INDIA: The Indian Premier League (IPL), in a ground-breaking growth, has risen to become the second most valuable sporting league in the world, thanks to a record-breaking broadcast rights contract in 2022. According to a recent survey, the IPL’s brand value has experienced an astounding 80% increase, reaching a staggering $3.2 billion within the last year.
Topping the charts among the league’s ten franchises is the Chennai Super Kings (CSK), with a remarkable brand valuation of $212 million in 2023, as reported by (Houlihan Lokey). This achievement can be largely attributed to the team’s captain, the revered MS Dhoni, who continues to be one of the IPL’s biggest crowd-pullers.
Throughout the season, fans from all corners of the globe flocked to stadiums in anticipation of witnessing the former Indian captain’s exceptional skills, particularly amid swirling rumors of it being his final season.
The report claims that from 2008 to 2023, media rights for the T20 league increased “at a phenomenal” CAGR of 18%. “When the IPL’s broadcasting fee is compared with other professional leagues around 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),” the report stated.
Harsh Talikoti, Vice President of Corporate Valuation Advisory Services at Lokey, emphasized that the valuation study focused on the brand value rather than the overall business value. CSK’s remarkable performance on the field, coupled with the strong recall of its brand, significantly boosted its premium position. Sponsors evaluate teams based on the visibility they would receive, which further bolsters CSK’s brand value.
The revenue model of the IPL ensures an equitable distribution of earnings among all franchises, with each team receiving a proportionate share from the central pool, including media rights and central sponsorships. This inclusive model, which continues to witness growth each year, has rendered the IPL an attractive investment opportunity for all participating teams.
The survey further revealed that three franchises, namely CSK, Royal Challengers Bangalore (RCB), and Mumbai Indians (MI), dominate both brand valuation and viewership.
RCB, despite having yet to secure an IPL trophy since the league’s inception in 2008, secured the second spot in brand valuation with an impressive value of $195 million, marking a 52.3% rise from the previous year. Meanwhile, MI, a five-time champion, claimed the third spot with a brand value of $190 million, reflecting a solid growth of 34.8% from the previous year.
The immense popularity of the IPL was exemplified by the Jio Cinema’s reported peak viewership of 32.0 million concurrent viewers during the final match between CSK and GT. Such massive viewership figures underscore the unparalleled enthusiasm surrounding these franchises and the league as a whole.
As the IPL’s brand value continues to surge and attract attention globally, the league solidifies its position as a powerhouse in the world of sports. With the Chennai Super Kings leading the way, the IPL is set to captivate fans and sponsors alike, promising a future of growth and prosperity for one of the most thrilling cricket competitions in the world.
Also Read: Chennai Super Kings Clinch IPL 2023 Title: Complete List of Winners and Individual Awards
