The story so far: The Board of Control for Cricket in India (BCCI) recently concluded a high-stakes tender process for awarding the media rights for the Indian Premier League (IPL) for the cycle spanning 2023 to 2027. In a historic shift, the rights were categorized separately for television and digital platforms for the very first time. The results shattered previous benchmarks, fetching a combined sum of ₹48,390 crore—a monumental leap from the ₹17,110 crore offered by the previous cycle. Disney Star secured the television rights for the Indian sub-continent with a bid of ₹23,575 crore, while the Viacom 18 group shelled out ₹23,758 crore to claim the digital rights. Meanwhile, the rights for the rest of the world were split between Viacom 18 and Times Internet Ltd. for a combined sum of ₹1,057 crore.
This financial milestone has sent ripples through the global sporting ecosystem, prompting deep dives into how the cash influx will reshape the tournament, franchise economics, player compensation, and the broader future of the sport.
Why have TV and digital rights been split?
For years, media rights for the IPL were sold as a composite package, treating television and digital broadcasting as a singular entity. However, market dynamics have evolved dramatically over the past decade. Sensing that the consumption of cricket on digital platforms will experience exponential growth in the future, the BCCI made a calculated gamble to keep ahead of the market trend.
By unbundling the television and digital packages and introducing an e-auction format, the board created direct competition between traditional broadcasters and new-age digital streaming giants. The strategy paid off spectacularly. The fact that the digital rights for the Indian subcontinent alone have fetched more revenues to the BCCI than the television rights underlines that the decision to split the rights was a strategic masterstroke. It accurately captured the shifting paradigm of modern sports consumption, where mobile screens and streaming applications are rapidly rivaling—and in some demographics, surpassing—traditional living room television sets.
Does this mean IPL will have more games in the next five years?
Yes. The expansion of the tournament format was a crucial element discussed with potential bidders, and the clarification regarding an increase in the number of games directly contributed to the heightened valuations and additional revenue.
The BCCI has officially announced that the IPL will witness a total of 410 games across the five-year cycle from 2023 to 2027. The tournament structure is set to scale up progressively. Following the 2022 edition, the immediate next two years—2023 and 2024—will feature 74 games per season. In 2025 and 2026, the scale expands further, with the IPL staging 84 games per season. During this phase, each team will play at least 16 matches in the league stage, a step up from the traditional 14 matches. By the time the 2027 season arrives, the total number of games will peak at 94, with every participating team set to feature in at least 18 matches.
Do broadcasting rights riches mean more money for teams?
The financial architecture of the IPL is built upon a revenue-sharing model where 50% of the central revenue pool is divided equally among the participating franchises. This central revenue pool is primarily constituted by franchise fees from new teams, media rights revenue, and central sponsorship money.
With the new cycle, the central revenue pool for the next five years is estimated at a staggering ₹60,000 crore, which averages out to ₹12,000 crore annually. This means that half of that amount—approximately ₹6,000 crore—will be distributed among the existing 10 franchises every year. Consequently, franchise owners are guaranteed an average annual revenue of roughly ₹600 crore. This represents a massive windfall, more than double the approximately ₹275 crore estimated for the 2022 edition. This guaranteed financial security alters the business valuation of every team in the league.
Does that mean the players will also get richer?
While the franchises are poised to reap unprecedented financial rewards, the direct impact on player salaries will follow a different trajectory. Players will certainly become richer, but the increase in their earnings will not be directly proportional to the astronomical jump in media rights values.
In the 2022 season, the IPL enforced a salary cap of ₹90 crore for each franchise to assemble a squad comprising a maximum of 25 players. This purse limit is scheduled to rise modestly to ₹95 crore in 2023 and ₹100 crore in 2024. Furthermore, the operational framework of squad development and auction mechanics may undergo structural changes in subsequent years. While top-tier international and domestic stars will continue to command premium prices, the financial growth for the broader player pool will be regulated by these purse caps rather than mirroring the direct influx of broadcast revenues.
Will IPL have more teams now?
The staggering scale at which the media rights have been sold, combined with the BCCI’s ability to secure a longer dedicated window in the international cricket calendar, has already triggered internal discussions within the board.
With the schedule allowing for more flexibility and breathing room, murmurs have begun regarding the feasibility of further expanding the league. There are growing deliberations within administrative circles about the necessity and logistical viability of increasing the number of participating teams from 10 to 12. While a 12-team tournament may not materialize immediately, sports analysts note that it could very well become a reality by 2027, or potentially as early as 2026, depending on how the expanded match counts are managed.
Why did falling TRPs not have too much of an impact on the sale of media rights?
In the lead-up to the media rights auction, skeptics pointed toward fluctuating television rating points (TRPs) as a potential dampener for valuations. However, these traditional metrics failed to capture the complete picture of modern viewership.
Television rating systems in India rely on conventional measurement methodologies that traditionally do not factor in digital outreach and streaming numbers. Furthermore, the dip in television viewership during certain phases was easily explained by external socio-economic factors. With COVID-19 pandemic restrictions being lifted, a vast majority of families preferred to step out and resume normal social lives during the summer holidays rather than being confined to their homes to watch evening matches on television. Bidders looked past these temporary anomalies, recognizing the unshakeable, foundational engagement that the league commands across the entire population.
What lies ahead?
The introduction of two separate broadcasters for the IPL in India—one for television and another for digital platforms—presents a new landscape that could potentially increase the financial burden on dedicated fans, who may now need separate subscriptions to access all matches.
Beyond the viewing experience, the pressing question for the cricketing community is how the BCCI will allocate and utilize this massive surplus of additional revenue. Industry experts argue that the immediate priority for Indian cricket should be strengthening the feeder-line for the men’s game. This includes investing heavily in domestic cricketers, age-group structures, match officials, and the thousands of grassroots foot-soldiers within State associations who sustain the sport at the ground level.
Additionally, the BCCI faces mounting expectations to establish a robust, equitable financial model for the women’s game across all levels, ensuring that the phenomenal growth in the men’s sector is mirrored in women’s cricket. While the board’s recent announcements regarding increased pensions for players who retired before 2004 have been warmly received, observers maintain that much more financial intervention is required across the broader ecosystem to ensure holistic development for the sport nationwide.
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