According to BCCI, the IPL 2015 contributed more than US$ 182 million to the Indian economy. It kept on soaring. If media reports are to be believed, IPL’s business value surged to $16.4 billion in 2024. Analysts suggest it may touch $20 billion in 2025.
The Indian Premier League, launched in 2008 by former BCCI Vice-President Lalit Modi as a franchisee-based league tournament of T-20 cricket, has established itself as one of the biggest sporting events in the world.
Its impact can be understood by the fact that it has not only become the launching pad of many cricketers, but it also creates thousands of jobs and generates revenue worth billions of dollars every year. The IPL 2024 contributed more than a massive amount of $6 billion to the Indian economy.
The IPL impacted the Indian economy by generating wealth millions of dollars in the first year itself. When the first auction of IPL was held on January 24, 2008, the total base price of the franchise was $400 million.
Franchisee
There were eight teams in the inaugural edition: Bangalore, Kolkata, Chennai, Delhi, Hyderabad, Mumbai, Jaipur and Mohali.
While Vijay Mallya’s UB Group bought Bangalore for $111.6 million, Bollywood diva Preity Zinta and billionaire business tycoon Ness Wadia bought the Mohali team for $76 million.
Similarly, the Chennai team was bought by India Cements for $91 million while the Kolkata was grabbed by Bollywood actor Shah Rukh Khan, actress Juhi Chawla and her husband Jay Mehta for $75.09 million.
Deccan Chronicle paid $107 million for the Hyderabad team and Mukesh Ambani’s Reliance Industries Limited paid $111.9 million for the Mumbai team.
On the other hand, the Delhi team was bought by GMR Holdings for $84 million and the Jaipur team was bought by UK-based company Emerging Media for $67 million.
Sponsorship
Real estate developer DLF secured the rights of the title sponsor with a bid of Rs. 200 Crore.
Besides, cola major PepsiCo bought the title sponsorship rights for Rs. 397 Crore for the next five years. However, the deal was terminated after Chennai Super Kings and Rajasthan Royals were suspended for spot-fixing.
It was transferred to Chinese smartphone company Vivo for Rs. 200 Crore. The Chinese firm retained the contract for 5 years for 439.8 Crore.
Besides, sponsors like Vodafone, Yes Bank, Star Plus, Kingfisher, Jio contributed. Later, FBB (Future Group), Dream11, and TATA (Altroz) also joined as official partners.
Broadcasting Rights
As Sony TV and the World Sports Group got the broadcast rights for US$ 1.026 Billion for 10 years, Sony MAX became the most-watched
television channel in India.
Its annual advertising revenue crossed Rs. 12 Billion, which further increased.
Star India acquired the global media rights of IPL valued at Rs. 163.475 for 5 years in September 2017.
The revenue generated through franchisee fees, sponsorship, broadcasting rights and ad-spot charges kept on ballooning and reached an incredible level.
BCCI’ Profit
The BCCI earned Rs. 350 Crore in the inaugural edition of IPL earned BCCI Rs. 350 Crore, much more than its earning of Rs. 235 Crore in 2007.
IPL Brand Value
The IPL’s brand valuation rocketed from US$ 2 billion in 2009 to US$ 4.13 billion in 2010.
However, the brand value plummeted to US$ 3.67 billion in 2011 and US$ 2.92 billion in 2012 respectively.
PepsiCo brought the IPL title in 2012 for a whopping amount of Rs 400 crores, other brands such as Vodafone, Yes Bank,
Star Plus invested as a sponsors.
Soon the brand value of the IPL increased and soared to US$ 3.2 billion in 2014.
According to BCCI, the IPL 2015 contributed more than US$ 182 million to the Indian economy.
It kept on soaring. If media reports are to be believed, IPL’s business value surged to $16.4 billion in 2024.
Analysts suggest it may touch $20 billion in 2025.