MUMBAI: The numbers are eye-popping. And they should please the calculators at JioStar, the newly created joint venture between Disney Star and Reliance’s Viacom18 just as its sales folks go into the market to raise sponsorship and free commercial time advertisers for its 2025 season.

Brand Finance in its 17th IPL valuation report  said that the IPL's  cumulative brand value rose 13 per cent to $12 billion.  The league was valued at $2 billion in 2009, $10.7 billion in 2023, according to Brand Finance.

Chennai Super Kings registered a brand value at  $122 million growing a healthy 52 per cent, Mumbai Indians grew 36 per cent at $119 million,  RCB increased 67 per cent with a brand value of $117 million, KKR rose 38 per cent to be valued at $109 million, Sunrisers Hyderabad climbed 76 per cent to touch $85 million, Rajasthan Royals had a  30 per cent increase ($81 million),  Delhi Capitals, 24 per cent to touch  $80 million,  Gujarat Titans showed a five per cent growth to generate a brand value of $69 million while Punjab Kings racked up a 49 per cent rise to be valued at $68 million.

"IPL 2024 witnessed a significant paradigm shift, with four franchise brands now surpassing the $100 million mark in brand value and experiencing dramatic increases in central revenue shares. Digital viewership has overtaken traditional TV numbers, while domestic batters and bowlers are emerging as key performers. Does this mark a dramatic turn for the IPL, signalling a positive transformation for the league’s future?” said Brand Finance India managing director Ajimon Francis.

Meanwhile, global investment bank Houlihan Lokey which released its IPL brand valuation study in June 2024 had valued the swashbuckling league as a business at $16.5 billion (Rs 134,858 crore).

According to Houlihan Lokey corporate senior vice-president corporate valuation advisory services Harsh Talikoti who penned the report, the IPL in 2024 showed a growth of 6.5 per cent over the 2023 season’s business value which was at $15.4 billion. The business value of the league was pegged at just $8.5 billion in 2022 by the advisory firm.

Houlihan Lokey used the discounted cash flow method to reach at these valuation numbers.

In 2024, the IPL has transcended traditional sports norm to become a global phenomenon, it says.

The brand value of the IPL has also soared from $1.8 billon in 2022 to $3.2 billion in 2023 to $3.4 billion in 2024 – a growth of 6.3 per cent. The valuation was determined using the relief from royalty method.

Houlihan Lokey estimated the title sponsorship of the league cost the Tata group Rs 2,500 crore for a five-year period (approx. Rs 500 crore per season) which was a growth of approximately 50 per cent than the previous season’s deal of Rs 335 crore per season.

The TV commercial ad rates have gone northwards from Rs 14.5 lakh in 2022 to Rs 16 lakh in 2023 to Rs 16.5 lakh in 2024, according to the report.

Chennai Super Kings is the most valued amongst all the teams with a $ 231 million brand value. “CSK is the most consistent team in the league. Not only have they qualified in the playoffs for a staggering 12 out of 15 seasons they have played in, they have also won five titles. Former CSK captain Mahendra Singh Dhoni has been the face of the franchisee and the biggest contributor to the franchisee’s success,” says the report.

The second most valued team is Royal Challengers Bengaluru with a valuation of $227 million. “The team’s emotional connection with fans, coupled with consistent efforts to fortify its brand, has cemented its enduring appeal, attracting marquee sponsors at premium rates,” revealed the report.

Kolkata Knight Riders ranks third with a brand value of $216 million. Mumbai Indians comes in fourth with its brand valuation at $204 million. According to Houlihan Lokey,  “MI’s brand value was impacted slightly due to the negativity surrounding the team after a change in captaincy and its on-field performances; however, the long-term goodwill associated with the brand helped to negate the impact.”

Rajasthan Royals came in fifth with its value at $133 million. Sunrisers Hyderabad is at sixth with its brand value at $132 million.  Delhi Capitals is at seventh with its brand value at $131 million. Gujarat Titans and Punjab Kings made the tail end of the rankings with their valuations at $124 and $101 million respectively.

Houlihan Lokey believes that the IPL has some way to go to achieve its potential.

“Though these stats may look slightly lower than other established leagues, it is important to note that the IPL commenced just over 15 years ago, while the EPL has been standing ground for over 25 years and the NFL for over 40. It is only natural for one to expect a growth in this tournament in terms of size and volume. The IPL has proven its current value and is sure to become the next big thing in the sports world,” predicts the report.

You can download the full report by clicking on the link: Houlihan Lokey: IPL Valuation Study 2024

You can access the BrandFinance data by clicking here: Brand Finance IPL valuation study

(Picture courtesy: IPL)