What's new

Why IPL franchises want to own a team in every league?

RidiculousMan

ODI Debutant
Joined
Aug 6, 2023
Runs
9,843
I know this is a strategic and business decision for their brands but I want to know exactly what's the play and strategy?

Indian player don't participate in other leagues aside from odd retirees. The leagues from around the world aren't Indian in origin.

Are the broadcasters paying significantly more money just because now you have teams that end with Super Kings, Royals, etc?

Are the IPL franchises generating revenue from other leagues simply through their association to IPL and Indian viewership?

Or are the IPL Franchises doing this (maybe despite a loss) because they see a long-term play, where they advertise their IPL name and brand as much as they can via other leagues?
 
Good question and I'm surprised why more people haven't asked it.

To me, this is very clearly a long-term strategy. The economics of cricket are being rewired around franchises, and IPL owners are moving early to entrench themselves almost everywhere that the sport has a footprint and economic potential (barring Pakistan ofc). It's about owning the infrastructure: teams, brands, talent pathways, and eventually leverage over scheduling and player movement.

We have seen IPL franchises offer players like Jofra Archer exclusive deals that could put them outside the purview of central contracts. I expect we will see alot more of this in the future. The next stage is them likely taking over teams in BBL and New Zealand.

Even if some of these teams lose money now, that’s acceptable. The real aim is to normalise IPL-linked franchises as the centre of the cricketing world, weaken the influence of boards over time, and ensure that when franchise cricket fully takes over these owners are the ones calling the shots.

We are going in a scary direction where the role of international cricket will be significantly minimized and be almost entirely focused around 3 teams, while the franchise T20 leagues will dominate the rest of the calendar. There will probably be a Champions League full of all these IPL-linked franchises too at some point.

I don't know about you but if I were a Pakistani fan, I would start looking for a new sport to follow. Because if there is any actual loser in this future that these IPL-linked franchises are creating, it's Pakistan cricket and Pakistani cricketers who will soon likely be locked out of all these franchise T20 league competitions.
 
Good question and I'm surprised why more people haven't asked it.

To me, this is very clearly a long-term strategy. The economics of cricket are being rewired around franchises, and IPL owners are moving early to entrench themselves almost everywhere that the sport has a footprint and economic potential (barring Pakistan ofc). It's about owning the infrastructure: teams, brands, talent pathways, and eventually leverage over scheduling and player movement.

We have seen IPL franchises offer players like Jofra Archer exclusive deals that could put them outside the purview of central contracts. I expect we will see alot more of this in the future. The next stage is them likely taking over teams in BBL and New Zealand.

Even if some of these teams lose money now, that’s acceptable. The real aim is to normalise IPL-linked franchises as the centre of the cricketing world, weaken the influence of boards over time, and ensure that when franchise cricket fully takes over these owners are the ones calling the shots.

We are going in a scary direction where the role of international cricket will be significantly minimized and be almost entirely focused around 3 teams, while the franchise T20 leagues will dominate the rest of the calendar. There will probably be a Champions League full of all these IPL-linked franchises too at some point.

I don't know about you but if I were a Pakistani fan, I would start looking for a new sport to follow. Because if there is any actual loser in this future that these IPL-linked franchises are creating, it's Pakistan cricket and Pakistani cricketers who will soon likely be locked out of all these franchise T20 league competitions.
I think the scenario you have presented is one that the Indian owners are hoping for.

I don't think it will transpire the way that they want it to. It seems to be emotional investing, hoping that cricket catches on the same way it did in India, all of the brands are artificial, at the some point they will need to see some tangible ROI and the bubble will pop.

They have massively overvalued and overspent on something that is still a nicer sport outside of Asia, and are trying to achieve domination while cutting out two of the potentially biggest markets in the game.
 
I think the scenario you have presented is one that the Indian owners are hoping for.

I don't think it will transpire the way that they want it to. It seems to be emotional investing, hoping that cricket catches on the same way it did in India, all of the brands are artificial, at the some point they will need to see some tangible ROI and the bubble will pop.

They have massively overvalued and overspent on something that is still a nicer sport outside of Asia, and are trying to achieve domination while cutting out two of the potentially biggest markets in the game.
This is true for places like the UAE, but I'm not sure if it's true for countries like South Africa, Australia, England. South Africa for instance is a growing market with alot of potential. As the economy improves and cricket becomes more commercially viable, that growth will naturally ripple into better long-term ROI.

I have no doubt that these franchises are overvalued but in a broader sense they are not judging ROI on season-to-season, but on long-term leverage and control. Also does a short-term bubble popping really matter if you’ve already embedded yourself so deeply into the structure of the game?

The point seems to be to create a network - shared ownership, bundled sponsorships, talent pipelines, and eventually leverage over players and calendars. Even if individual leagues struggle, the owners who are embedded across multiple markets still come out ahead because they have diversified their risk. If the league does well, they have first-mover advantage over late entrants.

If you look at it from their perspective excluding Pakistan is a logical move because from an investment stand-point, Pakistani players are a risky bet. The political issues between Pakistan and India spill into the sport far too much because of the Indian government. These owners don't want to be in a position where they are at the center of fan backlash, or on the bad side of the Indian govt. They want predictability and control.

It’s a shame we’ve come to talking about cricket in such financial terms and lingo, but that’s where the sport seems to be heading.
 
Cricket south africa reported

12 million USD loss in 2021
11 million USD loss in 2022
45 million USD profit in 2023 - SA20 initiation.
14 million USD profit in 2024 - there is a dip. But still profitable

You see where this will be heading?

Dewald brevis became the highest paid in SA20 recently. Close to a million dollar. It is the second richest league in 3 years.
 
Good question and I'm surprised why more people haven't asked it.

To me, this is very clearly a long-term strategy. The economics of cricket are being rewired around franchises, and IPL owners are moving early to entrench themselves almost everywhere that the sport has a footprint and economic potential (barring Pakistan ofc). It's about owning the infrastructure: teams, brands, talent pathways, and eventually leverage over scheduling and player movement.

We have seen IPL franchises offer players like Jofra Archer exclusive deals that could put them outside the purview of central contracts. I expect we will see alot more of this in the future. The next stage is them likely taking over teams in BBL and New Zealand.

Even if some of these teams lose money now, that’s acceptable. The real aim is to normalise IPL-linked franchises as the centre of the cricketing world, weaken the influence of boards over time, and ensure that when franchise cricket fully takes over these owners are the ones calling the shots.

We are going in a scary direction where the role of international cricket will be significantly minimized and be almost entirely focused around 3 teams, while the franchise T20 leagues will dominate the rest of the calendar. There will probably be a Champions League full of all these IPL-linked franchises too at some point.

I don't know about you but if I were a Pakistani fan, I would start looking for a new sport to follow. Because if there is any actual loser in this future that these IPL-linked franchises are creating, it's Pakistan cricket and Pakistani cricketers who will soon likely be locked out of all these franchise T20 league competitions.
That seems to be the long term case for Cricket and IPL franchises here. In the near future Cricket schedule may look more like Football's year long. But there really isn't a home base for these franchises other than their home in India. I just don't see a single league happening for more than 3-4 months other than IPL.

If IPL ends up running for most of the year duration then where will other leagues go? How will they compete with IPL? Where will the franchises loyalty would then be? With Chennai Super Kings or Durban Super Kings?

I don't know if the leagues can even be merged together. Why would most country boards allow foreign owned teams to run a big year long league?

How would Champions League work? Will they abandon the city names from their brand and would just compete as Super Kings and MI in the league?

I also think one more card that BCCI has right now is allowing Indian players to participate in other leagues. That will extend the life and comfort period for these global franchises but I just don't see a year long working model with only Indian owned teams on the stage.

Lastly. I follow Cricket and Pakistan Cricket because it is a passion. Even if Cricket in Pakistan was restricted to a National T20 only. I will still follow it.

Being a Pakistani Cricket fan is actually a hard thing. Ask 23 year old Bashir. If glory and brand consciousness was my goal then I would simply just follow Real Madrid all year long. See them win matches every week and Champions League every other year. Easy sports-fan life.
 
Cricket south africa reported

12 million USD loss in 2021
11 million USD loss in 2022
45 million USD profit in 2023 - SA20 initiation.
14 million USD profit in 2024 - there is a dip. But still profitable

You see where this will be heading?

Dewald brevis became the highest paid in SA20 recently. Close to a million dollar. It is the second richest league in 3 years.
What is the contribution of sa20 is to these figures?
 
Good question and I'm surprised why more people haven't asked it.

To me, this is very clearly a long-term strategy. The economics of cricket are being rewired around franchises, and IPL owners are moving early to entrench themselves almost everywhere that the sport has a footprint and economic potential (barring Pakistan ofc). It's about owning the infrastructure: teams, brands, talent pathways, and eventually leverage over scheduling and player movement.

We have seen IPL franchises offer players like Jofra Archer exclusive deals that could put them outside the purview of central contracts. I expect we will see alot more of this in the future. The next stage is them likely taking over teams in BBL and New Zealand.

Even if some of these teams lose money now, that’s acceptable. The real aim is to normalise IPL-linked franchises as the centre of the cricketing world, weaken the influence of boards over time, and ensure that when franchise cricket fully takes over these owners are the ones calling the shots.

We are going in a scary direction where the role of international cricket will be significantly minimized and be almost entirely focused around 3 teams, while the franchise T20 leagues will dominate the rest of the calendar. There will probably be a Champions League full of all these IPL-linked franchises too at some point.

I don't know about you but if I were a Pakistani fan, I would start looking for a new sport to follow. Because if there is any actual loser in this future that these IPL-linked franchises are creating, it's Pakistan cricket and Pakistani cricketers who will soon likely be locked out of all these franchise T20 league competitions.
nice post Red .
 
so they can make money all year round, become larger than the boards of the league they operate in, then wrest significant control from the bcci.
 
That seems to be the long term case for Cricket and IPL franchises here. In the near future Cricket schedule may look more like Football's year long. But there really isn't a home base for these franchises other than their home in India. I just don't see a single league happening for more than 3-4 months other than IPL.

If IPL ends up running for most of the year duration then where will other leagues go? How will they compete with IPL? Where will the franchises loyalty would then be? With Chennai Super Kings or Durban Super Kings?
None of these leagues are meant to be competitors to the IPL, and none of them will run for 3-4 months like the IPL. They are supposed to be feeder leagues (in a sense) for the IPL while being their own thing in their respective countries. IPL can't run for the whole year. The remaining months in the calendar will likely be made up of these leagues.

How would Champions League work? Will they abandon the city names from their brand and would just compete as Super Kings and MI in the league?
They will keep the brand moniker and the city name obviously. How else will you differentiate between the two? CSK will be made up largely of Indian players whereas Johannesburg Super Kings will be made up of largely South African players.

I don't know if the leagues can even be merged together. Why would most country boards allow foreign owned teams to run a big year long league?
Not sure if I understand your point of merging leagues together. I never said that. Owners are separate entities buying up teams in different leagues. They are all different people but more or less have the same goal. The other leagues won't run all year long.

And as far as your question of why boards would allow foreign-owned teams to build this kind of influence in their cricket eco-system is concerned, well, it has already started happening. And the reason is simple: money. South Africa were struggling big-time financially before the SA20 took off. New Zealand cricket is struggling to a great extent too. Other boards like ECB and CA have different issues where they have the cricket board or state associations owning the franchise teams, who obviously can't pay the players the same kind of money as these cash-rich IPL owners. Boards are being put in positions where they have no choice but to take the money because not doing so would be depriving their players of financial benefit. But long term, it will have a significant impact on their influence and power within their own system.

I also think one more card that BCCI has right now is allowing Indian players to participate in other leagues. That will extend the life and comfort period for these global franchises but I just don't see a year long working model with only Indian owned teams on the stage.
Who's to say that they won't allow Indian players to take part in these leagues in the future? Cricket is going to a place where it seems like everything will be connected to money. They can pay BCCI extra to allow certain big-name Indian players to take part in other leagues, which will boost viewership for these leagues in India too. From what I understand, BCCI not allowing their players to take part in foreign leagues is down to two reasons: 1) workload and 2) they don't want their local/homegrown players to get too caught up in franchise league cricket. Those are not really major dealbreakers that can't be worked around for the right price. Especially if the franchises are Indian-owned.

Lastly. I follow Cricket and Pakistan Cricket because it is a passion. Even if Cricket in Pakistan was restricted to a National T20 only. I will still follow it.

Being a Pakistani Cricket fan is actually a hard thing. Ask 23 year old Bashir. If glory and brand consciousness was my goal then I would simply just follow Real Madrid all year long. See them win matches every week and Champions League every other year. Easy sports-fan life.
That's your perspective, I'm talking about the larger picture. Firstly, most people in Pakistan are not hardcore cricket fans, and the economy has not come to the point yet where alot of the growth of the sport starts happening organically, like it did in India years ago. None of this means that Pakistan cricket will die, but being locked out of such a hypothetical ecosystem will have far-ranging impacts on the profitability of cricket as a sport in Pakistan. If cricket as a sport is not profitable enough..(hypothetically speaking) where you, as a player barely play any international cricket and can't get a contract in any franchise league in the world, then what's the point of spending your whole life trying to perfect your craft? It would naturally lead to less people wanting to take up the sport of cricket.
 
Who's to say that they won't allow Indian players to take part in these leagues in the future? Cricket is going to a place where it seems like everything will be connected to money. They can pay BCCI extra to allow certain big-name Indian players to take part in other leagues, which will boost viewership for these leagues in India too. From what I understand, BCCI not allowing their players to take part in foreign leagues is down to two reasons: 1) workload and 2) they don't want their local/homegrown players to get too caught up in franchise league cricket. Those are not really major dealbreakers that can't be worked around for the right price. Especially if the franchises are Indian-owned.

My guess is Indian billionaire owners will bribe BCCI officials to let the indian players go and play in overseas franchise leagues.

However Lalit Modi said in a recent interview (with Michael Clarke) that BCCI contracted players will never be allowed to play in franchises abroad since it will devalue the IPL, so there's that.
 
No. Only time they make money besides SA20 is when India tours. November, 2024 India tour to SA generated 600 million rand.


Sa20 contributed 3 million rest was through tours and ICC. It was the smallest contributor.

No sa20 and they would still have bumper profits that year.

Basically it's India tour or bust.
 
My guess is Indian billionaire owners will bribe BCCI officials to let the indian players go and play in overseas franchise leagues.

However Lalit Modi said in a recent interview (with Michael Clarke) that BCCI contracted players will never be allowed to play in franchises abroad since it will devalue the IPL, so there's that.
I would guess the same. And it probably won't apply to all Indian players. I think it will apply to a select number of current players with name value who only play white-ball, and players how have very little chance of playing for India again.

I don't really agree with that. At the end of the day (in this hypothetical scenario) they are playing for Indian brands in leagues that could never even dream of competing with the IPL. Plus, BCCI would be getting kickbacks.
 
Cricket south africa reported

12 million USD loss in 2021
11 million USD loss in 2022
45 million USD profit in 2023 - SA20 initiation.
14 million USD profit in 2024 - there is a dip. But still profitable

You see where this will be heading?

Dewald brevis became the highest paid in SA20 recently. Close to a million dollar. It is the second richest league in 3 years.
So where is the revenue coming from... my guess would be India, by betting and tv subscription and or indirectly through Indian advertisers.
 
Qalandars & Gladiators also tried to do this and even purchased teams in SA T20 & IL T20 but all of that ambition has frizzled away.

I think Pak has enough rich people that it should at least own one or two teams in The 100, CPL, IL T20, & SA T20. Not sure when BBL will be up for sale but can see that happening within the next few years depending on the end date of their current broadcaster deal.

Gladiators own a team in T10 and also if my memory serves right, they had a team in the Sri Lanka league, it's just about time to invest a bit more and get more teams in the bigger T20 leagues.
 
All these leagues will eventually die down since they are linked to dream11 which has been banned in India now so the viewership in India will definitely drop and I don’t see how CL in cricket would work when the teams are owned by the same owners. Even in football, owners have to sell their teams if another of their team is in same competition just like what happened with Crystal Palace this year.

These are just feeder leagues for IPL and they survive on betting because they don’t have Pakistani market which is the biggest market after India
 
Qalandars & Gladiators also tried to do this and even purchased teams in SA T20 & IL T20 but all of that ambition has frizzled away.

I think Pak has enough rich people that it should at least own one or two teams in The 100, CPL, IL T20, & SA T20. Not sure when BBL will be up for sale but can see that happening within the next few years depending on the end date of their current broadcaster deal.

Gladiators own a team in T10 and also if my memory serves right, they had a team in the Sri Lanka league, it's just about time to invest a bit more and get more teams in the bigger T20 leagues.
It seems like we are struggling to find buyers for our own league teams never mind investing abroad. We dont have industrialists that can compete with the cricket crazed Indian investors.
 
It seems like we are struggling to find buyers for our own league teams never mind investing abroad. We dont have industrialists that can compete with the cricket crazed Indian investors.
It's directly attached to economy. Indian economy has been going up and their middle class and young gen are getting more money in their pockets to spend and consume. Hence businesses want to spend a good amount of money as sponsors.

Pakistan's has regressed and since this government came in. Economy took a massive hit and middle class struggled and were seeing their pockets empty. Hence restrain from consumers and sponsors.
 
What do you think the greater priority of the owners are? SA20 or IPL

Unless it comes to a point where you can , theoretically, allow 17 non homegrown players per squad in IPL, just like EPL, I'm not sure IPL can draw from the domestic talent in SA20 or any other league.

The international level SA players are the ones who, generally, get big IPL contracts .

It's not hierarchical in the sense that top performers in SA20 may get IPL contracts but are not lost to the SA20 at all, since they don't share the same window.

Only the PSL is somewhat of a feeder league because of the shared window
 
Unless it comes to a point where you can , theoretically, allow 17 non homegrown players per squad in IPL, just like EPL, I'm not sure IPL can draw from the domestic talent in SA20 or any other league.

The international level SA players are the ones who, generally, get big IPL contracts .

It's not hierarchical in the sense that top performers in SA20 may get IPL contracts but are not lost to the SA20 at all, since they don't share the same window.

Only the PSL is somewhat of a feeder league because of the shared window
PSL is not a feeder. It may lose players but there is no direct link between PSL and IPL.

SA20 teams are junior counterparts of their Indian franchises. From ownership and identity they are junior IPL teams and have shared data and coaching.

Because cricket doesn't have leagues running concurrently you won't have a traditional feeder system, but these mini IPL are the closest thing to it. We are only in season 2 so it will take time for the player movement and development pathway side to happen but I don't think in a few years that it will be a completely "free market" i.e a player groomed and found by Mumbai Indians South Africa will be signed by CSK in India and play against Mumbai.
 
PSL is not a feeder. It may lose players but there is no direct link between PSL and IPL.

SA20 teams are junior counterparts of their Indian franchises. From ownership and identity they are junior IPL teams and have shared data and coaching.

Because cricket doesn't have leagues running concurrently you won't have a traditional feeder system, but these mini IPL are the closest thing to it. We are only in season 2 so it will take time for the player movement and development pathway side to happen but I don't think in a few years that it will be a completely "free market" i.e a player groomed and found by Mumbai Indians South Africa will be signed by CSK in India and play against Mumbai.


What you are talking about may not come to pass that easily in cricket as it is a far more conditions dependent sport than football.

A good midfielder or defender would be a good one almost everywhere in the world.

But a good middle order batsman on a Chennai pitch would need very different skills from a middle order batsman in Johannesburg.

And CSK own both franchises. Which is why apart from maybe Faf , their squads are pretty different.

Similarly, Trinbago Knights only share maybe one player with KKR in Andre Russell.

Only a few cricketers will ever have the ability to overcome and deliver in all conditions . So, it wouldn't be in the interest of the franchises themselves to have a squad to play in all the respective leagues , apart from a couple of key players.
 
It seems like we are struggling to find buyers for our own league teams never mind investing abroad. We dont have industrialists that can compete with the cricket crazed Indian investors.

I think it has more to do with ambition than just money. If a tycoon in Pak buys teams in the same league as our neighbors, we also directly tie the profits from the league to the economy of our neighbors so it's mostly a win-win situation.

It's not even that costly, Multan were paying almost US$ 7 million in Pak, something that they can pay and get a franchise easily in SA T20 & The 100.
 
I think it has more to do with ambition than just money. If a tycoon in Pak buys teams in the same league as our neighbors, we also directly tie the profits from the league to the economy of our neighbors so it's mostly a win-win situation.

It's not even that costly, Multan were paying almost US$ 7 million in Pak, something that they can pay and get a franchise easily in SA T20 & The 100.
Hundred franchises sold for around 100million USD.
 
Hundred franchises sold for around 100million USD.

That's the price over 5 years and no Franchise fee is involved here so if it's broken down, it comes around to US$ 10-15 Million a year depending on the percentage stake that someone wants to get. (that's my understanding, I could be wrong)
 
Owners of IPL franchises are not some local rice mill owners, dry fruit traders etc like in some other local leagues in subcontinent. These are world renowned conglomerates like Ambani Group, Adani Group, Jindal etc that have stake in pretty much every industry there is in the world.

Owning a franchise is probably not even a drop in the ocean for these people. However a cricket franchise definitely has an upside. It get a lot of media, attention/limelight, publicity, exposure than any other industry out there except maybe movies/ entertainment. Having a presence goes a long way in the business world. Trump is the biggest example. His companies were bankrupt multiple times, yet people call him a successful businessman because he has built himself as the brand. Similarly, these owners see it as exposure and publicity. They can write off the losses on these franchises or just see it as miscellaneous advertising expenditure. If they think it’s not worth it, they will pull out. Simple.

Also most cricket boards have some form of government intervention and with sports and culture in general, it is a great entry point into these countries for Indian businesses if they already don’t have a presence there.

That’s your reason. These are multi billion dollar conglomerates not some average village idiots. They won’t spend a dollar even on family weddings without a larger vision in mind.
 
It doesnt even use it's own brand names. However, I suppose at least it has a target audience compared to MLC or ILT20.

Any league that doesnt have its own target audience and/or it's own brand names = feeder leagues IMO.

@jnaveen1980 @Nikhil_cric
USA has a large group of South Asian diaspora. It si a country where even soccer couldn't gain any traction as much as american sports. So it will take time for AMericans to understand it. Ofcourse it won't grow big beyon certain point. It will encourage few americans take part in the sports. On the other hand ILT20 is a proper fix league.
 
Cricket south africa reported

12 million USD loss in 2021
11 million USD loss in 2022
45 million USD profit in 2023 - SA20 initiation.
14 million USD profit in 2024 - there is a dip. But still profitable

You see where this will be heading?

Dewald brevis became the highest paid in SA20 recently. Close to a million dollar. It is the second richest league in 3 years.
And SA20 is really good quality of competition, broadcasting, outfields, crowds etc. unbelievable fun. I actually like it as much as IPL and broadcasting quality wise it is actually better than IPL
 
Back
Top