IPL Prize Money Over the Years
Ever since its inception in 2008, the Indian Premier League (IPL) has grown from strength to strength. Whether it be in terms of attracting eyeballs or becoming a hot fiscal property for investors and title sponsors, the IPL is among the most lucrative sporting leagues in the world. In fact, in terms of annual revenue, the Indian Premier League is the 15th best sporting league in the world. The IPL prize money given to the winning team by the Indian cricket board is also quite huge.
It must be pointed out here that, unlike several such tournaments that span throughout the year, the IPL is only held over the course of a couple of months. It might sound ridiculous but the Indian Premier League brings in more money per match than the Champions League, NBA or the English Premier League.
How has the Brand Value of IPL grown?
Even in 2010, just after two seasons of the IPL, its brand valuation had grown to $4.1 billion or Rs. 18,998 crore (according to a report by Brand Finance) from an initial investment of just $25 million in 2008. The combined brand worth of all the franchises was at $333 million or Rs. 1542 crore. Combining cricket with entertainment and with the involvement of superstars like Shah Rukh Khan, Priety Zinta, Shilpa Shetty and business tycoon Mukesh Ambani, BCCI put IPL at the forefront of the cricketing globe.
Duff & Phelps reports from 2018 and 2019 state that the valuation of the cash-rich league had grown to $6.13 billion and $6.7 billion. A new television deal with Star India Private Limited, which ensures that the IPL is broadcast to regional networks with commentary in over eight languages, contributed to this rapid increase in popularity as well as brand value.
How the IPL Prize Money Has Changed?
Now that you have a fair idea of the massive financial behemoth that the Indian Premier League has become in just 13 years of existence, let’s take an in-depth look at the prize money distributed between teams over the years:
The inaugural season of the Indian Premier League in 2008 was won in sensational style by Rajasthan Royals. The Shane Warne-led side pocketed $1.2 million or Rs. 4.8 crore. The financial rewards were what made a few of the cricketers superstars overnight.
MS Dhoni’s Chennai Super Kings finished runners-up in the final held in Navi Mumbai and they received $600,000 or Rs. 2.4 crore. The two semi-finalists received Rs. 1.2 crore each while fifth and sixth runners-up got Rs. 80 lakh and Rs. 70 lakh respectively. The sides finishing seventh and eighth also got Rs. 50 lakh and Rs. 40 lakh. All eight teams took some amount of money home.
For the 2010 season of the league, the Indian cricket board announced a significant increase in the prize money. The rise in valuation brought about additional dollars, which were distributed among the franchises with the aim of achieving financial sustainability as soon as possible. As such, the 2010 winners Chennai Super Kings took home around $2 million or Rs. 8 crores. The overall prize money pot was of around $5 million or Rs. 20 crore. By contrast, the winners of the 2007 ODI World Cup won $1 million or Rs. 4 crores, while the Indian side that won the inaugural T20 side that won the World T20 that year took just Rs. 2 crores home.
By 2014, the prize money for the winning side had almost doubled from 2010. Kolkata Knight Riders lifted their second IPL trophy in 2014 and the Shah Rukh Khan-owned franchise pocketed Rs. 15 crores. Punjab Kings, who were then known as Kings XI Punjab, might have lost the trophy, but they grew richer by Rs. 10 crores, according to BCCI sources. The two semi-finalists also received Rs. 7.5 crore each, which is half the amount taken home by the champions.
Virat Kohli’s Royal Challengers Bangalore and David Warner’s Sunrisers Hyderabad contested the IPL 2016 final. In a thrilling showdown, SRH lifted their maiden IPL trophy and also won prize money of Rs. 20 crores or almost $3 million. Kohli’s RCB, who are still awaiting an IPL triumph, took home Rs. 11 crores or $1.5 million. The semi-finalists also received Rs. 7.5 crore or $900,000 each that season. Also, only the teams who qualified for the playoffs received the prize money. It’s also a good time to mention that BCCI and IPL conditions state that the winning pot should be shared equally between the franchise and its players on a 50-50 basis. The players would receive an equal share of the net 50% divide.
The winning prize money remained unchanged for IPL 2018. Chennai Super Kings made an emotional and winning return to the Indian Premier League and defeated Sunrisers Hyderabad in the all-important final. They also received Rs. 20 crore while the prize money for the runners-up saw a slight bump. Sunrisers Hyderabad pocketed Rs. 12.5 crore. The sides finishing third and fourth also received more money compared to 2016 and took home Rs. 8.75 crore each.
IPL 2020 – The IPL Prize Money Decreases
Finances for IPL 2020 were majorly affected by the losses suffered during the coronavirus pandemic. The tournament had to be held in UAE and according to a Duff & Phillips report, the brand value of the league dipped by 3.6% to Rs. 45,800 crore. Individual franchises also suffered huge dips in valuation. Chennai Super Kings and Kolkata Knight Riders were the most affected sides. There was fresh bidding for a title sponsor as well.
For that same reason, IPL had to employ strict cost-cutting measures and as a result, Mumbai Indians who won their fifth crown only took home Rs. 10 crores instead of the Rs. 20 crores that was awarded the year before. The runners-up Delhi Capitals received Rs. 6.25 crore.
The same rule will be applied to the upcoming season of the IPL 2021 and a prize money of Rs. 10 crores is reserved for the title-winning side. The runners-up will similarly pocket Rs. 6.25 crores!
There are financial rewards for the most valuable player, orange cap winner (player with most runs in the season), and purple cap winner (most wickets in the season) as well. It must be further mentioned that the cash prizes in foreign leagues such as the Pakistan Super League are much lower.
Also Read: Who is the Yorker King in IPL?