I’ve been a cricket fan for as long as I can remember. Some of my earliest memories are of watching matches with my family, glued to the screen as Sachin Tendulkar weaved his magic with the bat.
Cricket wasn’t just a sport; it was a ritual, a bond, and a passion that united millions like me across the country.
But for the longest time, despite our obsession with the game, India lacked a proper domestic league that captured mainstream attention.
Sure, we had the Ranji Trophy. But it never became a tournament that people tracked or discussed about. Ironically, during the non-international season, I heard more chatter about the English Premier League than about our own cricketing tournaments.
The Beginning of Something Special
In the early 2000’s, T20 was gaining popularity in England and other countries. But in India, the shorter format as well as the league system was scoffed at.
India won the inaugural T20 World Cup held in 2007 with MS Dhoni as the captain. T20 became popular in India post that and in 2007-08, Zee Entertainment tried to capture this opportunity with the Indian Cricket League (ICL). Without official backing from BCCI or the International Cricket Council (ICC), ICL didn’t stand a chance.
Parallelly, in 2008, the Indian Premier League (IPL) was born—this time, with the right people and the right backing. Lalit Modi, the architect of the league, ensured that the IPL had the full support of both the BCCI and ICC.
While IPL’s journey wasn’t all smooth sailing (remember the teams that joined and were later removed?), it quickly became a juggernaut. You know you’ve made it when your league is broadcast in every pub, bar, and restaurant across the country.
IPL successfully merged three things – Sports, Entertainment & Money.
And trust me, it’s a game where everyone wins, regardless of their performance on the field.
Where the Money Comes From
IPL teams derive 70-75% of their revenue from the central pool, which includes title sponsorships (starting with DLF in 2008, then came ViVo for a few years and now with TATA) and, most importantly, media & broadcasting rights—the biggest cash cow.
Out of the remaining 25-30%, team sponsorships (those logos plastered all over jerseys) contribute to 10-20% of a team’s income, with ticket sales & merchandise contributing the rest.
But do you know the real beauty of IPL’s business model?
Performance on the field has little to do with financial success. Take CSK and RCB, for example—despite RCB never having won, their revenues and profits are similar to those of CSK, which has won five times and finished as runner-up another five times.
But how?
The Answer Lies in The Broadcasting Rights
In 2022, the media rights deals for the period 2023-27 shattered all previous records:
- Viacom-18 (owned by Reliance) secured digital streaming rights for ₹23,750 crore.
- Star India bagged TV broadcasting rights for ₹23,600 crore.
That’s a staggering ₹48,390 crore over five years (~₹9,500 crore per year). To put this into perspective, in 2017, Star India had acquired both digital and TV rights combined for just ₹16,300 crore (~3,300 crore per year).
In a span of five years, the price tag for IPL media rights has nearly tripled, proving that the demand for IPL content is stronger than ever.
It also means that whether your team lifts the trophy or lingers at the bottom of the table, it will still rake in massive profits — because the money from broadcasting rights flows into the central revenue pool, benefiting all franchises.
The IPL Teams’ Expanding Empire
IPL teams aren’t just relying on IPL. They’re diversifying and expanding their reach globally to other businesses. Let us take CSK for an example!
- CSK has started its own cricket academies to train young talent.
- They’ve expanded to other leagues, owning teams like Joburg Super Kings (South Africa) and Texas Super Kings (USA).
Similarly, other franchises are also expanding. RCB and MI have bought franchises in the Women’s IPL. MI, like CSK, has a franchise in South Africa and the US.
IPL Teams’ Valuation is Skyrocketing!
This means that the valuation of the older teams had increased nearly 20-25x since the first auctions.
And here’s the latest update: The Torrent Group recently acquired a 67% majority stake in GT from CVC Capital for ₹5,025 crore, valuing the franchise at ₹7,500 crore — 33% higher than its original purchase price in 2022. (Source: MoneyControl).
According to Economic Times, the original eight IPL franchises could command 1.5 to 2 times this valuation, depending on factors like cash flow and fan base strength.
In Conclusion!
If there’s one lesson from IPL’s financial success, it’s this: cricket may be a game of skill, but IPL is a game of money. And in this game, everyone — players, franchises, sponsors, and broadcasters — wins. As the valuation of teams soars and broadcasting deals get richer, one thing is certain: IPL is no longer just a tournament; it’s an economic powerhouse.
Buying an IPL franchise may seem like a vanity project, but it actually makes perfect business sense. Don’t you agree?
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Also, if you have any topics that you would like us to cover or any other feedback, do write to us at connect@incredmoney.com
Till the next time,
Vijay
CEO – InCred Money
