- Overall value of the Indian Premier League (IPL) ecosystem increased to US$6.8 billion from US$6.3 billion last year (INR 47,500 crores from INR 41,800 crores)
- Mumbai Indians continued to top the charts for the fourth time with an 8.5% increase in brand value at INR 809 crores
- Kolkata Knight Riders and Royal Challengers Bangalore recorded an 8% decrease in brand value to reach INR 630 crores and INR 595 crores respectively
Duff & Phelps, announced findings from its IPL Brand Valuation Report 2019, a comprehensive study on brand values in the Indian Premier League (IPL).
The results from the sixth edition of the annual IPL report by Duff & Phelps indicate an improvement in the overall value of the IPL ecosystem from US$ 6.3 billion in 2018 to US$ 6.8 billion in 2019, a rise of 7 percent after consideration of currency fluctuations. In INR terms, the value of the IPL ecosystem increased by approximately 13.5 percent from INR 41,800 crores to INR 47,500 crores, backed by the IPL’s continued trust advertisers, broadcasters, sponsors, affiliates, partners and viewers. The individual franchisee brands saw mixed fortunes, increasing or decreasing their brand values in near accordance with their success on-field.
“Our IPL brand values study represents the evolution of the new cricket market model,” said Varun Gupta, Asia Pacific Manager for Valuation Advisory Services and India Country Head, Duff & Phelps. When we step into IPL’s second decade, the league has moved from a start-up to a more mature, stable and profitable business. An increase of 20 percent in this year’s advertising revenues and the recently renewed PayTM title sponsorship deal (which has achieved a 58 percent increase per match over the last deal) are testaments to IPL’s continued popularity.
This resulted in a steady increase in the ecosystem’s value (which in INR terms increased by 13.5 percent). Nevertheless, both teams need to concentrate on their on-field performance while continuing to expand their reach, build partnerships and create sales opportunities in growth markets in order to maintain their momentum in growth trajectories.
Santosh, Santosh. N, Managing Partner, D and P India Advisory Services LLP, a member of the Duff & Phelps Network, said: “This year, Mumbai Indians (MI) and Chennai Super Kings (CSK) continued their absolute dominance with MI winning their fourth IPL title. Their good performance on the field has helped them fulfill their sponsor’s and marketers ‘ wishes, resulting in an increase in their brand value year-on-year. On the contrary, this year’s Royal Challengers Bangalore (RCB) and Kolkata Knight Riders (KKR) have shed some of their brand value demonstrating that big city bases and brand players are not the only factors that influence brand value; consistent field success is also significant.
Among franchises, MI continues to top the charts for the fourth season in a row with a brand value of INR 809 crore up nearly 8.5 percent from last year. CSK saw a huge 13.1 percent increase in its INR 732 crore brand value, leading the company to the No.2 spot in our brand rankings. While CSK saw its brand value erode due to its two-year suspension, it appears to have recovered from continued on-field success coupled with a pan-India fervent fan base and the charisma of Dhoni.
KKR and RCB saw their brand value erode mainly due to their under-performance on-field, with both franchises losing about 8 percent of their brand value. However, both continue to be supported by loyal fan bases and the presence of respectively Shah Rukh Khan and Virat Kohli, who keep carrying each brand on their shoulders. This is especially true for RCB, which in the last couple of years would have seen a significant erosion in its brand value, if not for Virat Kohli.
Sunrisers Hyderabad, the youngest IPL franchisee, has made steady gains in terms of its brand value over the years, while Delhi Capitals has seen a 9 percent appreciation of its brand values on the back of its on-field performance this season.