you are here: HomeNewsTrendsSports

Pandemic shaves off IPL brand value by 3.6% to Rs 45,800 crore: Report

In 2019, the IPL commanded a brand value of Rs 47,500 crore, which had grown 7 percent over the previous year.

March 10, 2021 / 05:23 PM IST

Hit by the coronavirus pandemic, the Indian Premier League (IPL) lost 3.6 percent of its brand value to Rs 45,800 crore in 2020, says a brand valuation report.

In 2019, the IPL commanded a brand value of Rs 47,500 crore, which had grown 7 percent over the previous year.

Though one of the key franchises, the Mumbai Indians — owned by the Reliance Group — has retained the top spot in the brand rankings for the fifth consecutive year at a brand value of Rs 761.0 crore, it is down 5.9 percent from 2019, Duff & Phelps said on Wednesday releasing the seventh edition of its valuation report on IPL.

Chennai Super Kings (CSK) and Kolkata Knight Riders (KKR) have seen their brand value erode by 16.5 percent and 13.7 percent, respectively, from 2019.

While CSK’s value dropped from Rs 732 crore to Rs 611 crore, that of KKR declined from Rs 629 crore to Rs 543 crore, the report said.

Close

COVID-19 Vaccine

Frequently Asked Questions

View more
How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

View more
Show

Duff & Phelps, which specialises in brand valuation, said the pandemic-hit 2020 was challenging which had its rub off on the sports economy, and disrupted the sporting calendar with a string of tournaments being postponed or cancelled.

The individual franchisees saw reduction in their brand value over the last year mainly due to the reduced franchisee-related sponsorship revenue, loss of gate receipts, reduced food and beverage revenue and certain teams’ on-field performances.

"Similar to the impact on other businesses and the overall economy, the pandemic has led to a decline in the IPL ecosystem value. However, with people forced to spend time at home, there was an increase in IPL television viewership making the 2020 edition a huge success for broadcasters as it broke viewership and advertising revenue records.

"Television ratings skyrocketed and advertisers tapped into this opportunity to scale up their brand image. Despite the challenging year, this momentum is indicative of how strong the IPL brand has become,” said Santosh N of Duff & Phelps India.

With the economy opening and virus infections decreasing, sponsorship deals are expected to be back to the pre-pandemic levels.

Also, an increase in the number of teams in 2022 and the renewal of media rights in 2023 will enhance the IPL ecosystem value in the future, Santosh added.

The IPL reflects the evolution of the modern cricket business, with clubs benefitting not only from the sport’s enduring popularity but also from the game going global and from some great marketing initiatives.

All teams need to continue broadening their footprint, forming relationships and generating revenue opportunities in growth markets, said Varun Gupta of Duff & Phelps.

In 2020, the IPL season 13 has seen lower sponsorship revenue compared to 2019 — Dream11 paid Rs 222 crore for the season as against Vivo’s cancelled contract of Rs 440 crore per season for the IPL title sponsorship.

The IPL had increased the value of its sponsors/ partners remarkably. After the title sponsor was picked by Dream11, it secured $225 million in funding.

Another official sponsor Unacademy joined the unicorn club with funding of $150 million, and another sponsor Cred secured $80 million, bringing it closer to unicorn status.

Disclaimer: “Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.”
PTI
first published: Mar 10, 2021 05:20 pm

stay updated

Get Daily News on your Browser
Sections