The business enterprise value of the Indian Premier League, the world's second-richest sports league behind USA's National Football League, has dropped from ₹ 92,500 crore to ₹ 82,700 crore, a decline of 10.6 per cent when compared to the previous year.
This translates to a decrease of 11.7 per cent as the value dropped to US$9.9 billion from US$11.2 billion, according to D&P Advisory, a premier consultation and valuation services provider.
The Women's Premier League's valuation in contrast has increased to $160 million from $150 million in its inaugural year.
"The decline in IPL value results from a reassessment of media rights," the report titled ‘Beyond 22 Yards - IPL’s Legacy and WPL’s Vision’ said.
The failed merger between Zee and Sony, which was expected as of the last valuation, has impacted market dynamics. Similarly, the merging of Reliance-owned Network18 and Disney-owned Star India has essentially created monopolistic control over TV and digital broadcasting, the report states.
The delay in the entry of major tech players such as Amazon, Meta, and Apple into the IPL media rights arena has also exacerbated the situation.
“We anticipate certain demand-side constraints in the next IPL media rights cycle auction due to a decrease in number of potential bidders,” Santosh N, managing partner of D&P Advisory said.
The BCCI had sold IPL media rights for a whopping Rs 48,390 crore for a five-year period, beginning 2023.
Santosh fears that the potential dearth of competition could lead to a more conservative approach in the bidding for IPL media rights. “Despite a substantial growth opportunity for digital platforms, the pivotal question remains: will market
forces generate sufficient competition to drive up the per-match value of IPL rights?” he said.
The report mentions that Mumbai Indians remain the top-ranked franchise in the IPL, their bottom-placed finish in IPL 2024 notwithstanding. CSK and KKR also retain their second and third places in the brand rankings followed by RCB and Delhi Capitals.
"Ranking is based on expected cash flows, social media presence, team management quality among other things," Santosh told The Telegraph.
"We are not publishing the team brand values as they are all in a very tight range as more than 70 per cent of the franchise's revenues come from BCCI's central pool which is the same for all. So the differential revenue for the teams is very low."
The remaining franchises in in order of brand rankings are Gujarat Titans, SunRisers Hyderabad, LSG, Rajasthan Royals and Punjab Kings.
