Indian Premier League’s overall ecosystem value has reached ₹ 47,500 crore in 2019, up 13.% from ₹41,800 a year ago.
Among the team owners, Mumbai Indians with a brand value of ₹809 crore up by almost 8.5% during the year, indicating growth to top the charts for the fourth successive year. Chennai Super Kings, jumping to the second position with ₹ 732 crore brand value, have shown the best 13.1% growth among the teams during the year.
The values are reported in the Duff & Phelps IPL Brand Valuation Report 2019, a comprehensive study on brand values in the Indian Premier League (IPL). The global advisor protects, restores and maximizes values for its clients.
The findings of the sixth edition of Duff & Phelps’ annual IPL study suggests the growth is underpinned by the continued confidence advertisers, broadcasters, sponsors, affiliates, partners and viewers have shown in the IPL. The individual franchisee brands saw mixed fortunes, with their brand values increasing or decreasing in close correlation with their on-field performances.
For the global market, the IPL values in US dollar terms are reported at $6.8 billion, up 7% from $ 6.3 billion a year ago. The growth rate has slowed down from $ 1 billion increase in the valuation a year ago to only .5 billion growth in the current fiscal.
“Our IPL brand values report reflects the evolution of the modern cricket business paradigm. As we move into the second decade of IPL, the league has transitioned from being a startup to being a more mature, stable and profitable business. An increase of 20% in advertising revenues this year and the recently renewed PayTM title sponsorship deal (which has fetched an increase of 58% on a per-match basis over the last deal) are testaments to the continued popularity of IPL. This has resulted in a steady increase in the value of the ecosystem (which grew by 13.5% in INR terms). However, for growth trajectories to maintain their momentum, all teams need to focus on their on-field performance while continuing to broaden their footprint, forge relationships and generate revenue opportunities in growth markets,” says Varun Gupta, Asia Pacific Leader for Valuation Advisory Services and India Country Leader, Duff & Phelps.
Santosh. N, Managing Partner, D and P India Advisory Services LLP, a member of the Duff & Phelps network, added: “This year, Mumbai Indians (MI) and Chennai Super Kings (CSK), continued their absolute dominance with MI winning their fourth IPL title. Their consistent on-field performance has made them fulfil the dreams of their sponsors and advertisers resulting in a year-on-year increase in their brand value. On the contrary, Royal Challengers Bangalore (RCB) and Kolkata Knight Riders (KKR) have shed some of their brand value this year demonstrating that big city bases and marquee players are not the only factors influencing brand value; consistent performance on the field also matters.”
Chennai Super Kings, which has seen its brand value erode due to the two-year ban, have reportedly recovered on the back of continued on-field success coupled with a pan-India fervent fan base and Dhoni’s charisma, Duff & Phelps has stated in a Press release.
Kolkata Knight Riders and Royal Challengers Bangalore too have seen their respective values going down. The report attributes erosion to their below-par on-field performances, with both franchises shedding approximately 8% of their brand value. However, both continue to be backed by loyal fan bases and the presence of Shah Rukh Khan and Virat Kohli respectively, who continue to carry each brand on their shoulders.
RCB, who if not for Virat Kohli, would have seen a significant erosion in their brand value in the last couple of years. Along with KKR and RCB, Rajasthan Royals too have seen a deficit in their evaluation – down to ₹ 271 crore from ₹ 281 crore a year ago.
Sunrisers Hyderabad, the youngest franchisee in IPL, has made steady gains over the years in terms of its brand value while Delhi Capitals, on the back of its on-field performances this season, have seen a reported appreciation of 9% to its brand values.
The report has also highlighted the “Impact of the Indian Premier League on the ICC Cricket World Cup”.