Houlihan Lokey, Inc. (NYSE), the global investment bank, has released its 2024 IPL Brand Valuation Study, offering a detailed analysis of the Indian Premier League (IPL) in terms of business enterprise and brand values.
The report reveals a significant surge in the IPL’s business value, now standing at US$16.4 billion, a 6.5% increase (INR 135,000 crores). The IPL’s standalone brand value has risen by 6.3% to US$3.4 billion (INR 28,000 crores) over the past year. Houlihan Lokey’s Corporate Valuation Advisory Services provides comprehensive advice on valuation matters for financial reporting, tax, and strategic planning initiatives, including purchase price allocation, equity valuations, and tax entity valuation for restructuring.
The Tata Group has secured the IPL title sponsorship for an additional five years (2024-2028) for approximately US$300 million (INR 2,500 crores), which is about 50% more than the previous deal of INR 335 crores per season. This, along with last year’s media rights auction, underscores the IPL’s prominence as a valuable platform for top-tier brands.
The IPL continues to be a major attraction for advertisers, with an average T20 match featuring 80 to 100 ad slots. Like the NFL’s Super Bowl, the IPL is a prime venue for launching new TV commercials. This year saw advertisers from various sectors, including fantasy apps, FMCG, FinTech, banks, and electronics, capitalise on the IPL’s widespread appeal.
“The IPL has solidified its status as a premier sports league on the global stage, showcasing an exceptional blend of sportsmanship, entertainment, and commercial success,” commented Harsh Talikoti, Senior Vice President, Corporate Valuation Advisory Services at Houlihan Lokey. “The league’s growth is not just in numbers but also in its innovative approach to engaging fans and leveraging digital platforms. This year’s increase in value underscores the IPL’s strategic initiatives and its robust fan base.”
The eight legacy teams in the IPL continue to benefit significantly from both the central pool’s income distribution and their own revenues from sponsorships, gate receipts, and merchandise sales. This has also led to an increase in private equity investments in the IPL, with firms like CVC Capital and Redbird Capital acquiring stakes in franchises.
Franchise revenues have notably increased over the years, driven primarily by television rights revenue. For example, Qatar Airways signed a major three-year contract with Royal Challengers Bengaluru worth around US$9.0 million (INR 75 crores).
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Manoj Badale, Lead Owner of Rajasthan Royals, stated: “The IPL as a product has always been highly investible. Inspired by U.S. sports leagues, particularly the NFL model, the IPL was destined to attract institutional investors. A closed league offers long-term security, a ‘hard’ salary cap ensures competitive parity, and an equitable commercial model guarantees revenue for franchises.”
Chennai Super Kings (CSK), despite not making it to the playoffs in 2024, remains the most valued franchise with a brand value of US$231.0 million, marking a 9% growth from the previous year. Kolkata Knight Riders (KKR), the 2024 IPL winners, experienced the highest growth with a 19.30% increase from 2023.
Franchise Valuations and Rankings:
- Chennai Super Kings (CSK): US$231.0 million
- CSK remains a top franchise, known for consistent playoff appearances and five titles, largely attributed to former captain Mahendra Singh Dhoni.
- Royal Challengers Bengaluru (RCB): US$227.0 million
- RCB, with a fervent fan base and star player Virat Kohli, ranked second. Their dramatic season turnaround contributed to high viewership and discussions.
- Kolkata Knight Riders (KKR): US$216.0 million
- KKR capitalises on the brand equity of owner Shahrukh Khan and star players, securing third place after their IPL victory.
- Mumbai Indians (MI): US$204.0 million
- MI, with legacy player Hardik Pandya as captain, ranks fourth, maintaining its evolution in IPL history.
- Rajasthan Royals (RR): US$133.0 million
- RR’s focus on nurturing young talent and renewing sponsor associations has boosted its brand value, placing it fifth.
- Sunrisers Hyderabad (SRH): US$132.0 million
- SRH, under new leadership, ranks sixth after a successful season and a strong auction strategy.
- Delhi Capitals (DC): US$131.0 million
- With captain Rishabh Pant’s return, DC stands seventh in brand value.
- Gujarat Titans (GT): US$124.0 million
- GT faced challenges with key player injuries, ranking eighth under new captain Shubman Gill.
- Punjab Kings (PBKS): US$101.0 million
- PBKS ranks ninth, maintaining a steady brand value.
- Lucknow Super Giants (LSG): US$91.0 million
- LSG rounds out the list in tenth place.
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