The Indian Premier League's valuation grew nearly 7 percent in 2019 to $6.8 billion, boosted by increase in brand values of two of its most popular franchises, according to a study.
Brand values of Mumbai Indians and Chennai Super Kings rose by 8.5 percent and 13.1 percent, respectively, the study by Duff & Phelps said, adding it was on the back of the teams' consistency in on-field performance.
Continued confidence shown by advertisers, broadcasters, sponsors, affiliates, partners and the audience have shown in IPL as a brand was responsible for the rise in its brand value, the global advisor for corporate finance and valuation said.
“IPL has entered a phase where it will grow in the range of 10-15 percent every year till 2022,” Santosh N, managing partner of D and P India Advisory Services LLP, a member of the Duff & Phelps Network, told BloombergQuint.
He said in 2022, the broadcasting rights as well as the title sponsorship will come up for renewal which will then give a clear guidance on the growth of IPL as a brand.
Delhi Capitals' brand value rose 8.9 percent while Sunrisers Hyderabad, the league's youngest franchisee, has made steady gains over the years, the report said.
However, the brand value of teams like Royal Challengers Bangalore and Kolkata Knight Riders eroded by nearly 8 percent each.
While the brand value of both the teams fell on the back of their poor on-field performances, RCB's over-reliance on marquee players Virat Kohli and AB de Villers and the Kolkata-based team's lack of star players were additional factors, the report said.
Rajasthan Royals' value, too, dropped following poor performances, lack of strong players and controversies surrounding the team historically.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
