The Indian Premier League is all about the money and the brand value of the cash-rich league has been increasing steadily. In the year 2017, the value increased 26% to $5.3 billion, courtesy new sponsorship deals and an anticipated increase in the price of the tournament’s broadcast and media rights. A New York-based corporate finance advisory firm, Duff & Phelps, published a report based on the above numbers.
According to the report, the television rights could be sold for around $1.8 billion for a five-year period. Additionally, Internet and Mobile broadcasting rights could go for $210 million. The bidding began on 21st July and is expected to close on 28th August. The report, titled “IPL: The Decade Edition”, also found that the Mumbai Indians franchise, owned by Mukesh Ambani, have the highest brand value among all the other franchises, $106 million. Duff & Phelps estimated that there were several factors that contributed to the increas in brand value. One of these was the increase in the value of the title sponsor, Vivo paid Rs 2199 crore for the rights for the next five years. Other factors include a similar markup for associate sponsors, value of individual sponsors for the various franchises and the IPL broadcast rights.
“Ten years of IPL has provided us with a glimpse of what to expect in the next 25 years. It will be safe to say that for the foreseeable future, the months of April and May will stay demarcated as IPL territory where nothing else sells.” stated the report.
Duff &Phelps did not take into account the value of the Gujarat Lions and Rising Pune Supergiant franchises since the two teams have been disbanded.
“I’ve been intrigued to watch how IPL has marketed and protected its own brand value separate to the clubs.With my experience of having worked with some of the biggest clubs in the English Premier League (EPL),I feel the one thing IPL has done really well is the way it has marketed and protected it’s own brand. Most of the EPL clubs are bigger brands than the EPL brand itself, whereas in IPL, it seems to be brand IPL which is much more powerful compared to the individual franchisees,” said Trevor Birch, Managing Director, Duff & Phelps