The Indian Premier League (IPL) is not just a cricket tournament—it’s one of the world’s most lucrative sports leagues, attracting millions of viewers and generating enormous revenue every season. While fans cheer for their favorite teams, one question often arises: how do IPL team owners make money?
Owning an IPL team involves huge investments, from player salaries to marketing and stadium costs. Yet, despite these expenses, many team owners earn significant profits due to multiple revenue streams. Let’s break down how IPL franchises generate income and grow financially year after year.
1. Central Revenue Pool – The Biggest Source of Income
One of the main income sources for IPL team owners is the central revenue pool. Every year, the Board of Control for Cricket in India (BCCI) earns money by selling broadcasting and sponsorship rights for the entire league.
Broadcasting Rights
Broadcasters like Star Sports or JioCinema pay massive amounts to air IPL matches. The BCCI then distributes a significant percentage of this revenue among all the franchises.
For example:
- In the 2023–2027 cycle, IPL media rights were sold for a staggering ₹48,390 crore.
- This money is shared among the teams based on a fixed formula—each team gets an equal share, regardless of their performance.
Title Sponsorship & Other Central Sponsorships
Apart from broadcasting, central sponsors like Tata (title sponsor), Dream11, and others pay huge sums to the BCCI. This sponsorship money is also part of the central pool, which is shared equally among all franchises.
This ensures that even teams finishing at the bottom of the table still earn a healthy income every season.
2. Ticket Sales – Earning from Home Matches
Each IPL team plays 7 home matches in the league stage. The home team earns money from ticket sales, and this can be a big source of income, especially for franchises with huge fan bases.
For example:
- Chennai Super Kings (CSK) and Mumbai Indians (MI) often have packed stadiums.
- Ticket prices can range from ₹500 to ₹10,000 or more, depending on the seating.
Even after paying stadium authorities a share, the franchise keeps a large portion of ticket revenue. Teams that perform well or have star players generally earn much more from ticket sales.
3. Merchandise Sales – Selling the Brand
Franchises make extra money by selling merchandise like:
- Jerseys
- Caps
- Wristbands
- Posters
- Accessories
Fans love wearing their team’s jersey to show support. This not only generates income but also promotes brand loyalty. Merchandise is sold online, in stadiums, and through official stores. For example, Royal Challengers Bengaluru (RCB) has one of the highest merchandise sales in IPL due to its massive fan following.
4. Sponsorship Deals – Team’s Own Sponsors
Apart from central sponsorships shared by all teams, each franchise signs its own sponsorship deals. Companies pay huge sums to have their logos displayed on:
- Jerseys (front, back, sleeves)
- Caps
- Player kits
- Stadium boards
For example:
- The main front jersey sponsor (like Jio, BYJU’S, or Muthoot) pays several crores for just one season.
- Smaller sponsors also contribute significantly.
These sponsorship deals are one of the biggest revenue streams after the central pool.
5. Prize Money – Performance Bonus
At the end of each IPL season, the BCCI awards prize money to the top teams:
- Winner: Around ₹20 crore
- Runner-up: Around ₹13 crore
- Third & Fourth place: Around ₹7 crore each
While prize money is not the biggest income source, it’s still a valuable addition—especially for teams performing well consistently like MI and CSK.
6. Player Trading – Smart Business Moves
Franchises can trade players before the start of the season or during the transfer window.
- If a player is in high demand, a franchise can sell him to another team for a profit.
- For example, when Delhi Capitals traded Trent Boult to Mumbai Indians, both teams benefited financially.
This trading strategy helps franchises save on salaries or earn transfer fees.
7. Hospitality & Food Sales
During home matches, franchises earn money from VIP hospitality boxes and food stalls inside stadiums.
- Corporate boxes are sold at very high prices to companies and celebrities.
- Food and beverage sales also generate a steady income.
Though stadium authorities take a share, franchises still benefit significantly.
8. Digital Content & Social Media Deals
IPL teams have massive social media followings. Brands pay to collaborate with franchises for online campaigns, YouTube videos, or exclusive behind-the-scenes content. This growing digital economy is becoming a new way for franchises to make money without relying solely on match days.
9. Long-Term Brand Value
Owning an IPL team is not just about yearly profits—it’s about building brand equity.
- For example, in 2008, Mukesh Ambani’s Reliance bought Mumbai Indians for about ₹800 crore.
- Today, MI’s brand value is over ₹9,000 crore (Brand Finance 2023).
Even if teams don’t make huge profits every season, their valuation keeps rising. This means that if an owner sells the team in the future, they can earn massive returns.
10. Overseas Matches & Exhibition Games
Sometimes, IPL teams play friendly matches or participate in global T20 leagues. While not common every year, such matches help them tap into international fan bases and sponsorships.
Expenses – The Other Side of the Story
While income is huge, so are the expenses:
- Player salaries (some stars earn ₹15–18 crore per season)
- Coaching staff & support staff salaries
- Stadium rent & match-day operations
- Marketing & promotions
The balance between income and expenses determines the profit margin. Successful teams with loyal fans and smart management usually come out ahead.
Example: Chennai Super Kings (CSK)
Let’s look at CSK’s possible earnings for a season:
- Central revenue share: ₹250 crore+
- Ticket sales: ₹40–50 crore
- Sponsorship deals: ₹70–80 crore
- Merchandise: ₹15–20 crore
- Prize money (if winning): ₹20 crore
Total estimated revenue: ₹400 crore+ in a good season. Even after expenses, the profit margin can be significant.
Conclusion
IPL is not just a cricket league—it’s a billion-dollar sports business. Team owners earn money through multiple channels: central revenue share, ticket sales, sponsorships, merchandise, prize money, and long-term brand growth.
While the initial investment is high, the returns can be massive, especially for teams with strong fan bases and consistent performances. The success of IPL has made it one of the most profitable sporting ventures in the world, and its financial growth shows no signs of slowing down.
For owners, it’s not just about winning matches—it’s about winning the business game too.