IPL bidding!!!
Today let us decode the business model of Indian IPL bidding ( Premier League bidding ), which is the world’s biggest cricketing league. Eight franchises select Professional cricket players from all over the world. A franchise has to bid for players every year before the start of the IPL season with an auction limit of Rs. 80 cr.
The following are the different wide streets which open the door to run this business.
1) Sponsorships to get major chunk revenue:
Have a heard of Dream 11? Yes, he was recently owned sponsorship of Dream 11. IPL has a governing council (acts as a mediator) to get money from the sponsor. Board of Control for Cricket in India (BCCI) gains 40% of the amount of the sponsorship and rest 60% is distributed among the 8 franchises.
2) Media rights
Bidding of media rights to air IPL is another Street to earn money. Star India bagged 5 years of media rights for IPL with a bid of Rs. 16,345 cr (2018-2022).
3) Dedicated Franchise sponsors
Dedicated sponsors of each franchise logos and names of the companies. As usual, there will be sponsors from different states, might be individual companies or advertising companies.
4) IPL Tickets from viewers
The franchise will have their home grounds with a huge seating capacity to earn the most from ticket sales.
5) Franchise online stores
Franchise official websites sell official jerseys, caps, wrist watches, souvenirs etcetera.
6) Prize money
The winning team also wins prize money which is an additional source of revenue.
IPL is a big stage for bidders where each franchise bids to earn. There are certain controversies where the number of people involved in corruption and again to bring another chunk of money.
Read more : https://en.wikipedia.org/wiki/Indian_Premier_League