Apart from spending money to take players along with them, IPL franchises also pour money like water for their training, support staff, lodging, practice and other facilities.
While Shah Rukh Khan is a KKR co-owner, Preity Zinta owns the Punjab Kings.
The countdown to IPL 2021 has started. This season will begin with the match of Mumbai Indians and Royal Challengers Bangalore on 9 April. All eight teams have added players by spending big bucks. Also, for their training, support staff, lodging, practice and other facilities, IPL franchises also pour money like water. Chennai Super Kings, Mumbai Indians, Royal Challengers Bangalore, Sunrisers Hyderabad, Punjab Kings, Rajasthan Royals, Kolkata Knight Riders and Delhi Capitals are all set to win the title in IPL 2021. During the IPL 2021 auction, weakened the weak links and took many strong faces with them. But how do IPL teams that spend crores of rupees on players earn? Do you have this idea in your mind, so today we look for the answer.
First of all, know how IPL works. The tournament started in the year 2008. Franchises of eight cities were sold which were bought by one and more people together. Like Mumbai Indians is the team of Mukesh Ambani alone. At the same time, Kolkata Knight Riders were bought together by Shahrukh Khan and Juhi Chawla. These people paid the money to BCCI to buy the franchise. After this, the BCCI conducted the bidding of the players. In which teams made bets and took players according to their needs. Teams can hold a maximum of 25 players. They should have both native and foreign players. It is also necessary to have some uncapped players. In this way the teams are ready to play in the IPL in one season.
Now know about the earnings of IPL teams. IPL teams earn from many different sources. These include advertisements, broadcast rights, ticket sales, prize money and earnings from the sale of team related goods. Now, let us know about them one by one.
Advertisement or Sponsor
Different companies join as sponsors with IPL teams. For this, they give money to the teams, in return, the teams give them space for advertising. Under the sponsorship, the logo of the company is placed on the jerseys of the teams. Many companies pay for a jersey. For example, the company whose logo is on the front part of the jersey is the main sponsor. It costs the most money. In this way, the logo of the companies with sponsors are also placed on the arms, shoulders and pants. Likewise, teams get sponsors for many other things as well. This is the main means of earning of teams. The more big names are in the team, the more chances are there of earning more.
In the IPL, seven matches in the league stage are played in the home ground of a team, seven out. So the tickets sold during the match on the home ground are earned by the respective teams. Right now the entry of the audience is closed due to Corona. In such a situation, the teams will not earn from the sale of tickets. In such a situation, the BCCI will give them money in some other way.
One of the main sources of teams’ revenue is the sale of media rights. Broadcasting rights simply mean on which channel the IPL will appear. Just like the IPL matches are being shown on Star Sports right now, Star pays the BCCI money. Right now, Star and BCCI have a five-year agreement. Star has taken this right in the year 2018 for more than 16 thousand crores rupees. Teams also get money from this amount. The longer the team plays in the IPL, the more it benefits. That is why every team wants it to reach the final. Similarly, BCCI also sells digital rights to broadcast IPL. Under this, IPL matches are shown on Hotstar. The money coming from this also goes to the teams.
In the season of IPL, the position that the team stays on, also gets paid according to that. Like if the winning team gets the most money then the laggard team gets less. The team that won the IPL right now will get Rs 10 crore. In 2019, this amount was Rs 20 crore but last year it was reduced due to Corona virus.
Team merchandise sales
Then the team owners also have a chance to earn money by selling the items associated with the team such as jerseys, t-shirts, bags, posters, etc. In English, it is called merchandise earning. The more popular the team, the more its merchandise is sold.
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