The average revenue of all Indian Premier League (IPL) teams in Financial Year 2022-23 (FY23) was 23 per cent lower than the pre-Covid-19 year of FY19, said a report on Thursday, suggesting the popular T20 cricket tournament is “reaching a saturation point".
"If we account for inflation, the drop in revenues becomes much sharper," said market intelligence platform PrivateCircle. An inflation rate of 10 per cent over the last four years would mean that the average drop in earnings for all teams was close to 47 per cent in FY23 compared to FY19.
"This sharp decline in revenues could indicate that the market for the IPL is reaching a saturation point," said the report, which studied the market filings of companies that own the teams. "It could be due to various factors such as over-saturation of cricket content, changing consumer preferences, or competing entertainment options."
PrivateCircle said that if revenues decline or stagnate, it may create the need for IPL to make a structural change. This could include measures like revenue-sharing arrangements, cost control, or strategic partnerships, to ensure the league’s long-term viability.
The data in the report showed that in FY19 Kolkata Knight Riders had the highest revenue at Rs 437 crore, followed by Delhi Capitals at Rs 424 crore and Chennai Super Kings at Rs 418 crore.
In FY23, Delhi Capitals had the highest revenue at Rs 367 crore. Gujarat Titans took the second spot at Rs 360 crore and was followed by Mumbai Indians (Rs 359 crore). Their figures are lower compared to the top three revenue-generating teams in FY19.
The average revenue of all teams was Rs 394.28 crore in FY19 and fell to Rs 307.5 crore in FY23. However, the report added that income from sponsorships has increased for all teams.
Among the teams who reported such numbers, Royal Challengers Bangalore topped with a sponsorship income of approximately Rs 83 crore in FY23. It was followed by Chennai Super Kings at Rs 78 crore and Delhi Capitals at Rs 72 crore.
