Valuation of the Indian Premier League (IPL) ecosystem has registered a growth of 75 per cent and is now pegged at $10.9 billion. This makes it a decacorn within 15 years of its inception, as per estimates by D and P Advisory. It is now the second largest sporting league globally in terms of broadcasting fees earned on a per-match basis. .
In 2020, the IPL was valued at $6.2 billion. The valuation jump is attributed to factors such as record-breaking viewership, sale of media rights till 2027 at a much higher price with broadcast and digital rights sold separately and addition of two new teams.
The IPL Ecosystem represents the value generated by the IPL as a business.
“The T20 league’s IPL media rights for 2023-2027 were at $6.2 billion, registering a three-fold jump compared to the previous 5-year cycle in 2017. Additionally, the tournament in 2022 also registered a record-breaking combined viewership of 426 million on television and OTT platforms,” D and P Advisory stated. With Gujarat Titans and Lucknow SuperGiants were also bought at a combined staggering value of $ 1.6 billion, garnering a 16-fold jump for an average team franchise since its inception.
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The launch of the Women’s Indian Premier League with a base price for a franchise at ₹400 crores ($50 million) will further add immense value to the overall IPL ecosystem, it added.
Santosh N, Managing Partner, D and P Advisory says, “Since its launch in 2008, IPL has reimagined the nation’s cricket competition. IPL 2022 witnessed some major milestones and captivating games throughout the season. The renewed media rights deal was a major contributor towards a substantial jump in value for a relatively young league like IPL. These observations are an assurance of the fact that the IPL will continue to revolutionise the game of cricket and will be etched in the hearts of millions of fans for years to come.”
However, IPL is estimated to be significantly behind other global sporting leagues in terms of ad rates. The report stated that a ten-second slot for an ad during IPL 2022 cost nearly $20,000, while the ad rates for the same time slots at National Football League, English Premier League and Major League Baseball were over $1,00,000.
“IPL team owners are looking to replicate the multi-club ownership model as part of their long-term strategy,” the report added. The Knight Riders Group owns the right to Trinbago Knight Riders in the Caribbean Premier League, and a franchise of the UAE T20. It also has plans to build cricket stadiums in Los Angeles, USA, in partnership with the Major League cricket. Reliance Industries, the owners of Mumbai Indians, recently unveiled two new franchises in UAE’s International League T20 and Cricket South Africa T20 League.
With the BCCI locking new broadcasting deals for the next five years, the value appreciation may not as fast as seen in earlier year, the report stated.
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The report also stated that digital rights being sold separately from TV rights would result in greater engagement on the digital platforms. “Further, the impending introduction of 5G services, greater penetration of the internet and increased smartphone usage will add to the rise in viewership. Ultimately, apart from the love for cricket that viewers have, much of cricket’s future depends on ensuring quality; not just for the fans, but also to attract sponsors and broadcasters, the latter of which have become vital for the game’s financial health,” it added.
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