The value of the Indian Premier League went up 6.5 per cent to USD 16.4 billion (around Rs 134,858 crore) in 2024, according to a report by American investment bank Houlihan Lokey.
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Besides, the brand value of the cash-rich T20 league has also increased 6.3 per cent to USD 3.4 billion (around Rs 28,000 crore) year-on-year, it added.
The increase in the value of IPL is helped by title sponsorship by salt-to-software Tata Group for a further five years (2024 to 2028) for approximately USD 300 million (Rs 2,500 crore), paying approximately 50 per cent more than the previous deal of Rs 335 crore per season.
“This significant investment, coupled with last year’s massive media rights auction, underscores the IPL’s status as a pivotal platform for esteemed brands seeking to enhance their value,” the report said.
Apart from mega events such as the Olympics, the FIFA World Cup, and the Cricket World Cup, the IPL is the only property in the world that has the ability to reach over a billion-plus populace, with its popularity not just limited to the Indian subcontinent, it added.
Brand value is the monetary worth of intangible assets, which also includes trade names and trademarks.
“Today, the IPL commands widespread recognition, firmly entrenched as a household name with a robust brand recall among successive generations,” Harsh Talikoti, Senior Vice President, of Corporate Valuation Advisory Services, Houlihan Lokey, said.
As per the report, IPL has been valued as a legal business entity and separately as a brand. It has taken into consideration the income and cash-generating capability of the IPL on a standalone basis.
Chennai Super Kings (CSK) continues to be the most valued IPL franchise and Kolkata Knight Riders (KKR) sees the highest annual growth, the report stated.
“There has been a significant increase in franchise revenue over the years, primarily driven by revenue from television rights, despite each team having sponsorship revenue ranging from USD 5-12 million. A major agreement was signed by Qatar Airways for around USD 9 million (Rs 75 crore) for a three-year contract with Royal Challengers Bengaluru,” it said.
Royal Challengers Bengaluru (RCB) has been ranked second in brand and business value worth USD 227 million. It is followed by Mumbai Indians (MI) with a brand value of USD 204 million.
Rajasthan Royals (RR) comes in fifth position with a brand value of USD 133 million.
“RR also had the majority of sponsors on their roster renewing their association, showcasing its attractiveness as one of the fastest-growing brands within the IPL ecosystem. These factors helped RR jump two places to the fifth spot,” it said.
While Sunrisers Hyderabad (SRH) with a brand value of USD 132 million stands sixth on the list.
“Having done exceptionally well at the auction and developing a new squad under the leadership of Pat Cummins, SRH managed to pick the stars of the recently concluded World Cup that contributed to the franchisees’ great performance,” it said.
Among the rest of the teams, Delhi Capitals, with the return of its captain and most marketable asset, Rishabh Pant, ranked seventh with a brand value of USD 131 million.
Gujarat Titans has been ranked eighth with a brand value of USD 124 million Punjab Kings (PBKS) has a brand value of USD 101 million and Lucknow Super Giants has a brand value of USD 91.0 million, the report said.
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)