MUMBAI: The brand value of the Indian Premier League stands at $6.3 billion this year, an increase of 19% over the $5.3 billion world cricket’s most valuable annual property registered in 2017.
According to the IPL Brand Valuation Report 2018 released Wednesday by corporate finance advisory firm Duff & Phelps, the surge in valuation comes on the back of the big spike in broadcasting rights fee.
Star India acquired the five-year (2018-22) global broadcast and digital rights to the IPL for approximately $2.55 billion in September 2017.
Other factors that added value include a controversy-free tournament, the presence of marquee players, commentary in regional languages and rise in OTT (over the top) media platforms thereby expanding viewership coverage as well as social media activities and following.
As far as the valuation of individual teams goes, Reliance Industries-owned Mumbai Indians, with a brand value of $113.0 million, topped the charts for the third season in a row.
“Despite not performing up to the mark this season, Mumbai Indians still continue to be one of the most popular brand names in the IPL, with some of the world’s greatest cricketing legends on board. Based on insights received from the Mumbai Indians management team, they included CSR as an integral part of their operations right from season two through their Education for All (EFA) initiative,” reveals the report.
However, it was Kings XI Punjab that saw the most appreciation at 27% year-on-year. The Preity Zinta co-owned team saw its brand value rise from $41 million in 2017 to $52 million this year. Shah Rukh Khan’s Kolkata Knight Riders came second on the list with a brand value of $104 million, growing 5% over last year’s $99 million.
Despite winning the 2018 IPL title, Chennai Super Kings (CSK) could only place third on the brand valuation chart, tied with Royal Challengers Bangalore at $98 million.
CSR activities by various teams also had a role to play in their brand valuations according to the report. The report throws light on the relation between corporate social responsibility (CSR) and sports teams globally, and how IPL teams have started following the global trend. Apart from MI, teams like KKR, Kings XI Punjab, Delhi Daredevils and Royal Challengers Bangalore have consistently been involved in giving back to society.
Analysing the reasons behind the IPL’s brand values rising so much, Varun Gupta, managing director, Duff & Phelps and Asia Pacific leader for Valuation Services says: “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).”
He adds: “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.”
Santosh. N, managing director, Duff & Phelps, said: “Our IPL brand values report reflects 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, he cautioned that for growth trajectories to maintain their momentum, all teams need to continue broadening their footprint, forming relationships and generating revenue opportunities in growth markets.
