Houlihan Lokey, Inc., a global investment bank, in its brand valuation report has stated that the stand-alone brand value of the IPL is now US$3.2 billion,while the business enterprise value of the IPL stood at US$15.4 billion

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.

According to the report, the stand-alone brand value of the IPL is now US$3.2 billion, up by 80 percent from US$1.8 billion in 2022. The business enterprise value of the IPL stands at US$15.4 billion, up 80 percent from US$8.5 billion in 2022, mainly due to the impact of the 2023-2027 media rights deal with Viacom18 and Disney Star after a fiercely contested auction.

A press release issued by the investment bank on Monday said the IPL’s media rights have grown at a phenomenal CAGR of 18 percent from 2008 to 2023, while the growth in absolute terms between the 2017 and 2023 cycles is 196 percent.

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, in a statement.

“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 Talikoti.

With a brand value of US$212 million, growing year-on-year at 45.2 percent, 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 US $195 million. Rajasthan Royals saw the highest incremental brand value rise in percentage terms year-on-year of 103 percent.

Royal Challengers Bangalore (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 percent to US$195 million in 2023 from US$128 million in 2022.

Along with CSK, RCB is hugely popular across India and on social media, with the presence of Virat Kohli, probably the best batsman of his generation, adding a distinct aura to the franchise. Its 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, the press release elaborated.

Another hugely successful and popular team, Mumbai Indians, is a close third on the table with a 2023 brand value of US$190 million — growing by 34.8 percent from its 2022 brand value of US$141 million.

MI’s brand has a strong ability to attract sponsors every year who are willing to pay a premium to be associated with such a strong franchise.

Gujarat Titans is fast emerging as a popular brand that sponsors are keen to associate with. Winning the title in its very first season and finishing as finalists in IPL 2023 has enhanced its brand recognition.

Playing its home games at the 132,000-seat stadium in Ahmedabad and led by the hugely popular all-rounder Hardik Pandya, the report expects to see GT 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 its enterprise value.

Punjab Kings has a 2023 brand value of US$90 million, up from US$63 million in 2022, and Lucknow SuperGiants (LSG) has a 2023 brand value of US$83 million.