November 25, 2024

IPL Full Form: The Origin of Indian Premier League

The Indian Premier League (IPL), also known as the TATA IPL due to sponsorship, is an annual men’s Twenty20 (T20) cricket league in India. Founded by the Board of Control for Cricket in India (BCCI) in 2007, it features 10 franchise teams based in various cities or states. Held between March and May each year, the IPL is the largest and most popular cricket league globally, often taking place during the summer. The tournament has a dedicated window in the ICC Future Tours Programme, limiting international cricket tours during its season.

The IPL has made significant strides in sports history. In 2014, it ranked sixth in average attendance among global sports leagues. It became the first major sporting event to be broadcast live on YouTube in 2010. Inspired by its success, other Indian sports leagues have followed suit. In 2022, the IPL’s brand value was estimated at ₹90,038 crore (US$11 billion). The league has also contributed significantly to India’s economy, with the 2015 season alone adding ₹1,150 crore (US$140 million) to the GDP. In 2022, its valuation rose to US$10.9 billion, marking a 75% growth since 2020. The 2023 IPL final set a record as the most-streamed live event, with 32 million viewers. In 2023, the IPL’s media rights were sold for US$6.4 billion, with each match valued at $13.4 million. As of 2024, the IPL has had 17 seasons, with Kolkata Knight Riders emerging as the current champions, having defeated Sunrisers Hyderabad in the 2024 final.

Inspired by a rival

In 2007, Zee Entertainment Enterprises launched the Indian Cricket League (ICL). However, the ICL was not recognized by either the Board of Control for Cricket in India (BCCI) or the International Cricket Council (ICC). The BCCI was particularly displeased when some of its committee members joined the ICL executive board. In retaliation, the BCCI raised the prize money for its domestic tournaments and imposed lifetime bans on players who joined the ICL, viewing it as a rival or “rebel” league.

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Foundation

On 13 September 2007, after India’s victory in the 2007 T20 World Cup, the Board of Control for Cricket in India (BCCI) announced the launch of the Indian Premier League (IPL), a franchise-based Twenty20 cricket competition. The inaugural season was set to begin in April 2008, starting with a grand opening ceremony in New Delhi. BCCI Vice-President Lalit Modi, who spearheaded the IPL initiative, shared details about the tournament, including its format, prize money, franchise revenue model, and squad composition rules. The league, managed by a seven-member governing council, would also serve as the qualifying tournament for that year’s Champions League Twenty20.

An auction for the eight franchises took place on 24 January 2008, with reserve prices totaling $400 million. However, the auction raised $723.59 million. The first season of the IPL officially began in April 2008, with eight teams: Chennai Super Kings (CSK), Mumbai Indians (MI), Delhi Daredevils (DD), Kings XI Punjab (KXIP), Deccan Chargers (DC), Rajasthan Royals (RR), Kolkata Knight Riders (KKR), and Royal Challengers Bangalore (RCB). The ICL, which had banned players who joined the IPL, was shut down in 2009.

Expansions and terminations

New franchises, Pune Warriors India and Kochi Tuskers Kerala, were added to the IPL ahead of the 2011 season. The Sahara Adventure Sports Group purchased the Pune franchise for $370 million, while Rendezvous Sports World bought the Kochi franchise for $333.3 million. However, the Kochi franchise was terminated after just one season due to its failure to pay the required 10% bank guarantee of the franchise fee.

In September 2012, the BCCI terminated the Deccan Chargers’ franchise agreement after failing to find new owners. A replacement franchise auction in October saw Sun TV Network winning the bid, and the team was renamed Sunrisers Hyderabad. Pune Warriors India withdrew from the IPL in May 2013 over financial disputes with the BCCI, and the franchise was officially terminated in October, reducing the league back to eight teams.

In June 2015, Chennai Super Kings and Rajasthan Royals, both former champions, were suspended for two seasons due to their involvement in a spot-fixing and betting scandal. They were replaced for two years by new franchises based in Pune and Rajkot. Due to the COVID-19 pandemic, the 2020 season was held in the United Arab Emirates. In August 2021, the BCCI announced that two new franchises would join the league in 2022. After a closed bidding process, the RPSG Group and CVC Capital won the bids for the teams, paying ₹7,000 crore (US$840 million) and ₹5,200 crore (US$620 million), respectively. These teams were named Lucknow Super Giants and Gujarat Titans.

Several IPL franchise owners have expanded their business by acquiring teams in other leagues, such as the Caribbean Premier League (CPL), South Africa’s SA20, the UAE’s International League T20 (ILT), and the USA’s Major League Cricket (MLC). These teams are often branded with names similar to their parent IPL franchises.

In addition to the above acquisitions, Delhi Capitals also purchased a stake in Major League Cricket’s (MLC) Seattle Orcas.

Organization

The IPL’s headquarters are located in the Cricket Centre, near the Wankhede Stadium in Churchgate, Mumbai. The league’s operations are overseen by the Governing Council, which is responsible for organizing tournaments. As of April 2023, the members of the Governing Council included:

• Arun Singh Dhumal – Chairman
• Jay Shah – Secretary of the BCCI
• Ashish Shelar – Treasurer, BCCI
• Avishek Dalmiya
• Pragyan Ojha – Representative of the Indian Cricketers’ Association
• Alka Rehani Bhardwaj – Nominee of the Comptroller and Auditor General of India.

Player acquisition, squad composition, and salaries

Teams in the IPL can acquire players through the annual player auction, trading with other teams during designated trading windows, or by signing replacements for unavailable players. Players register for the auction, set their base price, and are purchased by the highest-bidding franchise. Unsold players at the auction can be signed as replacements. Trades require player consent, and any contract differences are covered by the franchise. There are typically three trading windows: two before the auction and one before the tournament. Trading is not allowed outside these windows or during the tournament, but replacements can be signed before or during the event.

As of the 2024 season, the following rules apply:

• The salary cap for each squad is set at ₹100 crore.
• Under-19 players can only be picked if they have previously played first-class or List A cricket.

Player contracts are typically for one year but can be extended by one or two years if the franchise opts to do so. Since the 2014 season, player contracts are in Indian rupees, whereas they were previously in US dollars. Overseas players can choose to be paid in their preferred currency, at the exchange rate on either the contract due date or the actual payment date.

Before the 2014 season, Indian domestic players were not part of the auction pool. They could be signed by franchises for a discrete amount, and a fixed sum of ₹10 lakh (US$12,000) to ₹30 lakh (US$36,000) would be deducted from the franchise’s salary purse. This led to significant opposition from franchise owners, who claimed that wealthier teams were luring players with under-the-table deals. As a result, the IPL later decided to include domestic players in the auction pool.

Read More: Who Won IPL 2024 Finals | Kolkata Knight Riders vs Sunrisers Hyderabad