IPL Business Model – How does IPL and it’s franchisees make money? – Yash Shinde's Blog

Buzzing cricket news after World Cup is that Yuvraj Singh has been sold to Delhi Daredevils for whopping Rs 16 Crores in Indian Premier League IPL. Not only this time, but he was the most expensive buy at auctions last year as well for Royal Challengers Bangalore where Mr.

Mallya spent Rs 14 Crores to buy him. IPL has witnessed the costliest buys ever since its inaugural which involved the likes of MS Dhoni, Kevin Pieterson, Andrew Flintoff, Ravindra Jadeja and many others.

Its effect is to the the extent that some foreign players have even chosen to play for IPL over their home country. But what makes IPL so cash rich? From where does it get money and why are teams spending so much on the services of these cricketers?

The most exciting feature of this concept is that the state teams are owned by corporate houses and bollywood celebrities. Owners were allotted teams through bidding process and once teams were allotted, cricketers from around the world along with Indian cricketers were put to auction wherein cap for maximum amount was fixed.

How Do IPL Team Franchise Owners Make Money - Vivo IPL is Back

That means teams were to buy cricketers within the maximum amount equally fixed for all the teams in a way that formed the team with right mix of foreign and Indian players. All the revenue are initially directed to central pool.

The money will be distributed in this proportion until Sony-WSG then, resold these rights geographically to other companies around the world. Franchise owners are also allowed to sell their commercial rights for sponsorship. Aircel, a telecom company has been official sponsor for Chennai Super Kings, Delhi Daredevils signed Muthoot Group as their official sponsors, Hero Motors signed sponsorship deal with Mumbai Indians and there are many other examples of other teams selling their sponsorship rights to generate revenue.

Brand values of IPL franchises are: In a nutshell,IPL has defined an innovative model to do business in Indian landscape.

Hardly any country could have thought of this model other than a nation where there is enormous craze for cricket. IPL sets a great example of corporatising the passion and making money with entertainment.

Reblogged this on jelmak You are commenting using your WordPress. You are commenting using your Twitter account. You are commenting using your Facebook account.

Notify me of new comments via email. Home Latest Posts Short Stories Sports Finance Random About. April 16, April 17, Yash 1 Comment. CA Sagar Khubchandani Buzzing cricket news after World Cup is that Yuvraj Singh has been sold to Delhi Daredevils for whopping Rs 16 Crores in Indian Premier League IPL.

Revenue model The most exciting feature of this concept is that the state teams are owned by corporate houses and bollywood celebrities. Sources of IPL money are: CA Sagar Khubchandani div.

April 24, at 8: Leave a Reply Cancel reply Enter your comment here Fill in your details below or click an icon to log in: Email required Address never made public. Stats 5, people have seen the world through Yash's point of view!

Eric makes a diamond, almost! Part-2 Top Posts Public Transport - The Best Teacher! Follow Yash on Twitter My Tweets. Archives April January October September September June May April March February Categories Daily Quotes 2 Education 15 Finance 25 Random 5 Short Stories 6 Sports Create a free website or blog at WordPress.