IPL becomes a decacorn with valuation of $10.7 bn, MI most valuable team

The Indian Premier League (IPL) has achieved the status of decacorn after a 28 per cent rise in its brand valuation to $10.7 billion, according to a report released on Wednesday by Brand Finance. A decacorn is a privately held company with a valuation of $10 billion or more. IPL's brand value was $8.4 billion in 2022. Since 2008, when the league was launched, IPL's brand value has jumped 433 per cent from the $2 billion valuation after season one.

The report said the main reasons behind the surge in the league's valuation are "return to full-capacity stadiums, increased viewer consumption on diverse devices, huge media partnerships, and renewed confidence among advertisers".

 

It also said that the league's brand value has been bolstered by introducing the Women's Premier League (WPL) and free access through the JioCinema app.

"The IPL brand stands as a guiding light to all other T20 leagues, illustrating how the business model can be successfully scaled up on a global level. Teams are proactively recruiting professionals to handle year-round player management, organise tournaments, and manage sponsor pools," said Hugo Hensley, head of Sports Services, Brand Finance.

Mumbai Indians most valued franchise

Among the IPL franchises, Mumbai Indians was the most valuable, with a valuation of $87 million. It has been at the top of the list since 2020.

MI was followed by Chennai Super Kings, which was behind Kolkata Knight Riders last year, with a valuation of $80.6 million. Kolkata Knight Riders were in third place at $78.6 million, followed by Royal Challengers Bangalore at $69.8 million.

Gujarat Titans was the fifth highest-valued IPL team with a valuation of $65.4 million. Notably, CSK's brand value has more than doubled since its debut in 2008.

CSK strongest brand

The report also came out with a metric called the "Brand Strength Index" based on a team's marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation.

CSK topped the list, signifying it as the "strongest brand" with a BSI score of 81.8 out of 100.

"The title as the strongest brand for 2023 is a testament to CSK's enduring fanbase, robust fan-engagement initiatives, sound merchandise policies, and a distinctive brand of cricket that sustains its vibrancy throughout the season," the report said.

It was followed by Gujarat Titans (75.9) and Mumbai Indians (75.3).

Continues to lag behind big football leagues

In terms of the brand value of the top five teams, IPL continues to lag behind major football leagues like Premier League, La Liga and Bundesliga.

The total value of the top five IPL teams stood at $381 million. For the Premier League, it was $6,257 million, followed by $3,436 million for La Liga and $2,345 million for Bundesliga.

"The key to upholding the IPL brand lies in robust governance. The mother ship must remain steadfast and on course, ensuring a continuous commitment to value creation," Hensley added.