Two things rule in India- Cricket, and Bollywood and you may be surprised to know that Cricket is getting bigger than Bollywood with every passing day. The Indian Premier League (IPL) has become the biggest entertainer of the year in the country over the last few years and is improving its brand value with each passing year. Duff & Phelps, the reliable corporate finance advisory, valuated IPL the brand at a whopping $6.3 Billion for the 2018 year, a significant jump from its 2017 valuation at $5.3 Billion.
IPL is seeing such significant jumps in its valuation because of the mass appeal it is bringing across the world. However, it is not just the global mass appeal that has contributed to it but the incredible bid by Star India global IPL broadcast (TV and digital) rights made it even bigger. Star India gained global rights for five years for a monstrous price of $2.55 Billion (16,347.5 Crores) in 2017. The other major factors that played a crucial role in this magical boom is the presence of Marquee players, increase in OTT media platforms and most important commentary in eight different languages. This has made it possible for the brand to reach almost all the corners of India. Extensive advertisements in social media too is an obvious contributor.
The big investment by Star India garnered them a lot of revenue during the last season with earnings over ₹2,000 Crores, much more than the ₹1,300 Crores that Sony earned in 2017. This is the result of advertisers investing heavily in the brand during the 2-month period of IPL. They trust the teams in IPL and IPL, in general, more than Bollywood now, at least when the premier tournament is on.
Speaking of teams, Mumbai Indians topped the chart of the teams with the best valuation for the third consecutive year. MI trumps every other franchise with a brand value of $113 Million, a 7% increase from their last year’s valuation at $106 Million. MI has star players like Rohit Sharma, Hardik Pandya, Jasprit Bumhrah and Kieron Pollard to thank. In addition, their CSR (Corporate Social Responsibility) work is unparalleled with multiple benefits program under their brand name. KKR follows them in a close second with $104 Million. It should not come as a surprise with a great business mind like Shah Rukh Khan at the franchise’s helm. However, CSK sitting at the No.3 spot should be a surprise given the fact that they won the title last year. CSK’s value got a hit due to their two-year suspension but their winner title last year and the mass appeal of MS Dhoni has brought them back in the game.
With IPL gaining popularity around the world every year, it is sure to reach even better milestones in the coming years. It would not be a surprise if it soon reaches the revenues of other top tournaments like NFL, NBA or EPL in a few years.