This increase is mostly attributable to the impact of the media rights agreement signed with Viacom18 and Disney Star for the period 2023–2027 following a hotly contested auction.
The two companies paid a total of $6 billion to acquire the TV and digital rights to the IPL.
According to the IPL Brand Valuation Study 2023 report, the stand-alone brand value of the IPL is now $3.2 billion, up by 80% from $1.8 billion in 2022.The report added that IPL’s media rights have grown at a phenomenal CAGR of 18% from 2008 to 2023, while the growth in absolute terms between the 2017 and 2023 cycles is 196%.
When the IPL’s broadcasting fee is compared with other professional leagues in the world on a per-match basis, the IPL fares well above the likes of the National Basketball Association (NBA), the English Premier League (EPL), and the Bundesliga and is second only to the National Football League (NFL).
“Created on the American style of franchise-based systems of hiring players, the IPL has established itself as a hugely lucrative sports league, along similar lines as the NFL and the NBA,” commented Harsh Talikoti, Senior Vice President, of Corporate Valuation Advisory Services at Houlihan Lokey.”Besides the exponential growth in brand and business enterprise valuation of the IPL and the franchisees, it is interesting to note the prominent shift towards acceptance of digital platforms for sports consumption. Viacom18’s strategic push towards promoting digital viewership in India has undeniably reignited the much-needed excitement surrounding the IPL. This shift is evident in the remarkable viewership numbers witnessed during the current season on Viacom18’s OTT platform, JioCinema. However, Disney Star’s television viewing numbers were also very encouraging this year, achieving record levels,” added Talikoti.With a brand value of $212 million, growing year-on-year at 45.2%, Chennai Super Kings are ranked No. 1 in both the brand ranking and the business enterprise value ranking.
Royal Challengers Bangalore ranks second in terms of brand value at $195 million. Mumbai Indians is a close third on the table with a 2023 brand value of $190 million, which grew by 34.8% from its 2022 brand value of S$141 million.
Kolkata Knight Riders is ranked fourth in the 2023 brand value chart with a value of US$181 million, growing by 48.4% y-o-y from $122 million in 2022. Delhi Capitals was ranked fifth with a brand value of $133 million, up from a brand value of $83 million in 2022.
Sunrisers Hyderabad ranked sixth with a brand value of $128 million in 2023, up from $81 million in 2022, followed by Rajasthan Royals, which witnessed the highest incremental brand value growth in percentage terms, up 103% to US$120 million from $59 million in 2022.
Punjab Kings (PK) has a 2023 brand value of $90 million, up from $63 million in 2022. The Gujarat Titans and Lucknow Super Giants (LSG) have a 2023 brand value of $120 million and $83 million, respectively.
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