Mumbai, March 10: The Indian Premier League (IPL) is a profit-making business entity and the IPL 2021 edition is only a few weeks away. But it seems that the economic slowdown following the Covid 19 pandemic has affected the IPL a bit adversely.
As per a Duff & Phelps report published on Wednesday (March 10), the brand value of IPL has been reduced by 3.6 per cent in 2020 and has now touched Rs 45,800 crore as against 2019. The IPL brand value in 2019 was Rs 47,500 crore.
The individual teams have also showed a dip in revenue and value over the last year.
So, what could have led to this blip? The Duff & Phelps report says this could be because of the reduced franchisee-related sponsorship revenue, loss of gate collection, reduced food and beverage revenue and the teams' on-field performances of certain teams. It may be recalled that the IPL 2020 was held behind closed doors in the UAE.
Among the teams, Chennai Super Kings (CSK) led by MS Dhoni and Kolkata Knight Riders (KKR) saw their brand value dip by 16.5% and 13.7%, respectively, as against last year. The Super Kings' brand value has been reduced from Rs 732 crore in 2019 to Rs 611 crore in 2020, while the KKR's brand value has shrunk from Rs 629 crore in 2019 to Rs 543 crore in 2020. The five-time champions Mumbai Indians also saw an erosion of 5.9% of brand value, but retained top spot with Rs 761 crore in 2020.
Santosh N, external advisor, Duff & Phelps India, said, "Similar to the impact on other businesses and the overall economy, the pandemic led to a decline in the IPL ecosystem value. However, with people forced to spend time at home, there was an increase in IPL television viewership. The 2020 edition was a huge success for broadcasters as it broke viewership and advertising revenue records. Television ratings skyrocketed and advertisers tapped into this opportunity to scale up their brand image. Despite the challenging year, this momentum is indicative of how strong the IPL brand has become.
"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."
Teamwise brand value comparison (2019 and 2020)
Mumbai Indians: Rs 809 crore in 2019. Rs 761 crore in 2020. Growth: -5.9%
Chennai Super Kings: Rs 732 cr in 2019. Rs 611 cr in 2020. Growth: -16.5%
Kolkata Knight Riders: Rs 629 cr in 2019. Rs 543 cr in 2020. Growth: -13.7%
Royal Challengers Bangalore: Rs 595 cr in 2019. Rs 536 cr in 2020. Growth: -9.9%
Sunrisers Hyderabad: Rs 483 crore in 2019, Rs 442 crore in 2020. Growth: -8.5%
Delhi Capitals: Rs 374 crore in 2019. Rs 370 crore in 2020. Growth: -1.0%
Punjab Kings: Rs 358 crore in 2019. Rs 318 crore in 2020. Growth: -11.3%
Rajasthan Royals: Rs 271 crore in 2019. Rs 249 crore in 2020. Growth: -8.1%