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Duff & Phelps, the premier global valuation and corporate finance advisor, today announced findings from its 2017 report, IPL: The Decade Edition: A Concise Report on Brand Values in the Indian Premier League.
The findings of the fourth edition of Duff & Phelps’ annual study of the Indian Premier League (IPL) franchisee brand values indicate that the overall value of IPL as a business has increased to USD 5.3 billion from USD 4.2 billion last year, representing a three-year CAGR of 13.9%. The report highlights the evolution of the IPL since its inception in 2008 and its steadily expanding foothold on the global sporting scene.
“Our valuation analysis reflected a notable increase in brand values in the IPL,” said Varun Gupta, Duff & Phelps Managing Director and Leader of the firm’s operations in India, South Asia and Japan. “This IPL season has garnered attention for all the right reasons. Namely, a relatively controversy-free tournament, increase in social media engagement, strategic and highly successful marketing initiatives, and compelling on-field performances – all of which affirmed IPL’s standing as the most valuable cricketing league in the world.”
The brand values of the individual teams have risen 34% on average in 2017 compared to 2016. The Mumbai Indians sustained the top position with a brand value of USD 106 million, followed by Kolkata Knight Riders at USD 99 million and Royal Challengers Bangalore in third place at USD 88 million. Factors contributing to the rise in brand values of individual franchisees include increasingly lucrative advertising, broadcasting and sponsorship deals; reduction in franchise fees beginning with the next season; increased viewership across India; and increased fan engagement, evidenced by the rise in social media activity.
Satellite and digital broadcasting rights are up for renewal later this month and will be keenly watched. The renewed deal is anticipated to be significantly higher than the one signed by Sony nine years ago. Sony’s ad revenues crossed INR 1,300 crores this year, while Hotstar’s ad revenues from IPL rose to INR 120 crores, more than double the previous year. Television viewership also ascended to new heights, with nearly 45% of viewership coming from rural India, evidence of the reach and pull of the IPL.
"The new broadcasting rights auction will be one of the keenly watched developments over the next couple of months. The BCCI is clearly set for a huge windfall. We could be looking at a television broadcasting deal of record proportions in India. This deal may follow the precedent set by some of the big-ticket broadcasting deals across the world,” said Santosh N, Duff & Phelps Managing Director in Bangalore.
Digital content is becoming a very strong medium of social media engagement for the sports viewers. The following statistics from the report reveal the growing significance of content in today’s sports context:
Trevor Birch, Managing Director at Duff & Phelps and Former CEO of Chelsea Football Club, said, ‘’I’ve been intrigued to watch how the IPL has marketed and protected its own brand value separate from the clubs. Having worked with some of the biggest clubs in the English Premier League (EPL), the one thing the IPL has done very well is the marketing and protecting of its own brand. Most of the EPL clubs are bigger brands than the EPL brand itself, whereas in the IPL, it seems to be Brand IPL which is more powerful than the individual franchisees.”
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M&A advisory, capital raising and secondary market advisory services in the United States are provided by Duff & Phelps Securities, LLC. Member FINRA/SIPC. Pagemill Partners is a Division of Duff & Phelps Securities, LLC. M&A advisory and capital raising services in Canada are provided by Duff & Phelps Securities Canada Ltd., a registered Exempt Market Dealer. M&A advisory, capital raising and secondary market advisory services in the United Kingdom and across Europe are provided by Duff & Phelps Securities Ltd. (DPSL), which is authorized and regulated by the Financial Conduct Authority. In Germany M&A advisory and capital raising services are also provided by Duff & Phelps GmbH, which is a Tied Agent of DPSL. Valuation Advisory Services in India are provided by Duff & Phelps India Private Limited under a category 1 merchant banker license issued by the Securities and Exchange Board of India.
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