IPL is less of a sporting event and more of a business deal and this is an open secret. In this league, teams, usually dubbed "franchises" can walk away without a trophy, disappointing their fans, and still earn crores in profit.
Chartered accountant Piyali Parashari has broken down the business tactics of the IPL teams on LinkedIn, and the numbers are staggering.
The IPL broadcasting and media rights were sold for a whopping ₹48,390 crore for the 2023-2027 cycle and this is the foundation of the business model that is the IPL.
This massive sum of money is shared by all the teams which means that the teams already have ₹425 to ₹500 crore in their wallet even before ticket sales, sponsor contracts, winning matches and qualifying for the playoff stages. All thanks to the BCCI Central Revenue Pool.
Now that the financial cushion is soft and fluffy, add the sponsorship revenue. Parashari says franchises like RCB, CSK and MI earn an extra ₹150–300 crore in sponsorships alone, such as jersey sponsors, sleeve branding, digital campaigns and more.
A logo on a jersey seen by 30 million people on Instagram is worth more than a trophy sitting in an empty room. And so, even though RCB has a dusty trophy cabinet, it doesn't really affect their business. It is still one of the most valuable franchises, thanks to its immense fanbase, which gives them engagement and attention and, automatically, brand power.
Moreover, they have Virat Kohli. With a staggering social media following, his fan attention fuels the giant engine of the RCB no matter how poorly they perform.
There is more to come, the most important being the Matchday revenue. If you’ve ever purchased a ₹3,000 ticket for a seat and another ₹500 for a cold drink and a bucket of popcorn, you’ve contributed to the ₹8 to ₹12 crore a team makes in a single night.
Between the VIP boxes, the hospitality lounges, and the stadium full of fans, a team can do as little as show up and earn ₹70–90 crore a season.
With a crazy fan base, the teams earn crores through merchandise. The teams also largely focus on content creation and monetise through YouTube, Instagram and OTT with the help of entertainment companies and media brands.
All of this adds up to an unbelievable total that can sustain generations. Piyali Parashari lists some of the annual revenues:
"RCB → ₹700 to 800 crore
MI → ₹750 crore or more
CSK → ₹700 to 750 crore
KKR → ₹650 to 700 crore".
IPL franchise can increase their revenue so fast that it gets difficult to catch up. For example, the Rajasthan Royals were bought for roughly ₹550 crore in 2008 and their current value in 2026 is approximately ₹15,300 crore. That is nearly 30x growth in less than 20 years.
In the IPL, the numbers on the scoreboard in the stadium is for the fans. The numbers that truly matter to the owners is the one they see in the account.
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