With spectators thronging stadiums, IPL gate revenue returns after 2 years

Tickets for matches featuring Mumbai Indians, Chennai Super Kings, Royal Challengers Bangalore, Kolkata Knight Riders sold out despite price hike

The 2022 edition of the Indian Premier League (IPL) has seen gate, or matchday, revenues stage a comeback for teams after two dull years. This follows the return of in-stadium play complete with spectators, stars, cheerleaders and the works.

Though the number of spectators has been capped at 25 per cent of the stadium’s capacity, the Board of Control for Cricket in India (BCCI), the organiser of the T20 tournament, is considering to increase this limit to 50 per cent in the coming weeks, sources say.

While IPL 2020 was held in the United Arab Emirates (UAE), the 2021 edition scheduled for May was suspended due to a spike in Covid-19 cases. The tournament was subsequently held in the UAE in September-October.

This year, the cash-rich league will be held in Mumbai and Pune across four venues: Wankhede Stadium and Brab­ourne Stadium in Mumbai, DY Patil Stadium in Navi Mumbai and MCA Stadium in Pune.

Tickets for matches featuring Mumbai Indians, Chennai Super Kings, Royal Challengers Bangalore and Kolkata Knight Riders have been sold out despite a price hike, media industry sources said.

Ticket prices for the IPL this year have been pegged at around Rs 800 to Rs 8,000 per match, depending on the venue, stand and facilities. Before Covid-19, the starting price for IPL tickets was around Rs 400-500 per match.

Karan Taurani, senior vice president, Research, at brokerage Elara Capital, says that pent-up demand has led to a return of gate revenue for teams.

“Gate revenue forms 20 per cent of a team’s total revenue. With on-ground action missing at the IPL over the last two years in India, the 2022 edition was bound to see a pickup in gate revenue with fans rushing for live-action sports,” he says.

Gate or matchday revenue for teams includes ticket, food and beverage, merchandise sales as well as on-ground activations. However, ticket sales are the most visible aspect of gate revenue for teams, explains Hitesh Gossain, a sports marketing expert, since it gives a sense of a team’s fan power.

“The stronger the team, the stronger will be the ticket sales, which shows the brand authority of the franchise,” Gossain says. “So, an increase in ticket prices will not matter since fan engagement with the team is high,” he adds.

Mumbai Indians, Chennai Super Kings, Royal Chall­en­gers Bangalore and Kolkata Knight Riders are among the top teams in terms of brand valuation, according to Kroll (earlier Duff and Phelps), a brand valuation firm.

The starting price of tickets for Wankhede Stadium is Rs 2,500 per match, while entry-level tickets at the neighbouring Brabourne Stadium cost Rs 3,000, according to data sourced from the industry. DY Patil Stadium in Navi Mumbai and the MCA Stadium in Pune, meanwhile, have tickets starting at Rs 800-1,000 per match.