Revenue generation from IPL has been discussed not only among fans but also across businesses.
For cricket fans across the world, it is interesting to compare various game formats and the pattern followed in each segment of the sport. Likewise, the Indian Premier League (IPL) is one cricket format, which has changed the dynamics of cricket and so the business of sports. Revenue generation from IPL has been discussed not only among fans but also across businesses.
So, how much revenue does the annual IPL generate vis-a-vis the mega once in four years Cricket World Cup, last held in 2015?
According to an official ICC report, the Cricket World Cup 2015 earned a revenue of USD 428.4 million for the International Cricket Council (ICC). The much-anticipated event is held every four years with participating countries start preparing for the grand event months before.
Endorsed by numerous celebrities, sportsmen and political personalities, the IPL encourages more young people to play cricket.
The value of the IPL System grew 9% in 2017 to US$3.8 billion – an all-time high bar the 2010 record of US$4.1 billion and it was attributed to the stakeholders’ renewed confidence in the IPL management following the appointment of the BCCI’s Committee of Administrators (CoA) by the Supreme Court of India, as well as to a number of new ideas to enhance fan experience and all driving up the interest and participation in the tournament.
IPL 11 in 2018 had a total viewership of 1.4 billion impressions, a 15% rise from 1.2 billion from 2017. Moreover, impressions refer to the number of individuals in thousands of a target audience who viewed an event, averaged across minutes. A total of 202 million viewers logged on to video-streaming platform, Hotstar, to watch IPL 11, a 55.3% increase from 2016.
The opening match saw television viewership increase 37 percent over the prior year, advertising costs have almost doubled and some $94 million was spent by the eight participating teams to buy 169 players in an auction, compared with just $14 million for 66 players in 2017, industry data shows.
Reportedly, Star India earned had around Rs 2,000 crore in advertising revenues in 2018, a 54% jump from Sony’s Rs 1,300 crore in 2017.
In 2017, Star India paid USD 2.55 billion to buy the five-year global media rights of the IPL. The brand value of the IPL soared 19% to touch $6.3 billion in 2018 from $5.3 billion last year on the back of the renewed broadcast deal.
The Duff & Phelps IPL Brand Valuation Report – 2018 ranked Reliance Industries Chairman Mukesh Ambani-led Reliance Industries Ltd’s team Mumbai Indians the highest in terms of brand value at USD 113 million among individual franchisees for the third year in a row. It had valued the IPL brand at $5.3 billion in 2017, a 26 percent increase from $4.2 billion from 2016.
Meanwhile, in 2015, Duff & Phelps estimated the IPL brand to be worth $4.5 billion (Rs 27,000 Crores). The popularity can be assessed for the fact that according to Broadcast Audience Research Council of India, total TV viewership of IPL 2016 calculated by impressions stood at 102 Crores. A KPMG report had put the total impact of IPL 2015 on the Indian economy at Rs 1,150 Crores, more than 0.6 per cent of the country’s GDP. Gross Media Rights and Franchisee Consideration receipts from IPL 2015 are Rs. 1069.75 Crores as against Rs. 999.6 Crores last year. The increase is due to the increase in media rights income.