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How Do IPL Sponsors Make Money?

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The 2025 Indian Premier League (IPL) is here, bringing an electrifying mix of cricket, entertainment, and massive business opportunities. This T20 league attracts the world's best players and provides private companies with a lucrative platform to invest in franchises.

 

Beyond the game, IPL is a financial powerhouse. According to BCCI, the 2023 season contributed $11.2 billion to India's GDP. IPL 2024 saw record-breaking viewership, reaching 620 million and surpassing 350 billion minutes of total watch time. 

 

The league's revenue model ensures that team owners, broadcasters, and sponsors earn substantial profits.

 

How IPL Franchises Make Money?

 

1. Media Rights – Broadcasting and streaming rights form the biggest revenue stream. Star India spent INR 23,575 crores in 2023 for IPL rights, with BCCI distributing earnings among franchises.

 

2. Ticket Sales – Franchises earn from stadium ticket sales. Each team hosts a minimum of 7 home matches, keeping 80% of ticket revenue.

 

3. Merchandising – Official jerseys, souvenirs, and sports equipment contribute significantly to a team's earnings. The Indian sports merchandise market is growing rapidly.

 

4. Selling Stake – Owners can sell stakes in franchises at profitable rates. Delhi Capitals, for instance, saw a major stake sale worth INR 550 crore.

 

5. Sponsorships – Brands pay huge amounts to have their logos on jerseys, stadiums, and digital platforms. CSK alone has tied up with 18 brands.

 

6. Prize Money – Winning teams earn big; IPL 2023 champions received INR 20 crores.

 

7. Brand Value – Star players like Virat Kohli and MS Dhoni boost team valuations, helping secure higher sponsorship deals.

 

8. OTT Platforms – Digital streaming rights are a major revenue source, with Viacom18 paying INR 23,758 crores for online broadcasts.

 

9. Franchise Rights & Investments – Teams earn through brand collaborations, unlisted shares, and international expansions.

 

IPL is not just cricket, it's a billion-dollar business empire, constantly evolving and attracting global investments.

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