You read that right, second largest in the world! And this IPL The American Major League is only an 18 -year -old child compared to 125 years of existence of baseball, compared to NFL’s existence of 100 years and 75 years Formula One. NFL dominates all revenue matrix such as total revenue (about $ 20 billion), per team revenue ($ 600 million) and per match revenue ($ 67 million).
The last of these metrics is considered to be the most relevant for comparison in geographical and formats, and the IPL comes second with approximately $ 17 million per match. By justifying its position as a young league, other major sports leagues such as IPL NFL are raising revenue at an annual rate of more than 20% compared to about 8–10%.
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The Control Board for Cricket in India, widely known by BCCI, a brief name of its four letters, sits on top of the IPL pyramid. It is a tax-free organization that oversees this entertainment. Like most major sports leagues worldwide, revenue models are composed of TV and digital rights revenue, central sponsorship, vigilance level sponsorship, stadium receipts and business revenue.
BCCI signed a five -year -old deal with Disney/Viacom 18 for the revenue of TV and digital rights from 2027 to 2027. In addition to this annual $ 1.2 billion, the board earns $ 100-200 million from central sponsorship. The BCCI shared half of it with ten franchise teams.
Therefore, each franchise team makes $ 60 million directly from the team and at another $ 10 million or franchise level. BCCI’s total salary hats 146 million ($ 17 million) for cricketers and if you add about $ 3 million to diverse expenses, each franchise stands for about 50 million dollars per season to earn a profit.
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There are many materials that make magic sauce for IPL. The country’s demographic naturally lend itself to a newly introduced short form of sports. A notable 40–50% of IPL fans are women (thus dramatically advertising market expansion).
Some stars like Virat Kohli have a ‘Village’ follower (280 million) which is in the league of Kendal Jenner and Taylor Swift. More and more the following players are footballer Cristiano Ronaldo and Lionel Messi. Even though we are surprised by the huge amount of money auctioned for IPL players in India; Compared to other major leagues worldwide, IPL’s ‘Talent Cost’ is the lowest as a percentage of total revenue.
Compiring, the number of teams and sports season will expand, probably as soon as the next media auction in 2027. From my estimate, in the next ten years, media rights for IPL should be about 10 to 12 times per year of $ 1.2 billion. BCCI will make a profit of more than $ 5 billion every year. The board does not pay any tax on this benefit.
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IPL remains exciting in terms of sports, one of the main reasons for this is that literally any team can win in a given year. It is enabled by a ‘mega auction’ every three years, during which all four players per team are to be released. Each team requires minimum 18 players and maximum 25. Each team can have only eight international players only eight international players. So, the mega auction is released somewhere between 150 and 200 players. In the intervening years, auctions for new players are held, for international players who do not choose to return, and some that are released for some.
This unique process ensures that a small group of players blows the franchise flag (such as Royal Challengers Bangalore for Kohli or Rohit Sharma for Mumbai Indians), but other people are thrown into the Great Pot, with any team capable of bidding for their services. This ensures that each sport remains competitive, which makes any result possible. There is no possibility of multi-year dominance by any single team; Eight separate teams have won in 18 years.
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This is a good part of the story. A rapid growth with structural elements, a world -scale sporting league that will keep it exciting and rapidly.
In the early years, the IPL was shaken by the ‘fixing’ scams that worsened with the fact that the inner sources had the biggest hand in those scams. Fortunately, large -scale fixing has been abolished. International and international (where sports betting is legal) continues to be betting, but it appears that the internal formulas are very few today. The ‘bad’ part of the story today comes from the unbridled consumerism that has caught, everything from drinking biping to unhealthy food is included.
The ‘ugly’ part was seen in Bengaluru with tragic death of 11 fans during a ‘Vijay Party’ at the RCB Stadium and injuries to others. The authorities were disappointed with the size of the crowd and their indifferent decency resulted in an unnecessary tragedy.
IPL Jugnote is likely to be crushed at its current growth rate for at least a few more years. The BCCI should recover some of its amazing profits and work to take stadiums with cities to areas that are well connected by transit and created to become disaster evidence. Planning and systematicity will be required everywhere to realize the full potential of the IPL event.
Punash: “The great wheel of fate rolls like a juggler, and in all, some soon, some time crushed,” the author H. Rider Hagard said
The author is the chairman, Inclood Labs. Read Narayan’s Mint Column on www.livemint.com/avisiblehand