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IPL Organization Format and History

Many regard the Indian Premier League (IPL) as the biggest cricket competition in the world. This is due to its superb players who are capable of providing entertainment like no other. It’s the main reason why millions of fans watch IPL matches year after year.

But, some IPL enthusiasts aren’t fully aware of the league’s history and format. Because of that, we’ve decided to cover all of these important details so you can expand your IPL knowledge.

IPL Founding and Evolution

The IPL history began on 13th September 2007 when the Board of Control for Cricket in India (BCCI) officially announced its foundation. This idea for establishing a Twenty20 cricket competition came after India’s triumph at the 2007 T20 World Cup.  

It initially started in April 2008 and it featured only 8 teams from different states and cities such as:

  • Chennai Super Kings
  • Mumbai Indians
  • Royal Challengers Bengaluru
  • Kolkata Knight Riders
  • Deccan Chargers
  • Rajasthan Royals
  • King XI Punjab
  • Delhi Daredevils

In 2011, the IPL allowed Kochi Tuskers Kerala and Pune Warriors to join the competition. However, the latter team dissolved the following season after failing to pay a 10% franchise fee to the BCCI.

The league also terminated the Deccan Chargers franchise following the 2012 season after it failed to find new owners. This allowed Sunrisers Hyderabad to take their place the next season. But, in May 2013, Pune Warriors also left the IPL due to financial differences with the board.

Following the betting scandal in 2013, Chennai Super Kings and Rajasthan Royals received two-year suspensions. Gujarat Lions and Rising Pune Supergiants got the green light to substitute them during that period. However, these clubs dissolved at the end of their suspension.

In 2021, the board expanded the IPL to 10 teams once more with the addition of Lucknow Super Giants and Gujarat Titans. These sides started out in season 2022 and are still part of the league.

Organizing Body

The BCCI is India’s principal national governing body of cricket. After establishing the IPL and its teams, the board decided to sell the ownership to corporate groups and celebrities.

It also sold the competition’s global media rights to World Sport Group for around $1 billion. In 2023, Viacom18 and Star Sports bought the broadcasting rights for the upcoming 4 seasons for $6.4 billion.

But, the BCCI is still operating with the IPL despite selling all franchise teams. This organization got the support of several major sponsors such as Adidas, Dream11, SKI Life, IDFC First Bank, JioCinema, Atomberg Technologies, and Campa Cola.

Tournament Format

The IPL Format is very simple to understand as it follows a few basic rules. All teams get to play 14 matches during the group stage. The 4 teams with the most points will progress to the playoffs.

During the playoffs, the 1st and 2nd-placed teams will play in the first quarter-final. On the other hand, the 3rd and 4th sides on the table will meet in the other quarter-final.

The winner of the first clash will go directly to the final. However, the loser will get to play against the better team from the second quarter-final. Now, the side that wins this semi-final will go through to the final. It goes without mentioning that the winner of the IPL final will receive the trophy.

Franchises and Ownership

At this stage, we’ll reveal the current teams that will appear in the 2025 IPL season. You can check them out in the following table.

TeamsMajor OwnersFranchise Dynamics
Chennai Super KingsChennai Super Kings Cricket LimitedBought by India Cements (owned by N. Srinivasan) in 2008, but later transferred to a separate entity called Chennai Super Kings Cricket Limited
Mumbai IndiansIndiawin Sports Pvt. LtdBCCI sold the franchise to Indiawin Sports Pvt. Ltd (Reliance Industries Ltd), owned by Mukesh Ambani, in 2008
Delhi CapitalsJSW Sports, GMR SportsGMR Sports bought the team in 2008 but sold 50% of its shares to JSW Sports in 2018
Kolkata Knight RidersShah Rukh Khan, Juhi Chawla, Jay MehtaShah Rukh Khan’s company Red Chillies Entertainment bought the franchise in 2008 in partnership with Juhi Chawla and her husband Jay Mehta
Gujarat TitansCVC Capital PartnersCVC Capital Partners won the rights to the franchise in 2021
Rajasthan RoyalsManoj BadaleEmerging Media Sporting Holding Limited (Royals Sports Group), owned mostly by Manoj Badale, purchased the club in 2008. It also partners with RedBird Capital Partners and Lachlan Murdoch
Royal Challengers BengaluruUnited SpiritsVijay Mallya acquired the franchise in 2008, but he failed to default on his loans in 2016, allowing United Spirits to take control
Punjab KingsMohit Burman, Ness Wadia, Preity Zinta, Karan PaulThe featured owners bought the franchise in 2008 and are still operating with the team
Lucknow Super KingsRPSG GroupRPSG Group, owned by Sanjiv Goenka, won the franchise rights in 2021
Sunrisers HyderabadSUN GroupSun TV Network took over the franchise in 2012 after the Deccan Chronicle went bankrupt

Revenue Model

Numerous TV channels and online streaming from India and many other countries have the rights to broadcast IPL events. The rights come in 4 different packages where the domestic TV and streaming rights are worth around $5.1 billion (INR397.75 billion).

This popular cricket league is also collaborating with a good number of brands. Among the biggest sponsors are Tata, My11Circle, AngelOne, RuPay, CEAT, Wonder Cement, JioCinema, and Star Sports.

Now, media rights and sponsorships comprise 70% – 80% of the IPL revenue known as the central pool. The BCCI collects 50% of that amount while the teams get to divide 45%. As for the other 5%, it will go to the winning team as prize money.

IPL teams get to collect income from selling tickets. The cheapest tickets go between INR399 and INR2,300 while the most expensive go from INR7,500 to INR42,300.

In 2023, the franchises earned INR307 crores on average. However, last year, they managed to get a combined revenue of INR6,797 crore which is more than double that in 2023.

IPL Rules and Variations

The IPL uses the T20 format where each team gets to play a single innings with up to 20 overs. This league is also using its very own powerplay rule. It states that the first 6 overs of each innings are actually powerplay overs. When this occurs, only 2 field players are free to go outside the 30-yard circle.

Player Composition, Auction, and Transfers

Before the start of the IPL season, every team must register a minimum of 18 and a maximum of 25 players. They can also include up to 8 overseas cricketers in their selection.

Now, teams get to compose their squads at auctions called mega and mini. The first type occurs every 3 years and it allows clubs to conduct serious rooster changes. But, this one also includes the IPL retention rules, which can make things a bit difficult.

The featured rule states that teams can only retain up to 5 capped and up to 2 uncapped cricketers. On the other hand, a mini-auction will occur over a single day. However, there are usually fewer players up for bidding during these periods.

Know that there is also a trade window in the IPL that opens one month after the season ends. But, it usually closes one week before the IPL auction. Yet, the featured window opens again after the auction concludes. This time it remains active until a month before the new season.

Playoff Qualification Rules

In the IPL, every team gets to collect 2 points for winning a match. But, they will also receive one point if the event ends with no result (tie). Now, two or more sides may end the group stage with the same number of points. In this case, the league will take into account the tie-breaker rule.

This one states that the team with the most wins will go above all other sides with equal points. But, if two or more teams have the same number of victories, then the next criterion is the net run rate (NNR).

The calculation of the NNR involves the deduction of the team’s average runs scored and the ones conceded. Now, if two teams have equal points and win, the one with a better NNR will rank above the other.

IPL Special Rules & Innovations

There are a few special rules and innovations that are currently in use by the IPL. One of them is the impact player rule. It allows a team to substitute a starting player and put a specialist bowler or batsman according to the match situation.

Next, during a match, every IPL team will get to use two strategic timeouts per innings. These are 2-minute breaks that allow the squad to readjust their tactics.

This cricket league is also utilizing the Decision Review System (DRS). It’s a technology-based system that helps match officials make more accurate decisions.

Additionally, from 2025, the IPL will adopt ICC’s Code of Conduct regulations. This will include imposing standardized penalties for Levels 1, 2, and 3.