DR.

RAM MANOHAR LOHIYA NATIONAL

LAW UNIVERSITY, LUCKNOW
2018 – 2019

ECONOMICS

TITLE OF THE PROJECT:

IPL,its revenue and its impact on Indian economy

SUBMITED BY: UNDER THE GUIDANCEOF:

UTKARSH GUPTA Dr. Mitali Tiwari
Enrollment No. – 180101154 Assistant Professor (Economics)
B.A.LL.B. (Hons.) - I Semester Dr. Ram Manohar Lohiya National
Law University, Lucknow
 Economics Project 1st Semester

ACKNOWLEDGEMENT

I would like to use this opportunity to extend my heartiest gratitude to all the people who have helped me
develop this project and also helped me in doing a lot of Research and I came to know about so many new
things I am really thankful to them.

First and foremost, I would thank my Economics professor, Dr. Mitali Tiwari, who has been constantly
supporting me, guiding me and helping me with all my queries and difficulties regarding this project since its
fledgling stage. Without his enthusiasm, inspiration, and efforts to explain even the toughest of jargons in the
most lucid manner, the successful inception of this project would have been a Herculean task.

Next, I would like thank the librarians of Dr. Madhu Limaye library for helping me find the correct resources
for my research and for helping me enrich my knowledge.

To complete this project was not easy, but due to kind help from many persons I was able to complete my
project without difficulty.

Finally, I am thankful to all those individuals and institutions that directly and indirectly provided me the
materials which helped me to complete this project.

I know that despite my sincerest efforts some discrepancies might have crept in, I hope and believe that I would
be pardoned for the same.

Thanking you,

Utkarsh Gupta

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Table of Contents

INTRODUCTION & PLAN OF STUDY …………………………………………………………………. 4

LITERATURE REVIEW ………………………………………………………………………………….. 6

HISTORY AND BACKGROUND OF IPL ……………………………………………………………….. 7

BUSINESS MODEL OF IPL ……………………………………………………………………………… 8

FRANCHISES ………………………………………………………………………………………… 9

REVENUES FROM MEDIA RIGHTS ………………………………………………………………. 12

PROFITS OBTAINED BY DIFFERENT FRANCHISES ………………………………………….... 14

IMPACT OF IPL ON VARIOUS MEDIA ……………………………………………………………….. 15

IPL V/S OTHER LEAGUES ……………………………………………………………………………... 16

IMPACT OF IPL ON INDIAN ECONOMY …………………………………………………………….. 20

CONCLUSION …………………………………………………………………………………………… 21

BIBLIOGRAPHY ………………………………………………………………………………………… 22

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Introduction

Indian Premier League (IPL) is a professional league for Twenty20 cricket championship in India. It was
initiated by the Board of Control for Cricket in India (BCCI), headquartered in Mumbai and is supervised by
Rajeev Shukla, who serves as the league's Chairman and Commissioner. It is currently contested by eight teams,
consisting of players from around the world. It was started after an altercation between the BCCI and the Indian
Cricket League. Its brand value is estimated to be around US$6.3 billion in tenth season (2018)1. The IPL works
on a franchise-system based on the American style of hiring players and transfers. These franchises were put for
auction, where the highest bidder won the rights to own the team, representing each city. The auction for the
same took place on January 25, 2008 and the total base price for the auction was $500 million. The auction went
on to fetch $723.59 million.
Indian Premier League(IPL) was started by BCCI with the intention of curtailing the private Cricket League
ICL (Indian Cricket League), which was getting highly famous around the World. But the Indian Cricket
League was not recognized by International Cricket Council and the players participating in it were banned. In
order to improve the standards of domestic Cricket and provide fair chances to domestic players, BCCI decided
to start a professional Cricket League and thus came into being, one of the most popular Leagues of the Sports
World, i.e., Indian Premier League (IPL). It was under the best guidance of Lalit Modi, that IPL got off to such
a good start in 2008 with much fanfare.
IPL is a franchise based professional Cricket League. All the participating teams owned by different franchisee
are named after various Indian States or Cities. The team formation is done through competitive bidding from a
collection of local as well as foreign players. Participating players represent their respective franchise and are
paid by the team owners. A total amount of $12.5 million (approximately) are available for team owners to bid
for the services of Cricketers.2 Each team has the provision of purchasing of a maximum of 10 overseas players
out of which only four can be the members of playing eleven for each match. The format of this League is based
on Twenty20 format, the shortest version of International Cricket . One of the main aims of BCCI behind the
launch of Indian Premier League is to improve the capabilities of domestic players and provide a much
competitive and better platform as compared to domestic circle of Cricket. Here, it is worth to note that besides
this, another major cause for its launch was to create a profitable Cricket League . The League adapted the
marketing practices of English Premier League (EPL) and American National Basketball Association (NBA).
Indian Premier League serves as a great contributor towards India’s GDP . Moreover being one of the most
popular Leagues of sports World, it serves as a great source of entertainment to millions.

1
According to Duff & Phelps Corporation.
2
https://en.wikipedia.org/wiki/2018_Indian_Premier_League

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Plan of Study

This is an exploratory study of Indian Premier League. The available information by means of documents &
contents serve as the data collection method. The data has been retrieved from available information about
many IPL seasons, previous studies and media reports associated with IPL.

RESEARCH QUESTIONS
➢ IPL business model and its returns?
➢ How IPL evolve year by year?
➢ How does IPL make money and generates revenue?
➢ What are the resources of income for an IPL franchise and how income is distributed?
➢ IPL and what are its effect on Indian economy?
➢ IPL vs other leagues?

OBJECTIVES
➢ To find out the outcome of IPL; impact on economy and its associated fields.
➢ The fundamental aim of the study is to come out with the findings that will describe viability of the
League
➢ To compare and analyze IPL marketing trends.
➢ To study the effect of IPL on Indian economy and to compare its accountability from 2008-2018.

RESEARCH METHODOLOGY
Analyzing and evaluating the SECONDARY DATA.
The secondary data in this study will be collected from various magazines, articles and websites. Analysis and
other parts are done on the basis of these secondary data and knowledge collected from various reports and
articles on this topic .

ANALYSIS AND INTERPRETATION

Analyzing the economic structure of IPL.
Analyzing the marketing trends of IPL and how it evolves.

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Literature Review

Some researchers discussed about a new dimension for the Cricketing World. They highlighted the initial phase
of IPL and the team formation in which players were assigned to various teams by means of auction.
Siddhartha K Rastogi asserted about the final bidding Prices, Cricketing attributes of players and to her
relevant information3. Sanjeet Singh measured the technical efficiency of various teams participating in Indian
Premier League. IPL has emerged as a great success and has been called Billion Dollar Baby.

Shashi Kadapa discussed the very high popularity of Indian Premier League with more than 140 million TV
audiences and a brand valuation of more than 4 billion USD. He praised the IPL business model for integrating
many complex factors like entertainment, glamour, marketing, pricing and the hard hitting Cricket. Moreover,
he conducted a detailed analysis of 10 key issues that threaten the viability of IPL strategy, revenue model and
sustainability of IPL.4 IPL has established a benchmark of Cricket marketing in the whole Cricket World.IPL is
the most fashionable and entertainment Sports League in India. IPL provides a platform where international
players from different countries and India’s upcoming talent play together.

Many researchers have tried their hand in figuring out the different aspects associated with the Indian Premier
League. Some tried to highlight its impact on the national economy, some tried to analyse the strategies used in
IPL, some others discussed its popularity by means of the viewership involved and its brand valuation, while
some others tried to evaluate its impact on the game of Cricket. Though many researchers have tried to discuss
outcome of IPL – its impact on youngsters, opportunities created for uncapped players and its contribution
towards national economy.

In my opinion, this field is yet to be evaluated in a significant manner. So far as the popularity of the game is
concerned, this field is of great interest and provides a favorable platform to analyze it.

3
Siddhartha K Rastogi and Satish Y Deodhar, Player Pricing and valuation of Cricketing attributes, Vikalpa, 34(2), April 2009, 15-23.
4
Shashi Kadapa, How sustainable is the strategy of the Indian Premier League –IPL? A critical review of `10 key issues that impact the
IPL strategy, International Journal of Scientific and Research Publications (USRP),3(12), December 2013, 1-11.

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History and Background of IPL

Kerry Francis Bullmore Packer, AC (17 December 1937 – 26 December 2005),was an Australian media tycoon
whose family company owned controlling interests in both the Nine television network and leading Australian
publishing company Australian Consolidated Press. Packer was best known for founding World Series
Cricket.5 In 1977 the Nine Network cricket rights deal led to a confrontation with the cricket authorities, as top
players from several countries rushed to join him at the expense of their international sides. Packer‘s aim was to
secure broadcasting rights for Australian cricket, and he was largely successful. Many of the well-known
cricketers of that period left their national team to play in Kerry Packer‘s World Series cricket. Some of our
legendry cricketers also contacted to play in that series. But due to some controversies, mainly with Australian
board due to television rights, this league could not be successful. On the background of this idea, Zee
Entertainment Enterprises organized a league called Indian cricket league. The Indian Cricket League (ICL)
was a private cricket league funded by Zee Entertainment Enterprises that operated between 2007 and 2009 in
India. 6In Its two seasons included tournaments between four international teams (The World XI, India, Pakistan
and Bangladesh) and nine domestic teams notionally located in major Indian cities as well as the champions
Lahore Badshahs who were based in Lahore, Pakistan. The matches were played in the Twenty20 format. Zee
T.V owner Subhash Chandra founded this league in the response of BCCI‘s some of working style. Many times
Subhash Chandra give bid for television rights but every time he was rejected even if his bid was the highest.
This results in formation of Indian Cricket League (ICL). But due to some reasons this league could not be
successful. Some of reasons are commercial factors, lacking of the support of the BCCI and ICC.
The ICL was set up with a billion dollar Indian Rupee corpus, and was to initially comprise six teams playing
Twenty20 cricket, with plans to expand to sixteen teams within three years and to eventually move to 50-over
matches. These plans, if they had been realised, would have made the ICL the richest professional league in
India. On 25 July 2007, some famous international names were announced to have signed to play in the ICL,
including highest innings record-holder Brian Lara. The BCCI refused to recognize the ICL as a cricket league,
and criticized Kiran More and Kapil Dev for joining the ICL. On August 21, 2007 Kapil Dev was sacked from
his NCA post. The International Cricket Council gave a statement through its chief executive, Malcolm Speed,
that the ICC would not recognize the ICL unless the BCCI chooses to recognize it. Faced with the threat of
young players joining the ICL, the BCCI jacked up prize money for winners, runners-up and losing semi-
finalists across all tournaments. An average domestic cricketer can hope to make around Rs 35,000 per match
day from the season of 2007-08: more than double the Rs 16,000 they got in 2005-06. The BCCI has also
planned to do away with honorary selectors, who will be paid professionals from September 2008 onwards.
Then BCCI started its own international Twenty20 league. The official league, which was launched in April
2008, was called the Indian Premier League Twenty20.

5
https://en.wikipedia.org/wiki/World_Series_Cricket
6
http://www.espncricinfo.com/

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Business model of IPL

SPONSORS

Title
Licensing

Indian Premier
League
Share from :
Media Rights Central Revenue Bids
Media Rights Franchise Rights

BROADCASTERS FRANCHISES

Advertisers Sponsors
Gate Money
Merchandise
Advertising

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These are the basic 5 components of an IPL and there are many contracts between these parties.

Players and
team
officials

Television
Rights/ Sponsorships
Media
INDIAN
PREMIER
LEAGUE

Match
Officials
Franchises

FRANCHISEES
Revenues and Expenses :-
IPL body invites offers to bid for franchises through auction process. The party to be selected for franchise will
be at the discretion of IPL body.
Franchises agreement is treated as contract based intangible asset and all the accounting and evaluation rules
are applicable to team owners.

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Main terms and conditions of the contracts between IPL body and franchises that define their earning and
expenses are:

▪ Franchise can earn revenues through Broadcast rights

A huge stake of income comes from the broadcasting rights. Like recently Star India has struck a media
broadcast rights deal with the BCCI for Rs 16,347.5 crore ($2.55 billion) for the period of five years7.
This amount of money is distributed amongst the franchises by the BCCI. This is another guaranteed
income that all the franchises make annually.
Revenue earn through broadcasting rights is distributed between franchise and IPL body in the ratio of
80:20 approximately.

▪ Sponsorship
Major source of income comes from the official sponsors of the IPL. For eg. Vivo is the title sponsor for
IPL 10, 2018 along with other sponsors like TATA, Jio, Paytm etc. A certain percentage of the income
that the IPL body generates from its sponsors (around 60%),is distributed equally amongst all the
franchises.
Revenue earn through sponsorships is distributed between franchise and IPL body in the ratio of 60:40
approximately.

▪ Team sponsorship
Also, every IPL team has its own set of dedicated sponsors. Dedicated sponsorships play a huge role in
filling the coffers of the IPL owners. The players jersey’s is filled with sponsors. This way the sponsors,
who have struck a deal with the individual franchises, generate a lot of publicity for themselves.
Revenue earn through this totally goes to franchisees.

▪ In-stadia Advertising/Tickets
A lot of inflow is garnered from the stadium tickets in an IPL game. The franchises make a lot of money
from the tickets that are bought during their respective game. Also a lot of merchandised products like t-
shirts and souvenirs are sold in the stadium, with food and drinks to go with it. In short, a major portion
of all the activities seen in a stadium goes to the owners of the host team.

▪ Franchises share from Central revenue

Franchises get around Rs.250 crore from BCCI as their respective share from the central revenue. 8

Main expenses which Franchisees have to bear :

▪ Franchise fee to IPL
Every team owner has to annually dish out 10% of their final bid amount that they had placed when they
went on to become owners of a particular franchise.

7
https://www.thehindu.com/sport/cricket/
8
www.firstpost.com/firstcricket/

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▪ Player Acquisition cost

Player remunerations are fixed at a certain amount every year and the owners try to invest smartly on
players who will suit their requirements. Also, the salaries for the team support staff including the
coaches are decided.
Player costs- Around $ 4 million to $ 6 million per year.

▪ Stadium hire charges

The teams have to pay a certain amount to the cricket associations in order to host their home games.
For eg: Shahrukh Khan and Jay Mehta pay a certain rental amount to the Cricket Association of Bengal
(CAB) in order to use the Eden Gardens stadium for KKR’s home games. And other team does the same
thing too.
Stadium expenses – Around Rs. 2.5 million per match.

▪ Team costs (Coach, travel, insurance, office, other expenses)

There are expenditures like booking the flight tickets and hotels for the players and support staff,
running the administrative offices for meeting logistics of the team.

▪ Marketing/ Promotion costs

Every franchise spends a certain amount on marketing before every season begins. Marketing may
include hosting promotional events like launching team jersey, fashion shows, advertising products,
supporting new initiatives etc. Every team spends on popular marketing tools like Television
commercials and music videos to connect better with the public and their fans.
Marketing expenses – Around $ 3 million to $ 4 million per year

▪ Franchise Fee to BCCI

The franchisees also have to shell out 20 percent of their annual income to BCCI.9

Unlike its counterparts such as English Premier League (EPL), National Basketball Association (NBA), the
major source of revenue for IPL is not only stadium ticket sales but also media rights. Other sources of revenue
for IPL are title sponsorship, the sale of franchises and licensed merchandise and products. A part of the
revenues so raised are retained by the BCCI, a part distributed as prize money and the remaining is divided
equally among the franchises based on a pre agreed model.

BCCI inflow:
• The biggest source of revenue for the BCCI so far has been the proceeds from franchise bids amounting
to a total of $1.42bn. Another major source of revenue is media rights that were awarded to Star India
for ($ 2.55 billion) for a period of 5 years and starting from IPL-3, an undisclosed amount for media
streaming rights awarded to Youtube .
• Title sponsorships (DLF, Vivo, Pepsi etc.) form another big chunk of the revenues.
• Finally, proceeds from stadium tickets, merchandise sales etc. complete the list of major sources of
revenues for IPL.

9
www.firstpost.com/firstcricket/

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BCCI outflow:
• Apart from the revenues generated from the bidding of franchises, almost all other revenues are shared
with the franchises in different proportions
• The ones with the least to lose are the gentlemen at the BCCI. Legally, the IPL is a sub-committee of the
BCCI, and it has already guaranteed itself close to $1.75 billion in television rights and franchise sales
figures.
.

Revenues from Media Rights

❖ The Broadcasting angle :-

The BCCI created history when it sold television rights of this yet untested format to Sony-World Sports
consortium for US $ 1.02 billion. (2008-2017)

US $ 1.02 billion

(-) US $ 108 million (Promotion expenses)

(=) US $ 918 million (Actual Cost)

❖ Advertising revenues :-

Advertising revenues for Broadcasters have seen a steady increase since inception of IPL . 10

→ IPL 2008 – Around Rs. 400-450 crores.

→ IPL 2009 – Around Rs. 400-450 crores.
→ IPL 2010 – Around Rs. 600 crores.
→ IPL 2011 – Around Rs. 750 crores.
→ IPL 2012 – Around Rs. 1,000 crores.
→ IPL 2013 – Around Rs. 800 crores.(Decrement)
→ IPL 2014 – Around Rs. 800 crores.
→ IPL 2015 – Around Rs. 850 crores.
→ IPL 2016 – Around Rs .850 crores.
→ IPL 2017 – Around Rs. 1,100 crores.

10
http://bestmediainfo.com/2017/03/how-sony-gained-from-a-decade-of-ipl/

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❖ Revenue from other resources of Media :-

→ The general entertainment channel of Viacom 18 group (MTV, IBN7, Colors) will air a show
“IPL Rockstar”. A deal of about Rs.600 crores.

→ Sky Sports has taken United Kingdom and Ireland rights for broadcasting IPL.11

Flow chart of how revenues collected through Media Rights is distributed :

Franchises
72%

Media
Rights
Prize
IPL Body
Money
20%
8%

11
http://www.sportspromedia.com/news/sky-sports-lands-ipl-rights-renewal-in-uk-and-ireland

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Profits obtained by different Franchises :-

The IPL franchisees are technically efficient as they are managing to yield a handsome profit from their
respective teams.
So therefore here is the table which presents the exact figures of profit obtained by different franchisee in 2009
edition of IPL.12

TEAMS EXPENSE (Rs. REVENUE (Rs. PROFIT (Rs.

Cr) Cr) Cr)

Chennai Super 89.5 111.2 21.8

Kings
Deccan Chargers 94.7 109.5 14.8

Delhi Daredevils 84.1 107.4 23.3

Kings XI Punjab 80.5 106.6 26.1

Kolkata Knight 85 110.8 25.8

Riders
Mumbai Indians 99 106 7

Rajasthan Royals 71.3 106.4 35.1

Royal 99.1 107.25 8.15

Challengers
Bangalore

12

Sanjeet Singh, Measuring the performance of teams in the Indian Premier League, American Journal of Operations Research.

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Impact of IPL on various media

➢ Television General Entertainment Channels :-

IPL is scheduled to be telecast in the most sought after prime time slot of 8-11 pm. And in this time slot
is the most popular among housewives for daily soaps/serials aired on general entertainment channels
like Star Plus, Sony TV, Zee etc.
Because of which it cause a dent on the TRPs(Television rating point) and revenues of the daily
soaps/serials telecasted in this time slot.
Therefore, Television prime time took a significant hit, affecting channels like Star TV, Sony TV etc.
The report said that, adding that viewership of Hindi general entertainment channels dropped from 6.1%
to 4.8% in the first two weeks of IPL.13
For example -
Star TV's big-ticket game show, Panchvi Pass(starring Shah Rukh Khan), also took a hit and got a TRP,
a measure of viewership, of about 4.
The most popular soap opera, Kyunki Saas Bhi Kabhi Bahu Thi, had an average rating of nearly 5.

Below is the table which shows average TRPs of shows telecasted on different channels during IPL
season 2008.

CHANNELS GENRE TRPs

Star Plus Daily soap – Panchvi Pass 4 – 4.5

Zee Daily soap – R & R family 4-5

NDTV News 1.25 - 2.12

9XM Music 0.7 - 1.35

At the same time, the fortunes of Sony Entertainment Television (SET), which has exclusive rights to
telecast IPL matches, rose sharply.
The revenue market share of Sony Set Max, the channel that telecast the matches, rose from 5.7% to a
whopping 28.8% during the one and a half months of IPL.
On the TRP point of view, IPL's performance was much better than any other programme in that time. It
started with a record TRP of over 8. After that it dropped but remained above 5 higher than any other
programme running on TV, the report said.14
According to one study IPL has found takers across India with 131 million people having watched the
matches at some time or the other.15

13
timesofindia.indiatimes.com
14
timesofindia.com
15
A study by MindShare.

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A viewership analysis by MindShare Insights has revealed that the percentage of people watching sports
has jumped to 19.94% from 6.63% during IPL season.
Impact of IPL is shown on all the genres and there is decline in the viewership of shows of all genres.
So here is the data which shows percentage of declining in the viewership of shows of different genres:-16
• General entertainment channels that air Hindi programmes and include Sony, Star Plus and Zee
TV, have seen their viewership share decline to 13.93% from 16.72%.
• Hindi news’ share dropped to 2.85% from 3.49%, business news to 0.28% from 0.35%, and Hindi
movie channels to 4.89% from 6.08%.
• The craze for IPL is such that even kids and English general entertainment channels lost
viewership share to 3.87% from 3.91%, and to 0.15% from 0.22%, respectively.

➢ Impact on Movies collection/Box office :-

IPL has a negative impact on the revenues of movies at the box office. Ever since its inception, it has had
tremendous impact on the collections of the movies releasing during IPL season. Many big movies
project has been delayed because just to avoid the movie releasing during IPL season. Big budget releases
have been postponed just to ensure encouraging collections at the box office. Many producers are afraid
to release their films.
The report said multiplexes were hit with a 10-30% decline in ticket sales during the IPL season. Leading
Bollywood producers got poor openings despite heavy marketing.17
Which indirectly effects many multiplexes like PVR, Cinepolis, Inox etc. As a result of which some
multiplexes also screen the matches of IPL.

IPL v/s Other leagues

Likewise IPL there are similar types of leagues also such as Big Bash League which is played in Australia,
Caribbean Premier League (CPL) which is played in West Indies and etc.
Also this type of League does not restrict to only Cricket but also played in different sports too and have a huge
fan base. For example
❖ English Premier League (EPL) which is of football and is played in England.
❖ National Basketball Association (NBA) which is of Basketball and is played in United States of
America.
❖ Pro Kabaddi League which is of Kabaddi and is played in India.
So I will be comparing IPL with these types of leagues on various criteria.

16
www.livemint.com
17
timesofindia.com

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IPL comparison with English Premier League (EPL):-

Indian Premier League (IPL) English Premier League (EPL)

Criteria/League

Type of Sport Cricket Football

Year of formation 2008 1992

Country India England

No. of franchise 8 20

Season April-May August- May

No. of matches played Around 60 Around 380

Location of games Day/Night matches on Home and Away Matches on Home and Away basis
basis.

TV Rights USD 2.55 billion (for 5 years) USD 13 billion (for 3 years)

Revenue USD 0.6 billion per year (approx.) USD 5.21 billion per year(approx.)
Earn by BCCI18
Prize Money USD 4 million (approx.) USD 6.05 billion (approx.)

Govern By IPL Council Operated and jointly owned by 20

members club.

18
www.cnbc.com

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IPL comparison with Big Bash League (BBL) :-

Indian Premier League (IPL) Big Bash League (BBL)

Criteria/League

Type of Sport Cricket Cricket

Year of formation 2008 2011

Country India Australia

No. of franchise 8 20

Season April-May December-February

No. of matches played Around 60 Around 43

Location of games Day/Night matches on Home and Away Day/Night matches on Home and Away
basis. basis

TV Rights USD 2.55 billion (for 5 years) USD 1.2 billion (for 5 years)

Revenue USD 0.6 billion per year (approx.) -

Earn by BCCI.
Prize Money USD 4 million (approx.) USD 1.5 million (approx.)

Govern By IPL Council Cricket Australia

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IPL comparison with National Basketball Association (NBA) :-

Indian Premier League (IPL) National Basketball

Criteria/League Association (NBA)

Type of Sport Cricket Basketball

Year of formation 2008 1946

Country India United States of America

No. of franchise 8 30

Season April-May October-April

No. of matches played Around 60 Around 1320

Location of games Day/Night matches on Home and Matches on Home and Away basis
Away basis.

TV Rights USD 2.55 billion (for 5 years) USD 24 billion (for 9 years)

Revenue USD 0.6 billion per year (approx.) USD 7.37 billion per year(approx.)
Earn by BCCI.
Prize Money USD 4 million (approx.) USD 600,000 (approx.)

Govern By IPL Council FIBA (also known as the International

Basketball Federation)

Compared to the major leagues of the world, the media rights of the IPL are mere peanuts in terms of the money
as compared to the major sports league of the world. The brand value and the valuation of any sporting league
depends on the duration of the league as well as the number of teams. It has also taken decades for these
sporting leagues to build up their brand value as well as fan base. One of the most important differentiator
between the IPL and all other leagues is the quantum of the event. Compared to cricket, football or other sports
generally do not have international bilateral series throughout the year. Most of their international commitments
are once in four years generally at Olympics, World Cups etc.

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Impact of IPL on Indian economy

The IPL has provided a big platform to domestic as well as international cricketers who are sold and bought for
millions of rupees in the IPL auction. With broadcast rights, central and team sponsorships, gate receipts and
merchandise sales, IPL has taken Indian cricket’s financial condition to the good position it can be and more is
set to come over the years. But, its contribution to the nation is more than what has been acknowledged so far.
According to the data provided by BCCI, the Indian Premier League (IPL) has contributed Rs 11.5 billion ($182
million) to India’s Gross Domestic Product (GDP) in 2015. The total 0f 60 matches were played in this season.
The data was compiled by KPMG Sports Advisory Group through an economic survey which revealed that the
economic output associated with IPL in India stood at Rs 26.5 billion ($418 million).19 This shows that India’s
economic sector is getting a real boost from IPL.
However effect of IPL in Indian economy is long term, during this short span of time we will not be able to see
much more effect in Indian economy. But there are definitely many some effects of IPL which put a great
impact on our Indian economy. And that are :-
• It creates a good impression in the mind of the people from all over the world that India can also
organize such a big event and which shows its economy is also very stable. So it definitely increases the
amount of foreign investment in India. Due to which many foreign companies want to invest in the
Indian market.
• Another effect of IPL in Indian economy is that people from all over the world come to know about
India after IPL. Earlier people from all over the world only knows some of the places like Mumbai,
Bangalore, or Delhi. But after IPL, many places like Cuttack, Indore, Ranchi etc are known to the world
now. This gives them an opportunity to know about this cities and it increases the development in these
areas also.
• IPL may have an effect in our tourism also. To see the IPL matches many foreigner comes to India. This
definitely increases the number of tourist visit India. From them India can earn much more foreign
currencies which effects Indian economy.
• If we have to organize an event as big as IPL, we need a lot of support staff, labours not only for the
teams but also for the venues that organize them. Due to which employment is increase.

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CONCLUSION

Like other events, IPL has its pros and cons. IPL provides a brilliant platform for youngsters where they can
catch the eye of selectors for their inclusion in their respective National squads. IPL, because of its huge fanfare
and higher brand value is definitely one of the mega events in the World of sports. It also acts as a great
promoter of cultural heritage of India to the World. IPL serves as a source of entertainment for millions
throughout the World. IPL is providing the players a fair amount of money with which they can fulfill all their
needs & secure future. Moreover the franchisee’s are also earning huge profits from the League.IPL also
contributes a significant amount towards GDP of India.
The whopping success of IPL has transformed the fortunes of its telecaster, first Sony Set Max and now Star
India. The biggest gainer, though, is arguably BCCI – which is projected to rake in a profit of Rs 350 crore from
IPL in the first year itself. This would be more than BCCI‘s profit of Rs 235 crore for all of 2007. And now in
2018 BCCI is set to earn over Rs. 2000 crore from IPL.20
The Set Max channel‘s revenue marketshare has risen from a pre-IPL level of 5.7% to 28.8%. Its share of prime
time has gone up to 29%, higher than the cumulative marketshare of the top nine Hindi general entertainment
channels in the year of 2008. And now as the TV rights is given to Star India it has set to earn at least Rs 3,000
crore through the broadcast of season-11 (2018) of the Indian Premier League (IPL).
Ad rates for 10-second spots, which were at Rs 2 lakh per 10 seconds at the start of the tournament, have
climbed rapidly to Rs 6 lakh and look set to rise further to Rs 10 lakh for the final, says the report. This would
be even more than the Rs 8 lakh per 10 second rate for the nailbiting T20 World Cup final between India and
Pakistan. IPL‘s success has also rubbed off on the franchisees.
From this we can conclude that IPL is now a global event and it has taken cricket to the next level. Some of the
critics criticise IPL. They say that players are playing only for money and it is not good or the players and when
players playing in IPL matches they don‘t feel that they are playing for the country it is bad for the spirit of
game. In spite of having some negative point of IPL, there are many advantages. So looking at positive side we
can say that IPL is becoming a global event.
Now Indian economy is growing at a rapid pace, so much that people from all over the world are now looking
towards India.

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BIBLIOGRAPHY

➢ https://www.thehindu.com/sport/cricket/

➢ www.financialexpress.com/sports/ipl/

➢ http://www.espncricinfo.com/

➢ https://en.wikipedia.org/wiki/2018_Indian_Premier_League

➢ timesofindia.indiatimes.com/sports/cricket/ipl/

➢ http://bestmediainfo.com/2017/03/

➢ Sanjeet Singh, Measuring the performance of teams in the Indian Premier League, American Journal of

Operations Research.

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