After India’s historic 2007 World Cup win, the concept of the Indian Premier League (IPL) came into action. It was an instant success, with the fans glued to their TV sets watching their favourite cricketers featuring for the same team and sponsors/brands getting a good opportunity to endorse their products.
In the IPL 2022, the two new teams Gujarat Titans (GT) and Lucknow Super Giants (LSG) were added to the roster. GT was bought by CVC Capital Partners for an amount of 5625 Crores, while RPG Group shed a whopping 7090 Crores to buy the Lucknow-based franchise.
In a recent report published by Forbes, the growth of IPL franchises has outpaced the NBA and NFL teams. The report mentioned that the valuations were pegged the average value of each team as $67 million in 2009. However, 13 years later, the valuations have surged to $1.04 billion with 10 teams, which is a growth of 24%.
Most valuable IPL teams in 2022
Mumbai Indians – 9,962cr.
Chennai Super kings – 8,811cr.
Kolkata Knight Riders – 8,428cr.
Lucknow Super Giants – 8,236cr.
Delhi Capitals – 7,930cr.
Royal Challengers Banglore – 7,853cr.
Rajasthan Royals – 7,662cr.
Sunrisers Hyderabad – 7,432cr.
Punjab Kings – 7,087cr.
Gujarat Titans – 6,512cr.
On the other hand, the growth has been 10% for the NFL team ($3.48 billion) and 16% for the NBA team ($2.48 billion). The 5-time IPL champion Mumbai Indians with $1.3 billion is now more valuable than the 6 MLB teams, 27 NHL teams, and every MLS team.
Ajimon Francis, managing director at Brand Finance India reckoned that the IPL certainly draws the most attraction as compared to other cricket leagues in the world. He gave a credit to the founders of the league and hailed the governance of BCCI to keep the tournament up and running during the covid.
“The IPL is the most prominent cricket league in the world in terms of attracting sponsors and media rights. A lot of credit goes to founders of the IPL, who took ideas from the NBA and European soccer leagues, and good governance by the BCCI with regards to clear visibility of team funding and ensuring the tournament continued during Covid,” says Ajimon Francis.
In the report, the two reasons have been discussed for the growing popularity of the IPL. First is a large amount of viewing audience, with around 400 million watching the matches on TV sets, and another 260 million streaming on the internet. The 2023-2027 IPL Media Rights are also in contention for the biggest ever bid in the tournament’s history.
The second reason is the current model allows every franchisee to be profitable at the end of each season. It is also due to the team’s purse amount to the pick players have been less than 35% of the revenue. In 2021, the average revenue for each team was pegged at $35 million, according to the report. The sharing of title sponsors amount, ticket sales, and sponsors for each respective team are some of the revenue sources.