The Indian Premier League (IPL) continues to yield rich dividends for its parent body, the Board of Control for Cricket in India (BCCI), in its twelfth year of existence.
The cash rich T20 league saw a jump of 13.5% in its brand value during its 12th edition, according to a report prepared by Duff & Phelps, a global valuation and corporate finance advisors. According to the report, the brand value of IPL rose from Rs 41,800 to Rs 47,500 crore during the same period.
However, when calculated in terms of USD, considering the fluctuation in exchange rate, the jump is confined to 7%, with the value escalating from US$6.34 billion to US$6.78 billion.
Mumbai Continue to Reign Big
A surge in IPL’s brand value which has more than doubled in the last six years didn’t have a similar effect on the teams playing in the league. While most saw good gains, some were not so lucky. According to the report, the on-field performances of the teams had a part to play in the increase and decrease of the brand value. Marketing strategy, celebrity influence and marquee players also had a big role to play among others.
Mumbai Indians continue to be the most valuable franchisee, according to the report, while Rajasthan Royals were least valuable. Chennai returned to the second spot on the brand table after a gap for five years to replace Kolkata Knight Riders, who along with Royal Challengers Bengaluru saw a massive drop in their valuation.
Mumbai Indians
Leading the table since 2014, Mumbai Indians’ brand value saw an increase of 8.5%.
While they were valued at Rs 746 crore in 2018, the four-time IPL champions broke the Rs 800-crore barrier this year. They are currently valued at Rs 809 crore.
Their on-field successes, a team full of superstars like Rohit Sharma, Jasprit Bumrah, and Hardik Pandya have all contributed to the growth. Having the richest Indian as their owner and based in country’s cricket capital have only compounded their success.
Chennai Super Kings
The biggest gainer this year. Chennai Super Kings saw a surge of 13.1% in their brand values, up from Rs 647 crore to Rs 732 crore.
The most consistent team in the league returns to number two spot in the brand rankings, courtesy their on-field performances, the huge fan base and most importantly their talismanic captain – MS Dhoni.
Despite the brand value taking a hit due the two-year ban, the Chennai Super Kings have recovered well and are back in business, literally.
Kolkata Knight Riders
The Kolkata franchisee saw the biggest slump in their brand value. From Rs 686 crore in 2018 to Rs 629 crore in 2019, the Knight Riders saw a negative growth of 8.3% in their brand value.
The fact that the side hasn’t qualified for the final of the IPL since 2014 is finally taking a toll on their brand image. Adding to their misery is the absence of a big Indian name from their roster or any marquee player as a matter of fact.
The box-office failure of their owner Shah Rukh Khan, their biggest crowd puller, hasn’t also helped their cause.
Royal Challengers Bangalore
The Royal Challengers should consider themselves lucky to be in the top half of the brand rankings despite repeated failures, season after season. But again, that is the kind of luxury one can afford if Virat Kohli, one of the top brands in India, is leading the side.
The Bengaluru franchisee’s brand value reduced from Rs 647 crore to Rs 595 crore in the last one year, which is a drop of a massive 8%.
It could have been worse but a loyal and patient fan base and Brand Virat Kohli are the only reasons that have prevented a significant decline in the last couple of years.
Sunrisers Hyderabad
The youngest among the eight franchises, Sunrisers Hyderabad have made good strides as far as brand appreciation is concerned.
The Hyderabad-based side saw an increase in their brand value by 4.6% from Rs 462 crore to Rs 483 crore in 2019
Good, consistent performances, including winning the IPL trophy in 2016, coupled with international stars like David Warner, Kane Williamson, and Rashid Khan have contributed to Sunrisers’ success.
Delhi Capitals
New owners and a new identity is certainly working in favour of the Delhi franchisee. JSW, who took over the reins last year, have brought their own brand of sports management, which has given the Delhi side a much-needed image makeover.
Already known for building the best football club in India in Bengaluru FC from scratch, JSW brought in next-generation superstars like Rishabh Pant, Shreyas Iyer, Kagiso Rabada and Prithvi Shaw, along with experienced players like Shikhar Dhawan and Trent Boult, which have changed the fortunes of the side on-field.
With on-field performances playing a huge part in ascertaining the brand value of an IPL side, Delhi Capitals witnessed as increase of 8.9% with their brand value making an upward surge from Rs 343 crore to Rs 374 crore. They are second biggest mover after Chennai Super Kings.
Kings XI Punjab
The Punjab side, who like Bangalore and Delhi are yet to lay hands on the IPL trophy, has seen a gain of 4.3% in their brand value, which stands at Rs 358 crore compared to Rs 343 crore last year.
Despite an average season, having big names like Chris Gayle, KL Rahul and R Ashwin have benefited Kings XI Punjab.
Winning a title next year can work wonders for Kings XI Punjab brand.
Rajasthan Royals
Like Chennai, Rajasthan were too banned for two years but the Kings have turned things around since their return unlike the Royals.
Lack of big names, inconsistency on the field and more importantly their history of courting controversies have made a major dent in Rajasthan Royals’ image as a brand.
Like last year, the Jaipur-based franchisee continue to languish at the bottom of the table. The only change this time around is that their brand value has gone further south to reflect a slump of 4.5%. The value has dropped from Rs 284 crore to Rs 271 crore.
Looking Ahead
“The top four teams in our ranking are likely to continue to hold the advantage over the other teams even when they perform poorly, purely due to of the presence of marquee players, the size of their fan base and the advantage of being in cities with significant young populations,” said Santosh N, Managing Partner, D and P India Advisory Services LLP, a member of the Duff & Phelps network, in the report.
“Having said that, we do believe that Delhi Capitals will soon catch up if they keep hold of their next-generation superstars and build on this year’s IPL performance,” concluded Santosh N.
Not only on the field, it looks like brand IPL and the franchises have a lot to look forward to off the field in the upcoming seasons.
(With inputs from IPL Brand Valuation Report by Duff & Phelps)
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