Sunrisers Hyderabad Lift VIVO IPL 2016 (Source: IPL Official Twitter Page) 

Indian Premier League Valued at $4.2 Billion; Mumbai Indians Tops Chart

The brand value of the Indian Premier League (IPL) crossed $4 billion after season 9, according to a 2016 annual study released by Duff & Phelps (D&P). The valuation and corporate advisory firm has valued IPL at $4.2 billion for 2016. D&P valued six IPL franchises leaving out Rising Pune Super Giants and the Gujarat Lions.

Topping the brand value chart of IPL franchises is Mumbai Indians whose value jumped by 7 percent after remaining stagnant in 2014 and 2015. The team replaced Shah Rukh Khan’s Kolkata Knight Riders (KKR) as the most valuable IPL brand at $78 million.

KKR lost 10 percent in brand value this year due to dwindling crowds at home and away games. The team also failed to make it to the finals. D&P has valued the team at $77 million.

The two finalists of IPL season 9 saw the biggest jump in brand value. Royal Challengers Bangalore (RCB) saw a 31 percent rise in brand value to $67 million in 2016. IPL champions of 2016, Sunrisers Hyderabad (SRH) saw a 17 percent spike to $41 million, making the team the fourth most valuable.

RCB occupied the third position after Chennai Super Kings was suspended for two years. It has the highest number of mentions on Twitter and team captain Virat Kohli is the most mentioned player.

The D&P study values a brand based on a relief from royalty method. The methodology essentially works on the premise that a company would have to pay for the use of the brand if it were to licence it from a third party. The parameters for valuation include the following:

  • Celebrity influence and marquee players,
  • Governance and transparency,
  • Geographical location,
  • Management strength and on field performance,
  • Marketing strength and social media engagements.

GMR Group-owned Delhi Dare Devils came in at fifth place with their brand value unchanged from last year at $34 million.

Kings XI Punjab saw a marked decline in brand value, which fell as much as 24 percent to $31 million. D&P attributed the fall in value to thin crowds at both home and away games, lack of marquee players and poor on-field performances.

Interestingly the study also points out that brand value contributes 30 percent to the overall business value of the top four franchises, but contributes less than 20 percent to the business value of Delhi and Punjab franchises . D&P left out Rising Pune Super Giants and the Gujarat Lions citing no visibility beyond IPL season 10.