IPL brand value soars to $6.3b

MUMBAI, Aug 08 (https://www.business-standard.com): The steep rise in the media rights of the Indian Premier League (IPL) has resulted in a massive jump in the brand valuation of the IPL ecosystem. According to the Duff & Phelps IPL Brand Valuation Report 2018, the brand value of the IPL soared from $5.3 billion in 2017 to $6.3 billion this year.
The latest edition of the IPL set a relatively different tone as compared to its previous editions with a new broadcasting partner for IPL in the form of Star India Private Limited (SIPL), which acquired the five-year (2018-22) global broadcast and digital rights for approximately $2.55 billion in September 2017. The IPL broadcast rights have seen an increasing trend since its inception in 2008. On an annual fee basis, the increase compounded annual growth rate (CAGR) was 18.9 per cent.
The new broadcast regime for the IPL meant wider reach in the southern markets since the tournament was telecast in a total of six languages, including Tamil, Kannada, and Telugu. The southern market saw viewership jump from 2017 to 2018 by 30 per cent owing to Star's efforts at localising the telecast of the IPL. The broadcast made an estimated Rs 20 billion in ad-sales revenues from the IPL this year.
The eight franchises also saw appreciation in brand value. While Mumbai Indians continued to top the table ($113 million), it was Kings XI Punjab that saw the most appreciation at 27 per cent year-on-year. The Preity Zinta co-owned team saw its brand value rise from $41 million in 2017 to $52 million this year. Shah Rukh Khan's Kolkata Knight Riders came second on the list with a brand value of $104 million, growing five per cent over last year's $99 million.
"Despite not performing up to the mark this season, Mumbai Indians still continue to be one of the most popular brand names in the IPL, with some of the world's greatest cricketing legends on board. Based on insights received from the Mumbai Indians management team, they included CSR as an integral part of their operations right from season two through their Education for All (EFA) initiative," reveals the report.
EFA supports education for under-privileged students and, through the years, they have supported 200,000 students by partnering with NGOs (non-government organization) and giving children an opportunity to learn through digital vans.