IPL’s Business Enterprise Value Skyrockets to $15.4 Billion, Chennai Super Kings Tops Brand Value Ranking

In a stunning display of financial prowess, the Indian Premier League (IPL) has witnessed a staggering 80% surge in its business enterprise value, soaring to a monumental $15.4 billion in 2023. This remarkable increase from the previous year’s valuation of $8.5 billion cements the IPL’s status as one of the world’s most lucrative sports leagues. The league’s standalone brand value has also experienced an impressive surge, reaching $3.2 billion, demonstrating an identical growth rate.

The exponential growth in the IPL’s value can be largely attributed to a groundbreaking media rights deal signed between the IPL and media conglomerates Viacom18 and Disney Star for the 2023-2027 period. In a fiercely competitive auction process, the two entities collectively invested an astounding ₹48,390 crore, securing the broadcasting rights and propelling the league to unprecedented heights.

From its inception in 2008 to 2023, the IPL has consistently demonstrated a compounded annual growth rate (CAGR) of 18% in its media rights. The absolute growth between the 2017 and 2023 cycles is a staggering 196%, solidifying the league’s financial dominance. When compared to other professional leagues worldwide, the IPL’s broadcasting fee per match surpasses renowned sports entities such as the National Basketball Association (NBA), the English Premier League (EPL), and the Bundesliga, second only to the mighty National Football League (NFL).

Commenting on the IPL’s remarkable success, Harsh Talikoti, Senior Vice President of Corporate Valuation Advisory Services at Houlihan Lokey, noted that the league’s franchise-based system of hiring players, modeled after American sports leagues, has firmly established the IPL as a highly lucrative sports entity akin to the NFL and the NBA.

Among the IPL teams, the Chennai Super Kings have emerged as the frontrunner in terms of both brand value and business enterprise value. With an impressive brand value of $212 million, growing by 45.2% year-on-year, the Chennai Super Kings have solidified their position as the most popular team. The Royal Challengers Bangalore secured the second spot in terms of brand value, with a valuation of $195 million. Notably, the Rajasthan Royals experienced the highest incremental brand value rise, soaring by an impressive 103% year-on-year.

While the Mumbai Indians continue to be a fan-favorite, they did not make it to the top two teams in the report. Nonetheless, their brand value stands at $190 million, witnessing a commendable growth of 34.8% from the previous year. The Rajasthan Royals, on the other hand, experienced the most substantial growth due to their exceptional on-field performances, skyrocketing by 103% to a valuation of $120 million from $59 million.

The report highlights the IPL’s income and cash-generating capability on a stand-alone basis, shedding light on the league’s tremendous success. Moreover, the strategic push by Viacom18 to promote digital viewership in India has breathed new life into the IPL, attracting a significant number of viewers on its OTT platform, JioCinema. Disney Star has also achieved record-breaking television viewership, further solidifying the league’s popularity.

As the IPL continues to evolve, its financial might and global prominence continue to grow with each passing season. With awe-inspiring figures and remarkable performances, the IPL has firmly established itself as a sporting behemoth, captivating fans worldwide and setting new standards of success in the realm of professional sports.