In this money-centric world, money is next to everything for most of the people. When it comes to IPL, money is another synonym of IPL. If controversies are the true love of IPL then money is probably the father of IPL. The league is completely based on money. Money is the most influential factor and the most attractive factor of IPL. IPL without money would have been any other normal cricket league in the world. Normally, Whenever the son needs money, daddy arranges it. Here when your father is money then you don’t anything else. IPL is the river of money. And in this river of money, everyone wants to wash his/her hands.
What IPL give to players in two months is much more than what they get after playing whole year for their country. Players started choosing IPL over the country was because of the money factor. In IPL, players have to play the shortest format of the game and for that, they get more than what their cricket board is paying to them for playing all three formats for the whole year. It started with the West Indian players. West Indies cricket board do not value their players and West Indies is not a country anymore. Thus, West Indian players always choose IPL over the country. Here, franchises are giving much more money and value to them compared to West Indies cricket board.
Along with West Indian cricketers, other cricketers also started choosing IPL over the country. They started a new trend to play in the IPL. They chose to retire from the longest format of the game i.e. test cricket to play the whole season of IPL. The cricket boards who are not rich enough hardly pay a proper amount of fees to their players. Thus players choose IPL over them. After all even players need money. It is the controversial part but if you see the other side of the coin then the money which players earn from IPL brings stability and security in those players’ life whose board hardly manages to pay the fees. Players who have or had clashes with their cricket board, IPL was and is the lifeline for them to earn the big money.
The money involved in IPL has played a huge part in Indian players’ life as well. It made many players life. Pravin Tambe, who was just a normal man, earned fame and name because of IPL. Mohammad Siraj, son of an auto driver, when he got a huge amount in the auction then it was a turning point in his life. Not only him, a lot of players has seen the highs in the IPL auction.
Of course, money brings stability and security but it has its dark side as well. The dark side of Money is that it is never enough. And that dark side has pushed players to fixing. When domestic players were paid in slabs, obviously the money was never enough for them. So they started fixing the matches. Seeing that, BCCI removed the slab system from the domestic players and set no limit of their higher price. With that decision, domestic players started getting the higher price and enough money in IPL.
Since 2008, the costliest player in the IPL auction has been Yuvraj Singh. He was bought for 16 crores in 2015 by Delhi Daredevils. No one has come near to that price. The only player whose bid has come closer is Ben Stokes who has got 14 crores in one of the IPL auctions.
Amount franchises have spent
In 2008, when eight franchises were auctioned, the base price of eight franchises in total was $ 400 million. And all the eight franchises were sold for the total amount of $723 million. By the total base price of eight franchises, one can assume that the base price of each franchise was $50 million dollars. Mumbai and Bangalore were hot favourites among all the franchises and their bid price went over $100 million dollars. Mumbai was bought by Mukesh Ambani’s Reliance industries and Bangalore was bought by (then) Vijay Mallya’s UB group. After Mumbai and Bangalore, the most favourite franchise was Chennai. It was bought by India cements for $91 million.
Shahrukh Khan and Jay Mehta paid $75 million for their Kolkata franchise. While Preity Zinta along with Mohit Burman from Dabur and others paid $76 million for Punjab franchise. GMR group paid $84 million for Delhi franchise. Hyderabad franchise was sold by Deccan group to the owner of Sun TV and it was reported that they paid $85 million for that franchise. Rajasthan’s franchise was the cheapest franchise among the eight franchises as they paid $67 million for that. The real buzz started in 2011 when two new franchises Pune and Kochi or Kerala were sold. These two franchises were sold to Sahara Group and Rendezvous Sports world.
Sahara adventure sports group bought the Pune franchise for whopping $370 million and Rendezvous sports world bought Kochi franchise for $333 million. After the deal of Pune and Kochi franchise, the comparison of Indian Premier League was done with English Premier League. The amount at which Pune and Kochi were sold, it was almost equal to the value of big English premier league franchises like Manchester city. Within two years, both the franchises were terminated from the IPL for monetary reasons. Rendezvous Sports world failed to give bank guarantee. While Sahara group demanded fee revision as the number of matches reduced. They didn’t pay full fee asked by the BCCI. Thus, BCCI encased their bank guarantee. The money involved in the two franchises brought IPL into the headlines and the same money became the reason for the termination of the two franchises from the IPL.
People and the country
As mentioned in the earlier chapter, IPL gives job to approximately forty thousand people every year. It brings happiness in the life of groundsmen as they earn well during the season of IPL. Not only groundsmen, it gives business to hotels, kit manufacturers and sponsors. So from a common man to a big player, everyone earns money from IPL. More and more players get richer with every season of IPL. While some people earn the basic needs of life through IPL. Directly or indirectly, IPL increases the sales of sponsors. IPL contributes 0.6% in the GDP of our country. On one hand, people earn basic needs through IPL and on other, they lose everything in betting. Betting is illegal in India but it happens on a bigger level than the countries in which it is legal.
How BCCI and Franchises earn money.
In 2008, BCCI started IPL as the side business but over the years, it has become the biggest contributor in the profit of BCCI. Slowly and gradually the profits from IPL has increased. From Rs. 100 crores, it has reached Rs. 400 crores. With the broadcasting rights deal in 2017, BCCI is set to earn Rs. 2000 crores from IPL. Since 2008, BCCI has paid Rs. 3500 crores as the tax. BCCI earns that money through fees from franchises, media rights and official sponsors. The income which BCCI generates from official sponsors and media rights, a major chunk of that income is distributed among the franchises. Apart from that, every IPL franchise earns from its own dedicated sponsors and from stadium tickets.
BCCI works as a manager in the father-son relation of money and IPL. The value of IPL in 2017 was $5.3 billion. There was 26% rise in the value over 2016. The value of IPL is going to increase every year and it will touch new heights in the years to come.