Royal Challengers Bangalore (RCB) is a franchise cricket team in IPL based out of Bangalore, which was founded in the year 2008. RCB, despite not winning an IPL trophy, has been the most popular franchise due to having several superstars like Virat Kohli, AB de Villiers, and Chris Gayle over the years. They have reached the IPL finals thrice in 2009, 2011 & 2016. RCB franchise was purchased by Vijay Mallya in 2008 for a price of 111.6 USD which is only the second-highest bid at that time after Mumbai Indians. Currently, RCB is the third-richest franchise in the league with a net value of INR 697 crores.
RCB has a huge and passionate fan base all over India, especially in the city of Bangalore. The fans are always known to be the most loyal ones and have been very vocal in support. Every time a large number of people turn up for their home matches. Every year, RCB earns a lot through media rights, sponsorships, stadium ticket sales, merchandise sales (T-shirts), and prize money they get from the cash-rich league. Here in this article, we will look into the details of the above-mentioned things.
1. Media Rights
The BCCI receives a massive amount by selling the media rights of the IPL to satellite partner Star Sports and to the OTT platform Jio Cinema. The revenue model created by BCCI has helped the board to make a lot of money from digital broadcasters and Television. The emergence of online platforms has brought more money for the board and it has helped out all 10 franchises of IPL also to earn more revenue from this.
BCCI guarantees a share of 40-50% of media rights to all ten IPL franchises. Among all ten teams, the one who wins the IPL title will be getting the highest amount. RCB's revenue from this mode is expected to increase more as media rights were bought in 2022 for a very huge price for the cycle of the 2023-27 period.
RCB in 2023 has signed a record-breaking three-year title sponsorship deal for 75 Crores with Qatar Airways. Along with Qatar Airways, Reliance Jio has also been a principal partner for the RCB franchise since, the 2018 IPL edition. Sponsorship has been the most important source of income for any franchise and other than the mentioned two brands, KEI and Happilo are also principal partners of RCB.
RCB's associate sponsors include brands like PUMA, Hindware Italian collection, Equitas, BOAT, Mahindra, and Nippon Paints. The franchise's association with these brands is expected to bring more money for them in the IPL 2023 edition.
3. Stadium tickets
RCB generates a huge amount through ticket sales at the M.Chinnaswamy stadium in Bengaluru. RCB supporters turn up in huge numbers for their home games and apart from tickets, they sell gate passes also to mint even more money. As per BCCI guidelines, franchise owners have the right to set the value of ticket prices, and in this edition, the price of tickets saw a new high.
Team owners will get 80% of the share from ticket sales and the remaining 20% of revenue only goes to BCCI. Between 2020-22, no IPL games were conducted in Bengaluru due to COVID-19 but once again with the return of home and away format, IPL has come back to Bengaluru. The ticket price of IPL 2023 in online sales varied from Rs. 2405 to 42,350 at M. Chinnaswamy stadium .
4. Merchandise Sales
RCB earns a decent amount through merchandise sales also. Everyone has access to buy T-shirts, shorts, Caps, shoes, etc. from RCB online store. RCB franchise also stitched a strategic partnership with Puma in 2021 which has helped franchise owners to earn more as their access makes it easy for their supporters to buy team merchandise across the country. RCB also partners with Status Quo, which has helped them to enter the lifestyle business as well.
5. Prize Money
All ten franchises get prize money based on the IPL standings they finish every year. RCB despite not winning the IPL title has won a prize of 2.4 crs for being runners-up in 2009, prize money of 5 crs for being runners-up in 2011 & prize money of 11 crs for being runners-up in the 2016 IPL respectively.
However, among all the things that have been mentioned, every franchise gets the least revenue from this mode.