IPL brand value doubles in 5 yrs while Mumbai Indians continued to top the table, reports Urvi Malvania
The brand value of the Indian Premier League (IPL) has doubled from $3.2 billion in 2014 to $6.3 billion in 2018.
The steep rise in the media rights helped it get a massive jump in brand valuation, according to the Duff & Phelps IPL Brand Valuation Report 2018. The Twenty20 extravaganza was valued at $5.3 billion in 2017, and showed a 15.87 per cent leap this year alone.
The latest edition of the IPL set a relatively different tone as compared to its previous editions with a new broadcasting partner for IPL in the form of Star India, which acquired the five-year (2018-22) global broadcast and digital rights for approximately $2.55 billion in September 2017. The IPL broadcast rights have seen an increasing trend since its inception in 2008. On an annual fee basis, the increase compound annual growth rate was 18.9 per cent.
The new broadcast regime for the IPL meant wider reach in the southern markets since the tournament was telecast in a total of six languages, including Tamil, Kannada, and Telugu. The southern market saw viewership jump by 30 per cent in 2018, owing to Star’s efforts at localising the telecast of the IPL. The broadcast made an estimated Rs20 billion in ad sales revenues from the IPL this year.
The eight franchises also saw appreciation in brand value. While Mumbai Indians (MI) continued to top the table ($113 million), it was Kings XI Punjab (KXIP) that saw the most appreciation at 27 per cent year-on-year. The Preity Zinta co-owned team saw its brand value rise from $41 million in 2017 to $52 million this year. Shah Rukh Khan’s Kolkata Knight Riders (KKR) came in at No. 2 on the list, with a brand value of $104 million, growing five per cent over last year’s $99 million.
Even though it was returning after a two-year ban, Chennai Super Kings (CSK) saw some appreciation over its brand value in its last active year before the ban in 2015. The company had valued the CSK franchise at $67 million in 2015, and this year, it is valued at $98 million, and shares the third place with Royal Challengers Bangalore (RCB).
Rajasthan Royals, the other team that faced the same two-year ban, however saw erosion in its brand value from $45 million in 2015 to $43 million in 2018. The difference in the impact of the ban on the franchises’ brand values can be attributed to the star power that the CSK has in its team and the team’s consistent performance before and after the ban.
“Despite not performing up to the mark this season, MI continues to be one of the most popular brand names in the IPL, with some of the world’s greatest cricketing legends on board. Based on insights received from the MI management team, they included corporate social responsibility (CSR) as an integral part of their operations right from Season 2 through their Education for All initiative,” reveals the report.