The progress of Indian Premier League (IPL) as a brand just keeps on increasing, as the competition has been valued at $6.3 billion by Duff & Phelps, who produce the annual report of the tournament. It is almost a $1 billion increase from 2017, when the competition was valued at $5.3 billion.
Mumbai Indians, the three-time winners of the IPL, are the most valuable team. The franchise, owned by Nita Ambani, has a brand value of $113 million in 2018, which is a 7% jump from the $106 million valuation in 2017. Kolkata Knight Riders, two-time winners are ranked second with a brand value of $104 million.
Following the two teams are Royal Challengers Bangalore and Chennai Super Kings (CSK), who are tied at No.3 after getting a valuation of $98 million. Sunrisers Hyderabad, who won the competition in 2016, have had the biggest growth in terms of valuation. In 2017, franchise was valued at $56 million. But with a 25% growth, they are now worth $70 million.
Delhi Daredevils and Kings XI Punjab, two of the teams who are yet to win the IPL, are tied at No.6 after being valued at $52 million. And completing the list is Rajasthan Royals, who have a brand value of $43 million.
Much of the reason behind the increase in brand value is due to the improvement of the teams, as well as the sponsorships and viewership. Earlier this year, Star India brought the rights to telecast IPL for the next five years for a reported amount if 16,347 crore.
Managing Director for Valuation Services of Duff & Phelps, Varun Gupta feels the engagement of the fans with team is a major reason behind these numbers. He said, Like all major sporting brands across the world, with the usual revenue sources, it is imperative for the franchises to keep engaging the fans outside the pitch to be able to monetise their brand more effectively."
The IPL was first launched in 2008, and has now completed 11 years. The inaugural competition was won by Rajasthan Royals. But the most successful teams in the history of the tournament are Mumbai Indians and Chennai Super Kings, both having won the IPL thrice. The IPL 2018 was won CSK, who were making their return to the competition after two years.