Economics of IPL
2 min read
In India, people are crazy about many things be it religion, politics, or cricket! This pandemic when the second wave of COVID 19 has struck India again, India is apparently being crazy about all three together, with Kumbh, Bengal Elections, and IPL in progress!
In 2020 the valuation of the IPL ecosystem was pegged at Rs. 45,800 crores ($6.1 billion) by Duff and Phelps which was however 3.6% lower than 2019 due to VIVO pulling out from being a title sponsor of IPL!. While the world was struck with the financial crises of 2008, BCCI came up with a game plan named Indian Premier League (IPL)!
BCCI from 2008 saw a great rise in its revenue, making Rs. 4,000 crores in 2020 even with pandemic and VIVO pulling back from being the title sponsor of the IPL. With players playing in an empty stadium, the source of revenue for BCCI was the audience stuck to their screen being home, got nothing else to do!
When IPL matches are being broadcasted a 10-sec ad bit between matches costs Rs. 12.5 lakhs!
Star Sports recorded 31.5 million impressions in 2020 which was 23% higher than 2019!. The major source of income for BCCI is the Media Broadcasting Rights. In 2017 Star Sports bagged the right of broadcasting IPL for $2.5 billion for 5 years which according to Duff and Phelps is $8.5 million per match while the very well-known NBA is at $2.1 million. Cricket boards around the world have tried coming up with their premier leagues but nothing has been as successful as IPL! The major reason being a dedicated window by ICC for IPL keeping the international players free to play IPL. Even international players are fond of IPL with the rich economy of the game and the fandom they get in India.
IPL is back in 2021 and has VIVO as their title sponsor again, considering which BCCI is looking to earn Rs. 4,000 crores. Hence an English game that has seen such great traction in India is now worth billions of dollars.
Which team are you supporting this IPL?
