The Indian Premier League (IPL) is one the richest cricket leagues in the world. Every year, it draws huge crowds of fans, star players, and big-name sponsors. But have you ever wondered how IPL franchises like Mumbai Indians or Chennai Super Kings make money? Here’s a straightforward and easy-to-understand explanation.
1. Central Revenue from BCCI
A major portion of a franchise’s income comes from the central revenue pool controlled by the BCCI. This includes:
- Broadcasting Rights: BCCI earned ₹48,390 crore by selling IPL media rights for the 2023–2027 period. In 2024, Star Sports and JioCinema (Viacom18) continued to broadcast IPL matches.
- Official Sponsors: Brands like Tata, Dream11, CEAT, and Swiggy Instamart paid BCCI for sponsorship rights.
How do franchises earn from this ?
The BCCI distributes around 45% of the central revenue pool (from media rights and central sponsorships) equally among all 10 IPL franchises. This means each franchise receives a significant share, which has recently amounted to over ₹400 crore per team annually, depending on the league’s total revenue for that season.
2. Sponsorship Deals
Every IPL team signs its own sponsorship deals. These includes:
- Main Jersey Sponsor: The brand logo on the front of the jersey pays the most. Other Jersey Sponsors: Logos on the back, sleeves, and caps also bring in money.
- Digital and Partnership Sponsors: Teams partners with various brands for digital campaigns and social media collaborations.
In 2024 Mumbai Indians had Slice as their front jersey sponsor. Royal Challengers Bengaluru partnered with Qatar Airways. Chennai Super Kings had deals with TVS Eurogrip and others. Top franchises earned ₹70–₹100 crore from sponsorships in 2024. In 2024, Chennai Super Kings reportedly earned over ₹95.5 crores from sponsorship deals done.
3. Matchday Revenue (Ticket Sales)
When a team plays at home, it earns money from ticket sales. The franchise keeps a major portion of the income from the stadium’s ticket sales. However, they also share a part with local cricket associations and BCCI.
Ticket pricing varies by city, but big matches in cities like Mumbai, Bengaluru, and Chennai often sell out quickly, earning crores in revenue per match. In 2024, tickets for big matches sold out in minutes. For example, A high-demand match in Mumbai saw ticket prices ranging from ₹800 to ₹10,000. Full stadiums in Bengaluru and Chennai helped teams earn ₹20–₹30 crore over the season from ticket sales alone.
Also read: IPL 2025 Resumption: Complete List of Squad Changes and Replacements
4. Merchandise Sales
IPL teams sell merchandise like jerseys, caps, mugs, and other fan items. These are sold online and in physical stores. While this is a smaller source of income compared to other, popular teams with a strong fan base do well in this area. For example, Mumbai Indians and CSK have official online stores that attract fans from across India and even overseas.
5. Prize Money
Teams that perform well and finish on top position earn prize money from the BCCI. For example, in IPL 2024:
- Winner: ₹20 crore
- Runner-up: ₹12.5 crore
- Third and Fourth place: ₹7 crore each
The money is usually shared between franchise and the players, depending on internal agreements.
6. Player Trading and Transfers
Franchises can trade players with other teams. Sometimes these are cash deals or player swap. Though it’s not a major source of regular income, smart trading can help teams reduce costs or earn extra.
7. Franchise Brand Value
The overall brand value of IPL teams has been growing. For instance, CSK’s brand value crossed ₹1,800 crore in 2024. A strong brand can lead to better sponsorship, higher merchandise sales, and even investor interest. In fact, some IPL teams are planning to go public (get listed on stock exchanges) in the future.
IPL franchises use a smart mix of media rights, sponsorships, ticket sales, and branding to make money. Even though they spend a lot on players and operations, the massive popularity of the league ensures big returns. With cricket growing every year, IPL teams are becoming stronger businesses, on and off the field.
Written by Kinjal Walantra
