Abinash,
Franchises in IPL who own the teams have benefits all around the matches as they get revenues from them easily.

For starters they have to buy the franchise for example SRK bought the Kolkata team and he gave the name Kolkata night Riders. Hence his bid of some millons won him the team, and so now after buying the team he has to buy players for his team and he did that too by bidding for them in the bidding of players which was carried before the IPL started.

Now profits are made from advertisements by other companies on Kolkata teams clothes channels banners on ground tickets and merchandise. SRK even has the right to make his players appear for ads under his Kolkata team.

These are some profits which team owner make from the team.

Answered by Jateen Gutta , an ibibo Master, at 4:13 PM on October 04, 2008

Well Abhinash,
franchise owners, bids ranged from $117 million (Reliance - Mumbai Indians) to $67 million (Emerging India - Jiapur) for eight teams, totaling to 723.6 million for ten years.

This means the owners will be spending anywhere between $7 - $11.7 million per year in owning a team and another $7 - $10 million in maintaining staff, building team and other activities.


This translates to a expense of $15-21 million in the first year for every franchise. IPL will be giving a share of 8% to each team (i.e. total of 64%) from the $918 million that it got from Sony-WSG, which translates to an earning of $7 million for each team.

Also, another 8% will be distributed according to the rank a team gets when they finish the league.

Each team will play at least seven matches at their home ground and the money coming out of the sale of tickets will go to the home team’s owner. Assuming attendance of 12.000 for each match (which is least) and Rs 500 as an average price, owner will get approximately $1.5 million from all seven matches.

Another $2-3 million from the local team sponsorship deals. Another take away will the of 7% share that teams will get from the IPL sponsorship deals which currently stands at $ 72 million but can go much more.

Also, each team will have to pay 20% of local revenues to BCCI. Taking in account all the above expenses and earnings, a franchise will earn about 12 million and let’s not forget the winning prize of $5 million.

Have a nice day Abhinash...........

Answered by Manoj Gajraj , an ibibo Advisor, at 7:59 PM on September 28, 2008

IPL franchise will get money by TV rights,Ticket sales,Merchandise sale

Answered by Samir Nagpal , an ibibo Advisor, at 4:51 PM on September 26, 2008

the profit is advertisement and sponsor which you can see on the t-shirts or bats of players when they play for their individual club that goes to the franchisees

Answered by ani , an ibibo Advisor, at 5:48 PM on September 24, 2008

The franchisees get a major share of ticket sales money. On ground advertisement money alsoThey can also earn by allowing companies to advertise their products on the team's uniform. Remember Nokia had put their ad on Kolkata Knight Riders uniform. They also get a part from telecast rights. The franchisees can also sell their players to other teams, provided there is team to buy the player. Here player can be sold for more amount than he was purchased for.

Answered by Pavan B , an ibibo Citizen, at 4:41 PM on September 24, 2008

IPL Chairman Lalit Modi clarified how franchisees can earn profit in IPL. Team owners get 80% of broadcast revenues, 60% of sponsorship revenues, 100% of team sponsorship revenues, 80% of ticket revenues, 87.5% of all merchandising revenues, and 100% of all hospitality revenues.

Answered by Satyakam , an ibibo Master, at 1:19 PM on September 24, 2008