IPL business value surges to Rs 135,000 crore, brand value hits Rs 28,000 crore; CSK tops franchise rankings
By Sunita Iyer | First Published Jun 12, 2024, 3:19 PM ISTIn terms of IPL franchise valuation, despite failing to make it to the playoffs in 2024, Chennai Super Kings (CSK) retains its position as the most valued franchisee, with a brand value of US$231.0 million, reflecting a 9% growth from the previous year.
The Indian Premier League (IPL) has once again demonstrated its financial prowess as the 2024 IPL Brand Valuation Study by Houlihan Lokey, Inc. reveals a staggering surge in business value to US$16.4 billion (Rs 135,000 crore), with the IPL standalone brand value reaching an impressive US$3.4 billion (Rs 28,000 crore). This marks a 6.5% increase in business value and a 6.3% rise in brand value over the past year, underscoring the league's continued global appeal and commercial success.
IPL 2024 VALUATION (Houlihan Lokey):
Business value - 1,34,858cr.
Brand value - 28,180cr. pic.twitter.com/ANrJap2YDU
Tata Group secured the title sponsorship for the IPL for the next five years, from 2024 to 2028, with a deal valued at approximately US$300 million (Rs 2,500 crore), signifying an approximate 50% increase from the previous sponsorship deal of Rs 335 crore per season. This, coupled with the lucrative media rights auction from the previous year, reaffirms the IPL's position as a premier platform for brands aiming to elevate their stature.
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According to the report, IPL's allure to advertisers remains unmatched, with T20 matches boasting around 80 to 100 strategically placed ad slots, reminiscent of the NFL's Super Bowl advertising phenomenon. This year witnessed a plethora of new TV commercials from various sectors such as fantasy apps, FMCG, FinTech, banks, and electronics, leveraging the widespread appeal of the IPL.
“The IPL has solidified its status as a premier sports league on the global stage, showcasing an exceptional blend of sportsmanship, entertainment, and commercial success,” commented Harsh Talikoti, Senior Vice President, Corporate Valuation Advisory Services at Houlihan Lokey
“The league’s growth is not just in numbers but also in its innovative approach to engaging fans and leveraging digital platforms. This year’s increase in value underscores the IPL’s strategic initiatives and its robust fan base. The eight legacy teams that have been a part of the IPL for a long time are now able to reap substantial profits from both the central pool’s income distribution and their own franchisee revenues from sponsorships, gate receipts, and merchandise sales," he added.
“For the same reason, private equity investments have become increasingly prevalent in the IPL ecosystem in the recent years with CVC Capital and Redbird Capital acquiring stakes in IPL franchisees”, Talikoti further stated.
The report noted that franchise revenue experienced a notable surge over the years, largely propelled by income from television rights, despite each team securing sponsorship revenue between US$5.0 million to US$12.0 million. Notably, Royal Challengers Bengaluru recently inked a significant deal with Qatar Airways valued at approximately US$9.0 million (Rs 75 crores) for a three-year contract.
Manoj Badale, Lead Owner of Rajasthan Royals, told Houlihan Lokey, “The IPL as a product has always been highly investible. Having been inspired by U.S. sports leagues, and particularly the model of the NFL, the IPL was always going to attract institutional investors. A closed league (no relegation) offers long-term security, a ‘hard’ salary cap ensures a level playing field and competitive parity, and an equitable commercial model—in which central income is split equally among franchises—secures contractual revenue for franchises.”
Team-wise franchise brand valuation and rankings
In terms of franchise valuation, despite failing to make it to the playoffs in 2024, Chennai Super Kings (CSK) retains its position as the most valued franchisee, with a brand value of US$231.0 million, reflecting a 9% growth from the previous year. Kolkata Knight Riders (KKR) emerged as the franchise with the highest annual growth, registering a remarkable 19.30% rise from 2023, buoyed by their victory in the IPL 2024.
1. Chennai Super Kings
As per the report, Chennai Super Kings (CSK) has once again solidified its position as the premier brand in the IPL, topping both the brand ranking and business value ranking. Renowned for its consistency, CSK has made it to the playoffs an impressive 12 times out of the 15 seasons it has participated in, clinching five titles along the way. Former CSK captain and current team player, Mahendra Singh Dhoni, has been instrumental in the franchise's success, serving as the face of the team and a key contributor to its achievements. CSK's legacy as a pioneer brand in the IPL continues to thrive, showcasing its enduring impact and influence within the league.
2. Royal Challengers Bengaluru
Royal Challengers Bengaluru (RCB) secured the second spot in both brand and business value rankings, boasting an impressive brand worth of US$227.0 million. Renowned for its passionate fan base and vibrant team culture, RCB stands out as one of the most cherished franchises in the IPL. The presence of cricketing maestro Virat Kohli adds to RCB's allure, enhancing the team's appeal to fans worldwide. RCB's journey in the IPL this season was marked by a remarkable turnaround, starting from a modest 10th position in the initial stages to ultimately securing a spot in the playoffs. This resurgence catapulted RCB to the forefront of IPL discussions, making them the most watched and talked-about franchise of the year.
3. Kolkata Knight Riders
Emerging victorious in the TATA IPL 2024, the Kolkata Knight Riders (KKR) have ascended to third place in brand value, surpassing the Mumbai Indians with a valuation of US$216.0 million. KKR leverages the significant brand equity associated with its esteemed owner, Shahrukh Khan, in addition to the standout performances of players such as Shreyas Iyer, Andre Russell, Sunil Narine, and promising talent Rinku Singh.
4. Mumbai Indians
The Mumbai Indians (MI), renowned for their immense success and widespread popularity, closely trail in fourth place with a brand value of US$204.0 million. With the return of their legacy player and newly appointed captain Hardik Pandya, MI has reaffirmed its position as one of the most dynamic franchises in IPL history, actively engaging in player trades to enhance its roster.
5. Rajasthan Royals
The report highlighted that Rajasthan Royals (RR) demonstrated an exceptional ability to identify and nurture young Indian talent such as Yashasvi Jaiswal, Dhruv Jurel, and Riyan Parag, alongside seasoned players like Sanju Samson, Yuzvendra Chahal, and Ravichandran Ashwin. This investment in talent development has yielded consistent performances over the past few years, solidifying RR's reputation as a team with a keen eye for emerging stars. Additionally, RR's success in retaining the majority of its sponsors reflects its growing appeal as one of the fastest-growing brands in the IPL ecosystem. These factors have propelled RR to climb two places to the fifth position in the brand ranking, with a commendable brand value of US$133.0 million.
6. Sunrisers Hyderabad
Finishing as the runners-up of the season, Sunrisers Hyderabad (SRH) secured the sixth position on the list with a brand value of US$132.0 million. The team's remarkable performance at the auction, coupled with the strategic development of a new squad under the leadership of Pat Cummins, has been instrumental in their success. SRH's ability to select standout performers from the recently concluded World Cup further bolstered the franchise's performance, contributing to their commendable standing in the IPL.
Among the remaining teams, the Delhi Capitals secured the seventh position with a brand value of US$131.0 million, benefitting from the return of their captain and highly marketable asset, Rishabh Pant. Conversely, the Gujarat Titans struggled on the field under the captaincy of Shubman Gill after losing their captain to MI and facing injuries to key players like Mohammed Shami, resulting in an eighth-place ranking with a brand value of US$124.0 million. The Punjab Kings (PBKS) claimed a brand value of US$101.0 million, while the Lucknow Super Giants LSG followed closely behind with a brand value of US$91.0 million.
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