The standalone brand value of the Indian Premier League (IPL) is now $3.2 billion, 80% higher than $1.8 billion in 2022, according to a report by global investment bank Houlihan Lokey.
The report, ‘IPL Brand Valuation Study’, valued the business enterprise of the league at $15.4 billion, up from $8.5 billion in 2022. It ascribed this jump to the impact of the eye-popping amounts paid by media houses to acquire broadcast rights for the 2023-27 seasons, which now rest with Viacom18 and Disney Star.
The report said the value of the league’s media rights has grown at an extraordinary CAGR of 18% from 2008 to 2023, while the growth in absolute terms between the 2017 and 2023 cycles is 196%.
The league’s broadcasting fee, when compared on a per-match basis, is well above that of other professional leagues in the world like the NBA, EPL, and Bundesliga and is second only to the NFL, it said.
“When you think about it, it is India’s only premier live entertainment event. The country doesn’t have any other property like this. Movie theatres are underpenetrated, movie viewing is on the decline at the moment. IPL is actually the stage where consumers go to watch something live,” said Naresh Gupta, co-founder and managing partner, Bang in the Middle.
KV Sridhar, the global chief creative officer at Nihilent, ascribed the continuing success of the IPL to three primary reasons. First, it is running with the full might and support of BCCI & ICC and thus enjoys the limelight and attracts viewership.
The second reason, he said, is the money involved. “The league makes players richer than they would be if they played Test cricket their entire lives. This is why so many stars are attracted to the event. Some even prefer to play here instead of representing their countries. That attracts audiences,” he said. The presence of marquee players such as Virat Kohli and MS Dhoni, who are massive brands themselves, has helped increase the league’s popularity. Dhoni’s team, Chennai Super Kings, has ranked first in terms of brand value ($212 million), according to the report.
And for advertisers, the IPL provides a window of 40 days to push their brands. “If you set aside funds for advertising during the league, your brand will instantly become well-known due to the loyalty of the viewership,” Sridhar said.
IPL 2023’s advertising revenue was a whopping ₹10,120 crore, as per market research and analysis firm Redseer Strategy Consultants.
The role of technology in leading the game’s growth should not be underestimated, said experts. The rise in its viewership on OTT platforms, especially after JioCinema decided to stream it for free, has given a big boost to the league’s brand value. Higher definition videos, better sound quality, and better technology to determine outcomes have all played a key role in increasing the popularity of the tournament.
As the league completed its 16th season this year, experts say, marketing complacency should not set in. “The format must continue to evolve. Test cricket was overtaken by ODIs, and ODIs overtaken by the T20 format. Just like the above, many have started voicing the need for a 10-over cricket match as viewer attention and patience have started to decline. The format must take into account all of these,” said Sridhar.