IPL profit

This includes revenue from media and title rights, and league sponsors. The teams get 40% of this.

This amount will increase this year from Rs 65 crore to Rs 200-250 crore, largely on the back of the Rs 16,347.5 crore that Star India will pay BCCI over the next five years for Indian and global media rights to IPL, and the Rs 2,199 crore Vivo will pay over the next five years for title rights. In addition, teams also have their own sponsors (who add another Rs 25-30 crore to each team), and share of gate receipts (Rs 10-15 crore).

On the cost side, each IPL team has to give a 20% share of revenue starting this year to BCCI (this replaces the franchise fee), pay local cricket associations for use of facilities, account for salaries to players and support staff, and spend on advertising and promotion.

The net equation will still; be a happy one for the teams.

“Every team will make money this year. I’m hoping to fix my accounts and plug my losses with this money. In sports, even globally, returns don’t come easy. But I’m happy now because of what has happened with the media rights for IPL,” said Mohit Burman, promoter of KingsXI Punjab and director at Dabur India Ltd. His team lost money for the first seven years to the tune of Rs 70 crore.

Mumbai Indians, operated by Mukesh Ambani’s Reliance Industries Ltd (RIL), Kolkata Knight Riders, owned by actor Shahrukh Khan, among others, and Royal Challengers Bangalore owned by United Spirits are among the eight teams competing in IPL 11.

The brand value of IPL was over $ 5.3 billion in 2017, an increase of 26% from $ 4.2 billion in 2016 on the back of renewed title sponsorship deals and the expected increase in the price of the tournament’s broadcast and digital media rights, according to a report by Duff & Phelps, a New York-based corporate finance advisory firm.

The IPL has also consolidated BCCI’s position as the world’s richest cricket board.