IPL joins league of Olympics, FIFA as biz value surges 6.5% to ₹1.3 lakh cr in 2024

The value of the Indian Premier League (IPL) as a business surged to $16.4 billion (₹1,34,858 cr) in 2024, up by 6.5% compared to the previous year, according to the latest report by Houlihan Lokey, a U.S.-based global investment bank. The yearly report titled 'IPL Valuation Study 2024' says the IPL’s brand value -- the monetary worth of this intangible asset, including trade name and trademark -- has increased by 6.3% to $3.4 billion year-over-year.

Notably, the brand value is the monetary worth of this intangible asset (which would include trade name and trademark) and is always a subset of the overall value of a business.

With such high growth, the IPL has achieved new heights, joining the league of mega sporting events like the Olympics, the FIFA World Cup, and the Cricket World Cup, says the report, adding that the IPL is the only property in the world that has the "ability to reach over a billion-plus populace, with its popularity not just limited to the Indian subcontinent".

"Tata Group has secured the title sponsorship for a further five-year period from 2024 to 2028 for around $300 million (₹2,500 crore), paying 50% more than the previous deal of ₹335 crore per season. This significant investment, coupled with last year’s massive media rights auction, underscores the IPL’s status as a pivotal platform for esteemed brands seeking to enhance their value," says the yearly report.

Terming the IPL as an advertisers’ delight, the report calls the sporting event the "most coveted asset" in cricket. "On average, a T20 match will have around 80 to 100 ad slots strategically placed between overs, innings break, timeouts, and after fall of wickets. Similar to the NFL’s Super Bowl, where new TV commercials are launched every year, advertisers have replicated this model for the IPL in India. This year, advertisers ranging from fantasy apps to FMCG, fintech, banks, and electronics, all jumped on the IPL bandwagon by releasing new and innovative TV commercials," the report adds.

Additionally, the IPL 2024 coverage on Mukesh Ambani-led JioCinema also saw the inaugural day attracting over 113 million viewers, a 51% surge compared to the previous season’s opening day. The opening day saw 660 crore minutes of viewership, and the platform experienced a substantial 70% increase in watch time during the initial week of the tournament, the report says.

As per BARC data, Disney Star achieved an impressive cumulative reach of 44.8 crore viewers during the first 22 days (comprising 26 matches) of IPL 2024, amassing a total watch time of 18,800 crore minutes on television.

The report says the IPL has historically proven to be the prominent platform for budding startups and new-age brands to establish their presence, with brands like Dream 11, Fan Craze, Go Slice, and My11Circle evolving from the startup phase to the growth phase in the past few years.

The report ranks Chennai Super Kings (CSK) as the most-valued franchise, which is the most consistent team in the league. "Not only have they qualified in the playoffs for a staggering 12 out of 15 seasons they have played in, they have also won five titles." With a brand value of $231.0 million, CSK is ranked No. 1 in both brand ranking as well as business value ranking.

Royal Challengers Bengaluru (RCB) has been ranked second in brand and business value and boasts a brand worth $227 million. This year went exceptionally well for the champions, Kolkata Knight Riders (KKR), which gained back their momentum in the league by beating Sunrisers Hyderabad in the finals. Regarded as one of the best-managed franchisees in terms of business, turning profitable much before other franchisees, KKR has a brand value of US$216.0 million, elevating to the third position on the brand value chart, the report adds.