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Tag: Santosh N

  • … notes a D and P Advisory report titled report titled 'Beyond 22 Yards'

    IPL valuation jumps 75% to USD 10.9 bn in 2022

     

     

    By Our Staff

     

    D and P Advisory, a leading providers of consulting and advisory services, has announced the launch of a valuation report on the Indian Premier League (IPL) for 2022. The report titled ‘Beyond 22 Yards’ highlights that the value of IPL ecosystem registered a 75% growth since 2020, and now stands at USD 10.9 billion.

     

    Here are highlights of the report:

    In 2020, the IPL was valued at USD 6.2 billion. This valuation makes IPL a Decacorn (a business with a value more than USD 10.0 billion) within 15 years of inception. The IPL Ecosystem represents the value generated by the IPL as a business.

     

    A landmark event this time was the auction of the IPL media rights for 2023 to 2027. For the first time, media rights were spread among different broadcasters, breaking the monopoly of one company. The league has sold media rights at USD 6.2 billion, registering a three-fold jump compared to the previous 5-year cycle in 2017. Additionally, the tournament in 2022 also registered a record breaking combined viewership of 426 million on television and OTT platforms.

     

    With two new teams (Gujarat Titans and Lucknow SuperGiants) getting bought last year at a combined staggering value of USD 1.6 billion, the average price tag of a team has seen a whopping 16-fold jump from its inception. These two factors were instrumental in boosting the valuation of IPL to become a Decacorn and the second largest sporting league (on a per match basis from broadcasting fees) globally.

     

     

    To add to the momentum, the Board of Control for Cricket in India (BCCI) has announced the launch of Women’s Indian Premier League with a base price for a franchise at INR 400 crore (USD 50 million). This price is higher than most other cricket leagues globally, and will add immense value to the overall IPL Ecosystem.

     

    However, on a broader scale, IPL is significantly behind in terms of ad rates, when compared with some of the other global sporting leagues. For example, a 10-second slot for an ad during IPL 2022 costed nearly USD 20,000; whereas, the ad rates for the same time slots at National Football League, English Premier League and Major League Baseball were over USD 1,00,000. Drawing this comparison, the report mentions how IPL has a lot more space to grow in future provided broadcasters are able to monetise the content well.

     

     

    On the launch, Santosh N, Managing Partner, D and P Advisory sid: “Since its launch in 2008, IPL has reimagined the nation’s cricket competition. IPL 2022 witnessed some major milestones and captivating games throughout the season. The renewed media rights deal was a major contributor towards a substantial jump in value for a relatively young league like IPL. These observations are an assurance of the fact that the IPL will continue to revolutionise the game of cricket and will be etched in the hearts of millions of fans for years to come.”

     

    The report goes on to say that the IPL team owners are looking to replicate the multi-club ownership model as part of their long term strategy. For example- The Knight Riders Group owning the right to Trinbago Knight Riders in the Caribbean Premier League, and a franchise of the UAE T20. It also has plans to build cricket stadiums in Los Angeles, USA, in partnership with the Major League cricket. Reliance Industries, the owners of Mumbai Indians, recently unveiled two new franchises in UAE’s International League T20 and Cricket South Africa T20 League.

     

    Furthermore, with BCCI having forged and locked in new broadcasting deals for the next five years, the report foresees a more stable phase in terms of the value of the IPL Ecosystem. “The value appreciation may not be as fast as seen in the earlier years”, it states.

     

    The report also states that the digital rights being sold separately from TV rights would result in greater engagement on the digital platforms. Further, the impending introduction of 5G services, greater penetration of the internet and increased smartphone usage will add to the rise in viewership.

     

    The report concluded stating that for these growth trajectories to maintain their momentum, all teams need to continue broadening their footprint, forming relationships, and generating revenue opportunities in different markets. Ultimately, apart from the love for cricket that viewers have, much of cricket’s future depends on ensuring quality; not just for the fans, but also to attract sponsors and broadcasters, the latter of which have become vital for the game’s financial health.

     

     

  • Mumbai Indians topped the Duff & Phelps chart followed by KKR at #2

    IPL Brand Value soars 19% to $6.3bn

     

    By A Correspondent

     

    Consulting firm Duff & Phelps has announced findings from its IPL Brand Valuation Report – 2018, a report on brand values in the annual Indian Premier League (IPL).

     

    The findings of the fifth edition of Duff & Phelps’ annual study of the IPL suggest an increase in the overall value of the IPL ecosystem from US$ 5.3 billion in 2017 to US$ 6.3 billion in 2018, supported by the broadcasting rights fee surging at a compounded annual growth rate (CAGR) of 18.9%.

     

    The Mumbai Indians, with a brand value of US$ 113.0 million, continue to top the charts for the third season in a row. Kolkata Knight Riders are in second place with a brand value of US$ 104.0 million. The two-year ban imposed on Chennai Super Kings (CSK) and Rajasthan Royals has had some bearing on their brand values. However, CSK’s on-field performance and the Dhoni factor helped them to neutralize the negative impact, as they were valued at US$ 98.0 million alongside Royal Challengers Bangalore. Sunrisers Hyderabad, Delhi Daredevils, Kings XI Punjab and Rajasthan Royals follow in the brand rankings.

     

    “Star India’s broadcasting rights deal was a game changer that put IPL on par with some of the biggest sporting leagues in the world (on a fee per match basis),”commented Varun Gupta, Managing Director, Duff & Phelps and Asia Pacific Leader for Valuation Services.“The change in content consumption, influx of over-the-top (OTT)and digital viewing platforms and increased support from advertisers, broadcasters and sponsors have given the IPL greater significance in terms of brand

     

    Star India, the new broadcasting partner for the IPL, has given a boost to the broadcast rights fees which increased by a CAGR of 18.9%, notes the report, adding:“Under Star, content delivery expanded to various regional channels across the SIPL universe with commentary in eight different languages, rather than limiting the transmission to sports channels with just English commentary.”

     

    Added Santosh N, Managing Director, Duff & Phelps: “Our IPL brand values report reflects the evolution of the modern cricket business paradigm with clubs benefiting from not only the enduring popularity of cricket in India but also from strong marketing and globalisation of the game. However, for growth trajectories to maintain their momentum, all teams need to continue broadening their footprint, forming relationships and generating revenue opportunities in growth markets. Ultimately, however, much of cricket’s future depends on ensuring the product is of a sufficiently high quality to continue attracting viewers, sponsors and broadcasters, the latter of which have become a vital component for the game’s financial health.”

     

    This season also witnessed the importance of OTT sports viewership which has become an established and fast-growing market, adds the report. Hotstar set a world record of OTT viewership with 10.7 million concurrent viewers, beating the 2012 world record of over 8 million concurrent viewers held by YouTube for Felix Baumgartner’s space jump.This surge in online streaming of IPL and the increasing momentum of OTT as a medium to watch sports online was also one of the key reasons for companies to show willingness to acquire digital rights for streaming IPL.

     

    Finally, social media continues to be an important driver of brand value, notes the Duff & Phelps report.The first week of the previous season of IPL garnered 642,900 mentions on social media platforms. That has gone up to 855,400 in the first week of the 2018 season and to 1.3 million after two weeks.