The Indian Premier League (IPL) ecosystem value increased by approximately 13.5% from Rs 41,800 crores to Rs 47,500 crores fostered by association with the advertisers, broadcasters, sponsors, affiliates, partners and viewers.
IPL team Mumbai Indians, with a brand value of Rs 809 crores up by almost 8.5% from last year, is leading the franchise list followed by CSK which has seen a massive gain of 13.1% in its brand value to Rs 732 crores.
According to an ESP Properties report titled, “Sporting nation in the making VI,” the sports sponsorship market in India was circa INR 7,000 crores in 2018, with cricket taking a major chunk of it.
The Star TV broadcast rights deal further changed the sponsorship space,with its presence through its sports, Hindi, regional and OTT platform, has taken the game to every part of the country, aided by the internet data war between the telecom players. As per media reports, Star India garnered more than Rs 2000 crore ad revenues in IPL this year slightly more than the revenues of Rs 1800-2,000 crore earned in 2018.
Meanwhile,the IPL 2019 saw over 100 team sponsorships from different industry verticals including e-commerce, beverages, educational institutions, government bodies, insurance and healthcare providers, to name a few. While most names had no direct relevance to the sport, they still went on to sponsor for the value-add it provided to their brand image, as per the report by Duff & Phelps.
Vivo, which earned the title sponsorship for IPL in October 2015, in the span of two years after the sponsorship, has seen its market share increased to nearly 15% to grab the third spot among the top smartphone-selling brands in India.
Varun Gupta, Asia Pacific leader for valuation advisory services and India country leader, Duff & Phelps, said: “Our IPL brand values report reflects the evolution of the modern cricket business paradigm. As we move into the second decade of IPL, the league has transitioned from being a startup to being a more mature, stable and profitable business.
"An increase of 20% in advertising revenues this year and the recently renewed Paytm title sponsorship deal (which has fetched an increase of 58% on a per-match basis over the last deal) are testaments to the continued popularity of IPL. This has resulted in a steady increase in the value of the ecosystem (which grew by 13.5% in INR terms). However, for growth trajectories to maintain their momentum, all teams need to focus on their on-field performance while continuing to broaden their footprint, forge relationships and generate revenue opportunities in growth markets.”
Santosh. N, managing partner, D and P India Advisory Services LLP, a member of the Duff & Phelps network, said: “This year, Mumbai Indians (MI) and Chennai Super Kings (CSK), continued their absolute dominance with MI winning their fourth IPL title. Their consistent on-field performance has made them fulfil the dreams of their sponsors and advertisers resulting in a year-on-year increase in their brand value.
"On the contrary, Royal Challengers Bangalore (RCB) and Kolkata Knight Riders (KKR) have shed some of their brand value this year demonstrating that big city bases and marquee players are not the only factors influencing brand value; consistent performance on the field also matters.”