The Indian Premier League (IPL), the cash-rich T20 league, has experienced an 11.7% decline in its business enterprise value, from INR 92,500 crore to INR 82,700 crore (US$11.2 billion to US$9.9 billion), marking the first such decline in recent years, as per D and P Advisory report.
Despite IPL’s continued popularity on television and digital platforms, the depletion is mostly due to a re-evaluation of media rights values.
The failed Zee-Sony merger and the merger of Disney-owned Star India and Reliance-owned Viacom18 have resulted in monopolistic dominance over TV and digital broadcasting, among other market dynamics mentioned in the research.
The league’s value has also been negatively influenced by delays in the introduction of significant tech companies like Apple, Amazon, and Meta into the IPL media rights market.
The report by D and P Advisory, which is a premier valuation services provider, also expects that fewer competitors will lead to a less aggressive approach in future IPL media rights auctions. The period of soaring prices driven by fierce bidding wars may be drawing to an end, prompting questions about the future path of IPL media rights value.
In comparison, the Women’s Premier League (WPL) has increased its enterprise value by 8%, from INR 1,250 crore to INR 1,350 crore ($150 million to $160 million).
The tournament has continued to engage audiences on television and digital platforms, highlighting broadcasters’ and technology companies’ enormous expenditures in media rights. The study highlights the changing content consumption trends in India, which are being driven by rising internet access and low-cost data plans, and how they are redefining the landscape of sports media rights.