MUMBAI: The stand-alone brand value of the IPL is now USD 3.2 billion, up by 80% from USD 1.8 billion in 2022, while the business enterprise value of the IPL stands at USD 15.4 billion, which is up by 80% from USD 8.5 billion in 2022, as per a brand valuation study by Global investment bank Houlihan Lokey, Inc., the results of which were issued on Monday.
A copy of the report is with TOI.
Houlihan Lokey’s Corporate Valuation Advisory Services advises companies on all valuation matters affecting their financial reporting, tax, and strategic planning initiatives. Offerings include purchase price allocation (valuation of all acquired assets and liabilities), equity valuations for stock, and tax entity valuation for restructuring.
The massive surge IPL’s brand value is mainly do the impact of the 2023-2027 media rights megal deal with Viacom18 and Disney Star after a highly competitive auction earlier this year. The IPL’s media rights have grown at a CAGR of 18% from 2008 to 2023, while the growth in absolute terms between the 2017 and 2023 cycles is 196%.
When the IPL’s broadcasting fee is compared with other professional leagues in the world on a per-match basis, the glamorous T20 league scores above the likes of the National Basketball Association (NBA), the English Premier League (EPL) and the Bundesliga and is second only to the National Football League (NFL).
“Created on the American style of franchise-based systems of hiring players, the IPL has established itself as a hugely lucrative sports league, along similar lines as the NFL and the NBA,” says Harsh Talikoti, Senior Vice President, Corporate Valuation Advisory Services at Houlihan Lokey, in the report.
“Besides the exponential growth in brand and business enterprise valuation of the IPL and the franchisees, it is interesting to note the prominent shift towards acceptance of digital platforms for sports consumption. Viacom18’s strategic push towards promoting digital viewership in India has undeniably reignited the much-needed excitement surrounding the IPL.
“This shift is evident in the remarkable viewership numbers witnessed during the current season on Viacom18’s OTT platform, JioCinema. However, Disney Star’s television viewing numbers were also very encouraging this year, achieving record levels,” added Talikoti.
CSK lead brand valuation race
With a brand value of USD 212 million, multiplying year-on-year at whopping 45.2%, IPL-2023 champions Chennai Super Kings are ranked No. 1 in both brand ranking and business enterprise value ranking. Royal Challengers Bangalore rank second in terms of brand value at USD 195 million. Rajasthan Royals made the highest incremental brand value jump in percentage terms year-on-year of 103%.
An iconic IPL brand, CSK were valued at USD 146 million in 2022 last year, courtesy the massive popularity of captain MS Dhoni. Royal Challengers Bangalore (RCB) now rank second in terms of brand and enterprise value ranking, surpassing Mumbai Indians, who were placed second in 2022. RCB’s brand value grew by 52.3% to US$195 million in 2023 from US$128 million in 2022, as per the report.
RCB is one of the most popular franchises the world thanks to the presence of former India and RCB captIn Virat Kohli.
Five-time IPL champions Mumbai Indians are a close third on the table with a 2023 brand value of USD 190 million. Despite not making it to the IPL playoffs for the last two seasons, MI grew by 34.8% from its 2022 brand value of USD 141 million.
As per the report, the Shah Rukh Khan-owned Kolkata Knight Riders (KKR) brand Value is ranked fourth in the 2023 brand value chart with a value of USD 181 million, growing by 48.4% y-o-y from USD 122 million.
A copy of the report is with TOI.
Houlihan Lokey’s Corporate Valuation Advisory Services advises companies on all valuation matters affecting their financial reporting, tax, and strategic planning initiatives. Offerings include purchase price allocation (valuation of all acquired assets and liabilities), equity valuations for stock, and tax entity valuation for restructuring.
The massive surge IPL’s brand value is mainly do the impact of the 2023-2027 media rights megal deal with Viacom18 and Disney Star after a highly competitive auction earlier this year. The IPL’s media rights have grown at a CAGR of 18% from 2008 to 2023, while the growth in absolute terms between the 2017 and 2023 cycles is 196%.
When the IPL’s broadcasting fee is compared with other professional leagues in the world on a per-match basis, the glamorous T20 league scores above the likes of the National Basketball Association (NBA), the English Premier League (EPL) and the Bundesliga and is second only to the National Football League (NFL).
“Created on the American style of franchise-based systems of hiring players, the IPL has established itself as a hugely lucrative sports league, along similar lines as the NFL and the NBA,” says Harsh Talikoti, Senior Vice President, Corporate Valuation Advisory Services at Houlihan Lokey, in the report.
“Besides the exponential growth in brand and business enterprise valuation of the IPL and the franchisees, it is interesting to note the prominent shift towards acceptance of digital platforms for sports consumption. Viacom18’s strategic push towards promoting digital viewership in India has undeniably reignited the much-needed excitement surrounding the IPL.
“This shift is evident in the remarkable viewership numbers witnessed during the current season on Viacom18’s OTT platform, JioCinema. However, Disney Star’s television viewing numbers were also very encouraging this year, achieving record levels,” added Talikoti.
CSK lead brand valuation race
With a brand value of USD 212 million, multiplying year-on-year at whopping 45.2%, IPL-2023 champions Chennai Super Kings are ranked No. 1 in both brand ranking and business enterprise value ranking. Royal Challengers Bangalore rank second in terms of brand value at USD 195 million. Rajasthan Royals made the highest incremental brand value jump in percentage terms year-on-year of 103%.
An iconic IPL brand, CSK were valued at USD 146 million in 2022 last year, courtesy the massive popularity of captain MS Dhoni. Royal Challengers Bangalore (RCB) now rank second in terms of brand and enterprise value ranking, surpassing Mumbai Indians, who were placed second in 2022. RCB’s brand value grew by 52.3% to US$195 million in 2023 from US$128 million in 2022, as per the report.
RCB is one of the most popular franchises the world thanks to the presence of former India and RCB captIn Virat Kohli.
Five-time IPL champions Mumbai Indians are a close third on the table with a 2023 brand value of USD 190 million. Despite not making it to the IPL playoffs for the last two seasons, MI grew by 34.8% from its 2022 brand value of USD 141 million.
As per the report, the Shah Rukh Khan-owned Kolkata Knight Riders (KKR) brand Value is ranked fourth in the 2023 brand value chart with a value of USD 181 million, growing by 48.4% y-o-y from USD 122 million.
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