What is the Indian Premier League?

The Board of Control for Cricket in India (BCCI) launched the Indian Premier League (IPL) on September 14, 2007. Based on the lines of the English Premier League (EPL) and the National Basketball League (NBA), the IPL is said to be the brainchild of BCCI vice-president Lalit Modi. The idea was first floated in 1996 but was shot down as the board felt it would go against the zonal system of domestic cricket. The project moved into top gear when the Zee group launched a rival Indian Cricket League on similar lines in April 2007.

Sponsorship Rights of IPL

Indian real estate developer DLF Universal secured exclusive rights to the Indian Premier League title sponsorship worth INR 200 crore (over US$50 million) for five years. Hero Honda has been selected as an associate sponsor for five years in a deal worth US$22.5 million. In addition, soft-drink giant Pepsi secured the title as the tournament's Official Beverage by signing a five year deal worth USD 12.5 Million. The proceeds of the latter are to be shared equally by the league's franchise owners. Kingfisher Airlines has been named IPL's umpire partner with rights to advertise of umpire's clothes and also sponsoring third umpire decisions for five years. The deal is worth Rs. 106 crores (appx. US$ 26.5 million).
All these revenues fall under the Central Pool, 40% of which will go to IPL, 54% distributed to franchisees and 6% to prize money. The money would be distributed in these proportions till 2017, after which the share of IPL would be 50%, franchisees 45% and prize money 5%.

Who are the franchisees?

The franchisees will own the eight teams in the fray. They can run them in their own styles, bring their own sponsors and even name the team according to their choice. They will even be free to list their teams on the stock exchange.