The Indian Premier League (IPL) continues to grow in stature, with its brand value nearly doubling to $8.4 billion in 2022 from $4.7 billion in 2021, according to an annual report by Brand Finance, a brand valuation consultant.
Mumbai Indians continues to be the most valuable brand, at $83 million, which is a 4 percent increase over 2021.
New media behind the surge
The report noted that the IPL’s brand value was boosted by the new-media rights auction and addition of two new teams.
The media rights auction, which was sold for $6.2 billion (Rs 48,390 crore) has increased the central pool of IPL revenues by more than 2.5 times for the 2023–2027 cycle.
Digital media rights played an important role in the media rights auction, leading to an improved brand performance among the target audience of millennials and digital savvy fans, the report said.
At the media rights auction in June, all eyes were on digital media. In the 2018-2022 media rights cycle, digital's value stood at Rs 4,040 crore, while TV rights were at Rs 11,410 crore. For the 2023-27 media rights cycle, which has 410 matches, digital shot up to Rs 20,500 crore, within kissing distance of television, at Rs 23,575 crore.
Strong connect with key consumers
With the sharp increase in digital viewership and streaming services during the pandemic, the IPL has built a valuable brand based on a strong connection with its key consumer audiences, the report added.
It noted that the rapid increase in revenue is not causing an equivalent increase in expenses, further fuelling the IPL’s brand value growth.
"From media rights getting doubled, two new teams, new league structures and staggered restrictions in stadiums, it (IPL) was a showcase of how competitive sporting events must be governed," said Ajimon Francis, Managing Director, Brand Finance India.
Since its launch in 2009, brand IPL has recorded 318 percent growth in brand value, from around $2 billion to over $8 billion this year.
Franchise valuations
The brand value of franchises has also risen significantly over the years. Mumbai Indians, Chennai Super Kings and Kolkata Knight Riders have seen 99 percent, 89 percent and 82 percent growth since 2009, respectively.
Getting additional revenue from the central pool from 2023 onwards has boosted the teams’ brand value.
The pecking order
Kolkata Knight Riders and Chennai Super Kings are the second- and third-most valuable IPL brands after Mumbai Indians, with valuations of $76.8 million and $73.6 million, respectively.
Other franchises that surged in valuation are Royal Challengers Bangalore, which grew 34 percent to $68 million versus 2021. It is also the fourth-most valuable IPL brand. Rajasthan Royals, with 78 percent growth at $61.3 million, has the fastest-growing brand value.
Strongest brands
Brand strength, which is based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation, is a crucial driver of brand value.
According to the above criteria, RCB has a Brand Strength Index (BSI) score of 70.6 out of 100, closely followed by Mumbai Indians with a BSI score of 70.5.
The teams that came across as strong brands in 2022 include Gujarat Titans, which in its first year ranked at three, followed by Rajasthan Royals and Delhi Capitals at ranks four and five, respectively.
The addition of two new franchise teams raised the IPL's value by close to Rs 12,500 crore ($1.5 billion), the report added.
"Two new franchise teams, the Gujarat Titans and Lucknow Super Giants, made a grand debut, garnering a much-needed fan following, with Gujarat Titans going on to later win the title in its IPL debut. The addition of two new franchises has added a new dimension to the IPL’s competitiveness," the report said.
Still way behind other leagues
It further compared the top five teams of the IPL with international sports leagues. The brand value of the top 5 English Premier League (football) teams stands at $6,468 million, La Liga at $4,365 million, Bundesliga at $2,626 million, Serie A at $2,124 million, and Ligue 1 at $1,670 million, whereas the IPL was at $364 million.
"With its resilience during the pandemic, strong decisions on title sponsorship with the Tata Group, and new media rights increasing in value, the governing team has ticked all the right boxes," said Savio D’Souza Senior Director, Brand Finance.
"With the expansion in franchises, permitting IPL franchises to go global, squeezing the cricketing calendars, choosing high throughput stadiums, the (IPL) brand is going from strength to strength," he added.
IPL 2023 player auction will be held on December 23 this year when 405 cricketers will go under the hammer in Kerala’s Kochi, shortlisted by the ten playing teams.
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