The IPL business strategy is founded on an innovative blend of cricket, entertainment, and marketing initiatives. The league operates on a franchise format, with ten teams representing various Indian cities competing against one another. The franchises are privately held and run on a revenue-sharing basis. The league earns money through a variety of means, including broadcasting rights, sponsorship agreements, merchandise sales, player auctions, and player endorsements.
Source:- https://www.timesnownews.com/sports/cricket/ipl-2023-complete-schedule-squads-venues-live-streaming-details-all-you-need-to-know-article-98140161
The Indian Premier League (IPL) enhanced its wealth by 48,390.5 crores (6.2 billion USD) after negotiating a television rights arrangement for the five-season cycle from 2023 to 2027. According to ESPN Cricinfo, the rights for the 2023-27 seasons were sold for twice as much as they were for the 2018-22 seasons. The Mukesh Ambani-backed Viacom-18 acquired the digital broadcasting rights for Rs. 23,758 crores, displacing Disney Star, which managed to retain the TV rights for Rs. 23,575 crores.
Sponsorship agreements are an important source of revenue for IPL franchises. The teams sign contracts with a variety of brands, including garment firms, beverage makers, and cell phone manufacturers.
These arrangements provide significant financial assistance to franchises, allowing them to cover their expenses. The IPL uses a revenue-sharing scheme to ensure that all franchises benefit financially from the league's success. Broadcasting rights contribute significantly to the league's revenue. The Board of Control for Cricket in India (BCCI) sells these rights to various broadcasters, with the proceeds split evenly between the BCCI and the franchises. IPL franchises can also make money from merchandise sales. The franchises make money by selling team jerseys, caps, and other accessories. The IPL's success has led in a large demand for products, which the franchises are capitalizing on.
Player auctions are an important feature of the IPL and a substantial source of cash for clubs. Every year, before to the commencement of the league, there is an auction in which clubs can purchase players. The team owners bid on the players they want to add to their roster. The cost of the players is determined by their performance and popularity. The owners of the team can profit by selling the players they purchased at a higher price than they paid.
For example, the Indian Premier League aided Disney+ Hotstar in acquiring roughly 60% of its Indian subscriber base. Christine McCarthy, CFO of The Walt Disney Company, revealed that thanks to IPL 2022, "a little over half" of net new members for Disney+ came through Disney+ Hotstar by the end of the second quarter of that year.
Viewership
According to The Economic Times, the viewership of the Indian Premier League hit 451 million unique audience as of week five cumulatively, which is 21% higher than the entire previous season In addition, JioCinema has worked with popular new-age companies such as Rapido, Amazon, and Spotify for the tournament. Given the country's increased internet penetration and smartphone accessibility, the presence of advertising sponsors demonstrates the growing importance that businesses place on digital streaming platforms.
The period when the competition takes place each year is one of the key reasons for steady development in IPL viewership. The event is normally held in April and May, while schoolchildren and college students in India are on summer holiday. Cricket is an apparent youth favorite, and because the league takes place during the summer holiday, viewership among school and college students is consistently high. Furthermore, female viewing has significantly increased throughout the years.
The matches normally begin about 7:30-8 p.m. and end before 12 a.m. This time period of 7:30-11:30 is critical because it is when most individuals have finished their day work and are at home watching television for entertainment. In the early years, one important technique for increasing IPL audience was to show matches on SONY MAX, a channel primarily utilized for broadcasting Hindi movies. Because the IPL was shown on non-sports channels as well, the IPL viewership grew.
Brand Value
The brand value of this year's Indian Premier League (IPL) was $3.2 billion, over double the $1.8 billion brand value of 2022. IPL's company value has increased by 80% to $15.4 billion in 2023. The media rights deal with JioCinema and Disney Star, which is three times the price of the five-year deal between Disney Star and the Board of Control for Cricket in India (BCCI) in 2017, was one of the key reasons for this hike.
Source:- https://en.janbharattimes.com/sports/ipl-2023-points-table
The IPL has a significant brand value, with the most successful club, Chennai Super Kings, having a $212 million brand value due to former Indian legendary captain, M.S Dhoni, who has guided them to victory five times since 2008.
The Indian Premier League's (IPL) primary revenue source is ticket sales. Tickets for the games are in great demand because to the league's large fan base. The IPL matches are held in a number of stadiums across the nation, and each stadium has a varied capacity for spectators. IPL match tickets are often offered online through ticketing websites like BookMyShow, Paytm, and Insider. Tickets can also be purchased by fans at the stadium box offices.
The Indian Premier League (IPL) relies on licensing agreements for a significant portion of its income. In order to exploit other firms' intellectual property rights, such as logos, branding, and player photos, the league and its franchises engage into licensing agreements with them.
Due to the IPL's and its franchises' large fan bases, businesses wishing to market their goods and services to the fans will find their intellectual property rights important.
These businesses are able to use the IPL and franchise branding in their marketing, promotions, and products because to the license agreements. It is called Indian Premier League for a reason!
Article by:- Shashank Subramani
