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For the first time in the last four years, the valuation of the Indian Premier League (IPL) has seen a decline of 10.6%, while the Women’s Premier League has seen a growth of 8%. Mumbai Indians have topped the franchise branding ranking, while Chennai Super Kings have got the second position.
According to a study by valuation service provider firm D&P Advisory, the value of the Indian League has fallen in the last few years due to increasing monopoly in broadcast scenarios. Last year in 2023, the business enterprise value (total value) of IPL was Rs 92,500 crore, which has come down to Rs 82,700 crore. Whereas, the value of WPL has increased by 8%. Which was Rs 1,250 crore last year and now it has become Rs 1,350 crore.
The firm has considered the reason behind this to be the decrease in demand for IPL in the coming time and the increase in demand for WPL.
Changes in broadcasting due to decline
According to the study, the biggest reason for the decline in valuation is the changing broadcast scenario in India, which is moving towards monopoly after the Disney Star-JioCinema merger. When the bidding for IPL broadcasting rights was held in 2022, there was a tough competition between Disney Star and JioCinema. In this, BCCI had earned Rs 48,390 crore from Jio Cinema for a 5-year deal.
D&P Advisory’s report claims that after the merger of these two firms, IPL may face fewer competitors and bidders in the next broadcast cycle. Thus, the reduced competition area could suppress bidding, which has historically driven up media rights.
The television rights of IPL are with Star Paar and the digital rights are with Jio Cinema.
Loss due to non-merger of Sony-G
The report said that the failed merger of Sony-Z has changed the market dynamics to such an extent that both the entities will struggle to challenge Disney Star and Jio Cinema. In case the merger goes through, Sony and Zee would be in a stronger position to bid for IPL broadcasting rights in future. It would also give tough competition to Disney and Jio to acquire the rights.
The report said that due to lack of competition, the bids for media rights of the league will be low.
Why did WPL valuation increase?
Due to the increasing confidence of sponsors, WPL is making good progress in the last 2 years. Major brands have shown interest in partnering with emerging brands of women’s cricket like IPL. The report said that the audience share in the league’s matches has increased by 50%, which shows the popularity of the WPL. This increases its appeal among global brands.
Only after the first two seasons of WPL, the enthusiasm among the spectators about the league has increased.
MI tops franchise branding ranking
Information about franchise branding ranking was also given in this study. In this, Mumbai Indians team once again remains at the first position. Due to the Dhoni factor, Chennai Super Kings are in second place, while due to the influence of Shahrukh Khan, Kolkata Knight Riders are in third place, and because of Virat Kohli, Royal Challengers Bangalore are in fourth place.
MI and CSK have won the title maximum 5-5 times in IPL.
