How does sponsoring IPL help and benefit the sponsors?

The Indian Premier League also helps marketing experts to narrow the gap between players and companies. Companies can directly deal with IPL teams to get top cricket players like Virat Kohli, MS Dhoni or Rohit Sharma to promote their products and services instead of approaching their agents and managers saving time, money and resources for all the involved parties. Therefore, many product and service-based companies sponsor IPL to expand their popularity among the Indian crowd.

How do IPL franchises make money?

Below are various ways through which the franchises make money.

Title Sponsors: Title sponsors pay lots of money to get their name written right before the word IPL in different seasons. BCCI retains 50% of this sum. The other 50% is distributed among all the Indian Premier League  franchises/teams. Tata Group has paid INR 440 crore for the 2022 edition to be called Tata IPL.

Official Sponsors: The other sponsorship revenue comes from sponsors buying a spot for their logos on the jerseys, helmets, training kits worn by players and on the barricades near the boundaries. The names and logos of companies written on the chest and back on the upper parts of the jerseys carry the highest prize and attract the most prominent sponsors. The sponsors get the added benefit of certain players participating in their brand promotion events. The players also get free hospitality and travel benefits.

Local Revenue: Ticket and food sales at the home stadiums come under local revenue. The franchises are free to set the price of tickets at their home stadiums and get to keep approximately 80% of revenue generated from the sale of tickets while the rest goes to BCCI. A major portion of profits generated from food and beverages sales, merchandise sales and money from local sponsors are also pocketed by team owners.

Prize money: The top four performers in every tournament are awarded a portion of prize money. The winners of the 2022 Indian Premier League will get INR 10 crore, the runners up will get INR 6.25 crore, and the other two teams that reach the semi-finals will get INR 4.375 crore each.

Media Rights: Broadcast revenue is the biggest source of revenue for some teams. While the valuation is at INR 16000 crore for the current cycle, It is predicted that the media rights for the next cycle (2023-2028) will be sold for more than INR 36000 crore. BCCI keeps a major portion while the rest is split among all the participating teams.