• Sun. Dec 3rd, 2023
IPL 2023 Brand Value Crosses  Billion

NEW DELHI: The business enterprise value of Indian Premier League (IPL) is estimated at $15.4 billion by 2023, an increase of 80% from last year’s $8.5 billion. According to a recent report by Houlihan Lokey Inc., its stand-alone brand value has grown significantly from $1.8 billion in 2022 to $3.2 billion this year.

According to the Los Angeles-based investment bank, the growth was fueled by fierce competition for the 2023-2027 media rights deal involving Viacom 18 and Disney Star, which the two media giants paid for. 48,390 crores in total.

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Graphic: Mint

IPL’s media rights grew at a compound annual growth rate of 18% between 2008 and 2023. Also, in the 2023-27 auction, its value increased by 196% from the previous cycle of 2018-2022.

Compared to other professional leagues around the world, the IPL’s broadcast fee per match surpassed the National Basketball Association (NBA), the English Premier League (EPL) and the Bundesliga, and ranked second behind the National Football League (NFL).

“Created along the lines of American franchise-based player recruitment systems, the IPL has positioned itself as a more profitable sports league than the NFL and NBA,” said Houlihan Lockie, senior vice president of corporate valuation advisory services.

The most popular team, Chennai Super Kings, had a brand value of $212 million, up 45.2% from the previous year, followed by Royal Challengers Bangalore at $195 million, followed closely by Mumbai Indians at $190 million, up 34.8 percent from $141 million in 2022.

However, Rajasthan Royals, with a brand value of $120 million, saw a steep 103% increase in valuation in 2023, compared to $59 million in the previous edition, according to the report.

Houlihan Lockie arrived at the figures based solely on the revenue and monetization potential of the IPL teams.

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