IPL brand shows growth in business value

In its 10th year, the Indian Premier League (IPL) achieved milestones. Findings of the fourth edition of Duff & Phelps’ annual study of the league’s franchisee brand values indicate that the overall value of league — as a business — has increased to $5.3 billion from $4.2 billion last year. This represents a three-year CAGR of 13.9 per cent.

The Mumbai Indians sustained the top position with a brand value of $106 million, followed by Kolkata Knight Riders at $99 million and Royal Challengers Bangalore in third place at $88 million.   -  K. R. Deepak

In its 10th year, the Indian Premier League (IPL) achieved milestones. Findings of the fourth edition of Duff & Phelps’ annual study of the league’s franchisee brand values indicate that the overall value of league — as a business — has increased to $5.3 billion from $4.2 billion last year. This represents a three-year CAGR of 13.9 per cent.

The report, which highlights the evolution of the IPL since its inception in 2008 and its steadily expansion, has revealed that the brand values of the individual teams have risen 34 per cent on average in 2017 compared to the previous year.

The Mumbai Indians sustained the top position with a brand value of $106 million, followed by Kolkata Knight Riders at $99 million and Royal Challengers Bangalore in third place at $88 million. Factors contributing to the rise in brand values of individual franchisees include increasingly lucrative advertising, broadcasting and sponsorship deals; reduction in franchise fees beginning with the next season. Increased viewership across India, increased fan engagement, evidenced by the rise in social media activity — are also the other factors.

“Our valuation analysis reflected a notable increase in brand values in the IPL,” said Varun Gupta, Duff & Phelps’s Managing Director and leader of the firm’s operations in India, South Asia and Japan. “This IPL season has garnered attention for all the right reasons. Namely, a relatively controversy-free tournament, increase in social media engagement, strategic and highly successful marketing initiatives, and compelling on-field performances – all of which affirmed IPL’s standing as the most valuable cricketing league in the world.”

With digital content becoming a very strong medium of social media engagement for the sports viewers, the report shows that the number of tweets pertaining to the IPL has crossed 8.5 million and continues to grow. As per Maxus, a total of approximately 6 million mentions on social media were registered in the 10th season — more than twice those of the last season (approximately 3.1 million mentions).

Not just that. Mumbai Indians had an incredibly successful digital media strategy, attracting over 83 million engagements across Facebook (50 million), Instagram (29 million) and Twitter (3.95 million).