MUMBAI: The value of the India Premier League (IPL) has jumped by a quarter in the past year to reach £5.3bn according to a corporate advisory firm which has also suggested that the next round of television rights could fetch $1.8bn.
Duff & Phelps, a global valuation business, put the value of the IPL last year at $4.2bn, but said that this had grown 26% on the basis of this year’s controversy-free tournament, competitive matches and the major investment in the title sponsorship rights by phone company Vivo, the Economic Times reported.
“I feel the one thing IPL has done really well is the way it has marketed and protected its own brand,” said Trevor Birch, Managing Director of Duff & Phelps. And the former CEO of Chelsea FC contrasted that with the efforts of football’s English Premier League (EPL).
“Most of the EPL clubs are bigger brands than the EPL brand itself,” he noted, “whereas in IPL, it seems to be Brand IPL which is much more powerful compared to the individual franchisees.”
That said, the franchisee brand values have also grown significantly – on average by 34% – thanks in part to a change in the way fees are paid to the BCCI.
“With the end of IPL 10, franchisees will no longer be required to pay the fixed franchisee fee as mandated in the original agreement with BCCI,” explained Santosh N, managing director Duff & Phelps.
“Going forward, they will be required to share a percentage of their profits with BCCI as a franchisee fee, which, along with the renewed title sponsorship deal, helped bump up the franchisee brand values.”
He added that the television rights – the next five years are currently up for grabs – could be worth $1.8bn, with internet and mobile rights bringing in a further $210m.
“Given the popularity of the tournament as well as the increase in the number of bidders, it would not be a surprise if the broadcasting rights are renewed at a much higher rate than what we have estimated,” he said.
Data sourced from Economic Times, Television Post; additional content by WARC staff