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Tag: IPL brand valuation report 2019

  • IPL could see rev loss of upto $1000 mn due to COVID19

    IPL could see rev loss of upto $1000 mn due to COVID19

    MUMBAI: The postponement of Indian Premier League due to coronavirus pandemic will lead to a confirm loss in terms of revenue under two scenarios, according to a prediction by Duff and Phelps. In order to stop the spread of the virus in India, the BCCI has suspended IPL till 15 April.

    Duff & Phelps, a global advisor that helps clients protect, restore and maximise value, has undertaken a study to analyse the impact of COVID19 on the value of the IPL ecosystem. In its report IPL Brand Valuation Report 2019, it has considered two scenarios: 1) Truncated IPL with the number of matches reduced to half, a high possibility as per BCCI; 2) The entire IPL 13 season getting cancelled.

    The report says, “Under scenario one, the IPL ecosystem value estimated by the Duff and Phelps last year is expected to reduce by $200-350 million range (3-5 per cent). Whereas, in the second scenario IPL ecosystem value to reduce by $700-1,000 million range (around 10-15 per cent).”

    The global advisor on brand value says, “Our impact analysis has been carried out on the IPL ecosystem value calculated by Duff & Phelps last year, which was $6.8 billion in 2019. The analysis doesn’t reflect the current value of the IPL ecosystem, which would have been estimated after considering the factors available post completion of IPL 2020.”

    The report citing the first scenario says, “According to BCCI officials, in case the IPL season commences on 15 April, it will be truncated as more than 15 days would have been lost by that time. It predicted that in a truncated season, each team will play against the other only once, instead of the home & away format, thus reducing the number of league matches by half.”

    The report further adds, “Scenario one also gives two possibilities: one where the spectators are allowed inside the stadium and another where the matches are played behind closed doors, effectively impacting the in-stadia revenues including gate receipts and food and beverages.”

    “The second possibility in the first scenario is that it will have a negligible impact on IPL in terms of revenue, giving an upper hand to the official broadcaster. However, none of the stakeholders including the broadcasters prefer this option,” mentions the report. It further factors that the loss of revenue under this scenario will be low, as broadcast partners and sponsors will renegotiate the contracts based on the number of matches being played.

    Under the second scenario, Duff and Phelps have assumed the possibility of the entire IPL 13 getting cancelled, a high possibility if the current situation persists. This scenario will have a massive impact on the IPL ecosystem value, considering larger economic and financial consequences.

    The second scenario will also an economic impact due to the one year set back, where the global advisor anticipated that the sponsorship revenues might not grow at desired levels next year due to the current disruption.

  • Duff & Phelps launches IPL brand valuation report 2019

    Duff & Phelps launches IPL brand valuation report 2019

    MUMBAI: Duff & Phelps, the global advisor that protects, restores and maximizes value for clients, today announced findings from its IPL Brand Valuation Report 2019, a comprehensive study on brand values in the Indian Premier League (IPL).

    The findings of the sixth edition of Duff & Phelps’ annual IPL study suggest an increase in the overall value of the IPL ecosystem from US$6.3 billion in 2018to US$6.8billion in 2019, a growth of 7% after considering currency fluctuations. In INR terms, the IPL ecosystem value increased by approximately 13.5% from INR 41,800crores to INR 47,500 crores, underpinned by the continued confidenceadvertisers, broadcasters, sponsors, affiliates, partners and viewers have shown in the IPL.The individual franchisee brands saw mixed fortunes, with their brand values increasing or decreasing in close correlation with their on-field performances. 

    Varun Gupta, Asia Pacific Leader for Valuation Advisory Services and India Country Leader, Duff & Phelps, said, “Our IPL brand values report reflects the evolution of the modern cricket business paradigm. As we move into the second decade of IPL, the league has transitioned from being a startup to being a more mature, stable and profitable business.An increase of 20% in advertising revenues this year and the recently renewed PayTM title sponsorship deal (which has fetched an increase of 58% on a per-match basis over the last deal)are testaments to the continued popularity of IPL. This has resulted in a steady increase in the value of the ecosystem (which grew by 13.5% in INR terms). However, for growth trajectories to maintain their momentum, all teams need to focus on their on-field performance while continuing to broaden their footprint, forge relationships and generate revenue opportunities in growth markets.”

    Santosh. N, Managing Partner, D and PIndia Advisory ServicesLLP,a member of the Duff & Phelps network, said, “This year, Mumbai Indians (MI) and Chennai Super Kings (CSK), continued their absolute dominance with MI winning their fourth IPL title. Their consistent on-field performance has made them fulfil the dreams of their sponsors and advertisers resulting in a year-on-year increase in their brand value. On the contrary, Royal Challengers Bangalore (RCB) and Kolkata Knight Riders (KKR) have shed some of their brand value this year demonstrating thatbig city bases and marquee players are not the only factors influencing brand value; consistent performance on the field also matters.”

    Among franchises, MI, with a brand value of INR 809 crore up by almost 8.5% from last year, continues to top the charts for the fourth season in a row. CSK has seen a massive gain of 13.1% in its brand value to INR 732 crore, propelling the team to the No.2 spot in our brand rankings. Though CSK saw its brand value erode due to the two-year ban imposed on it, it seems to have recovered on the back of continued on-field success coupled with a pan-India ferventfan base and Dhoni’s charisma.

    KKR and RCB have seen their brand value erode primarily on account of their below-par on-field performances, with both franchises shedding approximately 8% of their brand value. However, both continue to be backed by loyal fan bases and the presence of Shah Rukh Khan and Virat Kohli respectively, who continue to carry each brand on their shoulders.This is particularly so for RCB, who if not for Virat Kohli, would have seen a significant erosion in its brand value in the last couple of years. 
    Sunrisers Hyderabad, the youngest franchisee in IPL, has made steady gains over the years in terms of its brand value while Delhi Capitals, on the back of its on-field performances this season, saw an appreciation of 9% to its brand values.