Menu
What the IPL Teaches Us About Smart Business: Revenue, Branding & Strategy
The Indian Premier League (IPL) isn’t just cricket—it’s one of the most profitable sporting leagues in the world. Behind the sixes, sponsorships, and celebrity owners lies a fascinating business model that many traditional businesses can learn from.
Let’s break down how IPL franchisees make money—and more importantly—what lessons businesses in manufacturing, retail, services, and distribution can draw from this entertainment juggernaut.
How Do IPL Teams Make Money?
IPL franchisees operate like professional businesses with multiple revenue streams and a clear profit-generation strategy. Here’s how they do it:
Central Revenue Pool (BCCI Distribution)
The biggest revenue stream comes from the BCCI’s central pool, which includes money from:
Broadcast rights (e.g., Star Sports, Viacom18)
Title sponsors (e.g., TATA) This pool is shared among all franchisees—usually 50% of the total revenue, split based on their rankings and performance.
Team Sponsorships & Branding
Franchisees earn from:
Main jersey sponsors (e.g., Jio, Dream11, My11Circle)
Helmet, sleeve, and cap sponsors
Digital partnerships and influencer tie-ins These deals often fetch crores annually for well-performing teams with high visibility.
Match Day Revenue
Though ticketing is partly shared with the venue/state associations, teams still earn significantly from:
Gate collections
In-stadium branding
Merchandise sales at venues
Merchandising
Teams like CSK and MI have their own merchandise lines. IPL merchandise now includes:
Jerseys, caps, keychains
Limited-edition collabs
Fan club subscriptions
Licensing & Brand Valuation
Popular teams have brand valuations exceeding $12 Billion. These valuations give them additional leverage for investment and partnerships. Teams can monetize their brand through licensing deals, exclusive platforms, and OTT/IPL-related content.
The brand value of IPL franchises has soared, thanks to increased viewership, digital fan engagement, diversifies revenue channels and strong corporate partnerships.
According to recent industry reports, IPL teams have seen massive year-on-year brand value growth, here’s the latest IPL franchise ranking by brand value:
Rank IPL Team Brand Value (Growth YOY)
Chennai Super Kings – $122 million (52%)
Mumbai Indians – $119 million (36%)
Royal Challengers Bangalore – $117 million (67%)
Kolkata Knight Riders – $109 million (38%)
Sunrisers Hyderabad – $85 million (76%)
Expenses of IPL Franchisees
Of course, running an IPL team isn’t cheap. Major expenses include:
Player salaries (auction budget ~₹95 crore per team)
Coaching and support staff
Travel, accommodation, training facilities
Marketing and fan engagement platforms
Even with high costs, most franchises have turned profitable thanks to strategic planning, brand building, and diversified income.
What Can Normal Businesses Learn from the IPL?
The IPL may be a sports league, but its strategies apply across sectors. Here are the key business lessons:
Diversify Revenue Streams
Just like franchises don’t depend on one revenue stream, businesses should look beyond one client, product, or geography.
A retail chain can earn from in-store branding, events, and loyalty programs.
A manufacturer can license its process or offer OEM services.
Consulting Insight: We help businesses identify hidden monetization opportunities and build parallel revenue tracks.
Build a Brand, Not Just a Product
IPL teams focus heavily on brand loyalty, fan base, and emotional connect. Think CSK’s “Whistle Podu” or RCB’s massive digital fan following.
Even a logistics company can build a brand by investing in customer experience, digital presence, and community initiatives.
Consulting Insight: Leap Point supports brand repositioning and market outreach strategies to improve visibility and recall.
Data is the Real MVP
IPL teams use data for:
Player performance
Auction decisions
Fan engagement metrics
Your business too can harness data for:
Inventory optimization
Customer retention
Sales forecasting
Consulting Insight: We implement MIS systems and KPI dashboards to help you make smarter, data-backed decisions.
Prepare for the Off-Season
IPL lasts two months, but franchises earn and engage fans year-round through content, campaigns, and planning.
Retailers, service providers, and manufacturers can prepare for lean seasons with:
Financial forecasting
Seasonal inventory control
Off-peak marketing strategies
Consulting Insight: Our financial planning services include seasonal planning, buffer cash flow arrangements, and offer management.
Know the Value of Your Network
IPL’s success depends on its stakeholder ecosystem—media, influencers, former cricketers, and brand partners.
Similarly, a B2B firm can grow by:
Collaborating with resellers
Using industry associations
Building referral and vendor networks
Consulting Insight: We help you build collaborative networks and optimize vendor/customer relationship management.
Final Word: Run Your Business Like a Franchise
IPL teams function like mini-corporations with brand vision, financial clarity, and a customer-first mindset. If they can achieve multi-crore profitability with a 2-month tournament, imagine what your business can do with the right strategy year-round.
Let’s Bring IPL-Style Strategy to Your Business.
At Leap Point Advisory Solutions, we bring the same strategic thinking used by leading franchises to SMEs and local enterprises.
As your trusted Business Consultant in Kerala, we help:
Build business models with multiple revenue channels
Improve brand identity and digital presence
Strengthen financial forecasting and review systems
Create dashboards to track performance like a franchise
Your business doesn’t need an auction to become valuable—it just needs the right game plan.