Kolkata Knight Riders. (Photo Source: BCCI/IPL)
The Indian Premier League (IPL) has established itself as the most successful T20 cricketing league in the world. Along with it, the league has also emerged as a perfect business model for the Board of Control for Cricket in India (BCCI). In its 15 years of journey, the league has given a lot of money to the BCCI by delivering superb action to avid league watchers.
It’s not just the BCCI that is making money from the cash-rich league but also the franchises. Kolkata Knight Riders (KKR), the third-most successful IPL side, are the second-richest IPL team in the league with a net worth value of INR 740 crore. Currently, they are only behind Mumbai Indians (MI), who have a net value of INR 803 crore.
Discussing more, let’s have a look at the KKR’s net worth and source of revenue in the league
1. Media rights
The BCCI gets a fine amount from TV broadcasters and over-the-top (OTT) platforms for selling its media rights. After taking away its share from the amount, the board gives 40% to 50% of its income to IPL franchises as well and the biggest percentage of it goes to the trophy-winning side.
In January 2023, the media rights for the T20 tournament were sold for INR 48,390 crore for 2023-27 seasons. This deal attracted media attention as it made the IPL the second most valuable league in the world, after America’s National Football League.
This financial achievement of the league has helped KKR too as their revenue got a huge boost. For the two-time IPL champions, the amazing deal has proven fruitful, and riding on its success, KKR are also among the franchises that might see a rise in their earnings.
2. Sponsorships
According to a few reports, teams earn 20-30% of their income through sponsorships. From 2008-14 and 2018-19, the international brand Nokia was the partner of the Kolkata-based franchise as their principal sponsor. After parting ways with the Finnish company, MPL’s logo was also featured on KKR’s jersey as it became the successor of Nokia as the two-time IPL winning side’s principal sponsor.
In 2023, MyFab11 became the principal sponsor of the franchise and in the ongoing tournament, its logo is grabbing eyes due to its presence on KKR players’ jerseys. Along with MyFab11, a tire manufacturing firm, BKT is also holding the position of a principal sponsor of the team.
Apart from these two names, Lux Cozi, Joy Personal Care, Money9, Jio, Royal Green, and Acko also splurged money to get associated with Knight Riders as their official sponsors. The franchise’s achievements and popularity have helped its owners to crack enticing deals with these renowned brands and grab a huge amount with sponsorships.
3. Stadium tickets and gate passes
Cricket-crazy fans in Kolkata never shy away from showing their love to their IPL team. In the last 15 years, a massive crowd has shown up consistently at the iconic Eden Gardens to support their team. The Eden Gardens, which has the capacity to host 80,000 people, is the third-largest stadium in terms of seating capacity.
Emboldened by the warmth and backing of the local crowd at their classical home ground, KKR have played some incredible cricket in these years. The connection between the team and fans has profited the KKR owners too as they bag a decent amount home through stadium ticket sales.
From 2020-22, KKR supporters and owners suffered a huge loss due to the COVID-19 outbreak. On one side, fans went into grief due to missing the T20 action while on the other side, KKR owners also couldn’t generate revenue from stadium tickets. Apart from tickets, the franchise also sells gate passes and adds more money to their wallet.
2. Merchandise sales
The sports merchandise market is booming in India at a great pace. In recent years, India’s fondness for cricket goods and apparel has led to the establishment of online retail stores from IPL franchises. Influenced by the trend, KKR also launched the ‘Shop KKR’ website to establish a strong connection with its fans.
By selling trending products related to KKR such as jerseys, shorts, caps, T-shirts, and keychains, the franchise owners collect a spectacular amount throughout the year. However, their sales skyrocket during the two months of the league every year. In 2023, the team’s owner Shah Rukh Khan, who is also a Bollywood star, launched the ‘Knight Club app’ to strengthen his team’s special bond with fans.
The app is available on IOS and Android platforms and it also includes a megastore that helps fans to buy merchandise related to the Knight Riders and display their love and support for the team.
1. Prize Money
As compared to other sources of income, IPL prize money is considered the least lucrative one, as it involves a small amount. So far, KKR have bagged the prestigious IPL prize amount twice with their marvellous title triumphs in 2012 and 2014. After failing to be up to the mark in the initial four seasons, KKR played an aggressive brand of cricket in the fifth season.
Snatching the title of champions from Chennai Super Kings (CSK) in 2012, KKR got INR 10 crore at the end of the tournament. In 2014, they kept Punjab Kings away from the trophy by beating them by three wickets at M. Chinnaswamy Stadium. This extraordinary achievement also handed them INR 15 crore.
In 2021, they made it to the final under the leadership of Eoin Morgan but couldn’t cross the line on D-Day, losing to Chennai Super Kings (CSK) by 27 runs. This time, for their magnificent journey as runners-up in the 14th edition of the league, Knight Riders received INR 12.5 crore.