INDIA Sports Super Power – IPL Revolution

Sports and Entertainment are the two main areas of interest prevailing in India. The Indian Youth with an enormous spending power spend their money in entertainment and sports. Imagine a situation, where in a Bangalore youth walks into PVR and throws Rs.500 for three hours of entertainment. Similarly, sports also have this type of welcome especially with the recent tata ipl live thumping inauguration of IPL. Hockey is the national sport of India but cricket is the craziest thing. Better, let’s inform Cricket to be the national sport. Cricket, once used to be a gentleman’s game now receives thumping response from all age groups with the introduction of Twenty 20 format. Infact, T20 has become a major means of entertainment. Lets be frank, in the months of april, may and june indeed all households will be tuned into set max to watch IPL.


Highest Paid Sport personnel:

  • Tiger Woods – 50 Crore (P.A)
  • Michael Schumacher – 25 Crore (P.A)
  • David Becham – 20 Crore (P.A)
  • M.S. Dhoni – 8 Crore + (P.A)

If Sports is considered on a rank basis, then the following will be the priority:

1. Golf

2. F1 Racing

3. Football – Manchester United – 1518 Crore (P.A)

4. Cricket???????????


IPL has managed to collect revenue more than any sport in INDIA considering both direct and indirect means of revenue collection. Let me make a short cost benefit analysis of IPL. All figures are approximate in all aspects.

Cost of IPL: The teams include: Chennai, Bangalore, Punjab, Hyderabad, Delhi, Kolkatta, Rajasthan, Mumbai. Each team has their respective owners who had drafted in players with huge amounts. A total of 8 teams with 20 players per side will be competing in 14 matches each and then semifinals and finals. So a total of 160 players will be playing a total of 60 matches. Assuming the average cost per player to be 1 crore, the total cost of players will be 160 crore. Consider the administrative, overhead, match and other expenses to be 100 crore. So a total of 260 crore will be the cost of entire IPL.

Benefits from IPL: Each team will be playing 14 matches and a total of about 60 matches are to be played. Consider the revenue from tickets: lets assume an average of Rs.1000 per ticket. In each stadium, assume the average number of spectators to be 50000. So as a total of 50000*1000 = 5,00,00,000 (5 cr.) per match. So for 60 matches, it will be 300 crore. So, IPL reaches breakeven on ticket revenue alone.

The next important aspect is that of the advertisement and copy rights. Set max has paid a whopping 4000 crore to BCCI to get the copyrights of the telecast. Imagine, set max to generate 8000 crore from their business. Apart from this, consider the hoardings and advertisements put inside each match.