An overall Financial guide for all the Indian Sporting Leagues
In the last few years, the Indian Sporting Leagues has made the sporting fraternity to look the country’s vastly increasing resources, passion and talents in all the sports. Be it the Indian Premier League which was introduced in 2008 or the latest addition to the Indian sporting Leagues i.e. Indian Super League, all the leagues had made sure that the sport has been the sole winner during the course of the tournament. In the last ten years, India had 9 different sporting leagues, out of which all the leagues attracted a lot of fans to it and showed the world that the talents in that particular sport can be a threat to the top shots in that sport.
These are the sporting leagues that made a mark in India in the last decade.
Cricket: Indian Cricket League (ICL) and Indian Premier League (IPL).
Tennis: International Premier Tennis League (IPTL).
Football: Indian Super League (ISL).
Badminton: Indian Badminton League (IPTL).
Hockey: Premier Hockey League (PHL) and Indian Hockey League (IHL).
Kabaddi: Pro Kabaddi League (Pro Kabaddi).
Volleyball: Indian Volleyball League (IVL).
Among these Indian sporting leagues, PHL and ICL are not in existence and are replaced by IHL and IPL respectively. IVL is the only league that needs more attention among the leagues.
All the sporting bodies are managing its own league. Few leagues earn its top body a lot of profit and some will give them profit. Money involved in all these sporting leagues are really big and managing them needs a lot of experience. Leaving these three leagues, here is how the other Indian sporting Leagues run and their financial aspects.
Franchises cost for all Indian Sporting Leagues:
Among the five Indian sporting leagues, IPL, Pro Kabaddi and ISL are constitutes 8 franchises whereas IBL and HIL have only 6. The franchises are decided through a tender and the party that quotes the maximum amount is given the responsibility of that particular city.
The franchisees will earn through the Media rights, sponsorship rights, local sponsorship and some miscellaneous gate receipts. The costliest franchise during the 2008 franchise was Mukesh Ambani owned Mumbai Indians with a huge amount of 712 crores INR million for a period of ten years before Sahara Pariwar’s Subatra Roy spent a whopping 2354 crores INR for the Pune franchise in 2010.
ISL’s highest franchise cost is estimated to be around 18 crores INR paid by Atletico de Kolkata for one year and the other sporting leagues are valued for less than 5 crores INR annually. Average franchise cost per year varies from 55-60 crores INR for the IPL franchise to 1.2 crores INR to Pro-Kabaddi franchises. ISL franchises costs 15-17 crores INR with IBL coming in next with 3-4 crores INR followed by HIL with 2-3 crores INR per year.
The franchisees of all the major leagues in India are managed under an Annual Licensing Contract and these lease agreements will make Mumbai’s land rates look like a bargain.
Player’s Earnings (per week) in all Indian Sporting Leagues:
Barcelona’s Lionel Messi is earning 313,000 Euros (2.5 Crores INR) per week whereas, Indian Cricket Team and Chennai Super Kings skipper MS Dhoni earns 3 crores during the 7 week IPL window where he is the highest earning player. In ISL, the highest earning footballer is Italy’s World Cup winning team member and Juventus legend Alessandro Del Piero, who earns 1.5 crore INR per week when he plays for Delhi Dynamos.
India’s badminton star Saina Nehwal is the highest paid player in the IBL as she earns 37 lakhs INR by representing Hyderabad Hotspots. HIL’s highest paid player is Delhi Waveriders’ Sardar Singh who earns 10.5 lakhs INR per week. Pro Kabaddi’s team Patna Pirates pay their star player Rakesh Kumar 2.8 lakhs per week, which is the highest in the league.
Shockingly, IPTL’s Indian Aces pay the 17 time Grand Slam Champion Roger Federer a whopping 4.5 crores INR per week. Interestingly, the average salary for a normal Indian is 1,200 INR.
Average TV Advertisements costs for all Indian Sporting Leagues:
One of the major sources of revenue for sports entertainment is the broadcast of television commercials/ advertisements. The broadcaster earns for every 10 seconds of the advertisement. During the IPL, the broadcasters earn 5-10 lakhs per 10 seconds followed by 4-5 lakhs INR for the same time period during the ISL.
Surprisingly broadcasters earns more for advertisements during Pro Kabaddi than HIL and IBL. Pro Kabaddi earns its broadcasters 70,000-1 lakh INR per 10 seconds with IHL which earns the broadcasters 65,000-70,000 INR coming next. IBL earns the broadcasters less with an average of 55,000-70,000 INR per 10 seconds.
Interestingly Starsports India owns the rights for all the Indian sporting leagues except the IPL, which is owned by Sony Entertainment Television. The latter earns more through advertisements with one league than what the former earn with 4 leagues.
Top Earning Indian Sporting Leagues:
Cricket, by far the most followed sports in India is also the sport which gives profit to the governing body courtesy the audiences, sponsors and media rights. There is no difference when it comes to the Indian sporting leagues as the IPL organisers are earning the most when compared to the other leagues. IPL governing body, i.e the BCCI earns 650 crores INR per season which is much less than the earnings of the other leagues combined.
ISL with 65 crores INR follows the Gentlemen’s game and is less than the earnings of the other three leagues combined. IBL along with Pro Kabaddi earns 44 crores INR which is more twice the amount earned by IPTL, which earns 20 crores INR.
Sponsors play a big role in the earnings of a league. Here is the list of all the Indian sporting leagues.
IPL: Pepsi, Hero, Kingfisher.
ISL: Hero, Puma, Amul.
IBL: Vodafone, Hero, Starsports.
HIL: Hero MotoCorp, Bharathi Airtel, Yes Bank.
Pro Kabaddi: Vodafone, Hero, Starsports.
IPTL: Coco-Cola, Qatar Airways.
Prize money in all the Indian Sporting Leagues:
The team that wins the league gives a portion of these money to the league winners. The winner’s prize money in these leagues ensures even the highest earners are motivated to win.
Both IPL and ISL give away 15 crores INR to the winners. IPTL is the next in the list with 6.25 crores INR followed by IBL with 6 crores INR, HIL with 2.5 crore and Pro Kabaddi with 1 crore.
Having seen all these, not only the governing council officials nor the players, the sport and the fans are the real winners evolving from the India sporting Leagues which are making India a powerful country in the world of sports.
Infographics Courtesy: Atish Hemade
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