The IPL has created a huge buzz after its consolidated media rights were sold to Star India for a whopping US$2.55 billion.
The media rights, which combine television and digital coverage as one package, have been sold for a five-year period, starting next year and running until 2022.
So exorbitant is the value of the deal that it has dwarfed the media rights for the Indian national team.
Star India currently holds the rights to telecast national team matches until 2018. The value of that deal is approximately $600m for a total of 96 matches – around $6.7m per fixture.
On the other hand, the staggering amount bid for the IPL means that one match would cost Star India $8.47m.
The difference between the two showcases the ever-growing commercial value of the T20 format to broadcasters – with sponsors paying a premium to ensure their brands are seen in front of huge audiences.
India has been the economic behemoth of the cricketing world for some time now with its cricket-crazy population of over a billion people.
In comparison, the Big Bash League (BBL) of Australia sold its media rights for $20m per year, though that deal is up for reconsideration soon.
In broader sporting terms, the huge amount of money poured into the IPL means the competition holds it own on the world stage, but the English Premier League is top of the three when it comes to monetary value.
The Premier League media rights are valued at approximately $ 6.7 billion (from 2016-19), meaning each match costs a whopping $13.15m.
Similarly, the NFL brings in about $22.47m per game. In the NBA, each contest equates to $1.99m.
It is clear to see that the growth of the IPL has been tremendous and the revenues are pouring in. If the current trend continues, it will not be long before the franchise-based model will be counted among the most lucrative television deals in the world of sports.
That belief was indeed evident when Star India CEO Uday Shankar spoke to reporters after winning the bid.
“We believe the IPL is a very powerful property, and we believe there is lots more value that can be created for fans of cricket on digital and TV,” Shankar said.
“India, cricket and IPL have changed dramatically since 2008, and this bid is a reflection of that.”