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    IPL brand valuation soars to $4.16 billion: Duff & Phelps

    Synopsis

    Among the teams, Mukesh Ambani-owned Mumbai Indians (MI) has raced ahead of Shahrukh Khan-owned Kolkata Knight Riders (KKR) to claim top spot in terms of valuation.

    ET Bureau


    MUMBAI | NEW DELHI: The Indian Premier League (IPL) has seen a definite increase in its brand valuation in its ninth season, as it drew attention of viewers as well as advertisers for all the right reasons — a relatively controversyfree tournament and good on-field performances — that brought the spotlight back to the game.

    According to global valuation and corporate finance advisor Duff & Phelps, the value of brand IPL has jumped to $4.16 billion after the 2016 edition, against $3.5.54 billion in 2015. The 19% jump is despite the fact that the US dollar to Indian rupee currency has depreciated by nearly 10%.

    Among the teams, Mukesh Ambani-owned Mumbai Indians (MI) has raced ahead of Shahrukh Khan-owned Kolkata Knight Riders (KKR) to claim top spot in terms of valuation. While MI’s valuation has increased 8% to $78 million from $72 million in 2015, KKR’s valuation declined 10% to $77 million.

    Image article boday

    Virat Kohli-captained Royal Challengers Bangalore (RCB) was the biggest gainer in percentage terms, soaring 31% over last year on account of their on-field performances plus the marketability of their battery of stars, while IPL 9 winner SunRisers Hyderabad (SRH) gained nearly 17%.

    Kings XI Punjab (KXIP) was the biggest losers in this edition, shaving off nearly 24% from their 2015 brand value of $41 million, largely due to poor on-field performances coupled with lack of home and away crowd support as well as the lack of marquee Indian players in their line-up.

    The report has not valued the two new franchisees — Rising Pune Supergiants (RPS) and Gujarat Lions (GL) — due to lack of visibility on their association with IPL beyond IPL Season 10, when CSK and RR are expected to come back after serving suspensions. The brand value report has reiterated earlier ET reports on how IPL has been a money spinner in season 9. As per ET estimates, IPL 9 amassed about Rs 2,500 crore in overall revenue, growing at a double-digit clop from the year before. Varun Gupta, MD at Duff & Phelps India, said that before the start of the tournament, there were apprehensions about how Brand IPL would survive the tumultuous 12 to 15 months preceding the latest edition, which included the suspension of two popular franchisees —Chennai Super Kings (CSK) and Rajasthan Royals (RR) — for two seasons, as well the termination of its association with Pepsi.

    The cash-and-controversy rich tournament has persevered through a series of unsavoury happenings since inception. These included conflicts of interest of owners/players/managers, allegations of match and spot fixing, ban on team owners and a few players, allegations of professional misconduct. In fact, saw the Supreme Court of India step in. The after-effects of these controversies led to the banning of CSK and RR from participating in the tournament for two years.

    However, mobile handset maker Vivo paid 26% more than Pepsi and TV broadcaster Sony Pictures Networks India (SPN) to be the title sponsors for the marquee event of Indian sporting calendar. Sony completely sold out its ad inventory even before the first ball of the tournament was bowled, clocking in .`1,050 crore.

    “Brand IPL not only came out of these controversies relatively unscathed but also surged forward to prove that it is the most successful cricketing league in the world and one of the premier sporting events across the globe,” Gupta said in the third edition of the company’s annual study of IPL franchisee brand values.

    The report noted that over the years, multiple instances of scandals surrounding IPL have come out in open, but almost every year, the IPL has come out stronger and more popular than before.

    For IPL 9, major boosts to the Brand IPL have been —a controversy-free season and the IPL Fan Parks initiative, which saw footfalls of 15,000 to 20,000 spectators every weekend that was a huge hit in the Tier II and III cities.


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