IPL Business Model and How It Works?

IPL Business Model and How It Works?

Indian Premier League (IPL) is a professional Twenty20 cricket league in India, which has become a cultural phenomenon in the country. The league has been successful in bringing together some of the biggest names in cricket from all around the world. IPL has also become an economic powerhouse, generating billions of dollars in revenue each year. In this blog, we will take a look at how IPL works, its history, format, teams, players, and much more. 

Indian Premier League (IPL) 2023 Tournament Summary

Dates31 March 2023 – 28 May 2023
AdministratorBoard of Control for Cricket in India (BCCI)
Number of teams10
Tournament formatRound Robin format with Group System and Playoffs

The format of IPL 

The format of IPL has changed over the years. In the early years, the league had a round-robin format, where each team played against every other team twice. The top four teams qualified for the semi-finals, and the winners of the semi-finals played in the final. 

In 2011, the format was changed to include a play-off system. The top four teams still qualified for the semi-finals, but now the teams finishing first and second played in the first qualifier, while the teams finishing third and fourth played in the eliminator. The winner of the eliminator played the loser of the first qualifier in the second qualifier, and the winner of that match played the winner of the first qualifier in the final. 

The current format of IPL, which was introduced in 2020, includes a total of eight teams, and each team plays against every other team twice. The top four teams qualify for the playoffs, with the first and second-placed teams playing in the first qualifier. The winner of the first qualifier goes straight to the final, while the loser plays the winner of the second qualifier in the eliminator. The winner of the eliminator plays the winner of the first qualifier in the final. 

The teams of IPL 

IPL currently has ten teams, and each team represents a different city in India. The teams are: 

  1. Mumbai Indians 
  2. Chennai Super Kings 
  3. Royal Challengers Bangalore 
  4. Kolkata Knight Riders 
  5. Delhi Capitals 
  6. Punjab Kings 
  7. Rajasthan Royals 
  8. Sunrisers Hyderabad 
  9. Gujarat Titans 
  10. Lucknow Super Giants 

Each team has a maximum of 25 players, and they can select up to eight overseas players in their squad. The players are selected through an auction, which takes place before the start of each season. 

The players of IPL 

IPL has become a global platform for cricket players to showcase their talent. The league attracts some of the biggest names in cricket from around the world. Each team has a mix of local and international players in their squad. 

Some of the notable international players who have played in IPL include: 

  1. Chris Gayle (West Indies) 
  2. AB de Villiers (South Africa) 
  3. David Warner (Australia) 
  4. Shane Watson (Australia) 
  5. Lasith Malinga (Sri Lanka) 
  6. Brendon McCullum (New Zealand) 
  7. Rashid Khan (Afghanistan) 
  8. Faf du Plessis (South Africa) 
  9. Imran Tahir 


How IPL Business Model Works?


IPL has been a significant success story in the business world, generating massive revenue for the Board of Control for Cricket in India (BCCI) and its franchises. The business model of IPL is based on several revenue streams, which include broadcasting rights, sponsorship deals, ticket sales, merchandise sales, and franchise fees. 

  1. Broadcasting Rights: The broadcasting rights of IPL are one of the most significant sources of revenue for the league. IPL has signed lucrative broadcasting deals with some of the world's biggest broadcasters, including Sony, Star India, and others. These broadcasters pay huge sums of money to IPL for the rights to broadcast the league in their respective regions. In 2021, Star India reportedly paid $2.5 billion for the broadcasting rights of IPL for the next five years. 
  2. Sponsorship Deals: IPL has also been successful in attracting sponsors from various industries. The league has signed sponsorship deals with companies from the automobile, technology, and consumer goods sectors, among others. The title sponsorship of the league is one of the most coveted deals, and companies bid millions of dollars to win the title sponsorship rights. In 2020, Dream11 won the title sponsorship rights for INR 222 crores ($30 million) for the season. 
  3. Ticket Sales: IPL matches are played in stadiums across India, and the league generates a significant amount of revenue through ticket sales. The tickets for IPL matches are usually sold out within minutes of being made available for purchase. The prices of the tickets vary depending on the location and seating arrangement. The stadiums have a seating capacity of up to 80,000 spectators, and the revenue generated through ticket sales can be substantial. 
  4. Merchandise Sales: IPL franchises have also been successful in selling merchandise such as team jerseys, hats, and other accessories. The franchises partner with manufacturers to create exclusive merchandise for their fans, which is sold both online and offline. The revenue generated through merchandise sales is a significant source of income for the franchises. 
  5. Franchise Fees: The franchises participating in IPL pay a hefty fee to the BCCI for the right to own and operate a team in the league. The franchise fees range from a few million dollars to several million dollars, depending on the location and popularity of the team. The franchises also pay a percentage of their revenue to the BCCI as a part of the revenue-sharing agreement. 

In addition to these revenue streams, IPL has also been successful in leveraging digital platforms to engage with its fans. The league has a strong presence on social media platforms such as Twitter, Instagram, and Facebook, where it interacts with fans and provides them with exclusive content. 


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