IPL’s brand value jumps 7% to $6.8 bn in 2019: Duff & Phelps4 min read . Updated: 19 Sep 2019, 01:01 PM IST
- The growth, however, is tepid than last year when IPL 2018 grew 19%
- Despite being a World Cup year, IPL 2019 witnessed a 20% in ad spending
New Delhi: Despite the presence of ICC World Cup, the brand value of the Indian Premier League (IPL) increased by 7% to touch $6.8 billion in 2019 from $6.3 billion last year, on the back of continued confidence shown by advertisers, broadcasters, sponsors, affiliates, partners and viewers, according to a report by Duff & Phelps, a New York-based corporate finance advisory firm, released in Mumbai on Thursday.
The growth, however, is tepid than last year when IPL 2018 grew 19%. This could be attributed to the value of rupee which depreciated over last year, the base of IPL becoming larger and absence of big sponsorship or broadcast right deals this year.
In INR terms, the findings of the sixth edition of the annual IPL study suggest an increase of around 13.5% in the IPL ecosystem value which jumped from ₹41,800 crores to ₹47,500 crores.
Varun Gupta, Asia Pacific leader for valuation advisory services and India country leader, Duff & Phelps, said, “As we move into the second decade of IPL, the league has transitioned from being a startup to being a more mature, stable and profitable business. An increase of 20% in advertising revenues this year and the recently renewed Paytm title sponsorship deal (which has fetched an increase of 58% on a per-match basis over the last deal) are testaments to the continued popularity of IPL. However, for growth trajectories to maintain their momentum, all teams need to focus on their on-field performance while continuing to broaden their footprint, forge relationships and generate revenue opportunities in growth markets."
Despite being a World Cup year, IPL 2019 witnessed a 20% in ad spending. The report noted that the advertisers could have taken a conservative stance and saved their budgets for the World Cup, but the high viewership interest in IPL continued to attract them.
The official broadcast partner Star India’s focus on regional languages and ‘kids and family’ special IPL programming on Sundays across its general entertainment and movie channels further promoted the viewership. The league continued to woo viewers on Star India’s digital streaming platform Hotstar which broke its own world record of 10.7 million concurrent viewers that it set during last year’s IPL final, twice, in this edition. One of the league matches managed to garner 12.7 million concurrent viewers followed by IPL finale which was watched by 18.6 million concurrent viewers.
Santosh N, managing partner, D and P India Advisory Services LLP, a member of the Duff & Phelps network, said, “Online streaming would be the next big thing in sports as it offers more curated and convenient content. The Hotstar numbers is a testimony of this trend."
Meanwhile, the individual franchisee brands saw mixed fortunes, with their brand values increasing or decreasing in close correlation with their on-field performances.
The Duff & Phelps report titled IPL Brand Valuation Report – 2019 ranked Mukesh Ambani-led Reliance Industries Ltd’s team Mumbai Indians as top franchise. With a brand value of ₹809 crore up by almost 8.5% from last year, the team continues to top the charts for the fourth season in a row.
Chennai Super Kings (CSK) has seen a massive gain of 13.1% in its brand value to ₹732 crore, propelling the team to the No.2 spot in our brand rankings. Though CSK saw its brand value erode due to the two-year ban imposed on it, it seems to have recovered on the back of continued on-field success coupled with a pan-India fervent fan base and Dhoni’s charisma.
Kolkata Knight Riders (KKR) and Royal Challengers Bengaluru (RCB) have seen their brand value erode primarily on account of their below-par on-field performances, with both franchises shedding approximately 8% of their brand value. However, both continue to be backed by loyal fan bases and the presence of Shah Rukh Khan and Virat Kohli respectively, who continue to carry each brand on their shoulders. This is particularly so for RCB, who if not for Virat Kohli, would have seen a significant erosion in its brand value in the last couple of years.
Sunrisers Hyderabad, the youngest franchisee in IPL, has made steady gains over the years in terms of its brand value while Delhi Capitals, on the back of its on-field performances this season, saw an appreciation of 9% to its brand values.
“This year, Mumbai Indians (MI) and Chennai Super Kings (CSK), continued their absolute dominance with MI winning their fourth IPL title. Their consistent on-field performance has made them fulfill the dreams of their sponsors and advertisers resulting in a year-on-year increase in their brand value. On the contrary, Royal Challengers Bangalore (RCB) and Kolkata Knight Riders (KKR) have shed some of their brand value this year demonstrating that big city bases and marquee players are not the only factors influencing brand value; consistent performance on the field also matters," added Santosh N.