How do Indian Premier League teams make money?

How do Indian Premier League teams make money?

Friends, Indian Premier League(IPL) has just started. Do you know how to buy an IPL team? How the IPL team will be making money? What will be the business model of IPL? How players are selected in the team? What are the eligibility criteria for buying IPL Team?

How to buy an Indian Premier League team?

If anyone wants to buy an IPL team, they have two options, first way Talk to the owner of Direct Team to buy Tim and buy his stock. For example, LIC bought 6% shares of CSK (Chennai Super Kings). And secondly, we have to wait until the new team is launched by BCCI(The Board of Control for Cricket in India). Whenever BCCI wants to add a new team, it follows a process. And only companies with a valuation of over Rs 3,000 crore can apply for the IPL team.

The company that applies has to buy ITT(Invitation to tender). The cost of which is 10 lakh + GST. And these are non-refundable fees. Without this you cannot sit in the bidding process of IPL. One has to do an email for ITT. And not necessarily you don’t have to sit in the bidding process if you have bought ITT. Your ITT can be canceled without any reason. Only those who are shortlisted are invited to the bidding process.

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A base price is set in the bidding process, Its value ranges from Rs 1,700 to Rs 1,900 crore. Which means team can’t be sold at a lower price. Then the bidding is done and the one who gives the most money gets the team. At present Lacknow team is sold in 2000 crore and Ahmedabad in more than 3000 crores. After buying team you have to buy players. Players are also bidding so they also have to register themselves. It has three types of players.

Types of Indian Premier League Players

  1. Capped Players
  2. International Players
  3. Uncapped Players

These players are selected and sent by the State Association. This is a list of 1100 to 1500 players. Out of which about 500 players are shortlisted. Players also have to keep their base price at the time of registration. And this price is between 20 lakhs to 2 crores.

What is rules of IPL biding process?

The rules of bidding process are made so that all the good players are not put together in one team. A team cannot have less than 15 and no more than 25 players. And no more than 8 foreign players can be kept. All teams are given a limited amount called purse. And there is a limit to the purse. At present the limit of purse is 90 crores.

The bidding of Marky players takes place first. The base of these players are worth Rs 2 crore. Bidding is then done in groups. It is important to be very careful while selecting this team, Therefore, data science is used for team selection. Data Science is currently being used by all companies. With the help of this technique the camp can develop itself quickly.

mini bidding is done every year, In this bidding, players who are not useful to the team are released. One mega auction is done every 3 years, Except for 4 players, the rest of the team’s players have to be released. Friends, it takes a lot of money to buy an IPL team. BCCI has to give 20% of the money that the team earns.

How do IPL teams make money?

The major income of the IPL team is from the broadcasting rights. Only channels that have broadcasting rights can show IPL. Star India Channel has taken the broadcasting rights of IPL from the year 2018 to 2022. And they have paid Rs 16347 crore to buy these rights. Out of all this money, 50% goes to BCCI. The remaining 50% is distributed among the IPL teams.

IPL is watched more all over the world, In the year 2019, 462 million people watched the IPL. When so many people see one thing, the brand is involved. There are 12 to 13 lakh charges for ADS between matches. So all the channels are benefiting so they are ahead in bidding. Another source of income is title sponsorship.

Friends, you may know that the name of IPL is also associated with the name of another company. Such as DLF IPL, Vivo IPL, Pepsi IPL, and now Tata IPL. Companies pay a lot of money to associate a company name with the IPL. So it is also bid on what is called title sponsorship. At present, the TATA company has the sponsorship of IPL. Who has been given 300 crores for one year.

60% of all sponsorship revenue goes to BCCI and 40% to IPL team. The ticket price for the ground at which the match is held is determined by the home team. Average sells tickets worth Rs.5 crore. The brand pays for any name or logo that the member of the team has worn. The team gets all the money if you see the name of any company in the cricket ground. The owner of the team also gets the team players to do the ads of another company. His money goes to the team owner.

At last the attention goes beyond the winning amount, 20 crore to the winning team, And the runner-up is given Rs.12.5 crore. 50% of which is given to the owner of the team and the rest is given to the members of the team. When a 4 team qualifies, they get to play extra matches, Extra match means extra money. When a team reaches the top, its brand value also increases. And they get paid more than the rest of the sponsorship and Ads. So the winning team benefits.

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