IPL brand value reaches USD 3 billion; CSK lead brand valuation with US $212mn in 2023: Houlihan Lokey Report

Mumbai, July 10: Global investment bank, Houlihan Lokey, Inc., on Monday (July 10) issued the Indian Premier League (IPL) Brand Valuation Study 2023 in its inaugural report into the business enterprise and brand values of India's premier domestic T20 cricket competition.

Houlihan Lokey's Corporate Valuation Advisory Services advises companies on all valuation matters affecting their financial reporting, tax, and strategic planning initiatives. Offerings include purchase price allocation (valuation of all acquired assets and liabilities), equity valuations for stock, and tax entity valuation for restructuring.

IPL business enterprise value reaches US$15 billion

According to the report, the stand-alone brand value of the IPL is now USD 3.2 billion, up by 80% from USD 1.8 billion in 2022. The business enterprise value of the IPL stands at USD 15.4 billion, which is up by 80% from USD 8.5 billion in 2022.

The surge is primarily the because of the impact of the 2023-2027 media rights deal with Viacom18 and Disney Star after a fiercely contested auction earlier this year. The IPL's media rights have grown at a staggering CAGR of 18% from 2008 to 2023, while the growth in absolute terms between the 2017 and 2023 cycles is 196%.

IPL broadcasting fee above NBA, EPL, NFL, etc.

When the IPL's broadcasting fee is compared with other professional leagues in the world on a per-match basis, the IPL fares well above the likes of the National Basketball Association (NBA), the English Premier League (EPL) and the Bundesliga and is second only to the National Football League (NFL).

"Created on the American style of franchise-based systems of hiring players, the IPL has established itself as a hugely lucrative sports league, along similar lines as the NFL and the NBA," commented Harsh Talikoti, Senior Vice President, Corporate Valuation Advisory Services at Houlihan Lokey.

"Besides the exponential growth in brand and business enterprise valuation of the IPL and the franchisees, it is interesting to note the prominent shift towards acceptance of digital platforms for sports consumption. Viacom18's strategic push towards promoting digital viewership in India has undeniably reignited the much-needed excitement surrounding the IPL.

"This shift is evident in the remarkable viewership numbers witnessed during the current season on Viacom18's OTT platform, JioCinema. However, Disney Star's television viewing numbers were also very encouraging this year, achieving record levels," added Mr Talikoti.

IPL Brand Value Year-on-Year Growth

With a brand value of USD 212 million, growing year-on-year at 45.2%, Chennai Super Kings is ranked No. 1 in both brand ranking and business enterprise value ranking. Royal Challengers Bangalore ranks second in terms of brand value at USD 195 million. Rajasthan Royals saw the highest incremental brand value rise in percentage terms year-on-year of 103%.

Chennai Super Kings IPL Brand Value

The winner of IPL 2023, CSK established themselves as an iconic brand in the marquee competition and leads the brand valuation table with a value of USD 212 million in 2023, witnessing a growth of 45.2% y-o-y from USD 146 million in 2022.

Captain MS Dhoni has been the driving force and major factor in the team's success. The former India captain's association with the franchise since the start of the season has created a strong brand identity that resonates with cricket enthusiasts across India.

Five title wins and being finalists in 10 out of 14 seasons make CSK the most consistent team in the league, commanding a premium from its sponsors. The team's branding efforts, fan engagement strategies, and CSR initiatives contributed to its enduring success and popularity.

Royal Challengers Bangalore (RCB) IPL Brand Value

RCB now ranks second in terms of brand and enterprise value ranking, surpassing Mumbai Indians, which placed second in 2022. Its brand value grew by 52.3% to US$195 million in 2023 from US$128 million in 2022.

RCB is one of the most popular franchises the world over on social media with the presence of Virat Kohli, inarguably the best batsman of his generation, adding a distinct aura to the franchise.

RCB's consistent efforts to build a strong brand and connect with supporters have contributed to its enduring popularity, which has also helped in bringing marquee sponsors at premium pricing.

Mumbai Indians (MI) Brand Value

Another hugely successful and popular team, Mumbai Indians, a close third on the table with a 2023 brand value of USD 190 million. Despite two forgettable seasons in IPL 2021 and 2022, MI grew by 34.8% from its 2022 brand value of USD 141 million.

With a rich legacy and a remarkable track record, MI - who are being led by current India captain Rohit Sharma for the last 10 years - have cemented their position as one of the most successful franchises in the history of the IPL.

The franchisee's history of nurturing young talent and creating next-gen superstars like Suryakumar Yadav, Jasprit Bumrah, Hardik Pandya, and many others. MI's brand has a strong affinity to attract sponsors every year who are willing to pay a premium to be associated with the most successful franchise in the history of the league, now joint-most successful with CSK.

Kolkata Knight Riders (KKR) Brand Value in 2023

KKR is ranked fourth in the 2023 brand value chart with a value of USD 181 million, growing by 48.4% y-o-y from USD 122 million in 2022.

The team's lack of marquee Indian players this season has had an impact on its brand value. However, KKR is probably one of the most well-run franchises in terms of its business and derives significant leverage from the brand equity of its popular owner, Shahrukh Khan. KKR was the first IPL franchisee to turn profitable in the early 2010s.

Delhi Capitals IPL 2023 Brand Value

Losing Rishabh Pant ahead of the IPL 2023 season due to the Delhi cricketer's accident, and releasing Shreyas Iyer - who is the captain of KKR - did impact the team's on-field performances in IPL season 16. Delhi Capitals were ranked fifth with a brand value of USD 133 million from a brand value of USD 83 million in 2022.

Sunrisers Hyderabad IPL Brand Value

Sunrisers Hyderabad (SRH) ranked sixth with a brand value of USD 128 million in 2023, up from USD 81 million in 2022.

Rajasthan Royals Brand Value

Due to good on-field performances, the Rajasthan Royals - who were the IPL 2022 finalists - witnessed the highest incremental brand value growth in percentage terms, up 103% to USD 120 million from USD 59 million in 2022.

Gujarat Titans IPL Brand Value

Gujarat Titans are fast emerging as a popular brand that sponsors are keen to associate with. Winning the title in their very first season and finishing as finalists in IPL 2023 has enhanced the brand recognition of the franchise which is being led by India star all-rounder Hardik Pandya.

Playing their home games at the 132,000-seat Narendra Modi Stadium in Ahmedabad and led by other hugely popular players like Rashid Khan, GT is expected to soon bridge the current gap with the top four brands in the IPL. However, GT's massive cost outlay in terms of the franchise fee payments, which are required to be made to the BCCI every year, impacts their enterprise value.

Punjab Kings and Lucknow Super Giants Brand Value

Punjab Kings (PBKS) have a 2023 brand value of USD 90 million, up from USD 63 million in 2022, and Lucknow Super Giants (LSG) - the second new franchise in the IPL besides Gujarat Titans - have a 2023 brand value of USD 83 million.