IPL - the goldmine of India
The IPL contributes immensely to India's economy
What a great lofted cover drive by Virat Kohli! That ball has gone into the stands. Hundred for the King!
While these words are being said, India is earning money. According to the Board of Control for Cricket in India (BCCI), the 2015 season of the Indian Premier League (IPL) contributed ₹1,150 crore to India’s GDP!
Let’s take a look at some of the industries that benefit because of the largest sporting league in India:
1. Food delivery and restaurants
Food delivery is probably the first industry you think of when you think of IPL. I mean you can’t escape the Dominos, Zomato and Swiggy ads after every over! During the 2023 IPL season, Zomato and Swiggy saw a 7% surge in sales. Now this may not seem like a lot… because it isn’t. This small number is a result of food delivery apps reducing their marketing spending to increase their net margin (profitability).
Contrast this with Zomato and Swiggy’s approach during the 2020 IPL season. Back then, they offered 50-60% discounts at many restaurants and invested heavily in marketing. The results were clear: a 50% surge in sales during the IPL season.
Of course, this increased demand causes more food deliveries to take place during IPL matches. According to Swiggy, 12 million biryanis were ordered from their app during the 2023 IPL Final between the Chennai Super Kings and Gujarat Titans. That is a whopping 212 biryanis per minute! Naturally, someone needs to make this food. Thus, the IPL also increases the sales of local restaurants all around the country! Many restaurants capitalise on the opportunity to set up stalls at the stadium. As a result, restaurants have seen a 10-30% increase in sales during IPL seasons.
2. Tourism
On several travel sites, the top destinations within India last year during the summer were Mohali, Chennai, Delhi, Bengaluru, Hyderabad, Guwahati and Kolkata. What do all these have in common? Well, these cities were hosts for IPL 2023 matches!
The demand for flight tickets and accommodation increases by about 30% during IPL, with some companies even reporting a 60-70% surge in demand.
Tourists flocking to IPL host cities don’t only benefit these particular cities. The impacted area can be very large. Fans of the Mumbai Indians who came to watch their match at Wankhede may also visit the beautiful coastal town of Alibag nearby. Fans of the Lucknow Super Giants who came to watch their match at Ekana may visit the majestic Taj Mahal in nearby Agra.
3. Broadcasting and sponsorships
Viacom18 (the owner of JioCinema) bought the digital streaming rights for ₹23,758 crore, replacing Disney Star. Disney Star retained television rights for ₹23,575 crore. This makes the total sum paid for broadcasting rights ₹47,153 crore. When the IPL began in 2008, businessmen and Bollywood actors spent about ₹3,150 crore to buy 8 franchises. Tata paid the BCCI ₹335 crore to become the title sponsor of the 2022 and 2023 season.
I think you get the point… there are large sums of money associated with broadcasting and sponsorships.
Considering these facts, it is not surprising that the IPL was the first unicorn to come out of India! The IPL was valued at 1.1 billion USD in its first year (2008) itself. It currently has a valuation of 10.9 billion USD. According to BCCI secretary Jay Shah, the IPL is the second most valuable sports league in the world, remaining only behind the American National Football League (NFL). Mumbai Indians, the most valuable franchise, has a valuation of 87 million USD.
Conclusion
The IPL is not just a sporting league. For many Indians, it is a festival. During the couple of months of IPL, we celebrate wins and mourn losses. We flood the stadiums all over the country to see and support our idols. Due to the continued support of fans, the IPL is where it is today.
JioCinema registered about 200 million viewers for only the first 6 matches of IPL 2024. Disney Star registered 448 million viewers for the first 26 matches of IPL on TV. According to the trends since 2008, these numbers are only going to go up in the future.
Increased viewership in the future will undoubtedly lead to even more benefits for India and the IPL. I predict that IPL franchises will be amongst the most valuable sports franchises by 2035. I want to see great franchises such as Mumbai Indians and Chennai Super Kings pass up the Dallas Cowboys (9.2 billion USD) and Golden State Warriors (8.28 billion USD)!
I’m excited about what the future holds for IPL and its impact on India!
This is absolutely true. IPL has become a sport festival in India. It has its benefits but at the same time it has brought down attention to other sports lesser compared to time before IPL was introduced. It's impacting aspiring new players who could've become badminton player, TT player, athletics, etc.
Dear Sifar, another good piece of writing. All the stats given are valuable and help to see the larger picture. I admire your passion for the game, and your aspirations for Mumbai Indians and Chennai Super Kings!! I want to bring up the idea of "limits of growth" and discuss it with you when you are back on campus!! Also please post the subscription fee in INR. Thanks and well done