 "Indian Premier League's business value chalks up $16.4 bn on scoreboard")
The business value of the Indian Premier League (IPL) has soared to $16.4 billion in 2024, marking a 6.5 per cent increase over the previous year, according to a report released on Wednesday by global investment banker Houlihan Lokey.
Besides, the extensive increase in revenue from IPL media rights last year has nearly doubled the league’s valuation from 2022, which was pegged at $8.5 billion.
The IPL, akin to the FIFA World Cup, the Olympics, and the Cricket World Cup, can reach over 1 billion people, with its popularity extending beyond India.
The winner-takes-it-all phenomenon is evident in the brand valuations of the team franchises.
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Shah Rukh Khan’s Kolkata Knight Riders, which won the cup this year, saw a brand value surge of 19.3 per cent to $216 million — the highest increase among the 10 franchises.
Close behind is Royal Challengers Bangalore, with a valuation increase of 16.4 per cent after recovering from a losing streak to reach the playoffs, although they did not make it to the finals.
The third spot is held by Punjab Kings, which saw its valuation rise by 12.2 per cent.
The brand value is a subset of the business value, and any increase in the former impacts the latter.
The collective brand valuation of the 10 franchises grew by a modest 6.3 per cent in 2024 over the past year, reaching $3.4 billion. Only one franchise, Delhi Capitals, saw a decline in brand valuation, dropping by 1.5 per cent to $131 million.
The popularity of star cricketers also reached new heights.
With 269 million Instagram followers, Virat Kohli remains well ahead of his peers. He is followed by M S Dhoni with 48.2 million, Rohit Sharma with 38.6 million, K L Rahul with 20.2 million, and Shikhar Dhawan with 18.1 million.
There has been a massive increase in what franchises are willing to pay players this year.
In 2008, Dhoni, the most expensive player of the year, was paid Rs 11 crore. In 2024, the highest salary contract went to Australian cricketer Mitchell Starc, who received Rs 24.75 crore, a 125 per cent increase from what the top player earned in 2008.