The Indian Premier League (IPL) is a professional cricket league established in 2008. It was initiated by Lalit Modi as the first Chairman and Commissioner. IPL has become a major business model with an estimated brand value of over $5 billion in its fifth season. Revenue comes from broadcasting rights, title sponsorship, franchise fees, and ticket sales. This revenue is distributed among the IPL board, franchise teams, and players through various sharing agreements. The IPL has become very successful and profitable for all stakeholders involved.

1. IPL AS A BUSINESS MODEL
By Presented
Dharmveer Thakur

2. Brief intro…..
 It was initiated by Lalit Modi, who served as the league's first
Chairman and Commissioner and Board of Control for Cricket
in India (BCCI) in the year 2008.
 In 2010, IPL became the first sporting event ever to be
broadcast live on YouTube.
 Its brand value is estimated to be more than US $ 5 billion in
fifth season.
 It became the biggest competitor of multiplex in India.

3. IPL TEAMS LOGO

4. TEAM BIDDING
Announcement of Potential
Bids for more than
tender inviting franchises submit
1 city
bids bids
Bid amount need Awarding of
Auction of players
to be specified franchises
Each squad
4 Players under
minimum 16
22 from BCCI
players with max 4
pool
international

5. TEAM CITY OWNERS PRICE
(US $)
CSK Chennai N. Srinivasan (India Cements) 91 million
DD Delhi GMR Group 84 million
KXIP Mohali Preity Zinta, 76 million
Ness Wadia (Bombay Dyeing),Mohit Burman (Dabur)
Karan Paul (Apeejay Surendera Group),The Oberoi Group
KKR Kolkata Shahrukh Khan (Red Chillies Entertainment),Juhi Chawla, 75.9
Jay Mehta(Mehta Group) million
MI Mumbai Mukesh Ambani (Reliance Group) 111.9
million
PW Pune Subrata Roy (Sahara India Pariwar) 370
million
RR Jaipur Lachlan Murdoch (Emerging Media),Shilpa Shetty, Raj 67 million
Kundra(UK Trade corp Ltd)
RCB Bangalore Vijay Mallya (UB Group) 111.6
million
SH Hyderabad Sun TV Network 159
million

6. REVENUE COMES FROM…
Auction of broadcasting right
Title sponsorship and corporate sponsorship
Auction of franchises rights
Sale of tickets

7. REVENUE MODEL OF IPL

8. Broadcasting revenue distribution
100%
90%
broadcasting Revenue in %
80%
70%
60%
50%
teams gets
40%
30% BCI gets
20%
10%
0%
1 to 3 4 to 5 6 to 10
years

9. FRANCHISEE REVENUES
 Media rights-to be shared among the franchisee after
removing IPL’s shares.
 Sponsorship rights- 60 % amount collected to be
distributed equally amongst the franchisee
 Local sponsorship-team sponsorship revenues
 Gate receipts- major source of revenue ,20% are
allocated for IPL.

10. PLAYERS REVENUE
basic agreement
Prize money
Bonuses at which team finishes
Salaries
Daily allowance

11. BCCI REVENUE (Rs. in billion)
turnover profit income from media rights total expenditure
8.49
5.81
4.67
3.82 3.92
2.65
1.02 1.18
2010-11 2011-12

12. HOW IS THE IPL INCOME DISTRIBUTED ?
 Share of broadcasting money with franchisees.
 Share of sponsorship money with franchisees.
 Share of ticket money with franchisees.
 Prize money: $5 million ($3 million for winner; $2
million divided among others).