(Credit BCCI)
The Indian Premier League’s worth surged by 6.5%, reaching USD 16.4 billion (approximately Rs 134,858 crore) in 2024, as per a report from the American investment bank, Houlihan Lokey. Additionally, the esteemed T20 league’s brand value also saw a 6.3% boost, climbing to USD 3.4 billion (about Rs 28,000 crore) year-on-year.
This upsurge in IPL’s value is attributed to the continuation of its title sponsorship by Tata Group, spanning from 2024 to 2028. The deal, valued at around USD 300 million (Rs 2,500 crore), represents a significant increase of approximately 50% compared to the previous agreement, which amounted to Rs 335 crore per season.
“This significant investment, coupled with last year’s massive media rights auction, underscores the IPL’s status as a pivotal platform for esteemed brands seeking to enhance their value,” the report said.
Besides major global spectacles like the Olympics, FIFA World Cup, and Cricket World Cup, the IPL stands out as the sole entity capable of captivating over a billion people worldwide. Its appeal transcends the confines of the Indian subcontinent, making it a global phenomenon.
Brand value encompasses the financial evaluation of intangible assets, encompassing trade names and trademarks among others.
“Today, the IPL commands widespread recognition, firmly entrenched as a household name with a robust brand recall among successive generations,” Harsh Talikoti, Senior Vice President, of Corporate Valuation Advisory Services, Houlihan Lokey, said.
According to the report, the IPL has been appraised both as a corporate entity and as a distinct brand, factoring in its revenue and independent capacity to generate cash flow.
The report highlights Chennai Super Kings (CSK) as the IPL franchise with the highest valuation, while noting that Kolkata Knight Riders (KKR) experienced the most significant annual growth.
“There has been a significant increase in franchise revenue over the years, primarily driven by revenue from television rights, despite each team having sponsorship revenue ranging from USD 5-12 million. A major agreement was signed by Qatar Airways for around USD 9 million (Rs 75 crore) for a three-year contract with Royal Challengers Bengaluru,” it said.
