India’s 2007 win vs Pakistan in T20 World Cup led to an idea around a cash-rich league Indian Premier League (IPL). The administrators felt that T20 cricket could be milked for far more money than the sport had ever seen before and hence conceptualised IPL. On April 18, 2008, the Indian Premier League or IPL was born with the first match between Kolkata Knight Riders (KKR) and Royal Challengers Bangalore (RCB)
“The rest of the world was saying the IPL was much bigger than what Kerry Packer had done in the 1970s,” says celebrated cricket commentator Harsha Bhogle. He added, “We had players prioritising the IPL over everything else since there was big money to be made.”
Today, the IPL, spread over eight weeks, with 10 teams comprising a total of 163 players, many of who are from other countries, and played across 12 cities, is a spectacular event
In 2008, Sony paid Rs 8,200 crore for television rights for 2008-17. After that, the then Star India bought the television and digital rights for IPL 2019-22 for Rs 16,348 crore. Later, the television and digital rights were split and given to two different entities - Disney Star for television and Viacom18 for digital streaming - for a combined value of Rs 48,390 crore for 2023-27
In terms of media rights, IPL is now behind only four major leagues:
- National Football League in the US ($112.6 billion for 2023-33)
- NBA (National Basketball Association ($24 billion for 2014-2025)
- English Premier League soccer ($12.85 billion for 2022-25)
- Major League Baseball in the US ($12.24 billion for 2022-28)
(As per the exchange rates as of June 5, 2023)
Source: Press releases
- IPL media rights for 2023-27 – Rs 48,390 crore
- Media rights for ICC tournaments (2024-27) - $3 billion (Rs 24,794 crore)
- Media rights for Women’s Premier League (2023-27) - $3 billion (Rs 24,794 crore)
- BCCI’s estimated earnings from its bilateral tournaments - $1 billion (Rs 8,265 crore)
- Estimated production costs - Rs 3,000 crore
- Total earnings from auction of IPL franchises - Rs 15,391 crore
Streaming the IPL free on JioCinema means advertising will be the only source of revenue for the company. But, IPL-related advertisements are an expensive proposition. In 2017, a 10-second IPL spot went for Rs 6.5 lakh and now it is as high as Rs 17-18 lakh
- Rs 8,200 crore for multi-screen in 2008-17
- Rs 16,348 crore for Star India in 2018-22
- Rs 48,390 crore for Disney Star, Viacom 18 in 2023-27
Source: TAM Sports
Some of the top advertisers in the cricket industry are Coca-Cola India, Vishnu Packaging, Reckitt Benckiser (India), Parle Agro, K.P. Pan Foods, Parle Products, Britannia Industries, Asian Paints, Kent RO Systems and Bharti Airtel
The amount of money generated when licensing an IPL team franchise has skyrocketed since the tournament began in 2008
Brand Finance’s valuation of the IPL in 2022 was $8.4 billion. “Even on a large base, cricket in India is still at a transition point. We are seeing the US, the Netherlands, Japan and China nurturing cricket teams and this is fuelled by Indian cricket. Inevitably, IPL teams will also get listed,” said Ajimon Francis, MD of Brand Finance India