Duff & Phelps have released the research findings conducted related to IPL(Indian Premier League) brand value 2020. As per the data revealed by the organization, IPL evaluation has decreased by 3.6% in 2020. Pandemic has affected the IPL operations very badly. First, the event was shifted to UAE in 2020. Second, there was no in-person attendance for the cricket fans. These two things did not attract more sponsors for the 2020 event.
How IPL 2020 Got Affected?
2020 has brought the business’s operations to the lower level. The sports industry also saw a decline in its revenue and operations due to lockdowns and other strict rules applied to combat covid-19. IPL, one of the most valuable cricket leagues worldwide, got disturbed due to pandemics. IPL calendar was changed for 2020. The governing body also changed the rules and regulations to play IPL 2020 in UAE.
In its 7th IPL study, Duff and Phelps found that the IPL ecosystem saw a decline of 3.6%. If we talk about the value degradation in currency, value changed from Rs 47,500 crore to Rs 45,800 crore.
IPL franchises also observed a downfall in their brand values. It all happened due to the limited sponsorship, loss of ticket revenues, less food and beverage revenue, and on-field performances of the franchises.
Mumbai Indians retained its top spot for the fifth consecutive year as the most valuable franchise. Its valuation also saw a decline by 5.9%. Chennai Super Kings(CSK) and Kolkata Knight Riders(KKR) also saw a brand value decline by 16.5% and 13.7% respectively. CSK and KKR still managed to retain 2nd and 3rd spot among the IPL franchises in terms of brand value.
Santosh N, Duff, and Phelps India External Advisor said:
“Pandemic affected the IPL in a similar way it did to other businesses. Since people were at home, it brought good news for IPL television viewership. IPL has broken so many viewership records in 2020. TV advertising revenue surged due to large viewership. TV ratings saw exponential growth and it attracted the brands to spend more on the advertisements. IPL has become such a strong brand that valuation is not decreased more.”
Future of Sports and the Financial Details of IPL 2020
“With the economy opening and COVID-19 cases decreasing in India, we expect sponsorship deals to be back to their pre-COVID-19 levels. We have now entered a more stable phase in terms of the IPL ecosystem’s value; the value appreciation is not expected at the rate of previous years. However, an increase in the number of teams in 2022 and the renewal of media rights in 2023 could enhance the IPL ecosystem value in the future,” Santosh further said.
Talking about the future of sports in India, Varun Gupta, Managing Director of Valuation Advisory Unit of Duff and Phelps, said that IPL has clearly indicated how the modern cricket business has changed recently. IPL franchises are not only getting popular in but the game has gone global. In the future also, we believe that the clubs will continue expanding their operations, relationships, and revenue in the global market.
In 2020, IPL season 13 recorded low sponsorship revenue due to the lack of interest by major business firms. Dream11 paid Rs 222 crore for the 2020 season compared to Rs 440 crore agreement by Vivo for every year sponsorship. IPL canceled the Vivo contract in 2020 but the company is back with IPL 2021 sponsorship rights.