IPL Brand Value Sees Massive Rise, Chennai Super Kings No. 1 Among Franchises: Study
New Delhi: The Indian Premier League saw a 80 per cent rise in its brand value in 2023 compared to the previous year while five-time champions Chennai Super Kings maintained its top position as far as brand and enterprise values are concerned, according to a study released.
Based on a Houlihan Lokey report, IPL’s stand alone brand value has risen from $1.8 billion in 2022 to $3.2 billion in 2023, using relief from royalty method. Similarly, IPL’s business value also saw a significant 80 per cent growth at $15.4 billion in 2023 compared to last year’s value of $8.5 billion.
It is safe to say the increase in IPL’s business value is largely due to the media rights deal with JioCinema and Disney Star which is nearly three times what was with Disney Star and BCCI in the five-year deal from 2017 to 2022.
As per the study, the IPL’s brand value is expected to go on similar lines with English Premier League in the next cycle in 2027 that would further enhance the growth in its revenue from broadcasting rights.
“The IPL has transcended the boundaries of traditional sports and established itself as a global phenomenon. Since its inception in 2008, this cricket extravaganza has captivated millions of fans, bringing together top-notch talent from around the world, unparalleled entertainment, and nail-biting competition.
“IPL’s year-on-year growth of 80% both in terms of brand and business is testament of this fact,” said Harsh Talikoti, senior vice-president, Corporate Valuation Advisory Services. Among the franchises, CSK hold the top position with a 66 per cent growth from last year at $212 million in 2023. Virat Kohli’s Royal Challengers Bangalore (RCB) stand second with $195 million this year – a growth of 67 per cent from the previous year.
MSD, Virat Kohli Fan Following Help In Growth
He also emphasized that the massive fan following of Virat Kohli and Mahendra Singh Dhoni benefit Royal Challengers Bangalore and CSK respectively in terns of business and brand aspects. “Along with their passionate fan-following, teams such as CSK & RCB massively leverage the personal brands of MS Dhoni & Virat Kohli. Virat has over 254 million followers on Instagram and even if a fraction of those fans turns up to watch RCB just because of him then RCB benefits immensely.
“We saw this year where even the away grounds felt like home grounds for these two teams! The reach of these two teams has grown exponentially due to these superstars. Another reason why sponsors are willing to pay a premium to these franchisees,” he added.
IPL Ranks Higher Above NBA, EPL, Bundesliga
Importantly, IPL stands above the likes of NBA, EPL and Bundesliga when the broadcasting fees per match basis is concerned. Based on the report, IPL’s broadcasting fee on per match basis is valued at $14.4 million behind NFL’s $35.1 million.