The Economics of Sports and Entertainment
Beyond Cricket: The Economics of New Sports Leagues in India
How leagues like Pro Kabaddi, the Indian Super League and the Women's Premier League were built on the IPL model, and what it takes for a new league to survive.
Cricket dominates Indian sport, but the success of the Indian Premier League since 2008 inspired entrepreneurs to build leagues in other sports.
The IPL model
The IPL showed a formula:
- City-based franchises owned by businesses or celebrities.
- Player auctions, creating excitement and balance.
- Short, intense seasons designed for television.
- Media rights as the biggest source of revenue.
- Entertainment: music, celebrities and prime-time scheduling.
Pro Kabaddi League
Launched in 2014, the Pro Kabaddi League turned a traditional rural sport into a televised spectacle. It:
- Adapted kabaddi for television with indoor mats, lighting and short matches.
- Built on a sport many Indians played as children.
- Became one of the most-watched sports properties in India after cricket.
Indian Super League
The Indian Super League, also launched in 2014, brought football franchises to Indian cities, initially with well-known foreign players. Over time, it became India’s top football division. It has faced financial and governance challenges, showing the difficulty of sustaining leagues.
Women’s Premier League
The Women’s Premier League in cricket began in 2023. Franchise sales and media rights brought large sums, boosting women’s cricket and players’ earnings.
What makes a league last?
- Media rights and viewership: without TV and streaming money, leagues struggle.
- Sponsorship from brands seeking audiences.
- Cost control: player salaries and travel can outrun revenue.
- Fan loyalty: building local attachment takes years.
- Governance: clear agreements between league owners and sports federations.
Economic effects
New leagues create jobs for players, coaches, broadcasters and event staff, and can raise participation in sports. But many leagues in various sports have folded after a few seasons.
A young kabaddi player from a village in Haryana once played for small prizes at local tournaments. After being picked in a Pro Kabaddi auction, he earns a professional salary, appears on television and inspires children in his village to take up the sport.
Leagues need viewers, sponsors, cost control and good governance. Many leagues have struggled or folded despite copying the IPL format.
- The IPL created a franchise, auction and media-rights model.
- Pro Kabaddi (2014) turned a rural sport into a TV success.
- The ISL (2014) and WPL (2023) brought the model to football and women's cricket.
- Survival depends on media rights, sponsorship, costs, fans and governance.
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