The Indian Premier League (IPL) continues its astounding journey of growth, making headlines by soaring to a staggering brand value of $11.2 billion in 2023. This remarkable achievement is primarily attributed to a monumental media rights deal by the Board of Control for Cricket in India (BCCI) during the 16th edition of IPL. The IPL now stands on the threshold of the National Football League (NFL) in terms of dollar brand value, marking an unprecedented milestone in the world of sports. In this article, we will explore the key factors behind this incredible feat and unravel the stories of the teams and leagues that have made cricket a powerhouse in the world of sports.
BCCI’s Media Rights Bonanza
The IPL’s breathtaking growth trajectory remains unhindered. Following the 16th edition of IPL, the BCCI’s prized T20 league has grown by an impressive 6.3%, reaching a valuation of ₹92,500 Crore in 2023. With an adjusted exchange rate, the IPL is now within striking distance of the NFL, with a dollar brand value of $11.2 billion, as reported by D&P Advisory. This extraordinary rise in value can be directly linked to BCCI’s extraordinary windfall from the sale of IPL media rights.
During the 16th edition, the IPL saw no expansion in the number of teams. However, the BCCI’s coffers swelled significantly, thanks to a staggering ₹48,390 Crore influx from the sale of IPL media rights. Furthermore, the return of the home-and-away format led to gate revenues for IPL teams, further contributing to the league’s burgeoning brand value. Santosh N, Managing Partner of D&P Advisory, noted that this year’s IPL ecosystem value closely matched prior projections, underscoring the league’s consistency.
IPL Ranks Second Globally in Brand Value
The IPL’s brand value places it second only to the NFL, which leads the charts with a $17 billion brand value. This marks a significant leap from the IPL’s 2022 valuation of ₹87,000 Crore or $10.9 billion. Remarkably, the BCCI will lay claim to 60-65% of the brand valuation, with the remaining share distributed among the 10 IPL teams.
The BCCI secures half of the central pool, while the remaining half is shared among the Indian Premier League franchises. Additionally, the Indian board enjoys a 20% profit share from the franchises’ revenue, resulting in the BCCI’s substantial 60% share of the central pool.
This distribution translates into an aggregate business value of approximately $3.9-4.5 billion for all IPL franchises combined. With ten franchises in the mix, the average intrinsic business valuation per team falls within the range of $390-450 million, according to Santosh N.
The Rise of Women’s Premier League (WPL)
In a groundbreaking development, the Women’s Premier League (WPL) has carved a place for itself in the world of sports valuation. After its inaugural season, the WPL is now valued at ₹1,250 Crore or $150 million. This remarkable valuation is largely attributed to lucrative media rights deals, including a ₹951 Crore five-year deal with Viacom18. On a per-match basis, the WPL commands an impressive ₹7.09 Crore. Additionally, Tata’s ₹165 Crore title sponsorship deal further bolsters the league’s financial prowess.
Notably, only the Women’s National Basketball Association (WNBA) surpasses the WPL in terms of media rights deals per season, earning $25 million. The WPL’s substantial $23.4 million per season revenue sets it apart as a frontrunner among women’s cricket leagues. The inaugural WPL season featured 5 teams and 22 exciting matches.
Mumbai Indians: The Leading Franchise
In the realm of franchise valuation, the Mumbai Indians stand tall despite the Chennai Super Kings clinching their 5th Indian Premier Title title. In 2023, the Mumbai Indians emerged as the most valued IPL team, with an intrinsic business value ranging between $410-450 million. The Royal Challengers Bangalore, led by the charismatic Virat Kohli, secured the third spot in the valuation hierarchy.
The IPL’s phenomenal ascent to being the world’s second-most valuable sports league signifies its unparalleled influence and popularity. The infusion of funds from media rights deals, coupled with the unwavering allure of the league, has propelled it to NFL-like brand value heights. Simultaneously, the Women’s Premier League has entered the scene with a remarkable valuation, underlining the immense potential and commercial viability of women’s cricket. As these leagues continue to flourish, they play an indispensable role in shaping the future of cricket and sports entertainment, captivating audiences both in India and across the globe.
