IPL's business value drops by 11.7% in 2024: Report
What's the story
The Indian Premier League (IPL) has experienced an 11.7% decrease in its business value, falling to $9.9 billion this year from $11.2 billion in 2023, as per D and P Advisory. This decline is primarily due to a re-assessment of media rights and industry consolidation involving Star India and Viacom18. The delayed entry of tech giants - Amazon, Meta, and Apple - into the IPL media rights bidding arena has also contributed to this downturn.
Valuation details
IPL's valuation in INR terms
In INR terms, the IPL's valuation has seen a similar downward trend, falling by 11% to ₹82,700 crore from ₹92,500 crore. The report titled 'Beyond 22 Yards' suggests that the lack of competitive bidding for the following IPL media rights cycle could lead to a more cautious approach. This is due to factors such as industry consolidation and delayed entry of tech giants into the bidding arena.
Merger impact
Failed Sony-Zee merger impacts IPL's valuation
The unsuccessful merger between Sony and Zee has further impacted the IPL's valuation, as per Santosh N, managing partner of D and P Advisory. He noted that a successful Sony-Zee merger could have presented strong competition to the combined entity of Star India and Viacom18 in the IPL auction. This development adds another layer of complexity to the factors influencing the league's business value.
Media rights
Star India-Viacom18 secure IPL media rights
Star India and Viacom18 secured the IPL media rights for ₹48,390 crore for 2023-27 cycle, marking a significant increase from the ₹16,347 crore they shelled out for the 2018-22 cycle. Now, the merger between Reliance Industries-owned Viacom18 and Walt Disney-owned Star India is expected to dominate cricket broadcasting. This combined entity now holds cricket rights of the IPL, International Cricket Council (ICC), and Board of Control for Cricket in India (BCCI).
Future prospects
BCCI secretary confident about future IPL media rights bidding
Despite the Star India-Viacom18 merger, BCCI secretary Jay Shah remains optimistic about new players bidding for the impending cycle of IPL media rights. He stated, "My job is to ensure the growth of the game and increase the brand value of Indian cricket. As it happens, broadcasters come automatically." This statement indicates a positive outlook for future participation in IPL media rights bidding.
Franchise rankings
Mumbai Indians emerge as most valued IPL franchise
The D and P Advisory report also revealed that five-time champions Mumbai Indians remain the most valued IPL franchise in 2024. Chennai Super Kings, Kolkata Knight Riders, Royal Challengers Bangaluru, Delhi Capitals, Gujarat Titans, Sunrisers Hyderabad, Lucknow Super Giants, Rajasthan Royals, and Punjab Kings follow MI on this list. These rankings provide insight into the individual value of each team within the overall business framework of the league.
WPL growth
Women's Premier League sees growth in ecosystem value
In contrast to the men's league, the Women's Premier League (WPL) has seen an increase in its ecosystem value. It reached ₹1,350 crore in 2024, marking an 8% growth from the previous year's ₹1,250 crore. This rise is attributed to the success of women's cricket and its impact beyond the playing field. The central sponsorship revenue for WPL is estimated between ₹1,000-₹1,100 crore, with teams receiving 80% of this amount.