Table of Contents
- Background & History
- Controversies and Challenges
- Cultural Impact & Contribution
- Rapid growth in IPL’s system valuation
- The domination of Mumbai Indians in this valuation game
- Chennai Super Kings recorded the highest valuation growth since 2009
- Rapid valuation growth of Lucknow Super Giants among new teams introduced in IPL
- Chennai Super Kings: The most powerful brand
- IPL’s performance compared to other T20 leagues
Author: Pankaj Chowdhury
Reviewer & Editor: Sahil Shekh
Background & History
The Indian Premier League (IPL) is a professional Twenty20 cricket league in India, inaugurated in 2008. Since its inception, the IPL has revolutionized the cricket landscape, blending sports and entertainment in an unprecedented way. The IPL, a brainchild of Lalit Modi, then Vice-President of the BCCI, was designed to emulate the success of professional sports leagues like the NBA and the English Premier League. What sets the IPL apart is its unique format, which includes city-based franchises, a player auction system, and matches held in prime time to attract maximum viewership. The first season of the IPL, held in 2008, featured eight teams representing various Indian cities. The tournament’s innovative format, aggressive marketing, and the involvement of Bollywood celebrities and business tycoons quickly captured the public’s imagination.
The IPL’s popularity skyrocketed in subsequent years, fueled by high-octane matches, star-studded lineups, and the glitz and glamour associated with the league. The player auction became a significant event, drawing global attention as teams vied for the services of top international and domestic cricketers. The IPL’s success was not confined to India, as it sparked the creation of similar T20 leagues in other countries, further solidifying the format’s global appeal. Television viewership and sponsorship revenues also saw a meteoric rise, with the IPL becoming one of the most-watched sporting events worldwide.
Over the years, the league expanded with new franchises, such as Pune Warriors India, Gujarat Lions, and Rising Pune Supergiant. While some teams had short stints, the league’s ability to adapt and evolve kept it dynamic. The IPL has been a platform for numerous record-breaking performances. Players like Chris Gayle, Virat Kohli, and AB de Villiers have enthralled fans with their extraordinary feats, including high individual scores and rapid centuries. The IPL has been a testing ground for cricketing innovations, such as the strategic timeout, the Decision Review System (DRS) introduction, and various technological advancements in broadcasting.
Controversies and Challenges
The IPL’s journey has been with controversies. Issues like spot-fixing, match-fixing, and team suspensions due to financial irregularities have marred the league’s reputation. The 2013 spot-fixing scandal involving players and team owners was particularly damaging, leading to stricter regulations and oversight. Despite the challenges it has faced, the IPL has shown remarkable resilience, bouncing back with more robust governance and a steadfast commitment to maintaining the integrity of the sport. This resilience is a testament to the league’s determination to overcome obstacles and continue providing thrilling cricketing moments.
Cultural Impact & Contribution
The IPL has played a pivotal role in nurturing new talent, democratizing cricket, and providing a platform for young players from diverse backgrounds to showcase their skills. This is evident in the rise of players like Jasprit Bumrah and Hardik Pandya, who have become household names in cricket, thanks to their performances in the IPL. Their success is a testament to the league’s commitment to fostering talent and its significant role in shaping the future of cricket.
The league has also blurred the lines between sports and entertainment, with pre-match and post-match shows, cheerleaders, and celebrity involvement adding to the spectacle. This fusion has made cricket accessible to a broader audience, including those who might not have been traditional cricket fans.
Economically, the IPL has made substantial contributions to India’s economy, generating employment, boosting tourism, and creating significant revenue through advertising, sponsorships, and broadcasting rights. The positive ripple effect is felt in cities hosting IPL matches, which experience a surge in economic activity, benefiting hotels, restaurants, and local businesses from the influx of fans and tourists.
The Indian Premier League has redefined cricket, merging sports with entertainment and creating a global phenomenon. Despite controversies and challenges, the IPL’s innovative format, economic impact, and cultural significance have ensured its place as a cornerstone of modern cricket. As the league continues to evolve, it promises to offer more thrilling cricketing moments, unearth new talent, and captivate audiences worldwide.
The introduction of Jio Cinemas has revolutionized the (Indian Premier League) IPL viewership market by providing free access to all Indian telecom users across devices in more than 15 regional languages. This innovative approach has significantly boosted viewership numbers and sustained marketer interest throughout the season. According to several research, this happens due to analytics-backed flexible pricing for advertisers. With Jio Cinema’s offering, the Star platform faces intensified competition in attracting advertisers, especially with the availability of matching regional language feeds. The IPL has expanded beyond television to maximise engagement, offering live match experiences through stadium events and IPL theme parks in Tier 1 and 2 cities. These multi-dimensional approaches have led to increased sponsorship opportunities for food and beverage brands and boosted merchandise sales as well.
Rapid growth in IPL’s system valuation
Fig: 1
The IPL system valuation from 2009 to 2023 registered a remarkable surge and witnessed a nearly 5.5-fold increase to reach approximately 10.7 billion USD, which is indicative of the league’s exponential growth and rising prominence in the global sports landscape. The IPL’s valuation trajectory underscores its evolution from a domestic cricket tournament to a multi-billion dollar sporting extravaganza with widespread global appeal.
The astounding 113% increase in IPL system valuation from 2021 further accentuates the league’s accelerating momentum and growing commercial viability. This surge reflects the IPL’s adeptness at capitalizing on emerging market trends, innovative revenue streams, and strategic partnerships to enhance its brand value and financial standing (fig: 1).
The domination of Mumbai Indians in this valuation game
Fig: 2
Furthermore, IPL franchises are actively expanding their global presence, with each new franchise ecosystem estimated to possess a brand value of around USD 1 billion. This global outreach not only enhances the visibility of IPL franchise brands year-round but also underscores the importance of governance and financial discipline. As these franchises gain international recognition, strategic oversight and financial prudence become essential for sustaining their growth and reputation.
The two most successful teams of IPL, MI and CSK, with valuations of 87.0 mn and 80.6 mn respectively, hold the top two positions which reflects their strong brand presence, consistent on-field performance, and significant fan following. Despite not being the highest-valued team, KKR’s valuation of 78.6 mn suggests they are a also formidable force in the league. With their aggressive marketing strategies and star-studded lineup, KKR holds significant potential for further growth in valuation.
Teams like Gujarat Titans (GT), Delhi Capitals (DC), and Rajasthan Royals (RR) fall within a similar valuation range, indicating a competitive mid-tier. Gujarat Titans (GT) have demonstrated a significant increase in brand value and ranking, securing 5th position – an impressive jump from 8th place last year. Sunrisers Hyderabad (SRH), Lucknow Super Giants (LSG), and Punjab Kings (PBKS) have comparatively lower valuations (fig: 2).
Chennai Super Kings recorded the highest valuation growth since 2009
Fig: 3
Lucknow Super Giants (LSG), positioned 8th with a brand value of USD 47 million, experienced the most rapid growth among IPL brands, with an impressive 48% increase. Despite commencing with a relatively modest foundation, LSG has made significant advancements in the valuation landscape. Similarly, Gujarat Titans (GT) emerged as one of the fastest-growing IPL brands, boasting a remarkable 38% growth rate. When comparing teams that have been part of the IPL since its inception in 2008, the growth in brand value for Chennai Super Kings (CSK) and Mumbai Indians (MI) is nearly double. Meanwhile, Kolkata Knight Riders (KKR) and Royal Challengers Bangalore (RCB) have also grown substantially, with their brand values increasing by over 80%. In contrast, Punjab Kings exhibited the lowest growth rate among these teams, registering only a 24% increase in brand value over the past 16 years (fig: 3).
Rapid valuation growth of Lucknow Super Giants among new teams introduced in IPL
Fig: 4
When comparing teams that have been part of the IPL since its inception in 2008, the growth in brand value for Chennai Super Kings (CSK) and Mumbai Indians (MI) is nearly double. Meanwhile, Kolkata Knight Riders (KKR) and Royal Challengers Bangalore (RCB) have also grown substantially, with their brand values increasing by over 80%. In contrast, Punjab Kings exhibited the lowest growth rate among these teams, registering only a 24% increase in brand value over the past 16 years (fig: 4).
Chennai Super Kings: The most powerful brand
Fig: 5
To evaluate the relative strength of brands using criteria such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation, The Brand Strength Index was introduced. In this regard, Chennai Super Kings (CSK) is the most successful team, with a Brand Strength Index (BSI) score of 81.8 out of 100. Under the leadership of the legendary ‘Thala’ Dhoni, Chennai Super Kings orchestrated an immersive fan experience throughout the IPL 2023 season. The unwavering support and spirited chants witnessed in stadiums underscore the intense fervour surrounding the CSK team. CSK’s recognition as the strongest brand in 2023 highlights its enduring fan base, robust fan engagement strategies, consistent merchandise policies, and a distinctive brand of cricket that sustains excitement throughout the season.
CSK’s dominance is further emphasized by the second and third positions held by Gujarat Titans and Mumbai Indians, respectively, in the Brand Strength Index. Gujarat Titans (GT) has swiftly risen in Brand Strength, securing the second position in the 2023 ranking. This achievement is attributed to the team’s formidable performance and aggressive style of play, leading to a rapid growth in fan base and consistently packed stadiums. With two final appearances in its two-year existence, GT boasts a noteworthy BSI score of 75.9/100.
Mumbai Indians clinch the third spot in Brand Strength, while Royal Challengers Bangalore (RCB) and Rajasthan Royals share the fourth rank. RCB’s slight decline from the top position last year prompts reflection, whereas Rajasthan Royals’ commendable ascent in Brand Strength reflects its steady and definitive progress (fig: 5).
IPL’s performance compared to other T20 leagues
Fig: 6
Based on the valuation data provided for all the cricket leagues, it’s evident that the Indian Premier League (IPL) holds a dominant position among cricket leagues worldwide, with a valuation of $10.681 billion. This reflects the immense popularity, viewership, and commercial success of the IPL, which has become a global cricketing powerhouse.
The England-based THE 100 comes in second with a valuation of $508 million. Although significantly lower than the IPL, this indicates a strong presence and potential growth in the English cricketing landscape. South Africa’s SA 20 league follows with a valuation of $398 million, showcasing a solid foundation in cricketing enthusiasm and commercial viability within the country. The Caribbean Premier League (CPL) and Pakistan Super League (PSL) hold valuations of $370 million and $299 million, respectively. These leagues highlight the popularity of cricket in the Caribbean region and Pakistan, and their commercial appeal both domestically and internationally.
India’s Women’s T20 Challenge, the WPL, holds a valuation of $270 million, indicating a growing interest and investment in women’s cricket, aligning with broader efforts to promote gender equality in the sport. Australia’s Big Bash League (BBL) follows with a valuation of $208 million, showcasing the country’s strong cricketing culture and commercial potential in the T20 format. Lastly, the Major League Cricket (MLC) in the USA holds a valuation of $119 million. While comparatively lower, this indicates a growing interest in cricket within the United States, which has historically been dominated by other sports (fig: 6).
Overall, these valuations reflect the global appeal and commercial viability of T20 cricket leagues, with the IPL leading the pack by a significant margin, followed by strong contenders from England, South Africa, the Caribbean, Pakistan, India, Australia, and even emerging markets like the USA.
Tags: ipl brand value 2024, ipl brand value 2023, highest brand value of IPL team, Top 10 brand value of IPL teams, IPL value 2024, CSK brand value
