IPL turns into decacorn as its valuation jumps to $10.9 billion: Report

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The world’s most popular and richest cricket league, the Indian Premier League (IPL), which was launched in 2008, has turned into a DACRON with a valuation estimated at $10.9 billion by D&P Advisory.

“Beyond 22 Yards” – According to the IPL Valuation Report 2022 by D&P Advisory, as the IPL moves into a more mature and stable phase, franchise owners and investors are likely to focus more on return on investment. The central pool will certainly help, along with the ability of teams to generate higher team sponsorship revenue.

IPL 2022 was also a season of surprises. It saw the rise of two new teams – Gujarat Titans and Lucknow Super Giants, the latter also making the playoffs in their first season, while the league’s two most successful and popular franchises, Mumbai and Chennai, finished at the bottom.

For the first time in the history of IPL, media rights have been spread among broadcasters, breaking the monopoly of a single company. Although a drop in viewership and a last-minute withdrawal from Amazon were expected to dampen the luster of the media rights auction, the event was a success. At $6.2 billion, the IPL has registered three times the amount paid by Walt DisneyStars for the previous 5-year cycle in 2017.

Graphics as per D&P advisory

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Graphics as per D&P advisory

Since the auction, there has been much talk in the media about the IPL being the “second most valuable league” or the “second biggest league” in the world and how it compares to the EPL, NFL, NBA, etc.

The report further states that the renewed media rights deal was a major contributor to this substantial jump in the price. Apart from media rights, the number of matches increased from 74 to 94 in the next cycle, newly signed sponsorship deals at the league level, higher ticket sales and in-stadium revenue were other contributors to the increase in IPL ecosystem value. Given the inclusion of two new teams in IPL 2022 and their limited playing history, we have only evaluated the IPL ecosystem for the current edition.

2014-2020 Data - IPL Valuation Report - Kroll

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2014-2020 Data – IPL Valuation Report – Kroll

The report also states that broadcasting is an important source of revenue for IPL and other leagues, but in the case of IPL, its contribution is much higher. To put things in perspective, IPL franchises are expected to earn 70.0 per cent of their total revenue from central rights (pool money from the sale of media rights and central sponsorship).

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