The Tata Indian Premier League Auction 2023 will be the next of these big auctions, occurring every three years and allowing teams to keep only three to five (five allowed in 2014) of their current players.
D and P Advisory have estimated the Indian Premier League (IPL) ecosystem to be worth Rs 87,000 crore ($11.9 billion) prior to the upcoming December 23 auctions for the 2023 cycle.
The Indian Premier League is now among the world’s most lucrative sports organizations. Anvitii Rai investigates the processes behind and financial outcomes of the Indian Premier League’s auctions.
How Are the IPL Player Auctions Structured?
At the preseason player auctions, teams compete to acquire the services of their preferred players for the next season. After taxes are taken off, the sum that was bid on each player becomes his wage for the season. Each year of the player’s contract, up to a maximum of three years, can be renewed.
Each team is allowed to keep between three and five (five in 2014) of their original members after a big auction every three years. As long as they participate in the annual mini-auctions, as many of their current members as desired can be kept on.
The teams have to bid from the salary purse, which is determined by taking the total salary purse (’95 crore this cycle) and subtracting the salaries of the players retained before the auction.
How Does the IPL Generate Revenue?
Multiple sources of income helps fund the IPL. The sale of broadcasting rights and sponsorships accounts for a disproportionate share of the Indian Premier League’s (IPL) total revenue, alongside more obvious sources like ticket sales and in-stadium profits. In addition, product sales have been on the rise.
The broadcasting rights for the IPL are auctioned off in cycles of five years, with the BCCI keeping half and dividing the rest among the franchises. This sum is split as follows: each franchise receives 45%, while the remaining 55% is determined by the success of its respective club.
This upcoming new cycle will last from 2023 until 2027. At the sale for 2023-2027, the total money raised was Rs 48,390.5 crore, or $6.2 billion, which is three times as much as was raised at the previous auction. Since 2015, digital rights have been sold at auction.
Franchises in Play
Ten franchises will be represented at the next auctions. They have jointly released a large number of players in preparation for the upcoming auctions, and now they must begin shaping their teams. They have 87 spots to fill, 30 of which must be filled by international players.
Salary budgets for the remaining franchises range from 7.05 crore rupees (Kolkata Knight Riders) to a whopping 125 crore rupees (Sunrisers Hyderabad) (Rs 42.25 crore).
The winnings for each team are determined by how well they play. Last year’s victor, the Gujarat Titans, received Rs 20 crore, while the runner-up, the Rajasthan Royals, received Rs 13 crore.
In 2022, the prize for the Emerging Player of the Tournament will be Rs 20 million, while the Orange Cap (most run-scorer) and Purple Cap (highest wicket-taker) would be worth Rs 15 million and Rs 20 million, respectively.
What Is Different About the IPL Ecosystem This Season?
The D and P reports state that the media rights have been split among four broadcasters for this cycle, breaking up the previous monopoly held by one business.
Disney Star paid Rs 23,575 crore (about $4.1 billion) for package A, which included television rights across the Indian subcontinent and 410 matches; Viacom 18 paid Rs 20,500 crore (about $4.1 billion) for package B, which included digital rights for the Indian subcontinent; and package C, which included non-exclusive digital rights for 18 selected games in each season (opening match + four playoff matches + 13 doubleheader games), sold for $1.1 billion (Rs 1,058 crore).
In Australia, South Africa, and the United Kingdom, Viacom 18 received 18 percent, while Times Internet received 16 percent (for West Asia, North Africa, and the US).
In addition, there are now 94 matches, up from 74 previously. Experts are worried that this may lead to a saturation of their audience. There will be a women’s IPL for the first time ever in March 2023.