The value of the Indian Premier League as a business reportedly increased to $5.3 billion after the 10th season this year, compared with $4.2 billion last year – a jump of 26%. These were the findings of a study conducted by American corporate finance advising firm Duff & Phelps.
The boost was attributed in a large part to the new Rs 2,200 crore title sponsorship deal signed between the IPL and Chinese electronics company Vivo earlier this year. Increased viewership and a relatively controversy-free 10th season also added to the increase in value, the report said.
“This IPL season has garnered attention for all the right reasons,” said Varun Gupta, managing director of Duff & Phelps, India. “Namely, a relatively controversy-free tournament, increase in social media engagement, strategic and highly successful marketing initiatives, and compelling on-field performances – all of which affirmed IPL’s standing as the most valuable cricketing league in the world.”
IPL broadcaster Sony Pictures Networks India reportedly earned over Rs 1,300 crore in advertising revenue from the 10th season. The edition also gained 1.25 billion television impressions for the 59 matches, a 22.5% jump from the previous season. Impressions refer to the number of individuals in thousands of a target audience who viewed an event, averaged across minutes, according to Mint.
Mumbai Indians top business table too
The brand values of the individual franchises have also reportedly risen by 34% on average this year compared with 2016. The Mumbai Indians, who won season 10, also became the first IPL team whose brand value crossed over $100 million. Mumbai’s $106 million was followed by Kolkata Knight Riders at $99 million and Royal Challengers Bangalore with $88 million.
The increase in brand value of individual franchises was attributed to “increasingly lucrative advertising, broadcasting and sponsorship deals; reduction in franchise fees beginning with the next season; increased viewership across India; and increased fan engagement, evidenced by the rise in social media activity”.
The number of IPL-related tweets has crossed 8.5 million and continues to grow, the report said. A total of approximately 6 million mentions on social media were registered in the 10th season, more than twice those of the last season’s 3.1 million, according to media agency Maxus. The Mumbai Indians had “an incredibly successful digital media strategy”, the report added. The franchise recorded 83 million engagements across Facebook (50 million), Instagram (29 million) and Twitter (3.95 million).