IPL’s enterprise value exceeds $15 billion.
Houlihan Lokey, a global investment bank, has released its first IPL Brand Valuation Study 2023, analyzing the business enterprise and brand values of the Indian Premier League (IPL). According to the study, Chennai Super Kings (CSK) ranks first in both brand ranking and business enterprise value ranking, with a brand value of $212 million, growing at a rate of 45.2% year-on-year. Royal Challengers Bangalore (RCB) ranks second with a brand value of $195 million. Rajasthan Royals experienced the highest incremental brand value rise, with a growth of 103% year-on-year.
The report states that the stand-alone brand value of the IPL has reached $3.2 billion, an increase of 80% from $1.8 billion in 2022. The business enterprise value of the IPL is now $15.4 billion, an 80% increase from $8.5 billion in 2022. This significant rise is primarily attributed to the 2023–2027 media rights deal with Viacom18 and Disney Star, following a highly competitive auction.
The IPL’s media rights have shown remarkable growth, with a Compound Annual Growth Rate (CAGR) of 18% from 2008 to 2023. In absolute terms, there has been a 196% growth between the 2017 and 2023 cycles. When comparing the IPL’s broadcasting fee per match with other professional leagues worldwide, the IPL outperforms the likes of the National Basketball Association (NBA), the English Premier League (EPL), and the Bundesliga, ranking second only to the National Football League (NFL).
Harsh Talikoti, Senior Vice President of Corporate Valuation Advisory Services at Houlihan Lokey, commented that the IPL, following the American-style franchise-based system for player recruitment, has established itself as an immensely lucrative sports league, similar to the NFL and NBA.