How does the IPL make Money?

How do Franchises make Money?

How does the BCCI make Money?

Let's first look at how the BCCI makes money and then how the Franchises go about it.

The BCCI shares about 50% of the Central Pool Revenue with the Franchises.
The Franchises in return share 20% of their Total Revenue back to the BCCI after the tournament.

Let's Look at the Central Pool Revenue and how this is generated for the BCCI.

CENTRAL POOL REVENUE.
This is basically the Revenue generated by the BCCI. How do they generate it?

1) Media Rights -
For the 2020 IPL STAR contributed
₹ 3269 CR.
They also paid the same amount for the 2019 IPL.

Star to pay ₹54.5 Cr for every match in the IPL.

2) Title Sponsors -

VIVO was the Title sponsor for IPL 2019 contributing ₹440 Cr.

Dream 11 is now the title sponsor which has cost them ₹222 Cr for the year.

3) Official Partner's -

In 2019, TATA MOTORS, FBB & DREAM 11 we're the official sponsors for the IPL contributing ₹120 Cr

TATA MOTORS, CRED & UNACADEMY are now the official sponsors for IPL 2020 contributing ₹120 Cr

4) Umpire Sponsors -

PAYTM is the Umpire Sponsor for for the current IPL as well as the 2019 edition contributing ₹28 Cr.

5) Strategic Timeout Partner -

CEAT has been the Srategic Timeout Partner for the 2019 as well as the 2020 IPL contributing ₹30 Cr

6) Ticket Sales -
Gate Revenue is a very important contributor for the Central Pool Revenue.

Last year in 2019 Gate Revenue contributed ₹400 Cr

This year that figure is 0 which is a huge blow to the BCCI Revenues.

All In All Last year the BCCI generated ₹4287 Cr in CENTRAL POOL REVENUES

That figure is expected to be at ₹3669 Cr for this year which is a 14.41% drop in revenues.

Now you know why all the franchises and the BCCI make such a big fuss, to conduct the IPL in India.

Here's the Cost Incurred by Franchises
(In ₹)
1) Stadium Operations Cost - 8 Cr
2) Support Staff - 3 Cr
3) Stadium Rent - 2.4 Cr
4) Team Purse - 85 Cr
5) Travel Costs - 4 Cr
6) Franchise costs - 1.5 Cr
7) Marketing Cost - 6 Cr
8) Admin Cost - 1 Cr
9 ) Accommodation - 1.5 Cr

10) Miscellaneous - 1 Cr
11) Franchise fees to BCCI - 54 Cr

Total - 168.4 Cr

Revenues for Franchises -
1) Income from Sponsors - 40 Cr
2) Average gate Revenue - 25 Cr
3) licensing - 5 Cr
4) Revenue Share from BCCI - 200 Cr

Total - 270 Cr

₹100 Cr in profits on Avg pa.

All the costs incurred are can differ from very small margins but this has been the trend over the years for most franchises and this is what they have been spending on in Prev Editions.

Some of those costs might not be valid for this year which is a bonus for franchises.

Revenue per match - ₹61.4 Cr

Revenue per Legal ball - ₹ 25.75 Lakhs

Opening Ceremonies every year have on avg costed ₹20 Cr to the BCCI. This won't happen this year.

There has been a 50% Reduction in Prize money for IPL 2020.

Bio-Secure Bubbles to cost franchises more.

BYJU'S Is the biggest spender for on-air Adverts costing them around ₹150 Cr.

If we look at the last 6 years...

The value of the IPL has jumped from ₹22,600 Cr in 2014 to 47,500 Cr in 2020.

This a huge money spinner for the BCCI and the franchises In general

Even though they faced so many challenges this year, The BCCI are set to make a heck load of Money even without Gate revenues.

On the flip side, Franchises might make a little less this year than the Avg 100cr. Thats because gate revenues matter more to Franchises.

Sources :

http://Msn.Com 

http://Insidesport.Com 

Official site of the BCCI and the IPL

You could also get a lot of the sponsor data from annual report of all the top sponsors for the event.