Cricket, the most popular sport is like a religion in India. As this sport has billion of fans globally, the Board of Control for Cricket in India (BCCI) under Lalit Modi (Vice-President) introduced a domestic premier league – The Indian Premier League (IPL) in 2008.
The league consists of eight teams in total – Mumbai Indians, Chennai Super Kings, Royal Challengers Bangalore, Kolkata Knight Riders, Delhi Capitals, Rajasthan Royals, Sunrisers Hyderabad and Kings XI Punjab. The following teams are named after cities of India and consists of both domestic and international cricket players. Through, the process of bidding and auctioning the owners get to allot them.
The Indian premier league generates its revenue from various sources.
The most important, being media rights. The Star India picked up media rights for five years and pays Rs.32 billion to BCCI every year. Other important source being sponsorship rights. In August 2020, BCCI announced that Dream11 the fantasy gaming app will be its new sponsor valued at about $2.5 billion, replacing the mobile company Vivo. Other sponsors of IPL are like Jio, the name of which is displayed on all jerseys.
Further more sponsors are Cred, Tata motors and Unacademy. The third source being brand sponsorships for example, Gulf Oil, India Cements, Muthoot Group etc. are sponsors of one of the teams and they can ask any team member to advertise for them. There are many other sources of revenue generation too like sale of tickets but this year due to COVID-19 the IPL 2020 was played in United Arab Emirates and fans in large crowds were not able to witness the league. Another source is the merchandise sales which belongs to the team. Also, winners and runners up are awarded prize money. The IPL 2020 winners received 20 crores and runners up 12.5 crores. The third and fourth placed teams received 8.75 crores. The IPL still have a lot of expenses and this year due to the pandemic the BCCI lost about Rs. 13 billion.
The BCCI also leads to higher tax contributions to the government due to the increase in their revenues which resulted in greater revenues for the government.
The Indian Premier league even contributes to the GDP of India due to the high level of fan base there is a significant rise in the tourism. Cricketers from other countries too come to India and bring along their fans. Also, the IPL leads to employment generation from various sectors as huge staff members are required from security to coaches to other employees. Thus, helping in overall development and growth of the country.
Therefore, the Indian Premier League leads to a great impact on the economy by providing various opportunities and advantages to all the sections of the society.