IPL valuation reportedly rises by 6.5 per cent to US$ 16.4 billion in 2024; CSK most valued franchise

The Indian Premier League's (IPL) value shot up by 6.5 per cent to a whopping US$ 16.4 billion (roughly Rs 1,34,858 crore) after the 2024 season, according to a report published by American investment bank Houlihan Lokey.

The report further added that the cash-rich league's brand value increased by 6.3 per cent to US$ 3.4 billion (roughly Rs 28,000 crore) year-on-year, while listing Chennai Super Kings (CSK) as the most valued franchise with reigning champions Kolkata Knight Riders (KKR) seeing the highest annual growth.

The increase in the value of IPL is helped by title sponsorship by salt-to-software Tata Group for a further five years (2024 to 2028) for approximately US$ 300 million (Rs 2,500 crore), paying approximately 50 per cent more than the previous deal of Rs 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,” the report said.

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Apart from mega events such as the Olympics, the FIFA World Cup, and the Cricket World Cup, 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, it added.

Brand value is the monetary worth of intangible assets, which also includes trade names and trademarks.

”Today, the IPL commands widespread recognition, firmly entrenched as a household name with a robust brand recall among successive generations,” Harsh Talikoti, Senior Vice President, Corporate Valuation Advisory Services, Houlihan Lokey, said.

As per the report, IPL has been valued as a legal business entity and separately as a brand. It has taken into consideration the income and cash-generating capability of the IPL on a standalone basis.

CSK continues to be the most valued IPL franchise and KKR sees highest annual growth, the report stated.

”There has been a significant increase in franchise revenue over the years, primarily driven by revenue from television rights, despite each team having sponsorship revenue ranging from US$ 5-12 million. A major agreement was signed by Qatar Airways for around US$ 9 million (Rs 75 crore) for a three-year contract with Royal Challengers Bengaluru,” it said.

Royal Challengers Bengaluru (RCB) has been ranked second in brand and business value worth of US$ 227 million. It is followed by Mumbai Indians (MI) with a brand value of US$ 204 million.

Rajasthan Royals (RR) comes at fifth position with a brand value of US$ 133 million.

”RR also had the majority of sponsors on their roster renewing their association, showcasing its attractiveness as one of the fastest-growing brands within the IPL ecosystem. These factors helped RR jump two places to the fifth spot,” it said.

While, Sunrisers Hyderabad (SRH) with a brand value of US$ 132 million stand sixth on the list.

”Having done exceptionally well at the auction and developing a new squad under the leadership of Pat Cummins, SRH managed to pick the stars of the recently concluded World Cup that contributed to the franchises’ great performance,” it said.

Among the rest of the teams, Delhi Capitals, with the return of its captain and most marketable asset, Rishabh Pant, ranked seventh with a brand value of US$ 131 million.

Gujarat Titans has been ranked eighth with a brand value of US$ 124 million and Punjab Kings (PBKS) has a brand value of US$ 101 million and Lucknow Super Giants has a brand value of US$ 91.0 million, the report said.

With PTI inputs