IPL surges into decacorn territory with 28% brand value growth, now exceeding $10 Billion
After a bumper 2023 season, the total combined brand value of the IPL System grew 28% to USD10.7 billion, according to a new report from the world’s leading independent brand valuation consultancy, Brand Finance. The total combined brand value of the IPL system has been calculated annually by Brand Finance since 2009, with the latest findings included in the IPL 2023 report.
The IPL’s triumphant return to full-capacity stadiums, increased viewer consumption on diverse devices, huge media partnerships, and renewed confidence among advertisers have collectively strengthened its brand. The IPL is now an ideal platform for launching new products and initiatives, reaching the largest audience base in India. Remarkably, the total brand value of the IPL system has surged by 433% since its 2008 launch.
Hugo Hensley, Head of Sports Services, Brand Finance, London, commented:
“The IPL brand stands as a guiding light to all other T20 leagues, illustrating how the business model can be successfully scaled up on a global level. Teams are proactively recruiting professionals to handle year- round player management, organize tournaments, and manage sponsor pools. The key to upholding the IPL brand lies in robust governance. The mother ship must remain steadfast and on course, ensuring a continuous commitment to value creation.”
Mumbai Indians is the most valuable IPL brand, valued at $87 million, while Gujarat Titans continue to rise
Mumbai Indians (MI) maintains its position as the top- ranking IPL Franchise in terms of brand value – coming in at USD87 million. The brand has continued to expand its global presence with MI#OneFamily. Following behind, Chennai Super Kings (CSK) has leapfrogged into the second most valuable brand position with a brand value of USD81 million, while Kolkata Knight Riders (KKR) and RCB follow at USD78.6 million and USD69.8 million respectively.
Gujarat Titans (GT) have demonstrated a significant increase in brand value and ranking, securing 5th position – an impressive jump from 8th place last year. This achievement reflects a substantial 38% growth in brand value, while GT is also the 2nd Strongest IPL Franchise brand, surpassed only by Chennai Super Kings (CSK).
Rajasthan Royals (RR) and Royal Challengers Bangalore (RCB) are consistently building their brand of cricket and have proven to be formidable brands with each passing IPL season. While RR is building a global T20 ecosystem with presence in multiple geographies with a wider cricket offering, RCB is continuing to be the much-vaunted team with no IPL trophy to show.
Ajimon Francis, Managing Director, Brand Finance India, commented:
“IPL 2023 is paving the way for a Global T20 business ecosystem! More and more Franchise owners will be taking their brand of cricket to newer potential markets in MEA, USA, APAC. Franchise owners are now seeing year-long commitment from players for various leagues played globally. IPL in India itself is transforming into a platform that is fuelling a wider growth in the sports economy.”
Lucknow Super Giants are the fastest growing IPL team
Lucknow Super Giants (LSG), which secured 8th position with a brand value of USD47 million, was the fastest growing IPL brand, up an impressive 48%. Despite starting with a relatively lower base, LSG has made substantial strides in the valuation landscape.
The Women’s Premier League (WPL) and viewership explosion help drive brand value growth
The Women’s Premier League (WPL) introduction has significantly boosted teams’ brand values by addressing equity gaps and elevating IPL governance standards. Notable changes, including 52 matchdays, the impact player rule, and the Decision Review System (DRS), bring renewed excitement to the IPL 2023 audience.
Jio Cinema’s offering of free-to-view access to all telecom users across devices in over 15 regional languages, has significantly enhanced the IPL viewership market. Jio Cinema’s innovative approach includes analytics-backed flexible pricing for advertisers, ensuring sustained marketer interest throughout the season.
The television audience on the Star platform faced stiff competition in attracting advertisers due to the matching regional language feeds. IPL maximized its engagement potential by offering a live match experience through stadium events and IPL theme parks in Tier 1 and 2 cities, creating a multiplier effect on food and beverage sponsor brands and merchandise sales.
Chennai Super Kings is the strongest IPL brand, earning AAA- rating and ranked 2nd most valuable Franchise brand in 2023
In addition to calculating brand value, Brand Finance also determines the relative strength of brands through a balanced scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance. Compliant with ISO 20671, Brand Finance’s assessment of stakeholder equity incorporates original market research data from over 100,000 respondents in 38 countries and across 31 sectors. According to this analysis, Chennai Super Kings is the strongest IPL brand, earning AAA- rating with a Brand Strength Index (BSI) score of 81.8 out of 100.
This is a Brand Strength Index score (BSI) similar to that of TikTok and Mercedes Benz, highlighting the significant power in terms of brand equity that many IPL team brands now possess. Gujarat Titans and Mumbai Indians come 2nd and 3rd respectively in Brand Strength.
In India, Cricket is by far the most popular sport, surpassing both football and tennis. Aramco’s recent partnership with the IPL puts the brands name on the Orange and Purple Caps awards for individual excellence. Brand Finance’s data shows perceptions of Aramco have improved among Cricket Fans, particularly in areas such as “Trustworthy” and “Innovative.”