IPL 2020 Business Model Case Study

 IPL is an Indian cricket league founded in 2008 by BCCI. Every year IPL makes a huge turnover. In 2019 IPL saw a phenomenal revenue of Rs. 4087 crore. In this post, we will see the business model of IPL and will also see how does it plan to make profits this year with the pandemic. 

BCCI invites applications for IPL 2020 title sponsorship rights | Sports  News,The Indian Express

IPL Business Model

According to recent statistics, by the end of 2020 IPL will have a brand value of $400 billion

The key sources of the income of IPL are:

  • IPL Franchise 

IPL takes money from the franchises to be featured in their league. They also earn money from the bids and Franchise rights.

  • Sponsors

IPL gets money for sponsoring products and for the title and licensing the company to advertise.

  • Broadcasters
IPL earns most of its revenue by media rights. They make thousands of crore by the broadcasting.

  • Tickets
This another major source of income. The teams earn a hefty amount of money from the matches in their home stadium and also from the overly priced food and beverages they offer. 

  • Merchandise
There is a good deal of merchandise the business makes, and people spend a lot of money on buying them. The company generates a lot of money with the help of the money collected by teams from the sales of their merchandise. 

2020 Plans

Things have changed, are going to be different this year with pandemic at its peak. Let's see what does the brand has in the plan. 

Back in 2018 Vivo, the Chinese smartphone maker made an IPL sponsorship deal for Rs. 2,199 crore in a 5-year deal. This year the company pulled out its sponsorship, which came at a terrible time because there is going to be an extra cost for all the safety and sanitization and the tournament moving to UAE. 

According to the officials, the overall sponsorship might pull down by 10-15%. The franchises themselves are going to lose about 20-25 crore each. 
The whole logistics, including bio-security and travel arrangements for all the players, is going to cost the franchise a bomb. With the reduced sponsorship, BCCI is going to have a few tight months. 

BCCI has some help though, Star India the official broadcaster of IPL has seen a 20-25% increased subscription from T20 so far this year and this is before the Ad revenue earned from online streaming platform Hotstar. The broadcaster hopes to double its Hotstar subscription base from 11 million
Hotstar – Apps on Google Play
They are also rooting for the 12.5 lakh they charge for a 10-second ad on the platform Hotstar. We can see that Disney is definitely going to grow at the expense of BCCI.
One thing we know for sure is that they are going to give in their 100% with their marketing and most of it will happen online. They are going to need to drive their fans all to watch the game on TV or Hotstar. One trick they will definitely use is sales funnels. If you want quick cheat sheets and grow your business, follow the link below.

Dream 11 is the title sponsor of IPL for just Rs.222 crore. Dream 11 has also had a soft side for IPL because it gained about 75 million users during the IPL season. 

Hosting the IPL in UAE came as a last resort for BCCI, as the situation in India didn't improve. The only reason they choose UAE was that if you are tested negative for COVID, you don't have to go through a 14-day quarantine. Though family members are not allowed for the entire span of the tournament they have allowed a 10-12 days trip. BCCI has to pay a huge fee to the Emirates cricket board and also bear the cost of accommodation and training of the players. 

We don't know the complete plan BCCI has for the 13th season of the tournament, but we will soon see how does this season turns out compared to the previous seasons.

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