Mumbai: After capturing the hearts and minds of millions all across the world, Indian Premier League has now crossed another landmark. According to a recent study by a UK-based brand valuation consultancy, the brand value of the IPL has more than doubled to USD 4.13 billion (over Rs 18,000 crore) from USD 2.01 billion in 2009. Interestingly, brand IPL has a higher valuation than English Premier League club Manchester United, which is valued close to USD 3 billion. "The IPL brand alone has risen significantly from the previous year's valuation providing tremendous economic value to its owner BCCI," Brand Finance, the brand valuation consultancy, said in a media release. "In comparison to international benchmarks for sporting business such as EPL (English Premier League) which is valued at $12 billion, the IPL juggernaut, in a short span of 3 years, is valued at $4 billion and has the potential to grow further," said Unni Krishnan, Managing Director of Brand Finance India. "A huge amount of intellectual property is being created by the complete IPL ecosystem which was sustained despite last year's difficult economic conditions. This demonstrates the exponential value of IPL and the brand potential in a cricket loving country like India and other global cricketing countries," Brand Finance said in a release. The franchises have been a part of this growth. Chennai Super Kings, who were ranked fourth last year, has emerged the most valued franchise in 2010. The CSK franchise has moved up the ladder to number one with a valuation of USD 48.4 million. The Kolkata Knight Riders co-owned by Bollywood actor Shah Rukh Khan comes in second with a valuation of USD 46 million and the Rajasthan Royals, co-owned by Bollywood actress Shilpa Shetty comes in third with USD 45.2 million. The Royal Challengers Bangalore, owned by Vijay Mallya, is ranked fourth with a valuation of USD 41.9 million and is followed by the Mumbai Indians (USD 40.8 million), Delhi Daredevils (USD 40.5 million) and Kings XI Punjab ( USD 36.1 million). The Deccan Chargers are at the base with a valuation of USD 34.4 million.
IPL-4: IPL's brand value falls by 11% to $ 3.67 billion
Bhanu Pande, ET Bureau Apr 7, 2011, 05.51am IST
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NEW DELHI: When the Board of Control for Cricket in India (BCCI) sacked Lalit Modi as commissioner of the Indian Premier League (IPL) last April, the objective may have been to clean up the wildly successful Twenty20 tournament of its alleged ills ranging from money laundering to match fixing. A year down the line, however, the ghosts of the controversies and allegations have yet to be exorcised. The latest Brand Finance study, which reveals a 11%, or $460 million drop in the value of the IPL, is evidence that all is still not well with the IPL. After two years of solid growth-the brand's value more than doubled last year-the IPL's worth is now pegged at $3.67 billion, down from a peak of $4.13 billion a year ago.
Opaque ownership patterns of many IPL franchisees coupled with allegations that funds for franchisees were coming from questionable investors have taken their toll on the marquee brand. "The honeymoon is over; the IPL juggernaut has sure hit a speed breaker," says M Unni Krishnan, MD of the India office of Brand Finance. "Now its sustainability will largely depend on infusing governance policies to align all the stakeholders towards win-win relationships, thereby preserving the value in the long run." Brand-Finance is a UK-headquartered firm that specialises in brand valuation. At another, more tangible, level the IPL has been hit by a tornado of galloping costs. Team costs, which comprise largely of players salaries and auction spend, shot up to 40-45% of revenues in last year's IPL . The corresponding figure for IPL 2 was 30-33%. There could be more pressure from costs in the years ahead on the IPL's valuation --- which...