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The business valuation of the Indian Premier League (IPL) has risen to $16.4 billion, marking an increase of 6.5 per cent, according to a report by American investment bank Houlihan Lokey.
The report, titled ‘IPL Valuation Study 2024’, stated, “The standalone brand value of the IPL has increased by 6.3 per cent to $3.4 billion over the past year”.
The Tata Group secured the title sponsorship for the IPL for an additional five-year period, from 2024 to 2028, at an approximate cost of $300 million. This new deal represents an increase of around 50 per cent over the previous agreement of Rs 335 crore per season, the report said.
“This, along with last year’s media rights auction, reinforces the IPL’s status as a pivotal platform for esteemed brands seeking to enhance their value,” the study showed.
IPL draws advertisements
Proving to be an advertisers’ delight, “on average, a T20 match will have around 80 to 100 ad slots strategically placed between overs, innings break, timeouts, and after fall of wickets. Similar to NFL’s Super Bowl, where new TV commercials are launched every year, the IPL is doing the same for sports advertising in India”, the report stated.
Harsh Talikoti, senior vice-president, Corporate Valuation Advisory Services at Houlihan Lokey, said IPL has proved itself as a global premier sports league. “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. 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,” Talikoti said.
Increase in franchise revenue
The report further showed that the league has witnessed significant increase in franchise revenue over the years, “primarily driven by revenue from television rights, despite each team having sponsorship revenue ranging from $5 million to $12 million”, the report stated.
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It further said that a major agreement was signed by Qatar Airways for $9 million for a three-year contract with the Royal Challengers Bengaluru (RCB).
In terms of brand ranking and business value ranking, Chennai Super Kings (CSK) holds the top position. In terms of valuation, with a brand value of $231 million, CSK is the most valued franchise, achieving a growth of 9 per cent from the previous year. “IPL 2024 winners, Kolkata Knight Riders, saw the highest growth, with a 19.30 per cent rise from 2023,” the report showed.
