Harsh asked in SportsCricket · 1 decade ago

How these IPL owners get returns on their huge investment?

14 Answers

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  • 1 decade ago
    Favourite answer

    Sponsorships.

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  • 1 decade ago

    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

    Source(s): its all about event management rite
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  • 1 decade ago

    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.

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  • 1 decade ago

    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.

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  • 1 decade ago

    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

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  • 1 decade ago

    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.

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  • cancan
    Lv 4
    1 decade ago

    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.

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  • Anonymous
    1 decade ago

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

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  • 1 decade ago

    IPL revenue Distribution is given in the below source

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  • 1 decade ago

    Ticket prices,sponsorships,selling their merchandise

    Advertising themselves

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