay crores to be associated with high-visibility teams.

🔹 Example: Mumbai Indians’ jersey has sponsorships worth ₹100+ crore.

🎟️ C. Matchday Revenue

  • Ticket sales (for home matches), stadium hospitality, and in-stadium advertising.

  • Merchandising sold at stadiums.

🛍️ D. Merchandising & Licensing

  • Jerseys, caps, bobbleheads, collectibles, NFTs.

  • A growing stream—especially for fan-favorite franchises like RCB, CSK.

🌐 E. Digital Content & Branding

  • Sponsored social content, YouTube shows, and collaborations.

  • Revenue via ads, brand partnerships, and fan monetization.

🌎 F. International Franchises & Leagues

  • Teams like MI, KKR, RR have global versions (SA20, ILT20, MLC).

  • Cross-branding and player scouting + shared profits across leagues.

🏗️ 2. Cost Structure (Where the Money Goes)

Expense Area Notes
Player Salaries ₹95 crore salary cap per season
Support Staff & Coaches Includes head coaches, trainers, analysts, physios
Operations & Logistics Travel, lodging, team operations
Marketing & Fan Engagement Content creation, social media, events
Stadium Rentals & Hosting Fees For home matches

📈 3. Franchise Valuation & ROI

  • Franchise values have skyrocketed since 2008.

    • MI bought for ₹487 cr → now worth ₹10,000+ cr.

    • New teams like LSG & GT entered at ₹7000+ crore bids.

  • Most franchises now turn a profit annually, especially with massive central revenue.

🚀 4. Growth Levers

  • Expanding leagues (Women’s Premier League, SA20)

  • Digital monetization (OTT shows, fan tokens)

  • Franchise-owned academies & grassroots scouting

  • Global sponsorship packages

🧠 Final Take:

“An IPL franchise is part sports team, part entertainment brand, and part money-making machine.”

They win on the field, but they thrive by building a brand that fans love and sponsors can’t ignore.

Want a breakdown of which franchise earns the most, or how newer teams like LSG and GT are catching up in business terms? I can dig into that too! 📊🔥