Advantages Of Ipl Revenue Model

VIABILITY OF THE REVENUE MODEL

The revenue model of the IPL seems to be strong, but this model must be healthy enough so that franchises can make profits because they have invested a huge amount of money in this event. However the actual situation is bit hard. As per the statistics no team had made profit till FY 2010-11. In FY 2011-12 also only two IPL teams Kolkata Knight Riders and Rajasthan Royals had posted profit of 10.4 crores and 5.72 crores respectively. In FY 2012-13 again these two teams along with Kings XI Punjab had reported profits of 6.3 crores , 11.95 crores and 0.78 crores respectively. In FY 2013-14 once again Kolkata Knight Riders and Rajasthan Royals along with Delhi Daredevils had reported profit of 9.18 crores, 14.5

The income generated by this agreement is called Central rights income. As per this agreement till 2017 BCCI will keep 40% of the revenue generated through central stream and share the 54% of the revenue among IPL teams and 6% of the revenue is distributed as prize money.

2) Sponsorship

Player’s uniform, helmets, training kits for teams and barricades near the boundaries are the main sponsorship revenue products. Franchises give space to the sponsors to display the logos of their companies on these things. The large the sponsors want their name displayed, the more money has to be paid by them. The highest revenue generating sponsors for a team are the spots which are prominently visible to the television audience like the names written on the chest in bold and behind the players. The sponsors also get certain added perks like organizing certain events with the team players and promoting their brand as part of the sponsorship deal and also get a certain number of free hospitality tickets. The sponsorship revenue forms about 20 to 30 per cent of revenue for an IPL team.

3) Ticket

• IPL has opened up new jobs for many old cricketers in the form of commentators, mentors, coaches, support staffs, umpires, analysts and many more options. Another dimension of a profession opened through IPL that is cheer leaders.

• IPL has raised the standard of Indian cricket in International arena.

DRAWBACKS OF IPL

• As huge amount of money is involved in the IPL so there is very much chances of betting and match fixing to be done in this league.

• Players get a huge amount of money from the franchises as a player fee and also lot of parties are carried out after matches which sometimes divert the mind of good player.

• As this event is large and every team has to play almost 14 games which result in more fatigue and injuries to the players.

• IPL result in shorten the careers of some international players as they play lot of cricket at international level along with this long event so they get less time to relax which result in early retirement.

• IPL has raised the T-20 cricket popularity in the international arena. It is now so popular that other forms of cricket like Test cricket has a threat of