The Indian Premier League (IPL), one of the most popular and lucrative T20 cricket leagues in the world, continues to demonstrate its financial prowess. In 2023, the IPL ecosystem’s value reached a staggering ₹92,500 crore, marking a significant 6.3 percent increase compared to the previous year’s ₹87,000 crore, according to a report by D&P Advisory. When converted to dollars, this growth translates to a rise from $10.9 billion to $11.2 billion, reflecting a 3.3 percent increase.
BCCI and Franchise Share
Santosh N, Managing Partner of D&P Advisory, highlighted that last year’s valuation estimates had already accounted for the surge in media rights renewal. Consequently, this year’s incremental value aligns closely with previous projections. The increase in valuation can be attributed to several key factors:
1. Rise in Gate Receipts: Higher ticket prices and increased franchise revenues contributed to the IPL’s valuation growth.
2. Media Rights Deals: The IPL’s popularity and media rights agreements played a significant role in its economic success.
Approximately 60-65 percent of the IPL ecosystem’s valuation benefits the Board of Control for Cricket in India (BCCI), while the remaining 35-40 percent is distributed among all IPL teams. This equates to an aggregate business value of around $3.9-4.5 billion for all franchises combined, with each team’s intrinsic business valuation averaging between $390-450 million.
IPL’s Evolution in Valuation
The IPL’s financial journey has been remarkable since its inception. After the inaugural season, the league’s ecosystem was valued at approximately ₹4,700 crore ($1,100 million). It’s important to note that the first IPL season featured eight teams and 59 matches.
In contrast, the Women’s Premier League (WPL), which debuted this year, started on a more modest scale, featuring five teams and 22 matches. This difference in scale significantly impacts the valuation disparity between the two leagues post their inaugural editions.
Mumbai Indians Lead Brand Valuation
In the world of brand valuation within the IPL, the Mumbai Indians reign supreme in 2023. The franchise boasts an intrinsic business value ranging between $410-450 million, securing its position as the most valued IPL franchise this year. The brand valuation rankings also feature the Chennai Super Kings and the Royal Challengers Bangalore in the second and third spots, respectively.