The global investment bank, Houlihan Lokey, Inc. has released the Indian Premier League (IPL) Brand Valuation Study 2023, its first study into the corporation’s activity and brand values of the competition.
The Corporate Valuation Advisory Services of Houlihan Lokey provide businesses with guidance on all valuation-related issues influencing their efforts in financial reporting, taxation, and strategic planning. Offerings comprise tax entity value for restructuring, equity valuations for stock, and purchase price allocation (valuation of all acquired assets and liabilities).
The research states that the IPL’s stand-alone brand value is currently US$3.2 billion, an increase of 80% from US$1.8 billion in 2022. The IPL’s enterprise value is now US$15.4 billion, up from US$8.5 billion in 2022 by 80%. This increase is mostly because of the media rights agreement signed with Viacom18 and Disney Star for the period 2023–2027 following a highly contentious auction.
From 2008 and 2023, the IPL’s media rights grew at an astounding CAGR of 18%, while the rise between the 2017 and 2023 cycles rose by an amazing 196%. The IPL performs far better than the National Basketball Association (NBA), the Premier League and the Bundesliga in terms of broadcasting fees when compared on a per-match basis with other professional competitions around the world, coming in second only to the National Football League (NFL).
Harsh Talikoti, Senior Vice President, Corporate Valuation Advisory Services at Houlihan Lokey., said, “Created on the American style of franchise-based systems of hiring players, the IPL has established itself as a hugely lucrative sports league, along similar lines as the NFL and the NBA. Besides the exponential growth in brand and business enterprise valuation of the IPL and the franchisees, it is interesting to note the prominent shift towards acceptance of digital platforms for sports consumption. Viacom18’s strategic push towards promoting digital viewership in India has undeniably reignited the much-needed excitement surrounding the IPL.
“This shift is evident in the remarkable viewership numbers witnessed during the current season on Viacom18’s OTT platform, JioCinema. However, Disney Star’s television viewing numbers were also very encouraging this year, achieving record levels.”
Chennai Super Kings (CSK) are placed first in both the brand ranking and business enterprise value rating with a brand worth of US$212 million, increasing year-on-year at a rate of 45.2%. At US $195 million, Royal Challengers Bangalore (RCB) comes in second in terms of brand value. Rajasthan Royals’ (RR) brand value increased by 103%, which is the largest percentage increase year-on-year.
Let’s look at how teams’ brand values have changed from the previous year to this year:
|TEAMS||2022 Brand Value (US$ Mn)||2023 Brand Value (US$ Mn)|