Comments
Despite hosting a successful edition in 2020 against all odds, the Indian Premier League’s brand valuation has taken a hit. It had eroded 3.6 per cent to ₹45,800 crore in 2020 from ₹47,500 crore in 2019, according to estimates by Duff & Phelps, a Kroll Business.
A key factor that led to this decline was title sponsor Vivo’s decision to pull out last year and Dream11 coming in as the replacement at a much lower sponsorship deal agreement (₹222 crore). This led IPL13 to record lower sponsorship revenues.
However, BCCI managed to rake in revenues of ₹4,000 crore while cutting costs by 35 per cent against an anticipated revenue loss of ₹3,000 crore had the season got cancelled, the report added.
Also read: IPL 2021 from April 9 to May 30
Team valuations
Reduced sponsorship revenues by 15-20 per cent, loss of gate receipts, and reduced food and beverage revenue also led to lower valuations of individual franchisees of IPL.
Mumbai Indians retained the top spot in the franchise brand rankings for the fifth consecutive year with a value of ₹761 crore, down 5.9 per cent from the previous year.
The brand values of Chennai Super Kings (CSK) and Kolkata Knight Riders (KKR), ranked two and three, decreased by 16.5 per cent and 13.7 per cent, respectively, compared to 2019.
“CSK’s worst-ever on-field performance and the concerns of an ageing roster have negatively impacted the brand credibility, and a correction was inevitable. CSK’s brand value reduced from ₹732 crore to ₹611 crore,” the report pointed out.
“We expect sponsorship deals to come back to pre-Covid levels in the upcoming season. We believe that the addition of two new teams in 2022 and the renewal of broadcasting rights in 2023 will enhance the IPL ecosystem’s brand valuation considerably,” said Santosh N, External Advisor, Duff & Phelps India.
Also read: Weekly TV viewing of sports down 35% in 2020 despite IPL
IPL 14
Meanwhile, IPL14 had already got going. Vivo’s return as title sponsor has led to an upbeat mood. Disney+ Hotstar has already roped in 10 sponsors for the upcoming season. While Dream11 is the co-presenting sponsor, Upstox and Vimal Pan Masala are the ‘co-powered by’ sponsors. Phone Pe, Association of Mutual Funds in India, Unacademy, Pharmeasy, Livspace, Swiggy and Parle Agro have signed on as associate sponsors.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.