IPL's Billion-Dollar Business Model: How Franchises Thrive on Media Rights & Sponsorships

• IPL has become a multi-billion-dollar sports entertainment asset, with franchise valuations soaring to $1.6-$1.8 billion.
• Franchises earn primarily from a central revenue pool (media rights, title sponsorships) managed by BCCI, which distributes 50% to teams.
• BCCI earns approximately ₹5,000 crore from media rights and ₹500 crore from title sponsorships.
• Teams also generate revenue from local sponsorships, ticket sales, and merchandise.
• Despite costs like player fees and operating expenses, franchises like CSK and RCB report strong profitability with 37-40% EBITDA margins, driven by media rights economics.