Estimate the annual revenue generated by the Indian Premier League (IPL). | Guesstimates - Interview Preparation PDF Download

To estimate the annual revenue generated by the Indian Premier League (IPL), we can break down the revenue sources into the following categories:

1. Broadcasting rights

Broadcasting rights are a major source of revenue for IPL. In 2017, Star India won the global broadcasting rights for IPL for a period of five years (2018-2022) for a whopping INR 16,347.5 crore (USD 2.55 billion). 
So, the annual revenue from broadcasting rights would be:
Annual revenue from broadcasting rights = (INR 16,347.5 crore) / 5 years
= INR 3,269.5 crore

2. Sponsorships

The title sponsorship of IPL is another significant source of income. 
Currently, Vivo holds the title sponsorship for the IPL. 
According to reports, Vivo signed a deal in 2018 for INR 2,199 crore for five years (2018-2022). 
So, the annual revenue from title sponsorship would be:
Annual revenue from title sponsorship = (INR 2,199 crore) / 5 years
= INR 439.8 crore
Apart from the title sponsorship, there are other sponsorships as well, such as official partners, umpire partners, strategic timeout partners, etc. 
Let's assume that these additional sponsorships bring in another INR 200 crore annually.

3. Ticket sales

Ticket sales contribute a significant portion of the IPL revenue. 
There are 60 matches in a single season of IPL. 
Assuming an average of INR 1,000 per ticket and an average stadium capacity of 40,000, we can calculate the total ticket revenue as follows:
Total ticket revenue = 60 matches * 40,000 seats * INR 1,000 per ticket
= INR 240 crore

4. Merchandise sales

Merchandise sales include the sale of team jerseys, caps, accessories, etc. 
Let's assume that each of the eight teams generates an average of INR 10 crore from merchandise sales annually. 
So, the total revenue from merchandise sales would be:
Total revenue from merchandise sales = 8 teams * INR 10 crore
= INR 80 crore

Now, let's sum up all the revenue sources to estimate the annual revenue generated by IPL:
Total annual revenue = Broadcasting rights + Sponsorships + Ticket sales + Merchandise sales
= INR 3,269.5 crore + (INR 439.8 crore + INR 200 crore) + INR 240 crore + INR 80 crore
= INR 3,269.5 crore + INR 639.8 crore + INR 240 crore + INR 80 crore
= INR 4,229.3 crore

Thus, the estimated annual revenue generated by the Indian Premier League (IPL) is approximately INR 4,229.3 crore.