How IPL teams make money: Which is the richest team in the IPL?

How IPL teams make money: The SportsRush brings you the details of different revenue teams of the Indian Premier League teams.

Indian Premier League started in 2008, and it is certainly the biggest T20 league around the globe. The top cricketing superstars of the world make their presence in the league and it has become the richest tournament in the world as well. When BCCI decided to add two new teams in IPL 2022, the bidding process broke all records.

Ahead of the IPL 2022, BCCI had organized an event where ownership of two franchises were sold. There was interest from all around the globe, but RPSG Group and CVC Capitals got successful in getting the deals.

The RPSG group and CVC Capitals were the successful bidders in the BCCI event. RPSG group were the highest bidders with INR 7090 Cr, whereas CVC Capitals were the second highest with INR 5625 Cr. Lucknow will be the base city of the RPSG Group, whereas Ahmedabad will be of CVC Capitals.

How IPL teams make money?

The main source of revenue for the IPL teams is the media rights. BCCI sells the media rights to the broadcasters, and the revenue gets shared with the teams after cutting the BCCI’s share from it. Sony Sports Network and Star Sports Network have been the two broadcasters of the tournament till now.

Sony Entertainment purchased IPL media rights from 2008-2017, for a reported price of 8,200 crore INR which is around 820 crore per season. Star Sports Network bought the IPL rights in 2018 for a contract of five seasons for a reported price of 16,347 crore INR. The shift in the money is clearly visible between the two deals.

The title sponsorship of the IPL also plays an important part in the revenue process. The TATA group will pay INR 335 crores every season for the next two years to the BCCI to be the title sponsor. BCCI keeps 50% of the revenue to itself, and the rest of the revenue is distributed in the franchise.

Every team also has different sponsors, and they are also an important source of income for the sides. Every side has a lot of sponsors around their kits.

Since IPL 2020, Covid has hit the market, but before that ground earnings used to be an important source of income. 80% revenue of the ticket sales goes entirely to the franchise, whereas there are a lot of different earnings in the local market as well.

Which is the richest team in the IPL?

According to net worth, Mumbai Indians are the richest franchise in the IPL with a net worth of nearly 80 millions USD. They are owned by the Reliance Industries. Chennai Super Kings are at the 2nd position, whereas Shahrukh Khan’s Kolkata Knight Riders is at the third.