IPL Brand Valuation Surges
The value of the Indian Premier League (IPL) as a business has surged by 6.5% to $16.4 billion (Rs 135,000 crore), according to the latest IPL Brand Valuation Study by Houlihan Lokey Inc, a global investment bank. This growth includes a 6.3% increase over the past year, raising the league’s value to $3.4 billion (Rs 28,000 crore).
Chennai Super Kings Remain the Most Valued Franchise
Despite not making it to the playoffs in 2024, Chennai Super Kings (CSK) continues to be the most valued franchise with a brand value of $231.0 million, marking a 9% growth from the previous year. According to the report, the IPL 2024 winners, Kolkata Knight Riders (KKR), experienced the highest growth at 19.30%, replacing Mumbai Indians to secure the third spot with a brand value of $216.0 million.
The IPL’s Global Prestige
“The IPL has solidified its status as a premier sports league on the global stage, showcasing an exceptional blend of sportsmanship, entertainment, and commercial success. The league’s growth is not just in numbers but also in its innovative approach to engaging fans and leveraging digital platforms. This year’s increase in value underscores the IPL’s strategic initiatives and its robust fan base,” said Harsh Talikoti, Senior Vice-President, Corporate Valuation Advisory Services, Houlihan Lokey.
Royal Challengers Bangalore’s Remarkable Turnaround
Royal Challengers Bangalore (RCB), which ranked second, reported a brand worth of $227.0 million. RCB’s turnaround from being placed 10th in the first half of the season to qualifying for the playoffs ensured they became the most watched and spoken about franchise in this year’s IPL.
Other Franchise Valuations
- Mumbai Indians (MI): Fourth place with a brand value of $204.0 million.
- Rajasthan Royals (RR): Fifth with a brand value of $133.0 million.
- Sunrisers Hyderabad (SRH): Sixth with a brand value of $132.0 million.
- Delhi Capitals: Seventh with a brand value of $131.0 million.
- Gujarat Titans: Eighth with a brand value of $124.0 million.
- Punjab Kings (PBKS): Ninth with a brand value of $101.0 million.
- Lucknow Super Giants (LSG): Tenth with a brand value of $91.0 million.
Increasing Private Equity Investments
“The eight legacy teams that have been a part of the IPL for a long time, are now able to reap substantial profits from both the central pool’s income distribution and their own franchise revenues from sponsorships, gate receipts, and merchandise sales. For the same reason, private equity investments have become increasingly prevalent in the IPL ecosystem in recent years with CVC Capital and Redbird Capital acquiring stakes in IPL franchises,” Talikoti added.
Major Sponsorship Deals
Tata has secured the title sponsorship of the IPL for a further five-year period from 2024 until 2028 for approximately $300 million (Rs 2,500 crore), paying almost 50% more than the previous deal of Rs 335 crore per season. Another significant partnership was inked with Qatar Airways for around $9.0 million (Rs 75 crore) for a three-year contract with Royal Challengers Bangalore.(cricket betting sites)