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IPL brand value dips 3.6% to Rs 47,500 crore in 2020: Duff & Phelps

Mehra Media Team by Mehra Media Team
March 10, 2021
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At a time when the Covid-19 pandemic disrupted dwell sports activities internationally and properties just like the Olympic Games had to be postponed, the Board of Control for Cricket in India (BCCI) managed to pull off a seemingly not possible process of conducting a full season of the Indian Premier League (IPL) final 12 months.

And whereas different sporting properties suffered large blow, the general brand valuation of the IPL obtained a marginal hit of three.6%, as per Duff & Phelps, a Kroll Business.

The general valuation of the IPL ecosystem stood at Rs 45,800 crore in 2020, down from Rs 47,500 crore in 2019, as per the IPL Brand Valuation Report 2020.

The report highlighted that because the sports activities economic system was not immune to the disaster posed by the pandemic, the IPL additionally felt the warmth.

Moreover, the person franchisees have additionally witnessed a discount in their brand values over the past 12 months, primarily due to diminished franchisee-related sponsorship income, lack of gate receipts, diminished meals and beverage (F&B) income and sure groupsтАЩ on-field performances.

While there was no change in the pecking order, Mumbai Indians retained the highest spot rankings for the fifth consecutive 12 months, with a brand value of Rs 761 crore, down 5.9% from final 12 months. Chennai Super Kings and Kolkata Knight Riders witnessed a 16.5% and 13.7% drop in their brand value, respectively.

While CSKтАЩs brand value diminished from Rs 732 crore to Rs 611 crore, KKRтАЩs value dropped to Rs 543 crore, from Rs 629 crore.

тАЬSimilar to the impression on different companies and the general economic system, the pandemic led to a decline in the IPL ecosystem value. However, with individuals compelled to spend time at house, there was a rise in IPL tv viewership,тАЭ stated Santosh N, External Advisor, Duff & Phelps India.

He added that the 2020 version was an enormous success for broadcasters because it broke viewership and promoting income data. тАЬTelevision rankings skyrocketed and advertisers tapped into this chance to scale up their brand picture. Despite the difficult 12 months, this momentum is indicative of how robust the IPL brand has turn into. We have now entered a extra secure part in phrases of the IPL ecosystem’s value; the value appreciation shouldn’t be anticipated on the price of earlier years. However, a rise in the variety of groups in 2022 and the renewal of media rights in 2023 may improve the IPL ecosystem value in the long run,тАЭ Santosh added.

Commenting on the way forward for the sports activities ecosystem in India, Varun Gupta, Managing Director and Asia Pacific Leader for Valuation Advisory Services at Duff & Phelps, stated, тАЬThe IPL displays the evolution of the fashionable cricket enterprise, with golf equipment benefitting not solely from the game’s enduring reputation in India but in addition from the sport going international and from some nice advertising initiatives. We consider that for progress trajectories to keep their momentum, all groups want to proceed broadening their footprint, forming relationships and producing income alternatives in progress markets.тАЭ

In 2020, IPL season 13 has seen decrease sponsorship revenues as in contrast to earlier years. Dream11 paid Rs 222 crore for the title sponsorship, as in opposition to VivoтАЩs paused contract of Rs 440 crore per season.

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Mehra Media Team

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