Cricket has always been a major part of life in India. It’s thought that around 90% of the global fan base for the sport is based on the sub-continent. Given this background, it’s not surprising that the Board of Control for Cricket in India (BCCI) made the decision to gain further financial benefit from the sport, back in 2008.
This is when the Indian Premier League (IPL) was born. In the years that have followed, it has delivered some substantial financial benefits within India.
The start of the IPL
The IPL Twenty20 tournament was introduced as a way of increasing the popularity of cricket within India and as a means of increasing revenue from the sport. The Twenty20 format was also aimed at promoting a potentially more exciting form of cricket, with the top stars of the sport competing, from India and across the globe.
The IPL has gone on to bring in a huge amount of revenue for the BCCI and for the Indian economy as a whole. For instance, in 2015, the contribution that the tournament made to India’s Gross Domestic Product was Rs.1150 crores. It’s interesting to look at the financial aspect of the IPL in more detail.
The financial benefits of the IPL
Overall, the brand value of the IPL in 2019 was ₹475 billion (US$6.7 billion). However, this is not the whole story. The formation of the IPL has created several other financial benefits.
When the IPL takes place, cricketers travel from other countries to take part. Their fans also travel to watch them. This leads to an increase in tourism in the country.
Employment is also generated by the IPL. This is due to the demand that is created in areas such as coaching, stadium workers and security. This means that individuals can earn more money. Another financial factor that can cause estimated salary to increase is the growth in gambling activity around the IPL and Indian sport in general. It’s now at a level that is set to overtake the market in countries like the US.
Future of the IPL
It’s clear that the IPL has made a significant financial impact in India. Complications in 2020 have obviously made a difference but the tournament seems set to continue going from strength to strength in years to come.
Much of this is down to the growing popularity of Twenty20 cricket overall. Many cricket experts believe that the shorter form of the game will overtake test cricket as the most sought after form of the game. Given the level of popularity that the IPL has achieved since its launch, it’s hard to disagree with this. This makes it likely that the IPL will continue to be a premier competition in world cricket. This being the case it will continue to attract the top stars of the game, leading to significant financial gains in areas such as employment creation, tourism and advertising. This can only be good news for the BCCI and the Indian government.