How these IPL owners get returns on their huge investment?

Question

SuperKing · Accepted Answer

Sponsorships.

Kalyan · Answer

Managing An Event Goes Like This,
Indian Premier League = Businness & Sport where only sport is seen from outside and many people are decieved by that factor.

Any league has three main sources of income namely media receipts, gate receipts and sponsorships. Under IPL, these three streams are categorized under central and local. The Central revenues are through IPL.

A Central
1. Media rights – To be shared equally amongst franchises after removing IPL’s share. 2. 2. Sponsorship rights (IPL sponsors) – 60% of the amount collected to be distributed equally amongst the franchises.

B Local
1. Sponsorships – Team sponsorship revenues are the most variable and are dependent on the marketing skills. For example, teams like India Cements have marketed their teams based on the format of IPL – where sponsorships are sold on categories. ICL’s main sponsor is Aircel. In contrast, the other team of Deccan Chronicle will have team partners. These partners will have ownership of the team. For example, in case of an entertainment partner, anything to do with entertainment from cheerleaders to fours and sixes will be seen by that party.

2. Gate receipts – Are anticipated to be a major source of revenues. 20% of tickets are to be allocated to IPL

Devaka · Answer

World over, any league has three main sources of income namely media receipts, gate receipts and sponsorships. Under IPL, these three streams are categorized under central and local. Central revenues are through IPL.
A Central
1. Media rights – To be shared equally amongst franchises after removing IPL’s share. 2. 2. Sponsorship rights (IPL sponsors) – 60% of the amount collected to be distributed equally amongst the franchises.
B Local
1. Sponsorships – Team sponsorship revenues are the most variable and are dependent on the marketing skills. For example, teams like India Cements have marketed their teams based on the format of IPL – where sponsorships are sold on categories. ICL’s main sponsor is Aircel. In contrast, the other team of Deccan Chronicle will have team partners. These partners will have ownership of the team. For example, in case of an entertainment partner, anything to do with entertainment from cheerleaders to fours and sixes will be seen by that party.
2. Gate receipts – Are anticipated to be a major source of revenues. 20% of tickets are to be allocated to IPL.

cooldude_wannatalk · Answer

World over, any league has three main sources of income namely media receipts, gate receipts and sponsorships. Under IPL, these three streams are categorized under central and local. Central revenues are through IPL.
A Central
1. Media rights – To be shared equally amongst franchises after removing IPL’s share. 2. 2. Sponsorship rights (IPL sponsors) – 60% of the amount collected to be distributed equally amongst the franchises.
B Local
 1. Sponsorships – Team sponsorship revenues are the most variable and are dependent on the marketing skills. For example, teams like India Cements have marketed their teams based on the format of IPL – where sponsorships are sold on categories. ICL’s main sponsor is Aircel. In contrast, the other team of Deccan Chronicle will have team partners. These partners will have ownership of the team. For example, in case of an entertainment partner, anything to do with entertainment from cheerleaders to fours and sixes will be seen by that party.
2. Gate receipts – Are anticipated to be a major source of revenues. 20% of tickets are to be allocated to IPL.

thiyagz · Answer

Cricket is a Religion in india, these IPL team owners are owning demi gods of that religion. they are indeed their cash cows. Sponsorships, Adverts, Brand images.
I think IPL saga is totally and totally a marketing strategy in which cricket is but another event taking place...lol

raj · Answer

They will get income through 3 channels
1.selling tickets
2. media rights.
3.sponsors
Through selling tickets for match they will get more income.
I think all matches  at kolkata will be organised by  kolkata knight riders  owners. So major part of ticket sales  for matches at kolkata will go to that owner.

Similarly If match will happen at Hyderabad,  Hyderabad Deccan chargers will organise that match and ticket sales too.

Note:  Half of the matches played by kolkata team will be played in kolkata only. This is same for all teams. So every team owner can get money  by selling tickets for half of the matches played by his team.

cancan · Answer

These sponsors do not need any monetary returns. Majority of franchises will loose money. The sponsors are craving for bragging rights, they have the money to loose and buy publicity.

In USA people buy perpetual season tickets for US-football games and will it to their children. The team ownership is for people who have everything else, they do not need another Rolex or  Roles.

Anonymous · Answer

It is a log term plan. Income will pour in after 3 years. if ipl continued.

mohammed m · Answer

IPL revenue Distribution is given in the below source

_A_YAHOO_USER · Answer

Ticket prices,sponsorships,selling   their merchandise
Advertising themselves

How these IPL owners get returns on their huge investment?

14 Answers