IPL franchises’ growth rate better than NFL and NBA teams, says Forbes
The Indian Premier League has been a rich source of money for its stakeholders. Forbes provided its first (and only) appraisals of the league’s franchises in 2009, a year after the cash-rich event’s inception, putting the average worth of the eight franchises at $67 million. With the league’s recent expansion to 10 clubs, that average has risen to $1.04 billion, representing a 24 percent yearly growth rate.
In comparison, during the last 13 years, NFL franchise values have grown by 10% (to $3.48 billion) while NBA team values have grown by 16% (to $2.48 billion). But the largest growth that an IPL team has ever seen is that of Mumbai Indians, the most valuable franchise is worth a whopping $1.3 billion. The value that Mumbai Indians now hold is highest than six MLB teams, 27 NHL teams, and all of the MLS teams combined.
As per a report by Forbes, it is said that the IPL is the most bulging cricket league in the world when sponsorships and media rights are taken into consideration. Thanks to BCCI, India’s most popular league is achieving laurels and the teams are gaining more and more popularity.
“The IPL is the most prominent cricket league in the world in terms of attracting sponsors and media rights. A lot of credit goes to founders of the IPL, who took ideas from the NBA and European soccer leagues, and good governance by the BCCI with regards to clear visibility of team funding and ensuring the tournament continued during Covid,” says Ajimon Francis, managing director at Brand Finance India, a brand valuation and strategy consultancy.
IPL draws a great amount of attention in India
The growth in values is reflected in transaction prices. The examples of Deccan Chargers and Delhi Daredevils are in front of us. The former team was kicked out in the year 2012 after they failed to pay their players, but they were soon taken over by Sun TV, who paid more than double the amount that the previous owners did.
Something similar happened with the Delhi-based franchise, when the JSW group took over 50% rights from the GMR group, the valuation of the team changed drastically. Now, with two more teams joining IPL 2022, the numbers have touched the roof.
Because of the mammoth audience that is indulging in the game and taking an interest to watch it, the IPL media rights have also taken a flight. As the tenders for the media rights for the next term have been released, IPL is expected to increase the price even more. The number of people taking interest in IPL keeps increasing day by day, and as a result accounts to the massive success of the league.
Below is the list of IPL’s most valuable teams:
- Mumbai Indians (Value: $1.3 billion)
- Chennai Super Kings (Value: $1.15 billion)
- Kolkata Knight Riders (Value: $1.1 billion)
- Lucknow Super Giants (Value: $1.075 billion)
- Delhi Capitals (Value: $1.035 billion)
- Royal Challengers Bangalore (Value: $1.025 billion)
- Rajasthan Royals (Value: $1 billion)
- Sunrisers Hydrabad (Value: $970 million)
- Punjab Kings (Value: $925 million)
- Gujarat Titans (Value: $850 million)
