In its 16th year, the Indian Premier League (IPL) has become a decacorn, with the total combined brand value reaching $10.7 billion.
The league's brand value increased by 28 percent from $8.4 billion recorded in 2022, according to a report by brand valuation consultancy Brand Finance, released on December 13.
The total brand value of the IPL system has surged by 433 percent since its 2008 launch.
The significant growth is attributed to factors including a media rights deal amounting to $6.2 billion (Rs 48,390 crore), an increase in the central pool of IPL revenues, the addition of two franchise teams, and the return to full stadium attendance in 2023 after the pandemic.
In 2023, IPL has seen one of the biggest jumps in brand value. In the pre-Covid period, specifically 2018 and 2019, IPL's brand value stood at $5.3 billion and $5.7 billion, which dropped to $4.4 billion and $4.7 billion in 2020 and 2021 due to the Covid impact. The value grew to $8.4 billion in 2022.
Franchise brand value:
Mumbai Indians once again emerged as the most valuable IPL brand at $87 million, followed by Chennai Super Kings (CSK), which has leapfrogged into the second most valuable brand position with a value of $81 million. The top 5 list includes Kolkata Knight Riders (KKR) and Royal Challengers Bangalore (RCB) at $78.6 million and $69.8 million, respectively.
Gujarat Titans (GT) showed a significant increase in brand value and ranking with a 38 percent growth, securing the fifth position, which is a jump from the eighth place last year.
Lucknow Super Giants (LSG), which secured the eighth position with a brand value of $47 million, was the fastest-growing IPL brand, up by 48 percent. Despite starting with a relatively lower base, LSG has made substantial strides in the valuation landscape, the report said.
IPL franchises are also continuing to expand their global presence, with each additional franchise ecosystem estimated to have a brand value of $1 billion. This global outreach extends the IPL franchise brands' visibility throughout the year, emphasizing the growing importance of governance and financial discipline.
Ideal for brands:
“IPL 2023 is paving the way for a global T20 business ecosystem as more and more franchise owners will be taking their brand of cricket to newer potential markets in the Middle East, USA, Asia-Pacific. Franchise owners are now seeing a year-long commitment from players for various leagues played globally," said Ajimon Francis, Managing Director, Brand Finance India.
Hugo Hensley, Head of Sports Services, Brand Finance London, pointed out cricket's popularity in India.
In India, 75 percent of people are interested in cricket. This puts the sport ahead of others such as football at 46 percent and tennis at 37 percent. "Cricket is so popular that it’s estimated that over $1.5 billion are spent annually on the sport, amounting to around 85 percent of the total spending within the Indian sports industry. The mass popularity and appeal bring huge television viewership, celebrity endorsements, and strong emotional appeal across a large part of Indian society. Over 16 thousand hours of cricket content were shown in India alone in 2022."
The IPL is now an ideal platform for launching new products and initiatives, reaching the largest audience base in India, Francis said.
In 2022, the Indian Premier League (IPL) announced a partnership with Aramco, an agreement that spans from January 2022 to December 2023 currently, with a reported cost of Rs 65 crore per year. Aramco is one of the first petrochemical companies to sponsor the IPL. The brand yielded a 9 percent increase in awareness compared to non-cricket fans, as measured by Brand Finance’s research study.
This was on the back of strong viewership that IPL recorded. The league's combined viewership exceeds 400 million on television and an additional 250 million on social media.
The IPL is an effective strategic tool for brands and can provide a positive return on investment for brands, the report said.
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