The IPL ecosystem witnessed an increase in its overall value from US$ 5.3 billion in 2017 to US$ 6.3 billion in 2018. The increase was supported by the broadcasting rights fee surging at a compounded annual growth rate (CAGR) of 18.9%.
The Indian Premier League continues to grow as a brand despite being subjected to various controversies. According to the IPL Brand Valuation Report – 2018 by Duff & Phelps, the global advisor that protects, restores and maximizes value for clients, the IPL ecosystem witnessed an increase in its overall value from US$ 5.3 billion in 2017 to US$ 6.3 billion in 2018. The increase was supported by the broadcasting rights fee surging at a compounded annual growth rate (CAGR) of 18.9%.
Mumbai Indians who failed to make it to the play-offs this season, emerged as the most valuable team for the third consecutive year with a brand value of US$ 113.0 million followed by Shah Rukh Khan’s Kolkata Knight Riders which is in the second spot with a brand value of US$ 104.0 million.
The Chennai Super Kings who were returning to the league after a ban of two years were able to recover on their brand value thanks to the Dhoni factor and their superb run in the tournament. The team was valued at US$ 98.0 million followed by Royal Challengers Bangalore. Sunrisers Hyderabad, Delhi Daredevils, Kings XI Punjab and Rajasthan Royals in the brand rankings.
Varun Gupta, Managing Director, Duff & Phelps and Asia Pacific Leader for Valuation Services, said that Star India’s broadcasting rights deal was a game changer that put IPL on par with some of the biggest sporting leagues in the world (on a fee per match basis). “The change in content consumption, influx of over-the-top (OTT) and digital viewing platforms and increased support from advertisers, broadcasters and sponsors have given the IPL greater significance in terms of brand value,” he said.
Commenting on the findings of the report, Santosh. N, Managing Director, Duff & Phelps said that it is a reflection on the evolution of the modern cricket business paradigm with clubs benefiting from not only the enduring popularity of cricket in India but also from strong marketing and globalization of the game.
“However for growth trajectories to maintain their momentum, all teams need to continue broadening their footprint, forming relationships and generating revenue opportunities in growth markets. Ultimately, however, much of cricket’s future depends on ensuring the product is of a sufficiently high quality to continue attracting viewers, sponsors and broadcasters, the latter of which have become a vital component for the game’s financial health,” he added.
The report suggested that social media was an important driver of brand value. The mentions on social media platforms in the first week of IPL went up from 642,900 in 2017 to 855,400 in 2018.