In 2020, the Indian Premier League (IPL) had an estimated value of about $4.4 billion, with the highest attendance among all cricket leagues worldwide. Since its inception in 2008, the IPL has grown tremendously over the last decade, attracting star players, wealthy owners, and sponsors alike.
In many ways, the IPL was designed to be a major disruptor from its inception, introducing a new way of doing things in cricket. The Indian Professional Twenty20 league usually stages tournaments between March and May every year, attracting eight teams from different states or cities and millions of viewers worldwide. The league was ranked sixth based on the average attendance in 2014, and it has only grown in popularity over the last few years.
The IPL became the first league to host a sporting event live via YouTube in 2010, attracting more fans and sponsors to the country. By 2014, the league already had an estimated value of $3.2 billion and contributed Rs 11.5 billion ($182 million) to India’s GDP in 2015. Research also shows a significant tourism increase during IPL season, with lots of international visitors from the UK, Australia, and South Africa.
How The IPL Became The Among Most Valuable Cricket League
Formed by Lalit Modi in 2008, the IPL is the richest competition in India and the third most expensive sporting franchise. Its popularity gradually increases every year, attracting online casino players and international brands looking to get a piece of this multi-billion-dollar business. The league has investors and sponsors from all over, including Indian, Chinese, and American Mega brands in IT, telecommunication, and other industries.
To become among the most valuable cricket leagues globally, the IPL has done what the EPL and La Liga have accomplished in the soccer space. The league sees the best players in the cricket scene and puts their best foot forward to make them part of this extravaganza. As a result, the IPL continues delivering thrilling action to its fans, investors, and players.
Over the last 13 years, the IPL has continued exceeding the expectations of its franchises, players, and team sponsors, while significantly boosting the Indian economy. Not only does the IPL come packed with thrilling and thoroughly entertaining action, but it’s also a gamechanger for upcoming cricketers. The team owners are also supported by top names in cricket coaching and mentoring, allowing them to be at a stage where they can influence team performances, fan engagement, and sponsorship revenues.
For valuation purposes, the IPL is considered to be a single business entity with commercial values in all its parts. Most of its financial income comes from title sponsors, broadcasting rights, auctioning franchise rights, corporate sponsors, and ticket sales. That has proven to be pretty profitable, considering that Indians religiously follow cricket more than any other sport.
The IPL has firmly gained a foothold in the global cricket scene, and it now resonates with more than the Indian cricket fan base. While Indians enjoy supporting teams from their cities, most international fans enjoy supporting their favorite athletes no matter the winning team. It’s the perfect opportunity for them to support and idolize their favorite players regardless of their nation of origin.
Most Valuable IPL Teams
When you add the top five teams’ brand value and compare it to other major leagues like the EPL, La Liga, and Serie A, IPL already has its work cut out. The top five IPL teams are worth less than $300 million, which pales compared to the top five EPL teams at $6.83 billion.
In 2018, the entire IPL ecosystem was worth about $6.3 billion, but the value dropped to $4.4 billion following the global lockdown. That was a 22% loss in brand value compared to 2019. However, the 2020 season winners reported a rise in brand value by 7.1% to hit $70.3 Million.
After managing to secure four new multi-year partnerships with global brands, the Mumbai Indians ranked as the most valuable IPL brand in 2020. These brands include Colgate, Marriott Bonvoy, William Lawsons, and Cadbury Dairy Milk. That means Mumbai Indians’ brand had grown by 69% since 2009, when their value stood at $41.6.
2019 IPL champions, Chennai Super Kings (CSK), ranked as the second most valuable franchise in the league, although they reported the most significant loss in brand value. CSK fell by 20% to hit $59.8 million. Other teams rounding the top five included the Kolkata Knight raiders at $58.4 million, Sunrisers Hyderabad with $57.4 million, and the Delhi Capitals worth $52.2 million.
While the IPL pales compared to other major sports leagues globally, it has shown tremendous growth over the last 13 years. It’s also the world’s most popular and valuable cricket franchise, welcoming investments from major brands globally. The league is also packed with talented scouts ready to poach any skilled cricketer from anywhere in the world.