The 2025 edition of the Indian Premier League (IPL) started on 22nd March, and once again, it’s not just about cricket. It’s about big business.
Every year, IPL grabs the attention of millions across the globe. From prime-time TV slots to social media buzz, it’s a festival of sixes, celebs, and money.
But have you ever wondered how these teams make money? After all, franchises spend crores just to bag their dream players at the auction. Plus, owning a team itself costs a fortune.
So why do corporates still line up to invest in IPL teams? What’s the business model behind the glitz?
In this blog, we’ll break down the various ways IPL franchises earn money—from broadcasting rights to sponsorship deals and even merchandise.
How do IPL Teams Earn Money?
IPL teams generate income from a variety of sources, each of which adds millions to their overall profits. Let’s explore each of them individually and also see how these earnings compare with those in other leagues like the BBL in this detailed comparison.
1. Ticket Sales/Gate Revenue
IPL teams earn a significant portion of their revenue through ticket sales for matches held in their home stadiums. Fans get to watch their favorite teams live, and the ticket prices vary based on the match’s importance and the seating category.
Teams also offer premium hospitality packages, VIP experiences, and corporate boxes, which further boost earnings. Ticket prices for IPL matches typically range from ₹500 to ₹10,000, varying based on the significance of the match and the stadium’s location.
Iconic stadiums, such as Wankhede in Mumbai and Eden Gardens in Kolkata, have seating capacities of over 30,000. If the average ticket price is set at ₹2,000, a fully occupied stadium can generate an impressive revenue of ₹6-8 crore per match, reflecting the immense popularity of the league and its ability to draw massive crowds.
2. Media Rights
IPL teams earn money through media rights as a share of the massive broadcasting revenue. The BCCI sells media rights to broadcasters like Star Sports and JioHostara for huge sums. This total amount is then shared between the BCCI and the IPL teams. Around 50% of the revenue goes to the teams, distributed based on their performance and standing in the league.
The more popular and successful a team is, the larger its cut from media rights. It’s a win-win—broadcasters get viewership, and teams get paid for the eyeballs they attract.
3. Merchandising
A significant chunk of the IPL teams’ revenue comes from selling official merchandise. This includes everything from replica jerseys and sports gear to collectibles and souvenirs. Both the IPL and its franchises have a huge opportunity to cash in on brand merchandise, and the league is starting to follow in the footsteps of major international sporting events.
An official team jersey is priced at approximately ₹2,000, and with the sale of 500,000 jerseys, a team can generate a staggering ₹100 crore in revenue. Merchandise sales are facilitated through various channels, such as online platforms like Amazon and Flipkart, stadiums during matches, and dedicated team stores.
The estimated earnings from merchandise range between ₹10 crore to ₹30 crore per team per season. Teams with a strong fan base, like Chennai Super Kings (CSK), Mumbai Indians (MI), and Royal Challengers Bangalore (RCB), tend to earn significantly more from merchandise.
4. Sponsorship
In the Indian Premier League (IPL), everything within the stadium has a price tag, from the players’ batting to the bails on the stumps. Sponsorships serve as the primary source of income for IPL teams.
Each team has multiple sponsorships, including a main sponsor, a jersey sponsor, and even a sleeve sponsor, all of which contribute to the team’s revenue. Teams partner with organizations to promote brands in exchange for substantial financial investments.
Brand promotions happen through two main avenues: print media and advertorials. Players’ jerseys are a prime marketing tool, which is why an average IPL outfit showcases around 10 brand logos—six on the jersey, two on the pants, and two on the cap.
Additionally, franchises produce ad content to further promote the products of their sponsors. Brands that do not feature on team jerseys are still prominently marketed through the teams’ social media platforms and packaging designs. For example, Chennai Super Kings (CSK) has partnered with at least 18 brands, with Etihad Airways as their title sponsor.
5. Prize Money
Prize money is a key revenue source for IPL franchises. The winning team receives the largest share, which is divided between the team owners and players. In 2024, the champions were awarded INR 20 crores, while the runner-up earned INR 12.5 crores.
The team finishing third in the playoffs secured INR 7 crores, and the fourth-place team received INR 6.5 crores, reflecting the league’s lucrative rewards for top-performing teams.
6. Brand Value
A team’s brand value plays an important role in attracting sponsors and investors. Star players like Virat Kohli, MS Dhoni, and Rohit Sharma improve a team’s appeal, while success in the IPL, such as winning the tournament or reaching the playoffs, boosts brand value further. Top teams like MI, CSK, and KKR, with multiple IPL titles, have strong negotiating power with brands.
However, brand value isn’t solely tied to performance; factors like celebrity owners, such as Shah Rukh Khan, Preity Zinta, and Neeta Ambani, also contribute to a team’s marketability.
Conclusion: Prize Money is the Main Source for Teams to Earn Money
IPL teams benefit from a range of revenue streams, such as broadcasting rights, sponsorships, ticket sales, and merchandise, which collectively ensure their financial stability.
Teams that perform well on the field not only attract more lucrative sponsorship deals but also drive higher merchandise sales and secure greater prize money.
With the increasing brand value of franchises and the growing global appeal of the IPL, teams continue to experience rising valuations and sustained long-term profitability. This winning combination of entertainment and business has positioned the IPL as a powerhouse in the sports industry.
