We all know that Indian Premier League has become the biggest spectacle in India. Ever since its inception, the growth of the league has been tremendous. The love for it has similarities to Aamir Khan’s movie Dangal. If you remember, the movie created a storm in India and did some serious business. Then it got released in China and boggled people with its huge business there. Similar is the mega success of the Indian Premier League.
In IPL’s case, the success is so huge that it is competing with the biggest sports leagues and has even left behind a few.
This is a first of three articles’ series on the mega success of IPL.
Enough of the hyperbole, innit? You would probably be wondering in your head – ‘Let’s get to the point. Give me the numbers.’
Sure, Indian Premier League is big. But just how big is it? To give things a kick-start, let’s jump right into the sources from where the Indian Premier League streams their giant of a revenue.
Biggest television deal in cricket
Nothing comes close to sponsorships in terms of revenue creation for IPL. Almost 60 percent of the IPL’s revenue comes from sponsorships. Fifty percent of this is distributed amongst the franchises.
The global rights deal Star struck with BCCI was the biggest television deal in cricket. Star won IPL rights for a record Rs 16,347 crore or $2.55 billion from 2018 to 2022.
Staggering, isn’t it? The IPL broadcasting deal works out to over 54 crores per match. As per the agreements between BCCI and the team owners, 50% of this money goes to the franchises.
The analysts and experts say sponsorship revenues have divided IPL teams into two groups. Leading franchises earn between Rs 50 and 60 crore through direct sponsorship, while the rest make 30 to 35 crore.
When we talk about the revenue from tickets, Bangalore topped the list with Rs 25 crore, Mumbai with 24 crore and Delhi with Rs 22 crore in IPL 2016. BCCI made almost Rs 10 crore from ticketing revenue.
Contribution to India’s GDP
According to the data provided by BCCI, the Indian Premier League (IPL) also contributed Rs 11.5 billion ($182 million) to India’s Gross Domestic Product (GDP) in 2015. The data was compiled by KPMG Sports Advisory Group through an economic survey which revealed that the economic output associated with IPL in India stood at Rs 26.5 billion ($418 million).
BCCI believes that there still is a lot of scope for growth. “Over the last decade, the BCCI has transformed the Indian Premier League from a radical new idea into India’s biggest sporting phenomenon and despite the scale of its success, the sky remains the limit for the VIVO IPL,” Rahul Johri, CEO, BCCI said.
How does it stack up against the biggest sports leagues?
The Indian Premier League has eclipsed NBA and MLB when it comes to global broadcasting rights stakes. It says a lot about the league’s pedigree when you leave behind the likes of NBA and MLB.
The brand value of IPL has continued to grow at a very impressive rate. The Indian Premier League is currently valued at $ 6.3 billion according to Duff & Phelps, a global consultancy firm.
In terms of brand value, there is no stopping Mumbai Indians. The current brand value of Mumbai Indians is $ 113 million while Shah Rukh Khan’s Kolkata Knight Riders does not lag far behind. KKR’s brand is valued at $ 104 million with Royal Challengers Bangalore, Chennai Super Kings and Sunrisers Hyderbad taking the next three places.
Several big companies like Facebook, Amazon, Twitter, Yahoo, Reliance Jio, STAR India, Sony Pictures, Discovery, Sky, British Telecom and ESPN Digital Media went with crazy bids in the market.
Big media giants locked horns and ultimately Star came out on top.
Liked the article? Stay tuned for the next piece on the brainchild of Lalit Modi – How he gave birth to one of the greatest innovations in cricket’s history.