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Tag: brand valuation

  • IPL’s business value will only rise: investment bank Houlihan Lokey, Brand Finance

    IPL’s business value will only rise: investment bank Houlihan Lokey, Brand Finance

    MUMBAI: The numbers are eye-popping. And they should please the calculators at JioStar, the newly created joint venture between Disney Star and Reliance’s Viacom18 just as its sales folks go into the market to raise sponsorship and free commercial time advertisers for its 2025 season.

    Brand Finance in its 17th IPL valuation report  said that the IPL’s  cumulative brand value rose 13 per cent to $12 billion.  The league was valued at $2 billion in 2009, $10.7 billion in 2023, according to Brand Finance.

    IPL system valuation

    Chennai Super Kings registered a brand value at  $122 million growing a healthy 52 per cent, Mumbai Indians grew 36 per cent at $119 million,  RCB increased 67 per cent with a brand value of $117 million, KKR rose 38 per cent to be valued at $109 million, Sunrisers Hyderabad climbed 76 per cent to touch $85 million, Rajasthan Royals had a  30 per cent increase ($81 million),  Delhi Capitals, 24 per cent to touch  $80 million,  Gujarat Titans showed a five per cent growth to generate a brand value of $69 million while Punjab Kings racked up a 49 per cent rise to be valued at $68 million.

    Most Valued IPL Brands

    “IPL 2024 witnessed a significant paradigm shift, with four franchise brands now surpassing the $100 million mark in brand value and experiencing dramatic increases in central revenue shares. Digital viewership has overtaken traditional TV numbers, while domestic batters and bowlers are emerging as key performers. Does this mark a dramatic turn for the IPL, signalling a positive transformation for the league’s future?” said Brand Finance India managing director Ajimon Francis.

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    Meanwhile, global investment bank Houlihan Lokey which released its IPL brand valuation study in June 2024 had valued the swashbuckling league as a business at $16.5 billion (Rs 134,858 crore).

    According to Houlihan Lokey corporate senior vice-president corporate valuation advisory services Harsh Talikoti who penned the report, the IPL in 2024 showed a growth of 6.5 per cent over the 2023 season’s business value which was at $15.4 billion. The business value of the league was pegged at just $8.5 billion in 2022 by the advisory firm.

    Houlihan Lokey used the discounted cash flow method to reach at these valuation numbers.

    In 2024, the IPL has transcended traditional sports norm to become a global phenomenon, it says.

    The brand value of the IPL has also soared from $1.8 billon in 2022 to $3.2 billion in 2023 to $3.4 billion in 2024 – a growth of 6.3 per cent. The valuation was determined using the relief from royalty method.

    Houlihan Lokey estimated the title sponsorship of the league cost the Tata group Rs 2,500 crore for a five-year period (approx. Rs 500 crore per season) which was a growth of approximately 50 per cent than the previous season’s deal of Rs 335 crore per season.

    The TV commercial ad rates have gone northwards from Rs 14.5 lakh in 2022 to Rs 16 lakh in 2023 to Rs 16.5 lakh in 2024, according to the report.

    Chennai Super Kings is the most valued amongst all the teams with a $ 231 million brand value. “CSK is the most consistent team in the league. Not only have they qualified in the playoffs for a staggering 12 out of 15 seasons they have played in, they have also won five titles. Former CSK captain Mahendra Singh Dhoni has been the face of the franchisee and the biggest contributor to the franchisee’s success,” says the report.

    The second most valued team is Royal Challengers Bengaluru with a valuation of $227 million. “The team’s emotional connection with fans, coupled with consistent efforts to fortify its brand, has cemented its enduring appeal, attracting marquee sponsors at premium rates,” revealed the report.

    Kolkata Knight Riders ranks third with a brand value of $216 million. Mumbai Indians comes in fourth with its brand valuation at $204 million. According to Houlihan Lokey,  “MI’s brand value was impacted slightly due to the negativity surrounding the team after a change in captaincy and its on-field performances; however, the long-term goodwill associated with the brand helped to negate the impact.”

    Rajasthan Royals came in fifth with its value at $133 million. Sunrisers Hyderabad is at sixth with its brand value at $132 million.  Delhi Capitals is at seventh with its brand value at $131 million. Gujarat Titans and Punjab Kings made the tail end of the rankings with their valuations at $124 and $101 million respectively.

    Houlihan Lokey believes that the IPL has some way to go to achieve its potential.

    “Though these stats may look slightly lower than other established leagues, it is important to note that the IPL commenced just over 15 years ago, while the EPL has been standing ground for over 25 years and the NFL for over 40. It is only natural for one to expect a growth in this tournament in terms of size and volume. The IPL has proven its current value and is sure to become the next big thing in the sports world,” predicts the report.

    You can download the full report by clicking on the link: Houlihan Lokey: IPL Valuation Study 2024

    You can access the BrandFinance data by clicking here: Brand Finance IPL valuation study

    (Picture courtesy: IPL)

  • Neeraj Chopra’s social media valuation reaches Rs 428 cr: JSW Sports

    Neeraj Chopra’s social media valuation reaches Rs 428 cr: JSW Sports

    Mumbai: More than a month after Olympic sensation Neeraj Chopra created history by bagging the sole gold medal for India in the 2020 Tokyo Olympics, the athlete’s stock has been on a perpetual upward trajectory. The win has turned Chopra into a household name overnight across the country. His stellar on-field performance has now spilled over seamlessly onto the digital arena, catapulting the 23-year old javelin-thrower into the social media spotlight.

    According to a report by research consultancy firm YouGov Sport, Neeraj Chopra recorded over 2.9 million mentions from over 1.4 million authors, making him the ‘most mentioned’ athlete globally on Instagram during the 2020 Tokyo Olympics. These numbers also represent a whopping 1401 per cent and 2055 per cent increase in his mentions from separate authors online, respectively. As a result, Chopra’s reach on social and digital media has come to a staggering 412 million, spanning several geographies over the world. These numbers have combined to take the athlete’s social media valuation to a total of Rs 428 crore.

    “Neeraj has been a consistently outstanding performer in his discipline over the last five to six years, resulting in his phenomenal success at the Tokyo Olympics. He has now become a recognisable personality for the Indian masses on a scale that was hitherto unseen. This, in turn, has brought about a growing interest from brands and institutions looking at a long-term sustainable collaboration,” said JSW Sports head of sales and marketing Divyanshu Singh. 

    The agency which represents the javelin thrower and manages Chopra’s endorsements shared that the athlete has created inroads into mainstream commercial success as a result of his performances on the field, and his growing popularity off it. 

    According to the report by YouGov Sport, Chopra’s total interactions on social media since bagging the gold medal have risen to 12.79 million, at a rate of 86.3 per cent. A key factor in the increased engagement on the athlete’s profile has been the steady increase in his video views, which is recorded at 4.05 million, nearly thrice the average for an elite Indian athlete on social media. Naturally, the number of account followers for Neeraj Chopra has also seen a swift upswing, with his Instagram following now recorded at 4.4 million, representing a 2297 per cent increase in his followers.

    Chopra has presently eclipsed even established international cricketers like KL Rahul and Rishab Pant in terms of total interactions and overall reach on social media, as per JSW Sports.

    The Olympic gold medallist last week signed his first set of endorsement deals after the Tokyo Games, which include edtech firm Byju’s, Tata AIA Life Insurance, and a top pharma brand. Welcoming Chopra on board, Tata AIA Life Insurance executive vice president and chief distribution officer Venky Iyer said, “As a VSM awardee in the army and a national icon today, Neeraj symbolises incredible passion for excellence and a great commitment to serving the nation. For us at Tata AIA, his sports journey echoes greatly with our vision of enabling dreams and inspiring healthier and happier lives.”

    According to reports, JSW Sports is in advanced talks to finalise more deals with luxury auto and apparel brands in the coming weeks and a series of digital-only pacts, at fees ten times higher than what Chopra charged before the Games. 

    The fact that the 23-year-old can deliver value has been well established in the days since his remarkable success. This has opened a new opportunity with brands that can innovate with strategies built around the young sensation.