Royal Challengers Bengaluru's women's team has achieved what their men's counterpart couldn't in 17 years: clinching a league title. Their Women's Premier League (WPL) win in just the competition's second season contrasts sharply with the men's title drought since the inaugural Indian Premier League (IPL) in 2008.
As the women's tournament gained popularity, the value of the WPL ecosystem rose 8 percent to Rs 1,350 crore in 2024 from Rs 1,250 crore in the previous year, according to D&P Advisory, a valuation services provider. In contrast, the value of the IPL ecosystem fell 10.6 percent to Rs 82,700 crore in 2024 from Rs 92,500 crore in the previous year.
The success of the women's cricket league has also begun making an impact beyond the 22 yards. "It has given some sort of a hope to all other women leagues. There is a possibility that even some of the other (women-led) leagues could generate similar sort of euphoria," said D&P Advisory Managing Partner Santosh N.
On the profitability front, too, Santosh sees some positive signs for WPL franchises. "The BCCI (Board of Control for Cricket in India) is sharing 80 percent of the central fund with the (WPL) franchisees. This will help in limiting the cash that they are burning to some extent," he said.
WPL's media rights up for renewal after the first five years is also likely to help franchises. "In the first five years, I think it is very difficult for any of the franchises to become profitable because of the amortisation cost of the bid amount. Plus, the fact that 80 percent of the central pool is also not that big that they (franchises) will cover for the losses. But what is important is that unlike IPL where the jump (in revenues) happened in the 11th year because the first 10 years of media rights were locked up, in WPL, that is not happening. Another media rights cycle will take place in the fifth year. So, there is a possibility that the correction which happened in IPL in 11th year might happen in the sixth year in WPL," Santosh said.
WPL's central sponsorship revenue is estimated in the range of Rs 1,000-1,100 crore out of which the teams get 80 percent.
Most of the IPL franchises turned positive only when the second media rights renewal took place, pointed out Santosh. An IPL franchise on the average turned profitable in its sixth or seventh year.
IPL de-growth
This year, the men's league value dropped because of the change in dynamics in the media and entertainment space. "We anticipate certain demand-side constraints in the next IPL media rights cycle auction due to a decrease in number of potential bidders," he said.
Listing down the developments impacting the valuation, Santosh said that the failed merger between Zee and Sony has impacted market dynamics. The delay in the entry of major tech players such as Amazon, Meta, and Apple into the IPL media rights.
Women-led sports
For WPL, he thinks that the upcoming T20 World Cup from October will also boost consumption. "The women's (cricket) World Cup could have a positive impact on WPL because it will be played in between the two IPL seasons. So, people who are interested in tracking player performances would later track which WPL team takes which player in player auctions," he said.
Santosh, however, added that women-led sports leagues are still not functioning independently and are usually seen as a package with the men's team. "If you actually look at some of the leagues that have been there in the West for maybe the last 10, 20, 30 years, it has not seen the same success that men's sport has seen. Most of the time, they are an add-on to the men's sports. For example, if you look at NBA (National Basketball Association) and WNBA (Women's National Basketball Association), WNBA is even treated by the rights holders or the league owners as an add-on. WNBA broadcasting rights are being sold as a package with the NBA."
While Santosh thinks that WPL may not go down the same path as WNBA as content consumption patterns are changing rapidly, there still is a long way to go. "Let's hope that the current market environment will only make all women's sports grow bigger and make them a real contender to men's sports leagues. But, as we stand today, maybe it is very difficult for them to be generating any real value on their own," he said.
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