IPL surges into decacorn territory with 28% brand value growth, now exceeding $10 Billion

• Mumbai Indians is the most valuable IPL brand, valued at $87 million, while Gujarat Titans continue to rise
• Lucknow Super Giants are the fastest growing IPL team
• Full stadium experience and viewership explosion help drive brand value growth
• Chennai Super Kings is the strongest IPL brand, earning AAA- rating and ranked 2nd most valuable Franchise brand in 2023
• Aramco bolsters perceptions in India through IPL sponsorship

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.

Aramco bolsters perceptions in India through IPL sponsorship

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.”

Brand Finance is the world’s leading brand valuation consultancy. Bridging the gap between marketing and finance for more than 25 years, Brand Finance evaluates the strength of brands and quantifies their financial value to help organizations of all kinds make strategic decisions.

Headquartered in London, Brand Finance has offices in over 20 countries, offering services on all continents. Every year, Brand Finance conducts more than 5,000 brand valuations, supported by original market research, and publishes over 100 reports which rank brands across all sectors and countries.

Brand Finance also operates the Global Brand Equity Monitor, conducting original market research annually on over 5,000 brands, surveying more than 150,000 respondents across 38 countries and 31 industry sectors. Combining perceptual data from the Global Brand Equity Monitor with data from its valuation database enables Brand Finance to arm brand leaders with the data and analytics they need to enhance brand and business value.

Brand Finance is a regulated accountancy firm, leading the standardization of the brand valuation industry. Brand Finance was the first to be certified by independent auditors as compliant with both ISO 10668 and ISO 20671 and has received the official endorsement of the Marketing Accountability Standards Board (MASB) in the United States.

Definition of Brand

Brand is defined as a marketing-related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, intended to identify goods, services, or entities, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits.

Brand Strength

Brand strength is the efficacy of a brand’s performance on intangible measures relative to its competitors. Brand Finance evaluates brand strength in a process compliant with ISO 20671, looking at Marketing Investment, Stakeholder Equity, and the impact of those on Business Performance. The data used is derived from Brand Finance’s proprietary market research programme and from publicly available sources.

Each brand is assigned a Brand Strength Index (BSI) score out of 100, which feeds into the brand value calculation. Based on the score, each brand is assigned a corresponding Brand Rating up to AAA+ in a format similar to a credit rating.

Brand Valuation Approach

Brand Finance calculates the values of brands in its rankings using the Royalty Relief approach – a brand valuation method compliant with the industry standards set in ISO 10668. It involves estimating the likely future revenues that are attributable to a brand by calculating a royalty rate that would be charged for its use, to arrive at a ‘brand value’ understood as a net economic benefit that a brand owner would achieve by licensing the brand in the open market.

The steps in this process are as follows:

1 Calculate brand strength using a balanced scorecard of metrics assessing Marketing Investment, Stakeholder Equity, and Business Performance. Brand strength is expressed as a Brand Strength Index (BSI) score on a scale of 0 to 100.

2 Determine royalty range for each industry, reflecting the importance of brand to purchasing decisions. In luxury, the maximum percentage is high, while in extractive industry, where goods are often commoditised, it is lower. This is done by reviewing comparable licensing agreements sourced from Brand Finance’s extensive database.

3 Calculate royalty rate. The BSI score is applied to the royalty range to arrive at a royalty rate. For example, if the royalty range in a sector is 0-5% and a brand has a BSI score of 80 out of 100, then an appropriate royalty rate for the use of this brand in the given sector will be 4%.

4 Determine brand-specific revenues by estimating a proportion of parent company revenues attributable to a brand.

5 Determine forecast revenues using a function of historic revenues, equity analyst forecasts, and economic growth rates.

6 Apply the royalty rate to the forecast revenues to derive brand revenues.

7 Discount post-tax brand revenues to a net present value which equals the brand value.

Brand Finance has produced this study with an independent and unbiased analysis. The values derived and opinions presented in this study are based on publicly available information and certain assumptions that Brand Finance used where such data was deficient or unclear. Brand Finance accepts no responsibility and will not be liable in the event that the publicly available information relied upon is subsequently found to be inaccurate. The opinions and financial analysis expressed in the study are not to be construed as providing investment or business advice. Brand Finance does not intend the study to be relied upon for any reason and excludes all liability to any body, government, or organisation.

The data presented in this study form part of Brand Finance’s proprietary database, are provided for the benefit of the media, and are not to be used in part or in full for any commercial or technical purpose without written permission from Brand Finance.