The 2019 World Cup, which followed the Indian Premier League and the rather slow and sluggish business environment, has affected the brand value of the IPL. As per a report published by the Duff & Phelps, the IPL Brand Valuation has registered a 13.5 per cent growth in the overall value this year. If we pit this against 2018 - the league saw 18.87 per cent growth in brand valuation. The IPL in 2017 was valued at Rs 33,912.34 crore approximately.
The biggest reason for this slow growth could well be the depreciating rupee value as well as the absence of big sponsorship deals this year. Having said this, the valuation of the league increased to Rs 47,500 crore this year from Rs 41,800 crore in 2018.
On-field performances have been taken into account
The report also took into account the different franchises - the brand values of Mumbai Indians and Chennai Super Kings increased by up to 8.5 per cent and 13.1 per cent respectively. The value of Mumbai Indians in 2019 is Rs 809 crore. It was Rs 746 crore last year. Chennai Super Kings, on the other hand, is valued at Rs 732 crore in 2019 which was Rs 647 crore in 2018.
Delhi Capitals had a far better season in 2019 and hence, it gained in even its brand value - there was an increase of 8.9 per cent rise in its brand value. As far as figures are concerned - the figures grew from Rs 343 crore last year to Rs 374 crore in 2019.
"The league has gradually transitioned from being a startup to being a more mature, stable and professional business model," says Varun Gupta, managing director, Asia Pacific Leader for Valuation Services, Duff & Phelps was quoted by Forbes.
He goes on to explain that few of the major reasons for the same could be the consistent support by advertisers, sponsors, broadcasters and partners.
"An increase of 20 per cent in advertising revenues this year, and the recently renewed Paytm title sponsorship deal [which has fetched an increase of 58 per cent on a per-match basis over the last deal] are testaments to the continued popularity of the IPL," he further added.
Santosh N, managing partner, D and P India Advisory Services LLP, a member of the Duff & Phelps network, explains that factors which have bolstered the growth include team performance, star players, marketing, celebrity influence and social media engagement affect valuation. Owing to this, the valuation of KKR has fallen to 8.3 per cent. Also, owing to the mediocre performance of Royal Challengers Bangalore, there is an eight per cent even in the valuation of Royal Challengers Bangalore.