But how do IPL teams actually earn money and how do sports franchises make money despite high operational costs?
In this guide, we explain how IPL franchises generate revenue through multiple streams including media rights, sponsorship deals, ticket sales, merchandise, and prize money.
Understanding these income sources shows why the IPL is not only a sporting spectacle but also a highly profitable business model that continues to grow globally.
1. Media Rights
IPL teams earn a large part of their revenue through media rights. The BCCI sells the broadcasting rights to channels like Star Sports and platforms like JioCinema for huge amounts. A significant portion of this money is shared with IPL teams.
The exact share a team receives often depends on its performance and popularity. Teams with more fans and better results get a bigger portion of the revenue. This system benefits both sides.
Broadcasters get more viewers for their channels, while teams are rewarded financially for the attention and excitement they generate among cricket fans.
2. Ticket Sales and Gate Revenue
IPL teams earn a large part of Indian Premier League revenue from ticket sales at home matches. Fans pay to watch their favorite teams live, and ticket prices vary depending on the match and seating category.
Teams also offer VIP packages, corporate boxes, and premium hospitality, which increase revenue. Ticket prices usually range from ₹500 to ₹10,000.
Iconic stadiums like Wankhede in Mumbai and Eden Gardens in Kolkata hold over 30,000 fans. With an average ticket of ₹2,000, a sold-out match can generate 6 to 8 crore, showing how popular the IPL is.
3. Merchandising
Merchandising is an important source of income for IPL teams. Franchises earn money by selling official products such as team jerseys, caps, sports accessories, and fan collectibles. These items are very popular among cricket fans who want to support their favorite teams.
An official IPL team jersey usually costs around ₹2,000. If a team sells about 500,000 jerseys in one season, it can earn nearly ₹100 crore from jersey sales alone. Merchandise is sold through multiple channels including online platforms like Amazon and Flipkart, stalls inside stadiums during matches, and official team stores.
On average, IPL teams earn between ₹10 crore and ₹30 crore per season from merchandise sales. Teams with large and loyal fan bases such as Chennai Super Kings, Mumbai Indians, and Royal Challengers Bangalore earn much higher revenues.
4. Prize Money
Prize money is one of the important ways IPL teams earn income. Teams that perform well in the tournament receive cash rewards at the end of the season. The better a team plays, the more money it earns.
In the 2024 IPL season, the winning team received INR 20 crores as prize money. The runner up team earned INR 12.5 crores. Teams finishing in the third position were awarded INR 7 crores, while the fourth placed team received INR 6.5 crores.
This prize money is usually shared between the Indian Premier League owner and the players based on pre decided agreements. Although prize money is not the biggest revenue source compared to sponsorships or media rights, it still adds significant value to a team’s overall earnings.
5. Sponsorship
Sponsorship is the biggest source of income for IPL teams. Almost everything you see during a match is sponsored, including players jerseys, equipment and even the stumps. Brands pay large amounts of money to associate with popular teams and players.
Each IPL team has multiple sponsors such as a title sponsor, jersey sponsor and sleeve sponsor. These brands get visibility during live matches which are watched by millions of fans across the world. Because of this massive reach companies are willing to invest heavily.
Player jerseys are one of the most valuable advertising spaces. A single jersey can display around ten brand logos including on the shirt pants and cap. Apart from jerseys teams also promote sponsors through advertisements, social media posts and digital content.
6. Brand Value
Brand value plays a major role in how IPL teams attract sponsors and investors. Teams with star players like Virat Kohli, MS Dhoni, and Rohit Sharma naturally gain more attention and fan support. Winning matches, reaching the playoffs, or lifting the IPL trophy further increases a team’s popularity and trust among brands.
Successful teams such as Mumbai Indians, Chennai Super Kings, and Kolkata Knight Riders have strong bargaining power and can charge higher sponsorship fees. Brand value does not depend only on performance.
Celebrity owners like Shah Rukh Khan, Preity Zinta, and Neeta Ambani also increase a team’s visibility, media presence, and overall market appeal.
7. Investments in IPL
Investments play an important role in how IPL franchises make money. Franchise owners invest in players, training facilities, coaching staff, and marketing to improve team performance and brand value. When a team performs well and becomes popular, its overall valuation increases.
Many IPL franchises have seen massive growth in their market value over the years, attracting new investors and sponsors. Owners also earn profits when they sell partial stakes in their teams to business groups or celebrities. These investments help teams grow financially and ensure long term success in the league.
8. OTT Platforms
OTT platforms have become an important source of income for IPL teams. Many fans prefer watching matches online through apps and streaming platforms instead of television.
Digital platforms pay large amounts to get streaming rights for IPL matches. This money is shared between the BCCI and IPL franchises. Teams also benefit from ads shown during live streams and highlight videos.
Popular teams attract more online viewers, which increases their value on OTT platforms. As online viewership continues to grow every year, OTT platforms are becoming a strong and reliable revenue source for IPL franchises.
Conclusion
IPL franchises earn money through multiple strong income sources such as media rights, sponsorships, ticket sales, merchandise, prize money, brand value, investments, and OTT platforms. Among these, sponsorships and media rights remain the biggest contributors to team earnings.
Teams with strong performances, star players, and loyal fan bases attract more viewers and bigger brands, which increases their revenue and overall valuation. Even simple merchandise items like the IPL Cricket Ball Price influence fan engagement and merchandise sales, adding to overall income.
This mix of sports, entertainment, and smart business makes the IPL one of the most successful cricket leagues in the world.
