Duff & Phelps has announced findings from its IPL Brand Valuation Report 2019, a comprehensive study on brand values in the Indian Premier League (IPL).
The findings of the sixth edition of Duff & Phelps’ annual IPL study suggest an increase in the overall value of the IPL ecosystem from US$6.3 billion in 2018 to US$6.8 billion in 2019, a growth of 7% after considering currency fluctuations.
In INR terms, the IPL ecosystem value increased by approximately 13.5% from INR 41,800 crores to INR 47,500 crores, underpinned by the continued confidence advertisers, broadcasters, sponsors, affiliates, partners and viewers have shown in the IPL. The individual franchisee brands saw mixed fortunes, with their brand values increasing or decreasing in close correlation with their on-field performances.
Varun Gupta, Asia Pacific Leader for Valuation Advisory Services and India Country Leader, Duff & Phelps, said, “Our IPL brand values report reflects the evolution of the modern cricket business paradigm. As we move into the second decade of IPL, the league has transitioned from being a startup to being a more mature, stable and profitable business. An increase of 20% in advertising revenues this year and the recently renewed PayTM title sponsorship deal (which has fetched an increase of 58% on a per-match basis over the last deal) are testaments to the continued popularity of IPL.
This has resulted in a steady increase in the value of the ecosystem (which grew by 13.5% in INR terms). However, for growth trajectories to maintain their momentum, all teams need to focus on their on-field performance while continuing to broaden their footprint, forge relationships and generate revenue opportunities in growth markets.”
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 consistent on-field performance has made them fulfill the dreams of their sponsors and advertisers resulting in a year-on-year increase in their brand value.
On the contrary, Royal Challengers Bangalore (RCB) and Kolkata Knight Riders (KKR) have shed some of their brand value this year demonstrating that big city bases and marquee players are not the only factors influencing brand value; consistent performance on the field also matters.”
Among franchises, MI, with a brand value of INR 809 crore up by almost 8.5% from last year, continues to top the charts for the fourth season in a row. CSK has seen a massive gain of 13.1% in its brand value to INR 732 crore, propelling the team to the No.2 spot in our brand rankings. Though CSK saw it’s brand value erode due to the two-year ban imposed on it, it seems to have recovered on the back of continued on-field success coupled with a pan-India fervent fan base and Dhoni’s charisma.
KKR and RCB have seen their brand value erode primarily on account of their below-par on-field performances, with both franchises shedding approximately 8% of their brand value. However, both continue to be backed by loyal fan bases and the presence of Shah Rukh Khan and Virat Kohli respectively, who continue to carry each brand on their shoulders. This is particularly so for RCB, who if not for Virat Kohli, would have seen a significant erosion in its brand value in the last couple of years.
Sunrisers Hyderabad, the youngest franchisee in IPL, has made steady gains over the years in terms of its brand value while Delhi Capitals, on the back of its on-field performances this season, saw an appreciation of 9% to its brand values.