The Indian Premier League (IPL) is not just about cricket, it is a money-making model. With teams earning huge sums and the Board of Control for Cricket in India (BCCI) managing a highly successful operation, IPL has become one of the biggest & richest sports leagues in the world. But how does the money flow in cash-rich league known as the Indian Premier League? Let’s break down its business model and understand why it is such a financial powerhouse. IPL Prize Money vs Brand Values of Teams Team Brand value Chennai Super Kings $122 million Mumbai Indians $119 million Royal Challengers Bengaluru $117 million Kolkata Knight Riders $109 million Sunrisers Hyderabad $85 million Rajasthan Royals $81 million Delhi Capitals $80 million Gujarat Titans $69 million Punjab Kings $68 million Lucknow Super Giants $60 million The winning team of IPL 2025 will get ₹20 crores as prize money, the same was received by Kolkata Knight Riders after winning IPL 2024 by defeating Sunrisers Hyderabad. The amount earned from the price money may look like a huge sum for an individual, but it is just a small chunk of the brand value of an IPL team. For example, the brand value of the Lucknow Super Giants (LSG) in IPL 2025 is around $60 million, while the same for the Chennai Super Kings (CSK) is over $122 million. Clearly, IPL is much more than just a cricket tournament, it is a massive business empire. Also Read | IPL 2025: BCCI Imposes Tougher Rules on Players & Staff Inception of IPL and BCCI’s Control Over Indian Cricket Image Source: AFP IPL was launched in 2008, but its idea came from the Indian Cricket League (ICL), which was started by Zee Entertainment in 2007. The Indian Cricket League (ICL) was a fanchise-based model, where players were bought in an auction and played for different city-based teams. However, since it was not under the control of BCCI or ICC, it faced strong opposition from the BCCI. To counter ICL, BCCI introduced Indian Premier League (IPL) in 2007 under the leadership of Lalit Modi. To ensure the success of the league, BCCI took bold steps like not allowing players who played in ICL and increasing the salaries for domestic cricketers. As a result, ICL came to an end in 2009, and IPL became the top T20 league globally. Primary Ways Through Which IPL Makes Money IPL follows a well-planned business model where different stakeholders, including BCCI, team owners, broadcasters, and sponsors, earn a huge sum. The primary sources of revenue are: Title Sponsorship Revenue (Per season revenue) The title sponsor of IPL pays a huge amount for branding. Some of the biggest IPL title sponsorship deals are as follows: Title Sponsor Year Revenue (INR) Tenure DLF 2008-2012 40 crore Per Year Pepsi 2013-15 79.2 crore Per Year Vivo 2016-17 100 crore Per Year Vivo 2018-2022 440 crore Per Year Dream11 (After Vivo Pulled Out) 2020 222 crore Per Year Tata 2022-23 670 crore Two Years Tata 2024-28 2500 crore Five Years BCCI takes 50% of the title sponsorship money, and the remaining 50% is shared among the ten IPL teams. Also Read | IPL 2025: Why DC, RR and PBKS Have Two Home Venues? Broadcasting Rights Revenue The huge sum in the Indian Premier League (IPL) comes from broadcasting rights. Over the years, the value of these deals has grown sky-high: Broadcaster Year Amount (INR) Tenure Sony 208-2017 8,200 crore 10 Years Star Sports 2018-2022 16,347 crore 5 Years Viacom18 & Star Sports 2023-2027 48,390 crore 5 Years BCCI keeps 50% of the broadcasting revenue, and the rest is shared among the franchises. Central Sponsorship Revenue Apart from title sponsorship, multiple brands invest in IPL matches to associate their names with the cash-rich league. Some major sponsorship categories include: Partnerships Brands Amount (INR) Associate Partner My11Circle 625 crore Associate Partner Angel One 410 crore Associate Partner RuPay 210 crore Strategic Timeout Partner CEAT 240 crore Official Umpire Partner Wonder Cement 250 Crore These sponsorships bring in hundreds of crores, which add into the revenue of the Indian Premier League (IPL). Also Read | IPL 2025: MS Dhoni Tweaks Bat Weight for Better Game How IPL Teams Make Money Image Source: BCCI/IPL Owning an IPL team requires a large investment, but the profits are even bigger. Team owners make money through: Team Sponsorships: Franchise teams sell space on their jerseys, caps, and kits to brands. An IPL team has around 10 brand logos on their jersey, and this generate a huge revenue for them. Revenue Share from BCCI: 50% of broadcasting and sponsorship revenues are shared with the teams. Brand Sponsorships: Companies pay crores to feature their logos on team jerseys. Sale of Ticket: Direct income from ticket sales. (Estimated earning INR 50 to 100 crores per season) Merchandise Sales: Franchises also earn a huge chunk of amount from the sale of fan merchandise. Prize Money: Winning teams get additional cash rewards. Prize Money for Teams in IPL Ranks Prize Money (INR) Winner 20 crores Runner-Up 13 crores Third Place 7 crores Fourth Place 6.5 crores IPL Teams' Profit Game: Revenue vs Expenses Breakdown Estimated Revenue of IPL Teams Source of Revenue Amount (INR) Central Revenue 500-600 crore Sponsorships 70-100 crore Ticket Sales 50-100 crore Merchandise 10-30 crore Total Revenue 630-850 crore (approx) Estimated Expenses of IPL Teams Expenses Amount (INR) Salary of Players 100-120 crore Salary of Staff & Management 30-50 crore Marketing & Promotions 30-60 crore Logistics & Stadium Exp. 20-50 crore Total Expense 200-300 crore (approx) Estimated Net Profit for an IPL Team: ₹500-₹600 crore (approx) This profit even raises to ₹1000 crore for some major franchise such as Mumbai Indians (MI), Chennai Super Kings (CSK), Royal Challengers Bengaluru (RCB). Conclusion Indian Premier League (IPL) is a massive financial success, benefiting Board of Control for Cricket in India (BCCI), franchise owners, and sponsors. With rising broadcasting rights deals, sponsorships, and increasing team valuations, IPL keeps growing and setting new records. Whether you see it as a cricket tournament or a billion-dollar business, IPL’s success story is unmatched in the world of sports.