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How The IPL Became One Of The Richest Leagues In Cricket and Sports

 



cricket it's a sport that dates back


over 400 years and as of 2019 is


officially played in 104 countries


around the world but crickets popularity


is starting to take a hit and things are


especially bad in the country of its


birth the UK ratings there have fallen


off a cliff less people are playing the


sport and attendance at traditional Test


cricket matches is falling part of the


problem you can no longer watch Creek on


TV for free in the UK in 2005 the sport


became of pay to watch event on TV when


the England cricket board saw the


broadcasting rights to Sky Sports into


the game for the clubs in the ECB it


killed the television audience and since


that day we've seen attendances


declining we've seen participation


decline we've seen you know the sport


really struggle to generate the next


generation of fans and players another


problem attention spans appear to be


getting shorter traditional games known


as Test matches last for five days and


cricket enthusiasts just aren't as


patient as they used to be so you're


asking people to people a lot that less


your time and we know that working


commitments are higher in the UK now


than ever before people are being asked


to work more and if less disposable


income of free time so if it does a big


factory as well with a small I think in


but there is one country where cricket


is more popular than ever


India crickets worldwide fan base is


comprised of roughly 1 billion people


and the indian subcontinent alone makes


up 90% of those fans in India the


country adopted a brand new shorter


format of the game Fez drastically cut


down on playing time from days to hours


the Indian Premier League or the IPL has


only been around for 12 years but it's


fast become one of the most popular and


valuable cricket leagues on the planet


the IPL's brand value has nearly doubled


in the last five years in 2018 the


league was valued at 6.3 billion dollars


ericsson 510 million dollars each year


from its broadcasting rights deal making


it the only Cricket League in the world


to crack the top 20 most valuable media


rights deals in all of professional


sports joining the ranks of the NFL the


NBA and Emma


be so how did the IPL become one the


most lucrative cricket leagues on the


planet and could the surge in popularity


engineer a turnaround for cricket on the


world stage the first record of cricket


being played as an adult sport was in


1611 in England the sport started to


take shape in the 17th century and by


1709 it was recognized as a legitimate


pro sport this was about the time that


professional village cricketers were


hired to join County teams by the early


18th century


Krita was the leading sport in London


and other counties across England


because of the reach of the British


Empire the sport took root around the


world when it came to the British Empire


and when it came to Britain colonizing


the world cricket was seen as a way


potentially of civilizing the world


cricket has a series of mores as a


series of codes of conduct such as


walking when the when the umpire gives


you out there was an element as well of


muscular Christianity that healthy


exercise was very very good as early as


the 17th century Cregar was being played


in English colonies in North America and


during the 18th century colonists


introduced cricket to the West Indies


and Australia while Mariners from


Britain to East India Trading Company


brought the game to India in the 19th


century New Zealand and South Africa


also began to play the sport over the


years cricket has evolved into three


different formats Test cricket one day


and twenty20 the Test cricket format


debuted in 1877 these matches last five


days one day cricket started back in


1971 and as the name implies cricket


matches conclude within a single day and


in 2003 twenty20 was established


twenty20 is a streamlined version of


cricket that allows for faster gameplay


and more scoring 2020 games typically


wrap up in about three hours each


version of cricket has leagues around


the world but twenty20 is the most


popular format of the game today and in


India it created its own twenty20 League


in 2007 when rolled out the Indian


Premier League


in India cricket is huge it's been a


staple in Indian sports since the 1700s


and it's currently the most popular


sport in the country the IPL is one of


the richest sports properties in the


world


and while the IPL isn't the only Cricket


League in India it is no successful


league in the country the 48 day annual


tournament was created in 2007 with the


help of the Board of Control for Cricket


in India an Indian businessman Lalit


Modi even though cricket already had a


few pro cricket leagues they wanted to


capitalize on the commercial success of


2020 so they modeled the IPL in a


similar nature to pro sports in the US


the IPO was specifically modeled after


the likes of the NFL which has a


decentralized league meaning that all


teams are owned and operated


independently also similar to the NFL


model the IPL it's only with its own


unique structure there is a separate t20


World Cup where India competes but


that's different from the IPL even


though matches are all held in India


team rosters are chock-full of a top


international talent in 2018 team spent


94 million dollars to buy a hundred


sixty nine players in an auction up from


its 14 million dollars for sixty six


players in 2017 but what you've actually


got in the IPL our franchises who


represent a city a place an industrial


heartland and you've got therefore did


the support of some major entrepreneurs


so rather than let's say Delhi against


North so you've got your IPL franchise


is based around the cities and that has


actually had a massive impact in terms


of the global cricket to make sure the


stands are filled with as many iCal fans


as possible and to maximize TV


viewership matches are typically played


in the evening and on weekends the IPL


is a huge moneymaker in India since 2014


the IPL's brand valuation has doubled to


6.3 billion dollars the reason the IPL


has one largest fan base is for a single


sports league in the world during its


opening week of the 2018 season the IPO


broke records


371 million viewers tuned in to watch


and by the last week of the tournament a


total of seven hundred and sixty nine


million fans watched the 2018 IPL season


the ad revenue generated for that season


was over two hundred and seventy six


million dollars of hornist our India's


managing director high ratings and AD


dollars were a big part of why major US


media companies had their eyes on the


high heels broadcasting rights when the


IPL launched in 2008 the league Asian


beanie rights to Singapore based sports


marketing agency world sport group they


broadcast an IPL matches on India's Sony


max TV channel under the terms of the


10-year contract world sport group paid


the IPL approximately 1 million dollars


per match in its first year for the


exclusive broadcasting rights the


overall value of that broadcasting deal


was 918 million dollars when the


broadcasting deal expired in 2017


there was a global bidding war for


exclusive rights for the IPL Fox and


Sony put in competing bids while


Facebook also put its hat in the ring


for the 2018 2020 to digital rights of


the IPL making a six hundred million


dollar offer those TV and digital rights


eventually went to Fox the American


broadcaster struck a five-year 2.55


billion dollar deal for the global media


rights of the IPL the price per match


jump from 1 million dollars to about


eight point four seven million dollars


per game for comparison the NFL cost per


game is around twenty two point five


million dollars the English Premier


League


is around thirteen point two million


dollars the NBA is close to two million


dollars and the MLB is just six hundred


and thirty thousand dollars per game


just two years after the ink dried on


the Fox IPL deal Disney completed a 71


billion dollar deal for Fox


entertainments assets one of the assets


that Disney now owns is hot star the


Indian video streaming company in 2019 a


streaming service at a global record for


the number of people tuning into a live


streaming event there were eighteen


point six million concurrent viewers


watching the IPL final match on ha


Starr's website and app and with that


kind of viewership naming rights for the


IPL are also huge for the lead since


2008 the IPOs naming rights have changed


hands three times from brands DLF


to go India and finally to vivo a mobile


handset manufacturer in China vivo first


took over title sponsorship in 2015 and


in 2017 vivo signed a fresh five-year


deal with the IPL worth approximately


341 million dollars in 2018 the average


salary of cricket players in the IPL


jumped nearly 30 percent from the year


before all thanks to the massive TV deal


silent fox in 2017 before that deal


players across the league had an average


salary of 3.9 million dollars what in


2018 the average salary was just over


five million dollars and unlike other


major sports leagues the IPL season is


so short that players have a chance to


bank even more cash in the offseason the


IPL takes place in the spring starting


at the end of March or early April and


continuing through May that means


cricketers have the flexibility to play


for other clubs around the world take


the Mumbai Indians player Kieron Pollard


in 2017 here in more than 1 million


dollars for two months they play for the


Mumbai Indians and the IPL in that same


year Pollard had multiple revenue


streams from playing for Cricket leagues


in Australia Bangladesh and South Africa


but just as cricket first spread across


the world in the 18th century cricketer


latest format of twenty20 similarly


taking root across the globe there's


even a record-breaking investment for a


twenty20 league in a country where


cricket is even remotely popular the


u.s. in May 2019 USA Cricket received a


1 billion dollar investment from


American cricket enterprises to develop


a twenty20 league in America it's one of


the biggest deals for development of


domestic cricket in the US and the


launch of the league is set to take off


in 2021


since the twenty20 cricket format was


introduced in 2003 and has taken the


cricket world by storm and it doesn't


seem to be slowing down anytime soon


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