The Indian Premier League (IPL) T20 cricket competition has achieved a 77% increase in system value from US$4.7 billion last year to US$8.4 billion this year, according to the latest report by the leading brand valuation consultancy, Brand Finance. The report found that the latest round of media contracts have contributed a substantial up-lift to the system value of the league, enhanced further by the addition of two new brands to the tournament.
Every year, Brand Finance puts thousands of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The analysis of the system value of IPL and the brand values of participating franchises is included in the new Brand Finance IPL 2022 report. The new media contracts represent a significant boost to the IPL, with media outlets – and potential sponsors – now confident to invest in the continued success and growth of the IPL.
With media rights auctioned at over INR 48,000 Crores (US$6.5 Billion), the central pool of IPL revenues has increased substantially for the 2023-27 cycle. Digital media rights played an important role in this increased media rights action, leading to increased engagement from a younger and digital savvy target audience since the peak of the pandemic. The rapid increase in IPL’s central revenue has not been associated with an increase in expenditure, further fuelling the brand value growth.
Ajimon Francis, Managing Director, Brand Finance India, commented:
“In 2022, IPL showed the world the power of its brand! With media rights doubling, two new teams, new league structures and reduced restrictions in stadiums – it was a showcase of the great value that can be created in sport. Brand Finance research has found that the increasing brand value of the IPL teams represents an excellent opportunity for commercial brands to harness through sponsorship and advertising of the teams.”
Mumbai Indians retains 1st place position with brand value up 4% to US$83 million, ahead of rising Kolkata Knight Riders up 16% to US$77 million
Mumbai Indians (brand value up 4% to US$83 million) remains the most valuable IPL brand, despite a disappointing on-field result last season. New franchise teams Gujarat Titans (brand value US$47 million) and Lucknow Super Giants (brand value US$32 million) made a grand debut garnering much needed fan following – Gujarat Titans going on to win the title in its IPL debut. The addition of two new franchises has added a new dimension to the IPL competitiveness.
Teams that are making steady progress in brand value growth are Delhi Capitals (brand value up 11% to US$62 million) and Kolkata Knight Riders (brand value up 16% to US$77 million) which has risen to become the second most valuable brand in the IPL.
Savio D’Souza, Senior Director, Brand Finance Plc, commented:
“The IPL brand has built a strong and valuable brand in India and across the cricketing world. The IPL is scoring runs with great resilience during the pandemic, title sponsorship with Tata, new media rights, and ensuring global cricketing bodies allow the world’s leading players to play in the IPL, the BCCI has ticked all the right boxes. There is still further room for growth with an expansion in franchises and allowing IPL franchises to go global.”
Royal Challengers Bangalore is the strongest brand in IPL
In addition to measuring overall brand value, Brand Finance also evaluates the relative strength of brands, based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation. Alongside revenue forecasts, brand strength is a crucial driver of brand value. According to these criteria Royal Challengers Bangalore(brand value up 34% to US$68 million)is IPL’s strongest brand with a Brand Strength Index (BSI) score of 70.6 out of 100 and a corresponding AA brand strength rating. Closely following Royal Challengers Bangalore is the formidable Mumbai Indians brand with a BSI of 70.5 and a corresponding AA brand rating.
Note to Editors
Every year, leading brand valuation consultancy Brand Finance puts thousands of the biggest brands to the test, and publishes over 100 reports, ranking brands across all sectors and countries. The analysis of the brand value of IPL and its participating franchises is included in the new Brand Finance IPL 2022 report.
Brand value is understood as the net economic benefit that a brand owner would achieve by licensing the brand in the open market. Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors.
Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.
Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.
Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.
Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.