Posted by: Kavya Madaan
Category: Blog
IPL team owners making money

How do IPL Team owners make money?

From the time when the pandemic has prevailed globally, the IPL is not able to sell tickets for their tournaments. Huge crowds are now forbidden from 2020, and due to covid concerns, the tickets are not sold in the market. People can only see them on their television. 

Now the main question arises that how are the IPL team owners making money? The main source of their earning was the IPL tickets, and now they cannot sell them! Alas, what are they doing now?

If we see, the whole Indian Premier league is not particularly dependent on ticket sales only. Some of the alternative courses would be taken into action plans when situations like this pandemic occur. There are many hardships like this which they have to face!

IPL Team owners make money

And if we ignore all the factors, there is something major like the massive revenue generated by the BCCI. They generate them by selling the media rights, both the broadcasters and the online streamers, of all the T20 games in IPL.  Then it is shared with the teams, but after cutting out its part.


Now, here are the ways through which the IPL team owners make their money!


It is the major and very first way through which the IPL team owners make their money. If we see they are the biggest source of income for the Indian Premier League. The media rights earn almost 60 to 70 percent. Now for the current season of IPL, they have been taken over by Star India. Also, they have a deal for a whopping some Rs. 16,374 crores. Also, the team that stands in the highest position in the IPL will get the highest price from the amount.


The total amount collected by the IPL commission or the BCCI from the sponsorships of the IPL, for example, the VIVO or Dream 11. Then this amount has to go to a central pool, and then a mutually agreed percentage gets divided among all the franchises. Then 80 percent of the amount is given to the team franchise, and the left 20 percent goes to the IPL committee.


Any of the franchises of IPL gives a very high percentage of total revenue through brand sponsorship. They represent their logos, and in return, they give them money. If the brand has been shown on a bigger level, it has to offer them more money.


The winning team of the tournament gets some prize money. This prize money is also one of the biggest sources for earning money for the IPL team owners. The teams get a huge amount for winning like last year, the team of Mumbai Indians got winning prize money of Rs. 20 crores! The prize money is also a token for the IPL team owners, who also have the money. 


This is a very fruitful resource for the IPL team owners also. They get a significant amount of income from this as well. The merchandising includes the sale of jersey copies, some of the sports mementos, kits, caps, T-shirts of all the teams! They are genuinely sold in a very wide range.

The stall rentals which are there in the IPL matches also give their rents to the BCCI. It is a fixed amount that is collected from all the stalls. These are the stalls that are indulged in selling their food as well as beverages to the people. People buy them to enjoy their matches while eating and drinking. So this thing also plays a major part in having a great income for the IPL. 


Every year there is an auction held for the IPL players, and in this trade, window teams are allowed to exchange their players with other teams. This means that more popular and skillful players are exchanged with some money which goes as a reward for the player.


As we discussed, ticket sales were used to generate the highest revenue for the IPL, and a huge number of people came to see the match in the stadiums. But now the whole situation has gone down, and due to pandemic, no huge crowds are allowed anywhere, and the tickets are not sold anywhere.

But the sale of tickets used to be one of the major parts to generate revenue for the IPL season. People bought tickets in abundance and enjoyed the matches by sitting in stadiums and cheering for their favorite teams.


So these are some of the ways the IPL team owners earn their part of the money in the IPL. They are also earning huge amounts when they buy a team and encourage it to go forward.