Indian Premier League Valuations: IPL Among the World’s Most Valuable Sports Teams

Indian Premier League Valuations: Cricket Now Has A Place Among World’s Most Valuable Sports Teams. Owner values ​​are on the rise in the world’s premier cricket league, surpassing the growth of the NFL and NBA. The Indian Premier League has been a gold mine for investors.

Gold Mine for Indian Premier League Investors

In 2009, a year after the owner-owned Cricket League was launched, Forbes released the first (and only) estimates of teams in the league, with an average value of eight owners at $ 67 million. As the league has recently expanded to ten clubs, that average now stands at $ 1.04 billion, an annual growth rate of 24%.

In contrast, over the past 13 years, the growth rate has been 10% for NFL group values ​​(up to $ 3.48 billion) and 16% for NBA group values ​​(up to $ 2.48 billion). And the $ 1.3 billion Mumbai Indians, the most valuable ownership of the IPL, are now worth more than six MLB teams, 27 NHL teams and each MLS team.

Tata IPL 2022 brand value on the Rise

Tata IPL 2022 brand value may jump 15% as league returns in full swing. The return of spectators, two new teams and more matches are expected to help boost the cricket tournament’s revenue and brand value, experts said.

IPL is attracting sponsors and media rights

“The IPL is the most important cricket league in the world in attracting sponsors and media rights,” says Ajimon Francis, Managing Director, Brand Finance India, Brand Evaluation and Strategy Consulting. “A lot of credit goes to the IPL founders who took ideas from the NBA and the European Football League, to the clear vision of team funding and to the BCCI’s good management for ensuring that matches continue to take place during the Kovit.”

“The IPL is the most important cricket league in the world in attracting sponsors and media rights.”

Ajimon Francis

Exchange prices explain the rise in ratings. The Deccan Chargers were expelled from the IPL in 2012 for failing to pay their players, but they were soon transferred to Sunrisers Hyderabad, where Sun TV paid twice as much as it did in 2008 for the Deccan Chronicle Holdings. In 2018, when the JSW Group acquired a 50% stake in Delhi Daredevils from GMR Group, the cricket team (now Delhi Capitals) was valued at $ 169 million, more than double the amount GMR paid.

Private equity was recently observed. In June, RedBird Capital, which owns nearly 11% of Fenway Sports Group, bought a 16% stake in Rajasthan Royals for more than $ 200 million.

“There is a lot of enthusiasm from investors who want to invest in the IPL,” said Karan Tourani, senior vice president of investment bank Elara Capital, who specializes in research in the media and entertainment sectors.

The average expansion fee paid by the original eight owners in 2008 was $ 90 million. (Forbes’ initial values ​​were low after being paid for years.) Last October, the IPL sold two expansion teams: CVC Capital paid around $ 750 million for the Gujarat Titans and Sanjeev Goenka bought the Lucknow Super Giants for $ 950 million. . The expansion fee will be paid over ten years and redistributed in equal amounts to the other eight teams.

Indian Premier League Teams

• Chennai Super Kings
• Delhi Capitals
• Gujarat Titans
• Kings XI Punjab
• Kolkata Knight Riders
• Lucknow Super Giants
• Mumbai Indians
• Rajasthan Royals
• Royal Challengers Bangalore
• Sunrisers Hyderabad

IPL price hike

Indian Premier League Valuations: There are two major reasons for the IPL price hike.

First, the IPL attracts a large audience and there should be content in India. Last season, it was watched by 400 million people on TV and 260 million matches were streamed. This is the last year of the IPL media deal with Walt Disney’s subsidiary Star India, which pays the league $ 2.4 billion over five years for television and streaming rights.

The next round of media rights is expected to be between $ 6 billion and $ 7 billion over five years. Tourani explains, “In Indian households, men make the cost decisions and 60% of the IPL spectators are men.” Forbes’ ratings for the Super Giants ($ 1.08 billion) and Titans ($ 850 million) are higher than their expansion fee, as the IPL’s next media deal is expected to be worth a maximum of $ 5 billion when the two new teams arrive on board. Source: Forbes

Indian Premier League Valuations Last Year

Last year, IPL’s brand value grew 7 percent to $4.7 billion. Ajimon Francis, managing director of Brand Finance India, a brand valuation and strategy consultancy firm, expects the cricket league’s brand value to see better growth this year.