Brand IPL still in form, to hit $10 bn this year
It is not without reason that the Indian Premier League (IPL) is counted among the world’s most valuable sporting properties. The IPL brand shows no signs of fatigue even in its sixteen year; if anything, it seems to be getting stronger.
Estimates by brand experts put the league’s value at $10 billion for calendar year 2023, which is a growth of 19% versus the previous year. In 2022, IPL’s brand value stood at $8.4 billion, according to Brand Finance, an international brand valuation firm. This was double its value of $4.7 billion in 2021. (See chart)
“The IPL is an interesting case study because there are a number of factors that work in its favour,” says Ajimon Francis, managing director, Brand Finance India. “Right from fan engagement to its consistent viewership across platforms, the huge amount of money that broadcasters paid for its media rights to the emergence of new stars. All of this feeds into brand IPL,” says Francis.
The 2023 edition of the IPL has been marked by thrilling matches, performances of young stars such as Shubman Gill, Rinku Singh and Yashasvi Jaiswal and Sunday’s final being rain-washed, a first in 16 years. The IPL final was played on Monday, a reserve day, at a packed Narendra Modi stadium in Ahmedabad.
It didn’t matter that it was a working day, fans with tickets managed to make it to the stadium, according to sources at the Board of Control for Cricket in India.
“To me the IPL falls into what I describe as an arena brand, where a brand is playing in multiple spaces. The IPL to me has entertainment, lifestyle and sports, which is an arena it is playing in,” says Ashish Mishra, chief executive officer, India & South Asia, Interbrand.
Most big brands from Apple to Microsoft, Jio to Amazon, says Mishra, are now positioning themselves as arena brands, where they can play in larger spaces and more industries and categories.
Sports brands, say experts, are now beginning to understand the value of multiple attributes, says N Chandramouli, chief executive officer of brand insights firm TRA Research. “The IPL simply strings India together. Fans from different cities coming together to root for their teams and stars is what makes IPL stand out,” he says. “This in turn drives viewership, advertiser interest and engagement.”
How the IPL has evolved since its launch in 2008 can be gauged from this: The brand value of the sporting property touched $2 billion in a year (2009). And from 2009 to 2022, it has jumped 318%, according to Brand Finance.
What is interesting to note is that the combined television and digital rights for the 2023-27 cycle surpassed the previous rights value (of Rs 16,347.50 crore for 2018-22 cycle) by two-and-a-half times. The 2023-27 media rights auction, held in June last year, also helped the IPL emerge as the second-most valued sporting league after the National Football League in terms of per-match value, according to the BCCI.
While two new franchises have added another dimension to the IPL’s competitiveness, Francis says Mumbai Indians continue to be the most-valuable team at $83 million, followed by Kolkata Knight Riders and Chennai Super Kings at $76.8 million and $73.6 million each in terms of brand value. These are valuations for 2022. The 2023 numbers have not been disclosed yet.
In terms of brand strength, Royal Challengers Bangalore was the strongest in 2022, growing 34% year-on-year to touch $68 million in terms of brand value. Mumbai Indians, while growing modestly in 2022 at 4% over 2021, retained its position among IPL’s strongest brands. And Gujarat Titans, which debuted in the 2022 edition, also made a mark in terms of brand value at $47.4 million. It is now raring to go after making it to its second consecutive IPL final this year.