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Kolkata Knight Riders co-owner Shah Rukh Khan lifts the IPL trophy with the team. KKR won IPL for the third time in 2024
The business value of Indian Premier League, or IPL, grew to $16.4 billion in 2024, according to a report by the American investment bank Houlihan Lokey, registering a 6.3 per cent increase over the past year.
The standalone brand value of IPL, the world’s most popular Twenty-20 cricket tournament, rose to $3.4 billion in the past year at a rate of 6.3 per cent, the report titled IPL Valuation Study 2024 added.
CSK MOST VALUED FRANCHISE
Among the teams, Chennai Super Kings (CSK) holds the top position as the most valued franchise with a brand value of $231 million, achieving a growth of 9 per cent over the past year.
This year, IPL 2024 winners Kolkata Knight Riders (KKR) witnessed the highest growth in terms of brand value, with a 19.3 per cent rise over the past year, the report said.
Houlihan Lokey also mentioned that Royal Challengers Bengaluru (RCB) has inked a major deal with Qatar Airways for a three-year contract worth $9 million.
BIG MONEY DRAWS BIG BRAND VALUE
The report identified IPL as an ideal platform to enhance brand value, establishing the idea with the fact that the Tata Group had shelled out nearly $300 million to obtain title sponsorship of the tournament for another five years till 2028. Tata’s new deal as IPL title sponsors marks a 50-per cent surge from what the company had paid previously.
“This, along with last year’s media rights auction, reinforces the IPL’s status as a pivotal platform for esteemed brands seeking to enhance their value,” the Houlihan Lokey report observed.
The report noted how demand was extremely high among companies for an advertisement slot in every available break while matches were on because a product seen during the IPL matches enhanced its brand value.
“On average, a T20 match will have around 80 to 100 ad slots strategically placed between overs, innings break, timeouts, and after fall of wickets. Similar to NFL’s Super Bowl, where new TV commercials are launched every year, the IPL is doing the same for sports advertising in India”, Houlihan Lokey stated in its report.
Not surprisingly, franchise revenue has consistently soared ever since the tournament started in 2008. The rise in IPL earnings has been “primarily driven by revenue from television rights, despite each team having sponsorship revenue ranging from $5 million to $12 million”, the report added.