How IPL games become big money minting machines?Add Answer
But with evey season passing by, the craze of IPL started to Inflate, so much so that even in some matches of CSK and MI their respective home grounds were full. There were a record mark attendance ie even more the World Cup. To this level IPL has been able to penetrate into the minds of the people. If cricket is considered to be a religion in India, a big credit goes to IPL.
BCCI ie the governing body of IPL and Indian Cricket Team doesn't even spend anything in the IPL. The whole model of IPL is a Zero cost for the BCCI. The players are auctioned by the celebrities and industrialists, who own the teams. Thus, paying for the IPL matches is a matter of their concern and BCCI need not to bother into this respect.
IPL has now turned truly into a money minting machines. As you see there is a huge crowd to MNCs available for sponsoring each player, each team and the whole IPL. Each team has its own title partner. Like Nokia for KKR, Daikin for DC and so on. These Title sponsors pay hugely to their teams and take note of all their expenditure.
Then we do have small sponsors like swiggy, zomato, Gatorade, as their food and beverage partners. Then there is Star group sponsoring the IPL. Reliance backed Jio nearly sponsoring every team. So the whole expenses of the IPL are incurred by these sponsors.
Apart from that, we have the Title sponsors for the IPL like VIVO and Maruti Suzuki who pay hugely to the BCCI as sponsors. Thus BCCI nearly incur anything from its part, rather it earns hugely . The craze of IPL is so high that the DReam 11 startup became the first fastest billion dollar startup.
Then, at the last the main source of revenue that is the match tickets. The tickets are highly overpriced during IPL and still people go and watch it. Sometimes you need to spend double or triple the cost of the ticket to buy in black. Therefore, IPL is now the biggest source of revenue for the BCCI and we may see the same craze even in the 50th edition of IPL as well.
The overall revenue model of the Indian Premier League is quite fascinating. And it's certainly something the budding entrepreneurs can learn a lot from.
(Courtesy: Inside Sport)