IPL matches to become costlier for fans: Here's why
What's the story
The Indian Premier League (IPL) is set to become more expensive for fans as the Goods and Services Tax (GST) on match tickets has been hiked. The new tax regime has categorized IPL tickets under "luxury goods." Now, attending events like IPL matches will attract a 40% GST with Input Tax Credit (ITC), up from the previous rate of 28% with ITC.
Ticket impact
IPL tickets to get costlier
The GST hike is expected to increase IPL ticket prices by 10-15%, according to Santosh N, managing partner of D&P Advisory. For instance, a ₹1,000 ticket that previously cost ₹1,280 (GST included) will now cost ₹1,400 with an additional burden of ₹120 for every ₹1,000 spent. Punjab Kings CFO LC Gupta believes this price rise could deter some fans from attending matches in person.
Attendance shift
Casual fans may not attend matches
Gupta said the GST hike is likely to reduce in-stadium attendance, especially among casual fans and those in less affluent regions. However, he added that the overall cost of attending a match goes beyond just ticket prices. It also includes food and beverages, hospitality services, and merchandise purchases. This could affect public perception of affordability for IPL matches as compared to other viewing platforms like OTT or television broadcasts.
Strategy shift
Franchises need to rethink pricing strategies
Gupta said franchises might have to rethink their pricing strategies and explore flexible models such as early-bird discounts, loyalty programs, family packs, and discounted season passes for home games. He added that improving the overall fan experience within stadiums will be crucial to retaining attendance and engagement levels despite higher costs. Gujarat Titans COO Col (retired) Arvinder Singh said they are looking at ways to enhance the unique stadium experience without passing on additional costs due to GST hike.
League impact
Pro Kabaddi League, Indian Super League could be hit harder
The impact of the higher GST could be more severe on other leagues such as Pro Kabaddi League (PKL) and Indian Super League (ISL). Santosh said a steep rise in entry costs for non-international or non-elite events like PKL will disproportionately affect attendance compared to premier leagues like IPL due to lesser brand loyalty and thinner margins.