The teams have to pay a certain amount to the cricket associations in order to host their home games. Also, every franchise spends a certain amount on marketing before every season begins. Marketing may include hosting promotional events like jersey launch, fashion shows, supporting new initiatives etc. Every team spends on popular marketing tools like Television commercials and music videos to connect better with their fans. Before getting a team up and running for a particular season, one needs to pick the right players for a tournament as big as the IPL.
Every team is given a purse from which they have to bid for the players at the auctions. A team cannot exceed the purse value hence they have to be extremely judicious while bidding aggressively.
Players are bought by the franchises for an entire season and the bidding starts from the base price that each player is allotted. After winning the bid for a particular player, the franchise gets the particular player to sign a contract with them. The player is paid based on his availability for the entire season. The IPL salary of a player is affected if he is not available for the entire season.
This situation is encountered by the franchises many times when the foreign players leave the tournament midway to fulfill national duties. For the domestic players, IPL has been a major boost to their career financially. The money has given them an added fillip in the form of job security. The players are also given handsome incentives if their team wins the championship.
Also, a certain percentage of the championship money is distributed among the players. There is a lot of money to be won for the players even during the tournament. There are big prizes on offer for the player of the match, player with maximum sixes and the best fielder after each game. After the tournament ends, the orange cap holder most runs in the tournament and the purple cap holder most wickets in the tournament are given handsome rewards by the IPL.
Hence we can decipher that the IPL teams with a stronger brand value will always rake in the moolah even if their on field performances are below par. Having said that, the team owners want their team to excel on the cricket field because at the end of the day, a good team will be known for its performances on the cricket field and not by what they do behind the scenes.
Every edition, the Indian Premier League divides the prize money among all the franchises. Last year, 50 crores were offered to the eight teams participating in the league. The winner of the IPL title receives a big chunk of the prize money, while the rest of the amount is equally divided among other teams.
Through merchandising, franchises earn a significant amount of revenue. It includes the sale of jersey replicas, sports souvenir, and sports equipment among others.
The Cricket Lounge. Recommended for you. Trending 7. Latest News 7. To Top. If we look at any IPL team dress, we see a lot of logos of different brands. These brand companies provide a hefty amount to the teams for their brand promotions. Another source of how IPL franchises make money is merchandise sales. These teams sell the caps, jerseys, etc of the players via online medium.
By this, they earn a lot of money. The revenue from ticket sales is one of the most important sources of how IPL franchises make money. They depend a lot on this income source. The teams are given prize money according to the rank they get in the points table.
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