In accordance with an annual report by Brand Finance, a brand valuation consultant, the Indian Premier League‘s (IPL) brand value has nearly doubled to $8.4 billion in 2022 from $4.7 billion in 2021.
Mumbai Indians (MI) remain the most valued brand, with an $83 million valuation, a 4% uptick over 2021. According to the report, the IPL’s brand value was increased by the new-media rights auction and the addition of two new teams.
The $6.2 billion (Rs 48,390 crore) media rights auction enhanced the central pool of IPL total revenue by more than 2.5 times for the 2023-2027 cycle.
According to the report, digital media rights played a significant role in the media rights auction, resulting in better brand awareness among the intended audience of millennials and digitally savvy fans.
All eyes were on digital rights at the June media rights auction. During the 2018-2022 media rights cycle, the value of digital rights was INR 4,040 crore, while TV rights were worth INR 11,410 crore. For the 2023-27 media rights cycle, which includes 410 matches, digital rights have risen to Rs 20,500 crore for the Indian subcontinent, close to television’s Rs 23,575 crore. Including the non-exclusive digital rights, the total value of digital rights becomes Rs 23,758 crore and defeats TV rights by a small margin.
The IPL has created a valuable brand based on a deep correlation with its important consumer audiences, according to the report, thanks to a sharp boost in online viewership and streaming services during the pandemic.
It was noted that the quick growth in revenue is not being matched by an equal increase in expenses, which is fueling IPL’s brand value growth.
“From media rights getting doubled, two new teams, new league structures and staggered restrictions in stadiums, it (IPL) was a showcase of how competitive sporting events must be governed,” said, Ajimon Francis, Managing Director, of Brand Finance India.
Since its inception in 2008, the brand IPL has grown 318 per cent in value, from around $2 billion to over $8 billion this year.
The brand value of franchises has also increased significantly over the years. Since 2009, Mumbai Indians, Chennai Super Kings (CSK), and Kolkata Knight Riders (KKR) have grown by 99 per cent, 89 per cent, and 82 per cent, respectively.
The teams’ brand value has increased as a result of receiving additional revenue from the central pool beginning in 2023. In a comparison of the top five IPL teams with global sports leagues teams. The top five English Premier League teams have a brand value of $6,468 million, LaLiga has a value of $4,365 million, the Bundesliga has a value of $2,626 million, Serie A has a value of $2,124 million, and Ligue 1 has a value of $1,670 million, while the IPL has a value of $364 million.
Savio D’Souza Senior Director, Brand Finance, said, “With its resilience during the pandemic, strong decisions on title sponsorship with the Tata Group, and new media rights increasing in value, the governing team has ticked all the right boxes. With the expansion of franchises, permitting IPL franchises to go global, squeezing the cricketing calendars, and choosing high throughput stadiums, the (IPL) brand is going from strength to strength.